MONDAY, 21/11/2016 - Scope Ratings GmbH

DNB Bank keenly focused on achieving higher returns, says Scope

A brief report by Scope summarises key messages from DNB’s recent Capital Markets Day (16 November 2016), noting the group’s clear strategy for achieving higher returns.

Scope notes that as the group has reached its desired CET1 capital level of around 15.7%, management has renewed its focus on generating a greater than 12% ROE. This will take somewhat more time to achieve in light of challenges from a high capital base, low interest rates and higher-than-normal loan-loss provisions. Reassuringly, DNB confirmed its guidance for loan-loss provisions over the 2016-2018 period.

Scope continues to see its ratings on DNB Bank (A+, Stable Outlook) as well positioned.

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