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DNB ASA (DNBBY)
OTHER OTC:DNBBY
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DNB ASA
(OTC:DNBBY)
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Rating:63Neutral
Price Target:
$29.00
▲(5.69% Upside)
The score is driven mainly by mixed financial performance: strong profitability/ROE is offset by negative recent cash flow, higher leverage, and a sharp TTM revenue decline. Valuation is a key positive (low P/E and high dividend yield). Technicals and the latest earnings call are moderately supportive but not strong enough to outweigh the cash-flow and leverage risks.
Positive Factors
Strong Revenue Growth
DNB ASA's strong revenue growth trajectory indicates robust demand for its financial services, enhancing its market position and supporting long-term profitability.
Robust Digital Banking Platforms
DNB's strong digital banking platforms provide a competitive edge, enabling efficient service delivery and customer engagement, crucial for sustaining growth in the digital age.
Strong Balance Sheet
A debt-free balance sheet enhances financial stability, providing DNB with flexibility to invest in growth opportunities and withstand economic downturns.
Negative Factors
Negative Cash Flow
Negative cash flow indicates potential liquidity issues, limiting DNB's ability to fund operations and invest in growth without external financing.
Regulatory Challenges
Regulatory challenges can increase compliance costs and limit operational flexibility, impacting DNB's ability to achieve strategic objectives.
Competitive Market Pressure
Intense competition in the banking sector can pressure margins and hinder DNB's ability to achieve desired return on equity, affecting long-term profitability.
DNB ASA (DNBBY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.80B
Dividend Yield5.74%
Average Volume (3M)5.17K
Price to Earnings (P/E)10.2
Beta (1Y)0.42
Revenue Growth-0.15%
EPS Growth7.97%
CountryUS
Employees11,188
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.70
Shares Outstanding1,492,530,300
10 Day Avg. Volume10,867
30 Day Avg. Volume5,166
Financial Highlights & Ratios
PEG Ratio0.35
Price to Book (P/B)1.19
Price to Sales (P/S)1.57
P/FCF Ratio-2.11
Enterprise Value/Market Cap4.25
Enterprise Value/Revenue1.01
Enterprise Value/Gross Profit2.72
Enterprise Value/Ebitda4.29
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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:Oct 22, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 06, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mix of strong financial performance and economic indicators alongside challenges such as declining net interest income and significant loan loss provisions in Poland.Q3-2025 Updates
Positive Updates
Strong Financial Performance
DNB delivered a solid third quarter result with a return on equity of 15.8% and earnings per share of NOK 6.98, an uptick of 2.8% from the last quarter.
Positive Economic Indicators
Norwegian GDP growth is expected at 1.8% this year. Unemployment remains low at around 2%, and real wages are expected to increase, supporting purchasing power and lending growth.
Robust Credit Portfolio
99.4% of the credit portfolio is in Stage 1 and 2, indicating a robust and well-diversified credit portfolio.
New Share Buyback Program
DNB launched a new share buyback program of 1% in addition to the one completed during the third quarter.
Growth in Assets Under Management
Underlying asset under management growth was NOK 54 billion in the quarter.
Negative Updates
Decline in Net Interest Income
Net interest income fell by 1%, impacted by the key policy rate, customer repricings, and product mix effects.
Significant Loan Loss Provisions in Poland
DNB took NOK 281 million of loan loss provisions in Poland this quarter, with accumulated provisions totaling NOK 1.6 billion related to the legacy currency portfolio.
Volatility in Large Corporate Deposits
Large corporate deposits showed volatility, with fluctuations linked to time deposits and foreign currency effects.
