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DNB ASA (DNBBY)
OTHER OTC:DNBBY
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DNB ASA
(OTC:DNBBY)
Rating:75Outperform
Price Target:―
DNB ASA (DNBBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.00B
Dividend Yield5.87%
Average Volume (3M)991.00
Price to Earnings (P/E)10.0
Beta (1Y)0.52
Revenue Growth17.01%
EPS Growth16.07%
CountryUS
Employees11,188
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.68
Shares Outstanding1,492,530,300
10 Day Avg. Volume0
30 Day Avg. Volume991
Financial Highlights & Ratios
PEG Ratio0.27
Price to Book (P/B)1.16
Price to Sales (P/S)0.00
P/FCF Ratio9.13
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 Bank ASA provides financial services for retail and corporate customers in Norway and internationally. The company offers personal banking products and services, including savings and investment products; loans, such as home mortgages, and car and consumer loans; pet, home and property, travel, and personal insurance products, as well as insurance products for vehicles; retirement savings products; foreign exchange and treasury activities; and Internet and mobile banking services, as well as cards. It also provides business banking products and services comprising savings and investment products consisting of savings accounts, fixed rate deposits, exchange traded products, bonds and commercial papers, asset management, and equity services; financing, such as installment loans, overdraft facility, bank guarantees, leasing, factoring, and trade and export financing services; transaction banking services; research, commodities, bonds and commercial papers, corporate finance, debt capital market, equities, foreign exchange and interest rates, and securities services; and Internet services, including online equity trading, online FX trading, e-confirmation, equities execution, and investor and margin accounts, as well as pension services. In addition, the company provides investment banking services, such as mergers and acquisition, and equity and debt capital market services; foreign exchange, interest rates, equities, commodities, fixed income, research, private equity, and securities services; and corporate banking services. Further, it offers private banking services. The company offers its products and services to various sectors, including energy; financial institutions; healthcare; manufacturing; packaging and forest products; seafood; shipping, offshore, and logistics; and telecom, media, and technology. DNB Bank ASA was founded in 1822 and is headquartered in Oslo, Norway.
How the Company Makes MoneyDNB ASA generates revenue through various streams, primarily from interest income on loans and credit extended to personal and corporate customers. The bank also earns income from fees and commissions associated with its wealth management, asset management, and investment banking services. Additionally, DNB generates revenue through its insurance products, including life and non-life insurance offerings. Key partnerships with international financial institutions and a strong focus on digital banking solutions further contribute to its revenue growth. Foreign exchange services and treasury operations also play a role in the company's earnings.
DNB ASA Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q1-2025)
| % Change Since: 8.11%|
Next Earnings Date:Jul 11, 2025
Earnings Call Sentiment Positive
The earnings call showcases a strong financial performance with significant growth in fees and a robust capital position. However, challenges such as global trade tensions and specific impairments present risks. The overall sentiment is leaning towards positive due to the strong core performance and strategic positioning with the Carnegie acquisition.Q1-2025 Updates
Positive Updates
Strong Performance Across the Board
DNB reported a strong performance with a return on equity of 15.9%. Net interest income (NII) was down 1.8% from the fourth quarter but up 5.7% from the first quarter of 2024. The company also saw a 29.5% increase in net commission and fees, with a record high quarter for commission and fees.
Inclusion of Carnegie
The inclusion of Carnegie as of March has positioned DNB well for future fee-related income. The merger is expected to create a Nordic powerhouse in investment banking and wealth management.
Robust Capital Position
DNB maintains a robust capital position with a core Tier 1 capital ratio of 18.5%, even after accounting for the acquisition of Carnegie.
Positive Economic Outlook
The Norwegian economy remains robust with low unemployment levels around 2% and a moderate growth outlook. The Central Bank is expected to cut the policy rate twice this year to end at 4% by year-end.
Negative Updates
NII Impacted by Rate Changes
Net interest income was down 1.8% from the fourth quarter, impacted by profitable growth in loans and deposits but offset by fewer interest rate days.
Exposure to Global Trade Tensions
The company faces uncertainty due to global trade tensions and tariff risks, particularly affecting sectors like energy and shipping.
Impairment Provisions
DNB took impairment provisions of NOK 410 million in the quarter, with some stemming from the legacy portfolio in Poland.
