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DNB ASA (DNBBY)
OTHER OTC:DNBBY
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DNB ASA
(OTC:DNBBY)
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Rating:72Outperform
Price Target:
$33.00
▲(20.26% Upside)
Action:ReiteratedDate:02/08/26
Overall score reflects solid financial performance but weighed down by inconsistent cash flow conversion and leverage typical of banks. Technicals are supportive (uptrend across moving averages with positive MACD), valuation is attractive (low‑teens P/E and ~5%+ yield), and the earnings call was broadly constructive on profitability/capital returns while flagging near‑term NII/margin, regulatory, tax and integration/credit-cost headwinds.
Positive Factors
High profitability / ROE
Sustained ROE near mid-teens and solid EPS demonstrate a high-return banking franchise that converts lending and fee activities into earnings. This level of profitability supports recurring dividends and buybacks, funds investments, and provides a durable earnings cushion versus peers over medium term.
Diversified fee and investment-banking growth
Robust fee growth and outsized investment-banking performance (post-Carnegie integration) materially diversify revenue away from NII. Higher, sticky fee income and AUM inflows reduce sensitivity to interest-rate cycles and support more stable earnings and cross-sell opportunities long term.
Strong capital buffers and leverage metrics
CET1 well above regulatory expectation and a healthy leverage ratio give durable capital headroom. This supports continued lending, buffers loan losses, and enables predictable shareholder distributions while preserving the capacity to pursue strategic investments or acquisitions.
Negative Factors
Elevated balance-sheet leverage
A relatively high debt-to-equity profile amplifies sensitivity to credit-cycle shocks and funding stresses. Even with improving equity and strong ROE, elevated leverage can constrain strategic flexibility, increase capital demands during downturns, and raise loss-amplification risk over the medium term.
Inconsistent cash generation
Material year-to-year swings in operating and free cash flow reduce reliability of cash to fund dividends, buybacks, and loan growth. This volatility can force timing mismatches between earnings and liquidity needs, complicating capital planning and increasing reliance on funding markets in stress periods.
Structural NII and tax headwinds
A permanent regulatory NII hit and a higher long-term tax rate materially reduce after-tax net interest income and margins. Combined with competitive repricing, these structural cost and revenue headwinds depress sustainable earnings power unless offset by further fee diversification or cost cuts.
DNB ASA (DNBBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$46.32B
Dividend Yield5.74%
Average Volume (3M)5.17K
Price to Earnings (P/E)11.4
Beta (1Y)0.45
Revenue Growth-0.15%
EPS Growth7.97%
CountryUS
Employees11,188
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.78
Shares Outstanding1,477,605,000
10 Day Avg. Volume10,867
30 Day Avg. Volume5,166
Financial Highlights & Ratios
PEG Ratio-3.70
Price to Book (P/B)1.40
Price to Sales (P/S)2.04
P/FCF Ratio5.89
Enterprise Value/Market Cap26.37
Enterprise Value/Revenue6.06
Enterprise Value/Gross Profit18.20
Enterprise Value/Ebitda21.93
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)2.77
Revenue Forecast (FY)$9.37B
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 primarily generates revenue through interest income from loans and mortgages, which constitute a significant portion of its earnings. The company charges interest on personal and corporate loans, while also earning fees from various banking services. Additional revenue streams include transaction fees, asset management fees, and insurance premiums. DNB benefits from significant partnerships with other financial institutions and corporations, enhancing its service offerings and expanding its customer base. The company also invests in securities and other financial instruments, contributing to its income through capital gains and dividends.
DNB ASA Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call showed a strong operating performance with high profitability (ROE 16.6%), substantial fee and wealth-management revenue growth, market-leading investment banking results after the Carnegie integration, solid capital ratios and disciplined underlying cost control. Offsetting risks include margin pressure from rate cuts and competition, notable quarterly impairments and specific credit losses, higher reported operating costs and integration one-offs, and an expected regulatory NII headwind (~NOK 300m) plus higher long-term tax guidance. Overall, the positive operational and financial momentum and capital strength outweigh the headwinds highlighted.Q4-2025 Updates
Positive Updates
Strong profitability and shareholder returns
Return on equity of 16.6% in the quarter; earnings per share NOK 7.65 in Q4 (up ~9.6% vs Q3) and full-year EPS NOK 28.45. Board proposes cash dividend NOK 18/share (up 7.5% YoY); completed 2% buyback and announced additional 0.5% buyback, total payout for 2025 of 86.3%.
