Major Norwegian bank DNB is still burdened by shipping, as the bank achieved a slightly lower result for the second quarter 2014 than expected. The bank saw a combined revenue of USD 1.9 billion, a bit above expectations, and a result before taxes of USD 1.00 billion, compared to an expected USD 1.02 billion.
The bank has spent several years trying to reduce its shipping portfolio, and by the end of the second quarter the portfolio was down to six percent of the combined credit portfolio. Meanwhile the quality of the shipping portfolio has been strengthened, says DNB, though the bank stresses that there are still challenges. DNB has around USD 19.4 billion in loans to the shipping industry.