DNB
Note: This is a daily stock update and the information stands true as of 11/07/25, 09:00 CET.
Company Update:
Overall, the pretax result came in 5% below consensus and was down by 3% yoy. RoE reached 15.4%, being down by 50bp qoq but despite topline misses, all metrics were in line with guidance provided and DNB confirmed Carnegie’s synergies were on track.
Expert Opinion:
DNB is a very very solid bank and the valuation of DNB is now cheaper than Nordic peers. The Norwegian economy is probably more resilient than many. Our analyst on the name considers that a drop in share price could be an opportunity to start entering into the name as he sees the bank less risky than other Nordics. Please contact our sales team by email if you want to book a call with our analyst.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
Company Update:
DNB posted its Q2 results which were a miss on all levels.
Topline was a 2% miss although most of the miss came from lower trading results than anticipated. NII was down by 2% qoq, impacted by lower lending spreads and slightly lower volumes.
Opex was in line with consensus although the C/I ratio deteriorated by 4pp yoy to 39% due to Carnegie’s consolidation.
Cost of risk rose slightly to 12 bps and was marginally worse than expected. Most of the deterioration occurred in corporate customers but so far the asset quality remains strong. Our thought is that generally speaking DNB should not have a cost of risk above 15bp. We priced in an 18bp CoR this year to keep it conservative, given the environment.
Overall, the pretax result came in 5% below consensus and was down by 3% yoy. RoE reached 15.4%, being down by 50bp qoq but despite topline misses, all metrics were in line with guidance provided and DNB confirmed Carnegie’s synergies were on track.
DNB is a very very solid bank and the valuation of DNB is now cheaper than Nordic peers. The Norwegian economy is probably more resilient than many. Our analyst on the name considers that a drop in share price could be an opportunity to start entering into the name as he sees the bank less risky than other Nordics. Please contact our sales team by email if you want to book a call with our analyst.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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