Håkon Hansen was in June 2018 appointed acting group executive vice president Wealth Management & Insurance in DNB Bank ASA. With effect from October 24th 2018 he is included as a permanent member of the group management team.
The DNB Bank Group has participated in the EBA (European Banking Authority) stress test, based on numbers as at year-end 2017, and with a stress period from 2018 to 2020. The common equity Tier 1 (CET1) capital ratio for the DNB Bank Group has a moderate fall from 16.2 per cent by the end of 2017 to 15.0 per cent by the end of 2020.
In the stress scenario, the common equity Tier 1 (CET1) capital ratio for the DNB Bank Group drops to 13.5 per cent at the end of 2018. Loan losses are, according to the new IFRS 9 principles, particularly concentrated in 2018, which combined with losses related to market risk and reduced net interest income, causes a negative profit after tax of EUR 928 million (NOK 9 136 million). The increase in risk-weighted assets also contributes to the decline in the capital adequacy. Positive results in 2019 and 2020, which among other things can be ascribed to the decline in loan losses, cause the capital adequacy to rise to 15.0 per cent by the end of 2020. DNB is satisfied with the results of the stress test, which show that the bank has a robust earning capacity and capital position.
Links: EBA stress test results
DNB will hold the fourth quarter results presentation in London, Thursday 7 November 2019 at 10.30 (London time). The presentation will last until 12.00 as management, in addition to presenting the fourth quarter results, will provide status on some of the items addressed at the 2017 Capital Markets Day. Please note that there will not be held any presentation in Oslo related to the fourth quarter.
Place: DNB’s office in London. A live broadcast will be available on the Investor Relations pages at ir.dnb.no.
A more detailed agenda, further details regarding registration of attendance and infomation about the live broadcast will follow in due course.
DNB will hold the fourth quarter results presentation in London, Thursday 7 February 2019 at 10.30 (London time). The presentation will last until 12.00 as management, in addition to presenting the fourth quarter results, will provide status on some of the items addressed at the 2017 Capital Markets Day. Please note that there will not be held any presentation in Oslo related to the fourth quarter.
Place: DNB’s office in London. A live broadcast will be available on the Investor Relations pages at ir.dnb.no.
A more detailed agenda, further details regarding registration of attendance and dial in details will follow in due course.
In the fourth quarter of 2018, the DNB Group will record a negative effect of basis swaps connected to funding of NOK 342 million.
Basis swaps are derivative contracts entered into in connection with long-term funding in international capital markets where the relevant currency is converted to Norwegian kroner. These swaps are hedging instruments, and over the lifetime of the derivatives the mark-to-market adjustments will have zero effect.
DNB Livsforsikring AS is a wholly owned subsidiary of DNB ASA. In the fourth quarter of 2018, the following allocations and financial statement entries of significance to the company's profits were made:
By adopting the Act of 20 December 2018, the Norwegian Storting laid down new tax rules with appurtenant transitional rules for life insurance and pension companies, with effect for 2018. The new rules involve taxation of income and costs related to assets in the common portfolio and the investment choice portfolio. The transition to new rules is regulated in the transitional provisions, where tax value and commitments as at 31 December 2018 shall be determined in line with the accounting rules. Changes in tax value are taxable or deductible in the 2018 fiscal year.
Based on our evaluation and understanding of the new tax rules with appurtenant transitional rules, the transition will result in a tax loss for DNB Livsforsikring. This means that the company will have a taxable income of about NOK 4 billion for 2018. On 21 December, the Norwegian Directorate of Taxes gave a statement of principles of their understanding of the transitional rule that may be conceived as divergent.
The accounting effects for DNB ASA will be an impact on profits in the fourth quarter of about NOK 4 billion, which is recorded as income under tax expenses. This will not have any effect on capital for the DNB Group before the amount or part thereof is distributed as dividends to DNB ASA. The distribution of dividends will be assessed at the year-end closing of accounts in DNB Livsforsikring AS and will be decided at the general meeting of DNB Livsforsikring AS in April 2019. Several elements will be taken into account in this assessment, such as the company's dividend policy, future market development and the company's tax position.
DNB will publish its results for the fourth quarter of 2018 on Thursday, 7 February 2019 at 07.30 (Oslo time).
The fourth quarter results presentation will be held in London at the same day. The event will be webcasted and it will be possible to ask questions online. Link to webcast will be made available at ir.dnb.no.
Please note that there will not be held any presentation in Oslo, nor any analyst- and investor conference call, in relation to the fourth quarter.
Presentation details:
Time: 10.30-12.00 (London time), followed by light lunch
Place: DNB Bank ASA, 8th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF
Registration: Please register your attendance in London to [email protected], no later than 31 January
Agenda:
The presentation will be published 10:30 (London time) the same day.
We look forward to see you in London.
In reference to yesterdays stock exchange release DNB Livsforsikring AS – transitional effects from new tax rules we would like to clarify that the accounting effects will have a positive impact on DNB ASAs fourth quarter results for 2018 of about NOK 4 billion, which is recorded as income under tax expenses.
Based on our evaluation and understanding of the new tax rules with appurtenant transitional rules, the transition will result in a tax loss for DNB Livsforsikring. This means that the company will have a tax income of about NOK 4 billion for 2018, not taxable income as previously stated.
S&P upgraded today DNB Bank ASA’s long-term debt rating to AA- from A+. S&P also upgraded the short-term debt rating to A-1+ from A-1. The outlook is changed to stable.
For further details, please see attached press release: 2019 01 22 SP rating report DNB Bank ASA
DNB will publish its results for the fourth quarter of 2018 on Thursday, 7 February 2019 at 07.30 (Oslo time).
The fourth quarter results presentation will be held in London at the same day. The event will be webcasted and it will be possible to ask questions online. Link to webcast will be made available at ir.dnb.no.
Please note that there will not be held any presentation in Oslo, nor any analyst- and investor conference call, in relation to the fourth quarter.
Presentation details:
Time: 10.30-12.00 (London time), followed by light lunch
Place: DNB Bank ASA, 8th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF
Registration: Please register your attendance in London to [email protected], no later than 31 January
Agenda:
The presentation will be published 10:30 (London time) the same day.
We look forward to see you in London.
