DNB shares drop as interest income misses forecast

By Jerry  Published On April 23, 2024
OSLO, April 23 (Reuters) – Shares in DNB (DNB.OL), opens new tab, Norway’s largest bank, fell 3% in early trade on Tuesday after it reported weaker than expected revenue from its core banking operation, even though the group’s bottom line beat forecasts.
Net interest income, showing DNB’s income from lending and deposits, rose 6.3% year-on-year in the January to March quarter to 15.5 billion crowns ($1.41 billion), lagging analysts’ expectation of 16.0 billion in a poll, opens new tab compiled by the bank.
While rising interest rates have boosted profits at Nordic banks over the past two years, loan losses have also risen and central banks in the region are expected to start easing monetary policy in 2024, dampening the earnings outlook.
In Norway, the central bank has said the first rate cut is currently expected in September, although some economists believe it may take longer before the cost of borrowing is reduced.
Source: REUTER

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