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BRIEF-Norway's DNB beats Q2 profit forecast as loan losses shrink
July 12, 2017 / 5:49 AM / 4 months ago

BRIEF-Norway's DNB beats Q2 profit forecast as loan losses shrink

July 12 (Reuters) - Dnb Asa

* Q2 net profit nok 5,237 million (reuters poll nok 4.46 billion)

* Q2 pretax profit before impairments nok 7.4 billion (reuters poll nok 7.32 billion)

* Common equity tier 1 capital ratio (transitional rules) was 15.8 per cent (15.2)

* Q2 loan losses nok 597 million (reuters poll loss nok 1.31 billion), a significant reduction from NOK 2,321 million in the second quarter of 2016

* Says not worried that we will record losses on home mortgages

* Positive that housing market is levelling off after several years of unsustainable price increases

* The main factor behind the decrease in loan losses was successful restructuring of portfolios within oil, offshore and shipping

* Majority of non-performing loans still stem from oil, offshore and shipping, and bank thus far sees no signs of spill-over effects to other industries

* Dnb asa: volume-weighted spreads are anticipated to widen somewhat in 2017, while lending volumes are expected to be stable in 2017 and 2018

* Dnb q2 net interest income nok 9.03 billion (reuters poll nok 8.71 billion)

* Dnb q2 pretax operating profit nok 6.82 billion (reuters poll nok 6.01 billion)

* Dnb asa: repeats total impairment losses for the period 2016 to 2018 are estimated to be up to nok 18 billion, with the highest impairment losses during the first part of the period

* Aspires to have a dividend payout ratio of more than 50 per cent from 2017 and to increase the dividend per share each year

* Tax rate is expected to be 23 per cent in the period from 2017 to 2019 Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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