DNB Bank’s loans in the shipping sector increased to NOK 36.1bn ($3.38bn) in the second quarter.
At the end of the first quarter, the loan book was NOK 33.6bn.
The Oslo-based bank’s maximum exposure to shipping clients, which includes guarantees, unutilised credit lines and loan offers, was NOK 53.5bn at the end of the second quarter.
Profit in the second quarter was NOK 10.8bn, which was 13.8% higher than the corresponding quarter of last year.
The results were strong in all customer segments, and were supported by a stable Norwegian economy, with low unemployment and a higher activity level than expected, the bank said.
Chief executive Kjerstin Braathen said: “Inflation is declining, and real wage growth is anticipated for most people this year. At the same time, we see that the uncertainty in the world around us will be higher than normal in the period ahead.”
The loan portfolio has proved sound throughout the interest rate hikes in the past few years, both in the personal customer market and the corporate market, the bank said.
Impairment provisions amounted to NOK 560m in the quarter, compared with NOK 871m in the second quarter last year.
Activity was particularly high among customers raising money in the bond market, and DNB Markets served as an adviser in many transactions.
Peter Behncke, global head of investment banking, told TradeWinds in June: “We observe that shipping companies and shipowners are increasingly leveraging the global capital markets including Oslo, London, Singapore and New York for activities such as IPOs and capital market activities including ECM and DCM [equity capital markets and debt capital markets].”
The broker arranged bond issues from SFL Corp and Color Group in the second quarter.
As the first Norwegian bank to do so, DNB partnered the European Investment Fund under the InvestEU programme in June.
By giving access to financing at favourable terms, this agreement will accelerate investment in green and digital transitions, the bank said.
Earlier this year, DNB advised Odfjell with launching a transition finance framework.
Braathen said: “In order to succeed at the transition, we must ensure that Norwegian companies have access to sufficient capital from national and international investors.
“As Norway’s largest bank, we must use our financial heft and our international network to secure innovation and growth for Norway.”
