DNB Sheds Shipping Losses in Q2

Norwegian shipping bank DNB cut its individual impairment by around 65 percent in the second quarter this year when compared to the same period from 2016.

DNB attributed the decrease to successful restructuring of portfolios within shipping and oil and offshore-related segments.

A reduction in collective impairment was also reported by the bank, reflecting “somewhat more stable economic conditions in these industries.”

During the second quarter, DNB delivered profits of NOK 5.23 billion (USD 631 million), an increase of NOK 669 million from the second quarter of 2016, driven by strong net interest income and lower impairment losses on loans and guarantees.

For the first half of 2017, DNB recorded profits of NOK 9.78 billion, down NOK 10 million from the first half of 2016. Return on equity was 9.7 per cent, compared with 10.5 per cent in the year-earlier period, the bank’s info shows.

Net non-performing and doubtful loans and guarantees increased by NOK 2.9 billion (USD 350 million) from end-June 2016, totalling NOK 23.6 billion at end-June 2017. This represented 1.35 per cent of the loan portfolio, up from 1.19 per cent at end-June 2016. The increase mainly stemmed from the oil and shipping-related portfolio.

“There are no signs of negative spill-over effects from the situation in the oil-related industries in the other credit portfolios, and nonperforming and doubtful loans and guarantees were roughly at the same level as at end-March 2017,” the bank added.

 

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