Stock and press releases

DNB is pleased to invite you to the Group’s Capital Markets Day.

Date: Wednesday 16 November 2016
Time: 12:30 pm – 3:30 pm
Location: Hotel Claridge's, Brook Street, Mayfair, London W1K 4HR, England

Registration and lunch from 11:30 am – 12:30 pm
We will present the most important challenges and opportunities facing DNB in today’s rapidly changing business environment. Topics will include the Group’s operating environment, digitalisation, ROE, asset quality and capital.

Registration
Please register your attendance with [email protected]
The closing date for registration is 11 November 2016.
The event will be webcasted.

We look forward to seeing you in London.

Best regards
Rune Bjerke
CEO, DNB

DNB recorded profits of NOK 4 080 million in the third quarter of 2016, a reduction of NOK 2 290 million from the third quarter of 2015. Just as in the first half of the year, higher impairment losses among large corporates were the main reason for the decline in profits. Parallel to this, the bank has already reached its most important capital target for 2017.

On several occasions, DNB has been characterised as one of the world’s best capitalised banks. A new example of this was presented in the third quarter, when the EBA conducted a stress test showing that DNB had the greatest resilience to economic crises among the tested banks.

The common equity Tier 1 capital ratio, calculated according to the transitional rules, is 15.7 per cent, up from 13.1 per cent a year earlier. Finanstilsynet (the Financial Supervisory Authority of Norway) has recently finalised its annual Supervisory Review and Evaluation Process, SREP, for the DNB Group. Finanstilsynet’s guidance concerning capitalisation is in line with the bank’s own ambitions.

The bank has now built up sizeable capital which can be used as a buffer in the event of an economic downturn. During the third quarter, a new milestone was already reached when the bank fulfilled its capital target for 2017.

“We are continuing to build up capital krone by krone, as we have done for several years. I am pleased that we now meet the authorities’ requirements. We are a year ahead of schedule when it comes to capitalisation. Once the capital level has been reached, it is important that we also meet the expectations of our owners by normalising our dividend payout ratio as soon as possible,” says Rune Bjerke, group chief executive.

DNB’s long-term target is to have a dividend payout ratio of more than 50 per cent of net annual profits.

Lower interest income
Net interest income was reduced by NOK 500 million from the third quarter of 2015. The main reason for this is lower lending volumes among large corporates, though narrower lending spreads in the personal customer market also had an effect on income.

Net other operating income was down NOK 544 million. Adjusted for the effect of so-called basis swaps, however, net other operating income rose by NOK 834 million from the third quarter of 2015. Increased income from trading activities in DNB Markets was among that factors that had a positive effect.

Loss estimate maintained
Impairment losses on loans and guarantees totalled NOK 2 176 million in the third quarter. During the third quarter of 2015, impairment losses of NOK 392 million were reversed. Compared with the second quarter of 2016, impairment losses were down approximately NOK 150 million.

The rise in impairment losses stemmed partly from large corporates in the oil-related and shipping industries. Both individual and collective impairment losses on loans were recorded.

“In 2016, total impairment losses will exceed NOK 6 billion. DNB nevertheless retains its estimate of total impairment losses of NOK 18 billion for the 2016-2018 period. According to our forecasts, individual losses will level off, while the need for collective impairment losses will probably be reduced in 2017 and 2018. The oil price has stabilised and has risen somewhat through 2016, and the development of the Johan Sverdrup field helps to keep up the level of oil investment. Overall, we think that there are somewhat brighter prospects for the Norwegian economy from 2017 onwards,” says Bjerke.

On 16 November this year, DNB’s updated financial targets for the entire Group will be presented on the Capital Markets Day in London.

New initiatives pay off
One of the highlights of the third quarter was the launch of Vipps Business. The payment app has been tailored to companies wishing to monitor their sales and payment streams online. DNB is in the process of launching Vipps Invoice – a simple solution for companies for sending invoices directly to customers through Vipps.

“We were serious when we said that we will make all payments more straightforward than has been the case up till now. The development of new technology and new products is being given first priority, and we have thus chosen to make Vipps and Payments a separate business area. Digitalisation and new directives will result in even tougher and more international competition in the banking industry. Our customers expect DNB, as Norway’s largest bank, to be at the forefront in this field, and so we will,” concludes Bjerke.

Key figures for the third quarter of 2016
• Pre-tax operating profits were NOK 5.2 billion (8.5)
• Profit for the period was NOK 4.1 billion (6.4)
• Earnings per share were NOK 2.43 (3.83)
• Return on equity was 8.5 per cent (14.7)
• The cost/income ratio was 40.6 per cent (39.6)
• The common equity Tier 1 capital ratio (transitional rules) was 15.7 per cent (13.1)

Comparable figures for 2015 in parentheses.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Contact persons:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
Rune Helland, head of Investor Relations, tel: +47 977 13 250

The quarterly report, presentation and Fact Book can be downloaded from
www.dnb.no/ir

DNB will publish its results for the third quarter of 2016 on Thursday, 27 October 2016 at 7.30 am CEST.

