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Dnb Asa (DNBBY)
:DNBBY
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DNB ASA
(OTC:DNBBY)
75Outperform
DNB ASA (DNBBY) vs. S&P 500 (SPY)
Market Cap
$39.40B
Dividend Yield4.18%
Average Volume (3M)2.22K
Price to Earnings (P/E)9.6
Beta (1Y)0.47
Revenue Growth17.01%
EPS Growth16.07%
CountryUS
Employees11,045
SectorFinancial
Sector Strength84
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.73
Shares Outstanding1,492,530,300
10 Day Avg. Volume0
30 Day Avg. Volume2,218
Financial Highlights & Ratios
PEG Ratio0.60
Price to Book (P/B)N/A
Price to Sales (P/S)4.89
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
DNB ASA Business Overview & Revenue Model
Company DescriptionDNB ASA is Norway's largest financial services group, providing a comprehensive range of financial products and services. The company operates in several sectors, including banking, insurance, asset management, and real estate. DNB ASA serves both individual and corporate clients with offerings such as savings and loans, payment services, investment solutions, and advisory services. It has a strong presence in the Nordic region with a focus on digital banking solutions.
How the Company Makes MoneyDNB ASA makes money primarily through its diverse portfolio of financial services. Key revenue streams include interest income from loans and mortgages, fees from payment processing and transaction services, and income from investment management services. The company also earns revenue from its insurance products through premiums and policy fees. DNB's corporate banking services provide significant revenue through lending, foreign exchange, and cash management services. Additionally, the company's partnerships with other financial institutions and its investment in digital banking platforms contribute to its earnings by expanding its customer base and enhancing operational efficiency.
DNB ASA Financial Statement Overview
Summary
DNB ASA demonstrates strong revenue growth and profitability with increasing revenue and net profit margins. However, the lack of EBIT and EBITDA data for 2024 and negative cash flows present potential risks. The balance sheet shows financial stability with zero debt and a strong equity position.Income Statement
DNB ASA shows a strong revenue growth trajectory with a notable increase in total revenue from NOK 79.06 billion in 2023 to NOK 84.82 billion in 2024, marking a revenue growth rate of approximately 7.79%. The gross profit margin remains consistently high as total revenue equals gross profit. However, the lack of reported EBIT and EBITDA for 2024 raises concerns about operational efficiency and transparency in this period. The net profit margin improved significantly from 49.93% in 2023 to 53.95% in 2024, indicating strong profitability.72
Positive
Balance Sheet
The company's balance sheet is robust, with a solid stockholders' equity to total assets ratio of 7.83% in 2024, indicating a strong equity base. The company has no total debt reported in 2024, which significantly reduces financial risk. The return on equity (ROE) improved to 16.17% in 2024, showcasing enhanced profitability and efficient use of equity. Overall, the balance sheet reflects financial stability with a strong equity position and minimal financial leverage.80
Positive
Cash Flow
DNB ASA's cash flow statement indicates challenges in cash generation, with a negative operating cash flow of NOK -156.44 billion in 2024, significantly impacting free cash flow, which is also negative at NOK -159.12 billion. This represents a substantial deterioration compared to previous years, raising concerns about liquidity and cash management. The operating cash flow to net income ratio is negative, suggesting that the company's operations are not generating sufficient cash relative to its net income.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 84.82B | 79.06B | 65.50B | 55.39B | 56.00B | Gross Profit |
| 84.82B | 81.25B | 65.50B | 55.39B | 56.00B | EBIT |
| 0.00 | 57.43B | 71.75B | 32.79B | 24.08B | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 45.77B | 39.48B | 33.36B | 25.33B | 19.85B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 147.94B | 335.58B | 309.99B | 400.72B | 373.01B | Total Assets |
| 3.61T | 3.44T | 3.24T | 2.92T | 2.92T | Total Debt |
| 0.00 | 952.37B | 838.67B | 778.50B | 824.50B | Net Debt |
| -147.94B | 620.96B | 528.69B | 481.77B | 540.98B | Total Liabilities |
| 3.33T | 3.17T | 2.98T | 2.68T | 2.67T | Stockholders Equity |
| 283.11B | 269.13B | 258.87B | 243.65B | 248.28B |
| Cash Flow | Free Cash Flow | |||
| -159.12B | 43.00M | 32.80B | 37.10B | 80.74B | Operating Cash Flow |
| -156.44B | 4.12B | 36.31B | 41.59B | 84.57B | Investing Cash Flow |
| -880.00M | -1.76B | -7.65B | -4.39B | -4.72B | Financing Cash Flow |
| -29.57B | 14.18B | 34.25B | -15.74B | -102.23B |
DNB ASA Technical Analysis
Positive
26.24
Price Trends
23.54
Positive
22.03
Positive
21.18
Positive
Market Momentum
0.96
Positive
71.51
Negative
73.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNBBY, the sentiment is Positive. The current price of 26.24 is above the 20-day moving average (MA) of 25.67, above the 50-day MA of 23.54, and above the 200-day MA of 21.18, indicating a neutral trend. The MACD of 0.96 indicates Positive momentum. The RSI at 71.51 is Negative, neither overbought nor oversold. The STOCH value of 73.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DNBBY.