Limited Loan Growth in Large Corporates
Loan growth in the large corporate area was fairly stable, with an uptick of only 0.5% currency adjusted, and negative 0.3% if not adjusted for currency.
Company Guidance
During DNB's Analyst Call for the first quarter of 2025, the bank provided comprehensive guidance detailing its financial performance and strategic outlook. The Norwegian economy remained stable, with low unemployment at approximately 2% and the Central Bank maintaining a policy rate of 4.5%, expected to decrease to 4% by year-end. DNB reported a return on equity of 15.9%, with net interest income (NII) down 1.8% from the previous quarter but up 5.7% from the same period in 2024, influenced by growth in loans and deposits. Net commission and fees surged by 29.5% year-on-year, driven significantly by the inclusion of Carnegie, marking a record high for the quarter. Loan growth was modest, with personal customers increasing by 0.8% and small and medium-sized enterprises by 0.5%, while large corporate volumes remained stable. The bank's capital position remained robust with a Core Tier 1 capital ratio at 18.5%, and it announced plans to apply for a 1% share buyback. Additionally, impairment provisions totaled NOK 410 million, and the bank received authorization to buy back up to 3.5% of outstanding shares.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 | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 116.91B | 84.82B | 79.06B | 65.39B | 55.39B | 56.00B |
| Gross Profit | 85.77B | 84.82B | 81.25B | 65.50B | 55.39B | 56.00B |
| EBITDA | 14.50B | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 46.41B | 45.77B | 39.48B | 33.36B | 25.33B | 19.85B |
Balance Sheet | ||||||
| Total Assets | 4.03T | 3.61T | 3.44T | 3.23T | 2.92T | 2.92T |
| Cash, Cash Equivalents and Short-Term Investments | 545.44B | 179.96B | 335.58B | 317.12B | 400.72B | 373.01B |
| Total Debt | 999.81B | 1.01T | 952.37B | 838.67B | 778.50B | 824.50B |
| Total Liabilities | 3.74T | 3.33T | 3.17T | 2.98T | 2.68T | 2.67T |
| Stockholders Equity | 292.26B | 283.11B | 269.13B | 249.61B | 243.65B | 248.28B |
Cash Flow | ||||||
| Free Cash Flow | -36.28B | -159.12B | 43.00M | 5.44B | 37.10B | 80.74B |
| Operating Cash Flow | -33.81B | -156.44B | 4.12B | 8.95B | 41.59B | 84.57B |
| Investing Cash Flow | -11.47B | -880.00M | -1.76B | -7.65B | -4.39B | -4.72B |
| Financing Cash Flow | -25.01B | -29.57B | 14.18B | 5.48B | -15.74B | -102.23B |
DNB ASA Technical Analysis
Positive
27.45
Price Trends
26.51
Positive
25.15
Positive
22.87
Positive
Market Momentum
0.21
Positive
53.61
Neutral
28.45
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 27.45 is below the 20-day moving average (MA) of 27.49, above the 50-day MA of 26.51, and above the 200-day MA of 22.87, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 53.61 is Neutral, neither overbought nor oversold. The STOCH value of 28.45 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 (67)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $27.71B | 13.18 | 11.71% | 3.56% | 5.75% | 0.68% | |
77 Outperform | $31.11B | 12.98 | 9.39% | 2.79% | 1.20% | 1.12% | |
75 Outperform | $41.00B | 9.99 | 16.57% | 5.87% | 17.01% | 16.07% | |
74 Outperform | $67.23B | 9.42 | 20.65% | 8.23% | -6.74% | 5.13% | |
72 Outperform | $62.97B | 13.21 | 8.73% | 4.89% | -2.65% | -14.84% | |
67 Neutral | $16.66B | 11.44 | 9.71% | 3.91% | 11.61% | -10.70% | |
63 Neutral | $55.80B | 12.56 | 0.10% | 4.88% | -27.31% | ― |
* Financial Sector Average
Performance Comparison
DNBBY
DNB ASA
27.45
7.57
38.08%
TFC
Truist Financial
42.61
5.21
13.93%
FITB
Fifth Third Bancorp
41.51
6.20
17.56%
ITUB
Itau Unibanco
6.62
1.78
36.78%
LYG
Lloyds Banking
4.23
1.57
59.02%
MTB
M&T Bank
193.78
48.17
33.08%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.