DNB recorded profits of 5.237 bn NOK (551,5 mill. €) in the second quarter of 2017, up 669 mill. NOK from Q2 2016. Impairment losses on loans and guarantees were reduced due to restructuring of offshore and shipping portfolios.
In the second quarter of 2017 DNB’s pre-tax operatin[ds_preview]g profit before impairment was 7.4 bn NOK (8.1), profit for the period was 5.2 bn NOK (4.6). Return on equity was 10.4 % (9.9) and the cost/income ratio was 43.1 % (39.9).
Impairment losses on loans and guarantees totalled 597 mill. NOK in the second quarter, a significant reduction from 2.321 bn NOK in the second quarter of 2016. The main factor behind the decrease was successful restructuring of portfolios within oil, offshore and shipping. The majority of non-performing loans still stem from the same sectors, and the bank thus far sees no signs of spill-over effects to other industries.
According to the Norwegian bank banking operations show stable and healthy growth. »There is profitable growth in all customer segments, and our customers make sure that we have lots to do across the board,« says Rune Bjerke, group chief executive, adding, »Combined with low impairment losses during the quarter, this makes us satisfied with our second quarter performance.«
