Thursday, 23 October 2014

DNB ASA Q3 2014 Balance Sheet: Snail's Pace "Capital Building"

"DNB continues to build up capital after a strong quarterly performance" reads the headline of the Q3 2014 news release for DNB ASA, Norway's biggest bank. Well, the bank is (sort of) "building capital", it is just that the capital is being built from a very, very low level and that it is being built very, very slowly.

But on this important measure capital is not growing at all and is lower today than it was in Q1 2010.

DNB therefore continues to pose a serious threat to "financial stability" in Norway and at this snail's pace of "building capital" will continue to be so for a very, very long time indeed. Meanwhile, Norges Bank's printing machine is ready to rescue the company with fresh liquidity at any moment, courtesy of the Norwegian tax payers.