By Dominic Chopping


DNB Bank's second-quarter earnings beat forecasts as results were strong across all of its customer units, supported by a stable Norwegian economy with low unemployment and high activity.

Norway's largest lender made a profit attributable to shareholders of 10.27 billion Norwegian kroner ($958.1 million), compared with NOK9.15 billion a year earlier. Net interest income rose 3.8% to NOK15.82 billion.

A company-compiled consensus had seen net profit attributable to shareholders of NOK9.18 billion and net interest income of NOK15.62 billion.

The bank said it has seen an increase in the number of mortgage applications, more questions relating to home financing and planning personal finances and growing interest about savings products.

"Increasing wages and more stable interest rates have helped shift the mood among our customers," said Chief Executive Kjerstin Braathen.

"Inflation is declining, and real wage growth is anticipated for most people this year."

It still targets a return on equity above 13%, annual organic loan growth of around 3%-4% over time, an annual 4%-5% rise in net commissions and fees, and a cost-to-income ratio below 40%.

DNB's common equity Tier 1 capital ratio--a measure of a bank's financial strength--rose to 19.0% from 18.9%.


Write to Dominic Chopping at dominic.chopping@wsj.com


(END) Dow Jones Newswires

07-11-24 0222ET