DNB raises profitability target, eyes dividend growth under 2029 goals

Nov 10 (Reuters) - DNB DNB.OL targets a return on equity above 15% and a cost-to-income ratio below 38% under its new 2029 goals, though it could deliver on them a year earlier already, Norway's largest bank said on Tuesday ahead of its investor day.

"We aim to deliver on the targets by year-end 2028," CEO Kjerstin Braathen said in a press release, while reiterating the existing 2027-2028 targets for a return on equity above 14% and a cost-to-income ratio below 40%, with gradual progress towards the new targets.

• DNB targets gross cost cuts of about 4 billion Norwegian crowns ($426 million) by end-2028 to meet the cost-to-income target

• It will recognize restructuring costs of about 225 million crowns in the fourth quarter of 2026 related to its AI-driven job cuts

• DNB set a new payout ratio target of above 50% for 2029, with an aim to increase its nominal dividend per share every year

• It aims to deliver annual growth in net commission and fee income of more than 9% through the cycle

• DNB last month reported better-than-expected Q3 earnings, as pressure on margins eased and lending growth helped boost income despite strong competition

• "With DNB Carnegie, our Nordic offering has become more wide-ranging and powerful," Braathen said

($1 = 9.3943 Norwegian crowns)