Arab Today, arab today dnb hit by funding costs tough capital rules
Last Updated : GMT 14:03:39
Arab Today, arab today
Arab Today, arab today

DNB hit by funding costs, tough capital rules

Arab Today, arab today

Arab Today, arab today DNB hit by funding costs, tough capital rules

Oslo - Arabstoday

DNB, Norway’s biggest bank, said higher funding costs and tough new capital rules would make it difficult to meet its full-year profit target as it posted a bigger-than-expected drop in first-quarter earnings due to a big accounting charge. “A poor set of results,” Credit Suisse analysts said in a research note. “The shares should be very weak on these numbers, especially due to the poor net interest income and continued capital deficit.” The outcome is in stark contrast to results from Swedish banks, which have mostly beaten expectations thanks in large part to strong trading revenues as market sentiment improved following cash injections from the European Central Bank. Analysts said it was all the more disappointing as Norway has remained largely immune from Europe’s economic troubles thanks to its oil sector, stable finances and steady growth. DNB said its net interest income - the profit it makes from lending minus its costs for borrowing -rose 10.5 per cent after it did not pass on the central bank’s rate cuts to clients. But that was well below analysts forecasts for a 13 per cent rise. The bank also booked a bigger-than-expected 2.43 billion crown loss on the fair value adjustment of its swaps, which dragged first-quarter net profit down 38 per cent to 1.76 billion crowns ($307 million), compared with an expected 2.66 billion. “Rising funding costs and stricter capital adequacy and liquidity requirements will probably have an impact on the competitive situation in the entire financial services industry over the next few years,” DNB said. “The group’s financial ambitions remain firm, but will be more challenging to reach due to lower interest rate expectations and the negative accounting effect of hedging instruments.” Funding costs have been on the rise across Europe as the continent’s economic troubles have eroded confidence, forcing borrowers to pay more for funds. At the same time, banks are also striving to meet tougher capital rules as regulators seek to prevent a repeat of the 2008-9 financial crisis. Citi analysts said they expected 2012 and 2013 net profit forecasts to be trimmed by 5 per cent. DNB is targeting a full-year pretax operating profit of between 22 billion and 25 billion crowns before writedowns.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today dnb hit by funding costs tough capital rules Arab Today, arab today dnb hit by funding costs tough capital rules

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today As Olympics loom, China plunges into snow biz

GMT 10:08 2017 Tuesday ,28 February

As Olympics loom, China plunges into snow biz
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Parliament considers solutions to overpopulation

GMT 20:27 2017 Monday ,27 February

Parliament considers solutions to overpopulation
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday