DNB Bank ASA (DNBBY) Discusses Q1 Pre-Close Update on NII, Capital, and Regulatory Impacts Prepared Remarks Transcript

SA Transcripts159.12K FollowersFollow5ShareSaveCommentsPlay Earnings CallPlay Earnings Call DNB Bank ASA (DNBBY) Discusses Q1 Pre-Close Update on NII, Capital, and Regulatory Impacts March 26, 2026 10:00 AM EDT Company Participants Rune Helland - Head of Investor RelationsAnne Engebretsen - Senior Vice President of Investor Relations Presentation Rune HellandHead of Investor Relations All right. Good afternoon, and welcome to DNB's pre-call close call for the first quarter of 2026. The objective of this call is to remind you of what we already have shared with the market and some relevant public available information that could possibly affect the Q1 results. There will be no new information during this call, and the script for the call will be published on our IR website. I will start with the NII and capital, and Anne will go through the rest of the P&L. On the NII, there are 2 fewer interest days in the first quarter compared to the fourth. So this is expected to impact the Q1 NII negatively by approximately NOK 240 million. On the lending volume side, we saw average growth of 1% in Q4. Keep in mind that Q1 typically sees a seasonally lower activity level than Q4. In the first quarter, we've seen the NOK strengthen impacting NII negatively. The FX split in the loan portfolio for the fourth quarter was 8% U.S. dollar, 7% euro, and 7% SEK. The second 25 bps key policy rate cut by the Central Bank in September of last year, and our corresponding customer repricing of a cut of up to 25 basis points on loans and deposits took effect from November 18, meaning that it will have full impact in the first quarter. With the Central Bank's latest policy rate decision today, where the key policy rate was kept unchanged at 4%, they published an updated expected future rate path indicating