27 October at 9.30 am CEST: press conference in English accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo.
A live broadcast will be available at www.dnb.no/en/ir.
Please register your attendance in Oslo at [email protected].
The press conference will be held in English.

27 October at 1.30 pm CEST: conference call for analysts and investors
To attend the conference call: dial (+47) 21 56 33 18 or from outside Norway: +44 (0) 20 3003 2666 or from the US: 1 866 966 5335. Password: DNB Q3.
The phonecast (listen only mode) and replay will be available at www.dnb.no/en/ir.

28 October at 7.30 am BST: breakfast conference for analysts in London
Place: J.P. Morgan offices, 60 Victoria Embankment, London EC4Y 0JP 
Please register your attendance in London with J.P. Morgan.

Management will present the results followed by a Q&A session.

Save the date: DNB's Capital Markets Day – 16 November 2016

DNB will host its CMD in London on Wednesday, 16 November 2016. An invitation will be sent out separately.

The EFTA Surveillance Authority (ESA) has announced that it is opening proceedings against the Norwegian banking community. DNB is one of the banks comprised by the investigation. ESA will investigate whether, due to agreements, decisions or concerted practices, Trustly has not received access to Norway’s payment infrastructure through BankID.

DNB was informed yesterday evening that it is one of several members of the Norwegian banking community comprised by the investigation. ESA has also made it clear that the opening of proceedings does not mean that an infringement of competition rules has been made.

Could receive access to personal information
In 2014,Trustly Group AB, a Swedish provider of e-payment solutions, established, in cooperation with Western Union, a payment service, which made possible direct debits from a bank account through the use of customers’ BankID. The solution was considered to be in conflict with BankID regulations and statutory requirements because Trustly could acquire knowledge of Norwegian customers’ personal login details. DNB, together with several other banks, therefore blocked this access for security reasons. Instead, Trusty was offered a payment solution with BankID which ensured that customers’ login details were not compromised.

Important security tool
"BankID is the most important security tool for Norwegian bank customers, irrespective of which bank customers use. BankID is also used for other important public services and for the handling of sensitive information. We look forward to shedding light on this matter and to presenting our assessment in dialogue with ESA. We will of course provide ESA with all the documentation they need from us,” says Thomas Midteide, group executive vice president in DNB.

DNB welcomes new market entrants to the Norwegian market provided that this is not at the expense of Norwegian bank customers’ security.

Contact information
Even Westerveld, EVP Corporate Communications, tel. (+47) 400 16 744
Thomas Midteide, group executive vice president, Corporate Communications, tel. (+47) 962 32 017

DNB will publish its results for the third quarter of 2016 on Thursday, 27 October 2016 at 7.30 am CEST.

27 October at 9.30 am CEST: press conference in English accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo.
A live broadcast will be available at www.dnb.no/en/ir.
Please register your attendance in Oslo at [email protected].
The press conference will be held in English.

27 October at 1.30 pm CEST: conference call for analysts and investors
To attend the conference call: dial (+47) 21 56 33 18 or from outside Norway: +44 (0) 20 3003 2666 or from the US: 1 866 966 5335. Password: DNB Q3.
The phonecast (listen only mode) and replay will be available at www.dnb.no/en/ir.

28 October at 7.30 am BST: breakfast conference for analysts in London
Place: J.P. Morgan offices, 60 Victoria Embankment, London EC4Y 0JP 
Please register your attendance in London with J.P. Morgan.

Management will present the results followed by a Q&A session.

Save the date: DNB's Capital Markets Day – 16 November 2016

DNB will host its CMD in London on Wednesday, 16 November 2016. An invitation will be sent out separately.

Kjerstin Braathen has been appointed new chief financial officer (CFO) in DNB with effect as of 1 March 2017, succeeding Bjørn Erik Næss, who will retire on the same date.

Næss has been CFO in DNB for nine years. According to his pension agreement, he was entitled to retire when reaching the age of 62 in August 2016, but the agreement was extended to 1 March 2017.

Up till now, Braathen has been group executive vice president and head of Corporate Banking Norway. She is a member of the group management team. She assumed her current position in 2013 and was previously head of Shipping, Offshore and Logistics in Oslo. She has more than 17 years’ experience from various positions in the DNB Group. Braathen was born in 1970.

Benedicte Schilbred Fasmer will become new group executive president and head of Corporate Banking Norway with immediate effect. Since 2014, Fasmer has been responsible for DNB’s operations in Bergen and the Western Norway division in Corporate Banking Norway. She previously held senior executive positions in, among others, Argentum Asset Management and Sparebanken Vest. Fasmer is also board chairman in Oslo Børs VPS Holding and Oslo Børs ASA. She was born in 1965.

Rune Garborg will become new group executive president in charge of Vipps and Payments with immediate effect. This is a new position in the group management team. Since February this year, Garborg has been in charge of DNB’s digital payment solution Vipps. Prior to this, he was head of Categories and Marketing in Personal Banking Norway. Other prior positions include head of marketing in DNB Eiendom. Garborg was born in 1969.

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities
Trading Act.

Contact person:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017