OSLO (Reuters) - DNB (DNB.OL), Norway’s largest bank and a major lender to the oil sector, reported a third-quarter net profit that lagged forecasts on Thursday despite an upturn in the Norwegian economy.
While net interest income rose in line with forecasts, DNB’s income from investment banking faltered amid slow overall activity in capital markets during the quarter, it said.
Net profit totaled 5.67 billion crowns ($679.97 million) in the third quarter, compared with 5.9 billion crowns in a Reuters poll of analysts, slightly up from 5.64 billion crowns a year ago.
However, thanks to a significant reversals of previous loan loss provisions in the oil and gas sector, amounting to 500 million Norwegian crowns, DNB’s net lending losses for the third quarter ended at just 11 million crowns.
Shares in DNB are up two percent over the past year, outperforming a European banking index .SX7P down 24 percent over the same period.
Reporting by Gwladys Fouche, editing by Terje Solsvik