DNB Bank Posts Lower First-half Earnings Amid NII Squeeze; Share Buyback Unveiled
DNB Bank (DNB.OL) on Tuesday unveiled plans for a share buyback worth up to 4.76 billion Norwegian kroner, even as the financial services group's first-half profit was squeezed by compressed net interest income. The lender's net interest income for the six months ended June 30 dropped 6.5% year over year to 30.43 billion kroner, as narrowing spreads offset positive volume growth. This headwind, alongside increased competition, led to a 6.3% decline in second-quarter net interest income to 15.13 billion kroner. Meanwhile, the group's first-half attributable profit declined to 18.87 billion kroner from 20.48 billion kroner earlier, while its total income dropped to 44.12 billion kroner from 44.40 billion kroner a year ago. In the second quarter, attributable profit came in at 9.40 billion kroner, against the prior year's 10.05 billion kroner, as total income edged down to 22.32 billion kroner from 22.49 billion kroner. DNB's stock declined nearly 3% by Tuesday midday trade in Oslo. On the flip side, the bank highlighted its broad-based lending growth in the second quarter, with volume climbing 4.3% year on year, alongside a 13.4% spike in asset management income amid.
DNB Bank (DNB.OL) on Tuesday unveiled plans for a share buyback worth up to 4.76 billion Norwegian kroner, even as the financial services group's first-half profit was squeezed by compressed net interest income.
The lender's net interest income for the six months ended June 30 dropped 6.5% year over year to 30.43 billion kroner, as narrowing spreads offset positive volume growth.
This headwind, alongside increased competition, led to a 6.3% decline in second-quarter net interest income to 15.13 billion kroner.
Meanwhile, the group's first-half attributable profit declined to 18.87 billion kroner from 20.48 billion kroner earlier, while its total income dropped to 44.12 billion kroner from 44.40 billion kroner a year ago.
In the second quarter, attributable profit came in at 9.40 billion kroner, against the prior year's 10.05 billion kroner, as total income edged down to 22.32 billion kroner from 22.49 billion kroner.
DNB's stock declined nearly 3% by Tuesday midday trade in Oslo.
On the flip side, the bank highlighted its broad-based lending growth in the second quarter, with volume climbing 4.3% year on year, alongside a 13.4% spike in asset management income amid.