Stock and press releases

Leading Nordic banks DNB Bank ASA, Danske Bank A/S, Nordea Bank AB (publ), Svenska Handelsbanken AB (publ) and Skandinaviska Enskilda Banken AB (publ) have decided to explore the possible establishment of a Nordic Know Your Customer (KYC) infrastructure that would, in initial phase, service large and midsize Nordic corporates.

In recent years, compliance with requirements for processing customer data has become a critical component in fighting financial crime. Bank customers are, however, struggling with time-consuming KYC information requirements, often including many banks and formats. Inefficient KYC processes also impact banks negatively, slowing down transaction processes, and increasing administration and risks.

At the same time, the banking community is continuously facing more regulations and requirements related to KYC processes. There is hence a need for a consolidated, efficient and accurate way to serve customers, banks and society.

The banks intend to set up a joint venture, Nordic KYC Utility, with a singular focus on developing an efficient, common, secure and cost-effective Nordic KYC infrastructure. The company will be owned and controlled by the founding banks, however, the plan is that the company will also offer its services to third parties. The initiative will contribute to ensuring a healthy financial environment, prevent financial crime and to protect customers and society.    

The establishment and operational start of the joint venture company is conditional upon approval of the European Commission under the EU Merger Regulation and the company is expected to be established during the second half of 2018. 

On 7 March 2018, the Board of Directors of DNB ASA decided to offer employees in DNB ASA shares with a discount of NOK 1,500-3,000.

The shares were allotted today, 29 May 2018, at a gross price of NOK 153.9167 per share.

Attached is a list of the primary insiders that availed themselves of the offer.

DNB changes its tax guiding for 2018 and 2019 from 23 to 20 per cent.

DNB recorded profits of NOK 5 653 million in the first quarter of 2018, up NOK 1 109 million from the first quarter of 2017. The bank’s strong performance can be ascribed to the bright prospects for Norwegian companies and private individuals. 

The Norwegian welfare state is dependent on an increasing number of startups, which is why
DNB is cheering on Norwegian entrepreneurs. The ripple effects of Norwegian companies' operations are boosting DNB’s financial performance. Many companies in Norway are currently on the offensive.

"We aspire to be a good adviser for those who want to start their own business and thus contribute to creating new jobs. Over the past year, loans to small and medium-sized enterprises have grown by more than 8 per cent. This demonstrates strong optimism and a willingness to invest in the Norwegian business community," says Rune Bjerke, group chief executive in DNB.

In comparison, home mortgages and other loans to private individuals increased by 5.4 per cent during the past year. There is fierce competition in this market, but the rate of growth is in line with DNB’s ambitions.

Reduction in losses 

A lower level of impairment is another positive consequence of the healthy state of the Norwegian economy. During the first quarter of 2017, impairment losses on loans came to NOK 562 million, while impairment totalled NOK 2.4 billion for the full year 2017.

The level of impairment was low in the first quarter. In addition, some of the impairment losses recorded previously were reversed. These stemmed primarily from oil-related operations, where a number of companies have been through successful restructurings. Net reversals of NOK 330 million were thus recorded in the first quarter. 

“Optimism is back in the oil sector, and losses have been strongly reduced. Consequently, Large Corporates and International shows the highest increase in profits among our business areas," says Bjerke.

Income

Net interest income was up NOK 486 million from the first quarter of 2017. As in the previous quarters, this reflected higher lending volumes. In addition, lower funding costs had a positive effect on the lending spread. Other income was down NOK 532 million, mainly due to exchange rate effects from the bank’s additional Tier 1 capital. There was a small increase in commissions and fees compared with the first quarter of 2017.

Operating expenses were NOK 285 million lower than in the first quarter of 2017. Compared with the fourth quarter of 2017, operating expenses were down NOK 863 million, though this was mainly due to certain non-recurring effects towards the end of the year.

"We are very pleased with the results and especially with the fact that we are approaching our return on equity target. We will continue to develop the best customer experiences for Norwegian consumers. To be able to deliver on this, it is also important that DNB is an attractive option for investors,” concludes group chief executive Rune Bjerke. 

Financial key figures for the first quarter of 2018

• Pre-tax operating profit before impairment was NOK 6.7 billion (6.5)
• Profit for the period was NOK 5.7 billion (4.5)
• The common equity Tier 1 capital ratio (transitional rules) was 16.6 per cent (15.8)
• Earnings per share were NOK 3.36 (2.64)
• Return on equity was 11.0 per cent (9.1)
• The cost/income ratio was 43.4 per cent (45.6)

Comparable figures for the first quarter of 2017 in parentheses.

The shares in DNB ASA will be quoted ex-dividend on 25 April 2018. A dividend of NOK 7.10 per share will be distributed as from 4 May 2018 to registered shareholders as at 24 April 2018.

DNB ASA held its Annual General Meeting on 24 April 2018. In this meeting, Olaug Svarva was elected as new chair of the Board in DNB ASA, with a term of office of up two years. Tore Olaf Rimmereid was re-elected as vice chair of the Board, and Jaan Ivar Semlitsch and Berit Svendsen were re-elected as board members, all with a term of office of up to two years.

The Board of Directors in DNB ASA consists of:

Olaug Svarva (chair)
Tore Olaf Rimmereid (vice chair)
Karl-Christian Agerup
Jaan Ivar Semlitsch
Berit Svendsen

Vigdis Mathisen (employee representative)
Carl Løvvik (employee representative)

Jorunn Løvås (deputy for the employee representative)
Stian Samuelsen (deputy for the employee representative)