the Case is updated.
DNB achieved a profit after tax of 5,38 billion in last year’s fourth quarter.
On the advance it was expecting a profit after tax of nok 4.2 billion, according to estimates compiled by SME Direkt for TDN Finans.
In the same quarter one year before the got to the bank a profit after tax of 6.7 billion.
the Reason for that result is weaker than last year is a case in requested and increased impairment charges, particularly on oil-related business.
– DNB delivered solid results despite increased write-downs in oil-related activities and shipping, enter your bank in a message.
For the whole of 2016 experienced the bank expected a significant decline in profit, but the profit after tax was better than expected at 19,25 billion, compared with a profit in 2015 on the whole 24,8 billion.
Expectations were that net profit would come in at 17.7 billion.
the Bank says that activity in the Norwegian economy will get something up in the years, but hardly enough to reduce unemployment much.
Internationally, the bank is concerned about the risk associated with growing financial imbalances in China, the situation in some european banks and the political situation in the united STATES.
Take oil loss
the Bank writes down the value of loans and guarantees 1.75 billion in the fourth quarter, somewhat less than expected.
This is mainly related to the bank’s activities aimed at the shipping, offshore and energy, write DNB in the interim report.
– The individual writings came primarily from a small number of larger customers, type DNB.
Total did DNB impairment loss of 7.4 billion in loans and guarantees last year, an increase of 5 billion from the year before.
the Proportion of the company’s loans are non-performing or where it is uncertain whether the loan will be repaid increased to 25,7 billion, up from 14 billion the year before.
It is equal to 1,49 percent of DNBs total loans, an increase of 0.7 per cent from the year before.
the Increase in non-performing and doubtful loans and guarantees is linked to the shipping, offshore and energy in the segment for large companies and international customers, type DNB.
Higher dividend
the Company is not as profitable for shareholders as DNB wish. The return on equity (return on equity) was at 10.9 per cent, while the DNBs own goal is that this goal should be above 12 per cent.
DNB proposes a dividend of 5,70 euros per share, an increase of 27 per cent from the year before and far better than expected.
the Estimates estimated in average a dividend of 5,24 million per share, which is equivalent to 8.5 billion. The year before was the proceeds 4,50 money.
Through a long period of intense kapitaloppbygging we have held back dividends, and delivered far lower dividends than our nordic competitors, says ceo Rune Bjerke.
“We are pleased that we can now return to a normalized and sustainable dividend policy,” he says.
DNBs dividend has nearly tripled since 2011:
- 2011: nok 2.00 stock
- 2012: 2,10 nok share price
- 2013: 2,70 money stock
- 2014: 3,80 money stock
- 2015: 4,50 money stock
- 2016: 5,70 nok stock
Increasing performance
DNBs result of 19,25 billion is the weakest since 2013. This is the bank’s profit after tax in the prior five years, according to the annual report for 2015:
Analysts see resultatfall of 6.7 billion. for DNB in 2016
- 2011: 12,98 billion
- 2012: 13,79 billion
- 2013: 17,51 billion
- 2014: 20,61 billion
- 2015: 24,39 billion
last Year was tougher than usual for DNB, with a lot of negative headlines, including closures of branches, accounts in tax havens and legal action from the Consumer.
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the Bank’s capital adequacy ratio was 16 percent at the end of last year, which is more than the authorities require, and the bank has set itself as a goal.
the Group meets kapitalkravene one year earlier than plan and is well positioned in relation to competitors and any new requirements, type DNB.
Weaker interest income
Net interest income in the fourth quarter, i.e. the difference between the company borrows in and out, was 8,37 billion, against an expectation of 8,59 billion and compared with 9,06 billion in the year-ago quarter.
For the whole of 2016, net interest income was on 34,11 billion, weaker than the expectation of 34,32 billion and down from the 35,36 billion the year before.
the Bank explains this by the higher cost to retrieve the money and lower revenues from repayments and fees. Customers also have a change in behavior, and extends the nedbetalingsperioden on the loans rather than refinance.
the Bank has a market share of 25.1 per cent of lending to Norwegian households.
the Bank has risen sharply in value in recent years. Wednesday was DNBs market capitalisation on the 227,7 billion, up from 95 billion in 2011.
DNB shares fell 1.6 per cent and closed at 139,80 million Wednesday.
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