DNB ASA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $639.44B | 11.58 | 17.28% | 2.10% | 17.07% | 21.78% | |
75 Outperform | $158.89B | 12.61 | 11.95% | 2.30% | 14.80% | 77.97% | |
75 Outperform | $39.40B | 9.61 | 17.21% | 4.18% | 17.01% | 16.07% | |
71 Outperform | $214.42B | 12.24 | 10.81% | 2.36% | 7.87% | 11.69% | |
70 Neutral | $283.05B | 11.58 | 9.24% | 2.74% | 13.06% | 4.94% | |
66 Neutral | $118.67B | 10.61 | 6.04% | 3.50% | 8.20% | 49.26% | |
63 Neutral | $14.39B | 9.81 | 8.95% | 4.37% | 16.38% | -11.64% |
* Financial Sector Average
Performance Comparison
DNBBY
DNB ASA
25.57
6.79
36.16%
BAC
Bank of America
37.22
1.00
2.76%
C
Citigroup
63.05
3.51
5.90%
JPM
JPMorgan Chase
228.69
34.53
17.78%
WFC
Wells Fargo
65.67
9.63
17.18%
GS
Goldman Sachs Group
511.23
111.97
28.04%
DNB ASA Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: 22.96% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong performance metrics across various segments, including record returns on equity and net interest income. Despite facing challenges such as inflation and competitive pressures, DNB has demonstrated resilience and adaptability in its strategic focus, including increased dividends and robust credit management.Highlights
Strong Return on Equity
DNB achieved a return on equity of 19% for the quarter, even after adjusting for an extraordinary low tax rate, it was 16.1%, which is well above their long-term target of 14%.
Increase in Net Interest Income
Net interest income increased by 3.7% from the third quarter of 2024, driven by profitable lending, with loan growth of 2.5% and deposit growth of 4.7%.
Record Net Commission and Fees
Net commission and fees were up 12.3% from the previous year, driven by strong results in debt capital markets and asset management.
Dividend Increase
The Board proposed a dividend of SEK 16.75 per share, up from SEK 16 last year, aligning with their policy of increasing nominal cash dividends year-on-year.
Strong Credit Portfolio
99.3% of DNB's credit portfolio is in Stage 1 and 2, with impairment provisions of SEK 157 million for the quarter, indicating a robust and well-diversified portfolio.
Lowlights
Higher Inflation Levels
Although inflation levels have decreased, they remain above the Central Bank's long-term target of around 2%.
Potential Decline in NII with Rate Cuts
There is an expectation of a negative impact on net interest income when rates start to decrease, which may affect the net interest margin.
Challenges in Meeting Regulatory Requirements
DNB anticipates regulatory headwinds and the need to absorb the capital effect from the Carnegie acquisition.
Continued Pressure in Competitive Market
The Norwegian banking market remains very competitive, with fierce competition impacting return on equity targets.
High Wage Growth Pressure
Wage growth was around 5.3% in 2024 and is expected to be around 4.4% in 2025, adding cost pressures.
Company Guidance
During the DNB Q4 conference call, significant guidance metrics were shared, highlighting robust economic conditions in Norway with a projected Mainland GDP growth of 0.9% in 2024 and an anticipated increase to 15% in 2025. Household consumption rose towards year-end, supported by rising real wages and low unemployment at 2%. The housing market showed increased activity, and inflation, though decreasing, remained above the Central Bank's 2% target. Wage growth was 5.3% in 2024, with forecasts of 4.4% in 2025 and 3.5% in 2026. The Norwegian Central Bank's key policy rate held at 4.5% is expected to decrease by 25 basis points in March, with further cuts leading to a terminal rate of 3.75%. For DNB, Q4 performance was strong with a return on equity at 19% (16.1% after adjusting for tax), exceeding the long-term target of 14%. Net interest income rose 3.7% from Q3 2024, with loan and deposit growth at 2.5% and 4.7%, respectively. Net commissions and fees increased 12.3% year-over-year, driven by debt capital markets and asset management. The credit portfolio remained robust, with 99.3% in Stage 1 and 2, and impairment provisions at SEK 157 million. A dividend of SEK 16.75 per share was proposed, up from SEK 16 last year, supporting a capital ratio of 19.4% to address regulatory challenges and the Carnegie acquisition.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.