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Dnb Asa (DNBBY)
: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
$37.87B
Dividend Yield6.33%
Average Volume (3M)1.78K
Price to Earnings (P/E)9.2
Beta (1Y)0.49
Revenue Growth17.01%
EPS Growth16.07%
CountryUS
Employees11,188
SectorFinancial
Sector Strength78
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.67
Shares Outstanding1,492,530,300
10 Day Avg. Volume0
30 Day Avg. Volume1,785
Financial Highlights & Ratios
PEG Ratio4.38
Price to Book (P/B)1.33
Price to Sales (P/S)0.00
P/FCF Ratio-7.46
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:Jul 11, 2025
(Q2-2025)
| % Change Since: -9.66%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong economic indicators and profitable growth in various segments, but challenges like decline in NII, impairment provisions, and specific issues such as Polish provisions and a decline in corporate deposits noted.Q2-2025 Updates
Positive Updates
Strong Economic Outlook for Norway
The Norwegian economy continues to be robust with GDP growth expected at 1.3% this year and 1.5% next year. Unemployment remains low at around 2%.
Profitable Loan Growth
DNB experienced profitable loan growth in all customer segments, with a return on equity of 15.4%, well above the long-term ambition of 14%.
Core Equity Tier 1 Capital Ratio
DNB maintains a strong capital position with a core equity Tier 1 capital ratio of 18.3%, 180 basis points above the regulatory expectation.
Resilient Investment Banking Activity
Investment banking activity remained strong with positive momentum from mid-May onwards, driven by improved risk sentiment in capital markets.
Asset Management Growth
Substantial inflow of over NOK 10 billion in asset management, with no significant margin pressure. The defined contribution bucket surpassed NOK 200 billion.
Negative Updates
Decrease in Net Interest Income (NII)
NII was down in the quarter due to the product mix effect within deposits and other noncustomer-related elements.
Impairment Provisions
Impairment provisions of NOK 677 million were taken, predominantly in the large corporate and corporate banking sectors in Norway.
Decline in Large Corporate Deposits
A decrease in low-margin short-term deposits from large corporates was noted, driven by changes in pricing.
Polish Provisions
Provisions for the Polish portfolio amounted to NOK 152 million in the quarter, adding to accumulated provisions of NOK 1.4 billion.
Company Guidance
During the DNB Q2 conference call, the guidance provided highlighted several key metrics and insights. The Norwegian economy remains robust with anticipated GDP growth of 1.3% this year and 1.5% next year, while unemployment is low at around 2%. The Central Bank reduced the key policy rate by 25 basis points to 4.25%, with expectations of further reductions to stabilize at 3.75%. DNB reported high activity levels with profitable loan growth across customer segments, though net interest income (NII) was affected by the loan growth and deposit mix. The bank took impairment provisions of NOK 677 million, mainly in large corporate and corporate banking sectors. DNB maintains a strong capital position with a core equity Tier 1 capital ratio of 18.3%, surpassing regulatory expectations, and achieved a return on equity of 15.4%, exceeding their long-term goal. Additionally, the bank noted a strong contribution from capital-light income and maintained guidance for 9% annual growth in fee and commission income.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 | 65.39B | 55.39B | 56.00B |
| Gross Profit | 84.82B | 81.25B | 65.50B | 55.39B | 56.00B |
| EBITDA | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Net Income | 45.77B | 39.48B | 33.36B | 25.33B | 19.85B |
Balance Sheet | |||||
| Total Assets | 3.61T | 3.44T | 3.23T | 2.92T | 2.92T |
| Cash, Cash Equivalents and Short-Term Investments | 179.96B | 335.58B | 317.12B | 400.72B | 373.01B |
| Total Debt | 1.01T | 952.37B | 838.67B | 778.50B | 824.50B |
| Total Liabilities | 3.33T | 3.17T | 2.98T | 2.68T | 2.67T |
| Stockholders Equity | 283.11B | 269.13B | 249.61B | 243.65B | 248.28B |
Cash Flow | |||||
| Free Cash Flow | -159.12B | 43.00M | 5.44B | 37.10B | 80.74B |
| Operating Cash Flow | -156.44B | 4.12B | 8.95B | 41.59B | 84.57B |
| Investing Cash Flow | -880.00M | -1.76B | -7.65B | -4.39B | -4.72B |
| Financing Cash Flow | -29.57B | 14.18B | 5.48B | -15.74B | -102.23B |
DNB ASA Technical Analysis
Negative
25.45
Price Trends
26.94
Negative
25.84
Negative
23.33
Positive
Market Momentum
-0.45
Positive
37.57
Neutral
4.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DNBBY, the sentiment is Negative. The current price of 25.45 is below the 20-day moving average (MA) of 26.87, below the 50-day MA of 26.94, and above the 200-day MA of 23.33, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 37.57 is Neutral, neither overbought nor oversold. The STOCH value of 4.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DNBBY.
DNB ASA Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $28.72B | 13.38 | 11.58% | 3.44% | 2.08% | 2.87% | |
76 Outperform | $31.49B | 12.71 | 9.48% | 2.75% | 0.62% | 14.75% | |
75 Outperform | $37.87B | 9.18 | 17.29% | 6.33% | 17.01% | 16.07% | |
74 Outperform | $64.00B | 8.96 | 20.65% | 0.46% | -6.74% | 5.13% | |
72 Outperform | $62.36B | 13.05 | 8.73% | 4.95% | -2.65% | -14.84% | |
69 Neutral | $57.95B | 12.04 | 8.13% | 5.88% | 18.25% | ― | |
61 Neutral | C$14.93B | 6.47 | 22.28% | 5.46% | 30.07% | -22.51% |
* Financial Sector Average
Performance Comparison
DNBBY
DNB ASA
25.45
5.22
25.80%
TFC
Truist Financial
44.25
2.53
6.06%
FITB
Fifth Third Bancorp
43.03
3.61
9.16%
ITUB
Itau Unibanco
6.30
1.10
21.15%
LYG
Lloyds Banking
4.18
1.31
45.64%
MTB
M&T Bank
196.19
30.12
18.14%
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.