Norways DNB beats Q1 profit forecast as economy reopens

div classBodysc17zpet90 cdBBJodivpOSLO Reuters – DNB, Norways largest bank, posted betterthanexpected firstquarter earnings on Thursday, reflecting a strong Norwegian economy and a high level of activity in the corporate market following an end to pandemic lockdowns.p

pNet profit rose to 7.56 billion crowns 806.8 million for the JanuaryMarch quarter from 5.89 billion a year earlier, beating the 6.10 billion expected by analysts in a poll compiled by the bank.pdivdivdiv classBodysc17zpet90 cdBBJodiv

p“Once again, we have seen that Norway as a country sets itself apart from other countries, with a robust economy despite international turmoil,” Chief Executive Officer Kjerstin Braathen said in a statement.p

p“A number of international customers have sought to move to DNB, and see the bank as a safe haven in an unsettled world,” she added, without giving more specifics. p

pNorway‘s central bank resumed raising rates in September, after a series of cuts in 2020 had left the country’s key policy rate at an unprecedented zero percent.p

pThe rate is 0.75 currently but more rate hikes are expected, which will help DNBs prospects as it can charge customers more for lending them money.p

pOther Nordic banks have so far reported betterthanexpected results, with Swedens SEB and Handelsbanken posting on Wednesday strong income from mortgages and corporate clients alike while loan losses remained marginal.p

pOn Thursday, Finlands Nordea and Swedens Swedbank also reported stronger forecastbeating profits.p

p1 9.3707 Norwegian crownsp

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pp Reporting by Gwladys Fouche, editing by Terje Solsvik and Subhranshu Sahup

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