DNB Results Preview: Revenues, Non-Performers And Capital Return

DNB 1Q24 results are 23-Apr and likely to focus on the muted revenue outlook and any moves in non-performers, in our view. DNB’s credit has marginally underperformed YTD, unlike its equity – the latter likely driven by the “strong” equity buyback commitment.

• Results last time featured marginally weaker revenues than expected and an uptick in non-performers which will likely be a key feature in these results, too. The oil price has given back much of this month’s spike and is back to levels around the last set of results.
• The total payout to equity holders was 91% in FY23 and management’s comment about “strong commitment” to this are likely the driver for the issuer’s slightly muted spread performance YTD, we feel.
• DNB’s credit is 28bp tighter YTD (EUR IG banks -33bp) and its equity is up 13% since its last results (SX7P +1%), so a divergent relative performance there.
• EPS estimates have been upgraded marginally for FY24 in the run but are still lower for FY25 than before the last results (31-Jan) with a similar pattern seen in revenue estimates.

Results are 0630 (London) with a conf call at 1230, available at: https://events.webcast.no/dnb/zaEeS9WUTiwEQDAw15I3...