Exceptional fee- and transaction-driven revenue growth
Net commission and fees up 40.3% YoY in Q4 (NOK +1.3bn). Investment banking services +101% (Q4); asset management & custodial services +68% (Q4). Wealth management income +41.7% YoY; positive flows and AUM growth (management reported net flow ~NOK 47bn for the year; quarter AUM increase noted ~NOK 88bn).
Market leadership through Carnegie integration
DNB Carnegie reported #1 in number and volume of IPOs across Europe in 2025, #1 in Nordics investment banking and strong positions in ECM, DCM and M&A; integration driving material revenue uplift and cross-selling opportunities.
Solid capital and balance sheet metrics
CET1 ratio 17.9% after proposed dividend and announced 0.5% buyback (160 bps headroom to expected regulatory level); leverage ratio strong at 6.6% — provides capacity for growth and continued shareholder distributions.
Loan and deposit growth across core segments
Group lending growth 4.9% for 2025; deposits up 2.8% for the year. Personal customer deposit growth 7.7% and corporate deposits (personal and corporate segments) showing sticky, valuable balances. Corporate lending growth strong (corporate customers profitable lending growth ~7.7% for year; Corporate Norway +5.2% in the quarter).
Robust credit quality
99.4% of exposure in Stage 1 and 2; no negative migration reported and positive developments in credit quality for large corporates. Quarterly cost of risk reported ~15 bps, with impairments primarily related to specific customer situations.
Cost discipline evidence
Underlying costs flat ex-Carnegie effects; full-year underlying cost growth 2.6% which is below Norwegian core inflation (3.1%). Reported cost/income ratio 39.7% for the quarter, indicating operating leverage from higher activity.
Operational and customer service improvements
Retail process improvements: mortgage application implementation time reduced by 24%; automated business registration and onboarding reduced time by 37%. Montrose awarded best bank in Sweden (after one year) and highest customer satisfaction reported for Sbanken post-integration.
Negative Updates
Margin pressure and NII headwinds
Combined spreads down 6 basis points; personal customer lending margin down 18 bps in the quarter. Net interest income only up 1.2% in Q4 and there is downward pressure from recent rate cuts. Regulatory change to tax accounts in Norway estimated to have a negative annual NII effect of ~NOK 300 million.
Elevated operating costs and one-offs
Operating expenses up NOK 878 million in the quarter; variable salaries increased by NOK 330 million. The quarter included one-off items of NOK 200 million (NOK 50 million integration cost plus year-end adjustments). Integration costs related to Carnegie were NOK 250 million in 2025 with up to NOK 200 million expected in 2026.
Quarterly impairments and specific credit losses
Impairments in Corporate customers amounted to NOK 793 million in the quarter, with Stage 3 provisions related to specific names in residential, real estate and construction. Legacy Poland provision of NOK 34 million recorded. Cost of risk ~15 bps reflects specific customer situations.
Weakness in particular fee lines and business units
Money transfer and banking services fees down 25% in the quarter, attributed to increased use of credit insurance and LCIC; DNB Finance saw pressure from used car sales affecting profits in the quarter.
Deposits growth slightly below target and mix issues
Group deposits up 2.8% for the year (below the 3–4% target range). Decrease in large corporate deposit volumes noted (intentional reductions on specific names), creating some mix effects that are less accretive to NII.
Competitive pressure on margins and repricing timing effects
Margin decline driven by repricing effects, product-mix and stronger competition; Q4 reflected full effect of August repricing and partial November repricing (full November effect expected next quarter), implying ongoing margin uncertainty in near term.
Higher long-term tax guidance
Reported effective tax rate for 2025 was 18.5%, and management has adjusted long-term tax guidance up from 20% to 23%, increasing future after-tax headwinds.
