DNB Bank ASA

Profitability & performance (good): ROE 14.5% (above 14% target); adjusted ROE ~15.5% excluding Luminor transaction profit share; operating momentum - Group ROE: 14.5% in Q3 2026, above minimum target 14%. - “Adjusted” ROE: 15.5% after excluding DNB’s share of profits from the Luminor transaction announced this quarter. - Net interest income (NII) +2.5% QoQ (supported by easing impact from competition vs Q2, plus rate effects). - Net commission & fees +14.6% YoY, with investment banking (+38% YoY) and asset management (+11.5 percentage points / strong growth) as key drivers. - Costs down NOK 355m (reduction in fixed salaries and variable salary discipline; but variable pay still higher YoY reflecting an active quarter). - Impairments: NOK 529m; management said there’s no industry/sector-specific news and no notable migration—portfolio remains robust and diversified.

Rates & NII outlook (surprising but key): strong personal banking benefit from repricing; another rate hike effect coming in late Nov - Management highlighted Norway’s continued resilience but with sticky inflation; policy rate now 4.5%. - The earlier spring rate hike already shows in Q3 results; a further central bank rate hike in September implies another customer repricing effective toward end of November. - Portfolio structure: >95% of mortgages are floating-rate priced, so repricing primarily benefits Personal Customers. - Management indicated they’ve repriced loans and deposits by up to 25 bps; impact should be positive for NII when it takes effect. - Competition impact on NII was less negative than Q2, but they stressed competition remains fierce—no “relief” signaled, just better outcome management.

Capital & buybacks (good): strong capital buffer; buyback execution faster; no change to allocation strategy - Core equity / capital ratio: 17.3%, about 100 bps above regulatory expected level. - Capital is described as very strong even after accounting for a deduction for the buyback-related 30 bps (linked to the buyback announced earlier today). - Share buyback: 0.75% this quarter; management said programs are executed a bit faster now due to sizing/technical execution. - No change to capital allocation strategy: buybacks continue when comfortable with the FSA buffer; further announcements depend on buffer/comfort.