DNB Bank ASA

Strong Q3 profitability & ROE; “good” drivers are NII and fees - ROE 14.5% for Q3 (above the bank’s 14% minimum). - Adjusted ROE 15.5% excluding DNB’s share of Luminor transaction profits (announced this quarter) → management is signaling underlying profitability strength. - NII up QoQ by 2.5%; net commission & fees up +14.6% YoY, with investment banking (+38% YoY) and asset management (+11.5 pp) called out as key fee growth engines. - Costs down NOK 355m (salary reductions: lower fixed salaries and variable salaries—though variable pay is still higher YoY, reflecting an active Q3).

Norwegian macro/rates: benefit from repricing, but more rate repricing is coming - Norway remains resilient: management cited +1.1% GDP growth (this year) and unemployment ~2%. - Key policy rate: 4.5%. Bank passed on rate increases earlier this year; another central bank hike in September will trigger additional customer repricing toward end-November. - Most of the NII impact in Q3 tied to the mid-July repricing; this sets up further NII support into Q4 if volumes/mix hold.

Competition didn’t worsen in Q3 (but also didn’t ease); sustainability is the debate - Management said competitive pressure impact on NII was somewhat less adverse than in Q2, but competition remains fierce and no belief of market change. - Clarified: no further breakdown of “competition erosion vs rate effects/portfolio mix” beyond noting competition impacts had been discussed earlier (management did not confirm the “~1%” figure referenced by an analyst). - Investor takeaway: Q3 performance benefits from repricing timing and portfolio management, but structural spread pressure risk remains given ongoing competitive intensity (especially retail and lower-tier SMEs).