Company Guidance
The call’s guidance highlighted a proposed cash dividend of NOK 18 per share (up 7.5% y/y) and an announced additional 0.5 percentage‑point buyback (bringing 2025 buybacks to 2.5% and total payout to 86.3%), leaving a pro‑forma CET1 of 17.9% with ~160 bps headroom to regulatory expectations; management signalled the Board will seek further buyback authorization at the AGM. Key forward items: long‑term tax guidance raised to 23% (from 20%), expected integration costs of NOK 250m in 2025 and up to NOK 200m in 2026, an estimated ~NOK 300m annual negative NII effect from a regulatory change to tax accounts, and an anticipated additional policy‑rate cut (from 4.0% to 3.75%) in June then stable. Macro and capital metrics reiterated included GDP +1.5% (this year) / +1.6% (next year), unemployment ~2.2%, leverage ratio 6.6% (vs 3% requirement), a cost‑income target below 40% (current 39.7%), and strong portfolio metrics (99.4% Stage 1–2, cost of risk 15 bps). The guidance was framed against recent results (ROE 16.6% Q4; EPS NOK 7.65 Q4 / NOK 28.45 FY; NII +1.2% Q4; net commission +40.3% Q4; lending growth +4.9% FY; deposits +2.8% FY; underlying cost growth ~2.6% FY).DNB ASA Financial Statement Overview
Summary
Strong income statement (revenue expansion and resilient low‑20% net margins recently) is partly offset by a more leveraged bank balance sheet and especially volatile cash generation, including a sharp negative operating/free cash flow year despite solid earnings.Income Statement
Revenue expanded strongly over the period (accelerating in 2022–2023 and still up double-digits in 2025), supporting solid profitability. Recent profitability is resilient with net margin around the low-20% range (2023–2025) and steady operating profitability. Offsetting this, profitability peaked earlier (very high margins in 2021–2022) and has normalized since, and 2020 shows an unusually weak operating margin versus surrounding years, signaling some historical volatility in earnings quality/structure.78
Positive
Balance Sheet
The balance sheet reflects a typical bank profile with high leverage: debt-to-equity runs ~3.2–3.6x across the period. Equity has grown steadily, and returns on equity are healthy (roughly 10% to 16%), which supports the business model’s profitability. The key drawback is the consistently elevated leverage level, which can amplify sensitivity to credit cycles and funding conditions despite improving equity.64
Positive
Cash Flow
Cash generation is inconsistent year-to-year. Operating and free cash flow are strong in some years (notably 2020, 2021, and 2025) and free cash flow is close to net income in 2025, which is supportive. However, 2024 shows sharply negative operating and free cash flow despite solid earnings, and 2023 cash generation was very low versus profits, indicating volatility that raises questions about the reliability and timing of cash conversion.52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 201.48B | 214.18B | 180.35B | 97.09B | 63.59B |
| Gross Profit | 89.44B | 84.82B | 78.60B | 65.66B | 56.26B |
| EBITDA | 57.15B | 58.50B | 54.05B | 44.03B | 36.03B |
| Net Income | 43.55B | 45.77B | 39.48B | 33.36B | 25.33B |
Balance Sheet | |||||
| Total Assets | 3.70T | 3.61T | 3.44T | 3.23T | 2.92T |
| Cash, Cash Equivalents and Short-Term Investments | 162.78B | 179.96B | 525.95B | 455.16B | 400.72B |
| Total Debt | 935.67B | 1.01T | 952.37B | 838.67B | 778.50B |
| Total Liabilities | 3.40T | 3.33T | 3.17T | 2.98T | 2.68T |
| Stockholders Equity | 295.15B | 283.11B | 269.13B | 249.61B | 243.65B |
Cash Flow | |||||
| Free Cash Flow | 69.93B | -159.12B | 43.00M | 5.44B | 37.10B |
| Operating Cash Flow | 72.59B | -156.44B | 4.12B | 8.95B | 41.59B |
| Investing Cash Flow | -15.50B | -880.00M | -1.76B | -7.65B | -4.39B |
| Financing Cash Flow | -33.87B | -29.57B | 14.18B | 5.48B | -15.74B |
DNB ASA Technical Analysis
Positive
27.44
Price Trends
28.89
Positive
27.66
Positive
27.17
Positive
Market Momentum
0.89
Negative
64.15
Neutral
67.36
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 27.44 is below the 20-day moving average (MA) of 30.47, below the 50-day MA of 28.89, and above the 200-day MA of 27.17, indicating a bullish trend. The MACD of 0.89 indicates Negative momentum. The RSI at 64.15 is Neutral, neither overbought nor oversold. The STOCH value of 67.36 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $32.56B | 12.86 | 9.77% | 2.76% | -0.81% | 20.34% | |
72 Outperform | $46.32B | 11.44 | 17.29% | 5.74% | -0.15% | 7.97% | |
72 Outperform | $24.94B | 12.36 | 11.68% | 3.74% | 4.00% | 28.54% | |
70 Outperform | $45.75B | 14.21 | 12.20% | 3.14% | 0.15% | 11.62% | |
69 Neutral | $41.67B | 10.79 | 10.33% | 2.79% | -4.64% | 24.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $63.53B | 13.01 | 8.24% | 4.12% | 22.02% | ― |
* Financial Sector Average
DNBBY
DNB ASA
31.78
8.77
38.14%
TFC
Truist Financial
51.50
7.89
18.09%
FITB
Fifth Third Bancorp
51.97
10.15
24.27%
KB
Kb Financial Group
115.32
59.70
107.34%
MTB
M&T Bank
225.35
41.48
22.56%
RF
Regions Financial
29.36
6.93
30.93%
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.