DNB’s profit fell in the first quarter

The result is still somewhat higher than what the analysts had predicted. Because while the first quarter ended at 10.2 billion, the experts had thought there would be a result of 9.5 billion following tax, according to estimates from Bloomberg.

However, the quarterly report shows that interest income in the first quarter fell by 2.9 percent compared to the last three months of 2023, according to E24.

Believe in soft landing

The fact that the Norwegian economy is relatively robust despite high interest rates has, however, contributed positively DNB’s quarterly results the bank writes in a press release.

– A stronger start to the year than expected strengthens the belief that the Norwegian economy is heading for a soft landing, says CEO Kjerstin Braathen at DNB.

A soft landing will mean lower growth, but not such low growth that many people will lose their jobs, i.e. that a recession will be avoided.

Interest is money

– Norway has also succeeded in keeping people in work and at the same time reducing price inflation in a controlled manner. 2024 is also likely to be a year of growth in real wages. That is good news, says Braathen.

DNB and other banks have set lending rates in line with Norges Bank’s interest rate increases. Banks earn more when interest rates rise. Since December, Norges Bank has kept the policy rate unchanged at 4.5 percent.

– The flattening occurs in line with the fact that interest rates appear to have peaked, and that debt growth in Norwegian households has fallen to the lowest level since before the turn of the millennium, writes DNB.

At the stock market opening on Tuesday, the same day as the quarterly results were published, the DNB share fell by 3 per cent.