Company Guidance
In the recent DNB Q3 Conference Call, the bank provided guidance on several key metrics. GDP growth for Norway is projected at 1.8% for the current year, with expectations of 1.3% to 1.5% growth in subsequent years. The unemployment rate remains low at around 2%, supporting potential loan growth and consumption. DNB reported a solid Q3 result with a return on equity of 15.8% and an earnings per share of NOK 6.98, reflecting a 2.8% increase from the previous quarter. The bank highlighted a slight decline of 1% in net interest income due to changes in the key policy rate and customer repricings, while noting a positive loan growth across all customer segments. Deposit growth was observed at 0.6%, driven by public sector seasonality, with large corporate deposit upticks at 8.5%. The credit portfolio remains robust, with 99.4% in Stage 1 and 2. DNB also launched a 1% share buyback program, maintaining a core equity Tier 1 ratio of 17.9%, which is 135 basis points above the regulatory expectation.DNB ASA Financial Statement Overview
Summary
Profitability and ROE are solid (net margin ~21% in 2024 and TTM 2025; ROE mid-teens), but the profile is weakened by a sharp TTM revenue decline (~27%), materially higher leverage (debt-to-equity above 5x in TTM 2025), and negative operating/free cash flow in 2024 and TTM 2025, raising earnings-quality and funding stability concerns.Income Statement
Profitability is solid and fairly consistent in the latest periods, with net profit margin around 21% in both 2024 and TTM (Trailing-Twelve-Months) 2025, and operating profitability also holding in the mid‑20% range. However, the top line weakened sharply in TTM (Trailing-Twelve-Months) 2025 (revenue down ~27%), which raises questions about near-term momentum. Earlier years show strong reported margins but also unusually volatile operating margin readings, suggesting the income statement trend is not fully stable year to year.72
Positive
Balance Sheet
Returns on equity are healthy (mid-teens in 2023–2025), indicating good profitability relative to capital. The main constraint is leverage: debt-to-equity runs high for the period and increases materially in TTM (Trailing-Twelve-Months) 2025 (above 5x versus ~3.2–3.6x in prior annual reports), which reduces balance-sheet flexibility. Assets are large relative to equity, so performance remains sensitive to funding conditions and credit cycle shifts.58
Neutral
Cash Flow
Cash generation is the weakest area based on the provided data: operating cash flow is negative in 2024 and TTM (Trailing-Twelve-Months) 2025, and free cash flow is also negative in those periods. While free cash flow is shown near net income in 2024 and TTM (Trailing-Twelve-Months) 2025, the direction (negative absolute cash flow) indicates meaningful cash outflows. Cash flow has also been volatile historically (strongly positive in 2020–2021, then sharply weaker), which adds uncertainty around the sustainability of internally generated funding.32
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 175.75B | 214.18B | 180.35B | 97.09B | 63.59B | 56.00B |
| Gross Profit | 65.45B | 84.82B | 78.60B | 65.66B | 56.26B | 56.00B |
| EBITDA | 41.40B | 58.50B | 54.05B | 44.03B | 36.03B | 0.00 |
| Net Income | 44.05B | 45.77B | 39.48B | 33.36B | 25.33B | 19.85B |
Balance Sheet | ||||||
| Total Assets | 3.79T | 3.61T | 3.44T | 3.23T | 2.92T | 2.92T |
| Cash, Cash Equivalents and Short-Term Investments | 0.00 | 179.96B | 525.95B | 455.16B | 400.72B | 373.01B |
| Total Debt | 1.37T | 1.01T | 952.37B | 838.67B | 778.50B | 824.50B |
| Total Liabilities | 3.53T | 3.33T | 3.17T | 2.98T | 2.68T | 2.67T |
| Stockholders Equity | 260.61B | 283.11B | 269.13B | 249.61B | 243.65B | 248.28B |
Cash Flow | ||||||
| Free Cash Flow | -114.61B | -159.12B | 43.00M | 5.44B | 37.10B | 80.74B |
| Operating Cash Flow | -112.43B | -156.44B | 4.12B | 8.95B | 41.59B | 84.57B |
| Investing Cash Flow | -183.95B | -880.00M | -1.76B | -7.65B | -4.39B | -4.72B |
| Financing Cash Flow | -38.11B | -29.57B | 14.18B | 5.48B | -15.74B | -102.23B |
DNB ASA Technical Analysis
Positive
27.44
Price Trends
26.98
Positive
26.84
Positive
26.47
Positive
Market Momentum
0.22
Positive
57.81
Neutral
81.45
Negative
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 27.82, above the 50-day MA of 26.98, and above the 200-day MA of 26.47, indicating a bullish trend. The MACD of 0.22 indicates Positive momentum. The RSI at 57.81 is Neutral, neither overbought nor oversold. The STOCH value of 81.45 is Negative, 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $24.35B | 12.07 | 11.68% | 3.74% | 4.00% | 28.54% | |
77 Outperform | $32.63B | 12.49 | 9.78% | 2.76% | -0.81% | 20.34% | |
72 Outperform | $32.50B | 14.70 | 11.52% | 3.14% | 0.15% | 11.62% | |
70 Outperform | $63.95B | 13.41 | 7.98% | 4.12% | 22.02% | ― | |
69 Neutral | $32.37B | 8.25 | 9.99% | 2.79% | -4.64% | 24.98% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
63 Neutral | $41.80B | 10.24 | 17.29% | 5.74% | -0.15% | 7.97% |
* Financial Sector Average
DNBBY
DNB ASA
27.98
6.92
32.88%
TFC
Truist Financial
49.99
4.36
9.56%
FITB
Fifth Third Bancorp
49.16
6.02
13.95%
KB
Kb Financial Group
89.03
26.16
41.61%
MTB
M&T Bank
212.28
19.86
10.32%
RF
Regions Financial
27.77
4.58
19.74%
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.