DNB management received signals about what Norwegians save money for first: – not unexpectedly

DNB management received signals about what Norwegians save money for first: - not unexpectedly

The bulk of DNB’s income comes from net interest income on loans and deposits, but regular banking transactions also make an important contribution to the bank’s profits. In addition, it is an important temperature measure of activity in the business world. On Thursday, Norway’s largest bank presented Another big win.

Pure banking sales in the third quarter ended at a record high of NOK 430 million. This is almost double from the same period last year, when parts of the community were closed and there were still restrictions on travel to and from abroad. But there is also a sharp rise from NOK 308 million of transactions in the same period in 2019 – the year before the pandemic.

Now it’s raining a little

In contrast, Norway’s largest bank noted that Norwegians began tightening their wallets after the summer.

We are now seeing a decline in turnover of what we call “consumer durables,” says Harald Cirque Hansen, head of corporate markets at DNB.

What product groups should we consider next?

– Then we will think about cars, televisions, sports equipment, furniture, etc. You can see it there. There are typical purchases that can be deferred, and product groups that have seen a revival during the corona. There are limits to the number of flat screen monitors you can use as well. He says it is only natural that these players in the trade notice this first.

– It’s not unexpected.

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Nevertheless, Norwegians continued to use their bank and credit cards for everyday experiences.

For a significant portion of Serck-Hanssen’s customers, there is still good demand.

Hotels are full and restaurants are too, and there is still pent-up demand for leisure travel. He says families are making up for their expensive purchases as the need for expertise and travel increases.

DNB’s Head of Personal Markets, Ingjerd Blekeli Spiten, awaits future developments.

We might expect somewhat less travel activity among Norwegians in the future as a result of the price increase over the past year. It’s also quieter in many stores, she says, and points to the same expensive consumer goods.

More tense companies

Another sign of bad times ahead is that companies are more cautious about making big investments.

Many of the biggest customers come from sectors like energy, seafood, and shipping, and they have more money to put aside after making good profits.

Other companies keep more:

They are also eager to spend money, and they prevent more cash, says Circus Hansen.

While DNB marginally increased its market share in the mortgage market, the share of household deposits increased in one year from 29 to 32 percent. In the corporate market, DNB has now accounted for 38 percent of corporate deposits, and the share has increased by two percentage points in just one year.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using links that lead directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.

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Dalila Awolowo

Dalila Awolowo

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