Good afternoon, everyone, and welcome to the DNB's Q2 Pre-Close Call. Just to remind you, the objective of this call is to remind you of what we have communicated, which could be relevant for the Q2 results. There's no new information given. We will, though, give some public available market data related to Q2. I will start with the NII and the capital, and Anne will go through the rest of the P&L. Go directly to NII. First of all, there's one more interest day, which has an effect of approximately NOK 120 million. On the volume side, credit volume, we, of course, will maintain our long-term target of 3%-4% annual growth.
On the personal banking side, we do see a gradual lower demand for household credit in Norway. In April 2022, there was an annual growth of 4.9%. In April 2023, it was reduced to 4.1%. The central bank expected credit growth for household for the year 2023 is 3.7%. On the corporate banking side, Statistics Norway per April, year-on-year, is up 7.5%, maybe more importantly, month-over-month, so from March to April, there was an increase of 0.3%. Just to remind you of Q1 volume growth we saw in personal banking.
We saw a growth of 0.5% in Q1, and in corporate banking, we saw an increase of 0.7% FX adjustments. More importantly, now, then maybe it's the deposits, in Q1, we saw an increase, FX adjustments of 4.9% from the previous quarter, the personal banking had a small negative of 0.9%, while the corporate banking side had an increase of 9.2%. On the margin side, we continue to have a tailwind from this year's rate hikes. First, we will have a full quarterly effect from the rate hike, effective from the 30 January.
We have said that we expect an impact of approximately NOK 1.2 billion annual for that rate hike. We will have a partly quarterly effect from the rate hike, effective from the 11 May. We have said that we expected that to have an annual effect of approximately NOK 1.1 billion. There will be a small effect from the rate hike, which is effective from the 22 June. We have not guided on that yet. The expected rate hike going forward, the central bank rate is now at 3.25%. They're expected three additional rate hikes and end up at somewhere between 4% and 4.25%.
We expect a 25 or 50 bps rate hike to be announced tomorrow. Other than that, on the NII, we will have a positive effect from a somewhat weakening of the Norwegian kroner. Just remember that it's the average effects over the period we use for NII. Over to capital. In Q1, we had a CET1 ratio, 18.6%. NFSA's expectations are above the 17%. Weakening of the Norwegian kroner will have a small negative effect on the CET ratio. Just to reiterate, the sensitivity for a 10% change in Norwegian kroner will have 20-25 bps effect on the CET1 ratio. On the share buyback, we are awaiting the NFSA's approval.
Just to say that there are, of course, no changes to the dividend policy. The dividend policy is to pay out more than 50% in cash dividend, and then have an increasing dividend per share every year. The goal is also to allocate excess capital back to our shareholders, and most likely in the form of share buybacks. Over to Anne and the rest of the P&L.
Sure. Starting with the commission and fees, investment banking services. As you know, investment banking typically sees a seasonally higher activity level in Q2 compared to the first, but we still see somewhat challenging capital markets, with the exception of investment-grade bond issuance or origination. Real estate brokerage activity has held up better than what we expected in the second half of last year, still, but we are perhaps starting to see some signs of tapering demand. Housing prices are, however, being supported by a still very limited supply of new builds in the market. Asset management, AUM obviously positively impacted by a positive market development. Money transfers have stabilized at a higher post-pandemic level, as you've seen in the past few quarters.
We continue to see high levels of card usage in Norway, including for international travel activity. A reminder on the sale of insurance products, as shown in our Q1 reporting, keep in mind that the implementation of IFRS 17 resulted in a reduction in the reported contribution to commission and fees, where the difference is captured primarily in net insurance results, as well as other income. Moving on to the table, in our fact book titled Net Gains on Financial Instruments at Fair Value. Firstly, customer revenues in DNB Markets or FICC, continues to experience high activity or a high activity level. The mark-to-market effects on the AT1 and the basis swaps will be announced shortly after quarter end, as we usually do. The outstanding amount of U.S. dollar AT1 is still $850 million.
Moving on to costs. Keep in mind that we typically see a somewhat higher activity level in the Q2 compared to Q1 , which all else equal, implies a somewhat higher cost level in Q2. Market expectations for salary inflation in Norway for 2023 is now at 5.5%. The central wage negotiation in Norway was concluded in the early part of the Q2 at 5.2%. Part of this will take effect from May 1, the rest will take effect from July 1. Even though our cost base is primarily exposed to the Norwegian economy, we have some exposure to international inflation levels through our third-party contracts. A reminder, finally, on pension expenses.
As we've said before, normalized pension expense level in a quarter is around NOK 400 million, and the closed defined benefit scheme is primarily linked to the development in global equities. Finally, impairments and asset quality. We're still generally comfortable with our portfolio. For Q1, we had not yet seen signs of stress, but obviously continued to monitor this very closely. Impairments will vary from quarter to quarter, as you have seen the last few quarters, driven by ECL model adjustments and company specific events. There's clearly more uncertainty going forward, given the current macro outlook, and it would be natural to see more company specific events. Again, we do not yet see any systemic areas of concern in our portfolio.
Finally, a kind request or reminder to please submit your pre-Q2 consensus estimates by the close of business on June 28 to Johanna. With that, I think we'll thank you for participating, for your time, and wish you a good rest of the day. Thank you.
Thank you.