By Elena Vardon

DNB Bank's first-quarter results topped analysts' expectations, driven by heightened client demand for advice and lending volume growth.

The Norwegian lender on Wednesday posted 10.85 billion Norwegian kroner ($1.06 billion) in net profit for the three months ended March 31. This marked an increase compared with the 10.20 billion kroner it made in the same period last year and comfortably beat analysts' forecasts of 9.89 billion kroner taken from a company-compiled consensus, thanks to higher revenue and lighter provisions.

Income rose to 21.91 billion kroner from 20.40 billion kroner, also surpassing a consensus forecast of 21.405 billion kroner. The increase was partly driven by higher fees and commissions as the print benefited from client demand and from DNB's recent acquisition of Swedish investment bank Carnegie.

"Amidst market volatility, customers are seeking advice and oversight...We have never given advice to more customers than we did this quarter," Chief Executive Kjerstin Braathen said.

Net interest income--a key revenue driver for retail banks--also saw growth and contributed meaningfully to the top line, supported by a prolonged period of high interest rates in Norway. Unlike several central banks across Europe, which have begun trimming rates in a bid to tame inflation, Norges Bank has held its rates at a 17-year high since late 2023 although market expectations suggest potential rate cuts later this year.

Braathen added that the increased uncertainty from trade conflicts and a weakened global economy will affect the country's open economy. "At the same time, the Norwegian economy is sound, and Norway has considerable muscles to stimulate the economy when necessary," she said.

The bank's common equity Tier 1 ratio--a key measure of balance-sheet strength--edged down to 18.5% from 19.4% at the end of 2024.

Shares rose around 2% in European morning trading to 266.8 kroner after what analysts described as solid results with a particularly strong fee print. The stock has gained almost 18% since the start of the year.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

May 07, 2025 05:31 ET (09:31 GMT)

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