DNB has today decided to reduce interest rates on home mortgages by up to 0.50 percentage points. This is the second time in under two weeks that the bank has lowered its home mortgage rate.

- Due to the extraordinary situation the market is changing very quickly, which makes the price of money for banks unpredictable. This makes it very difficult to set long-term mortgage rates at the moment, says Ingjerd Blekeli Spiten, head of Personal Banking in DNB.

- As Norway's largest bank, DNB must help keep the wheels turning at a time of uncertainty. Mortgages usually have a horizon of 20 to 30 years, and DNB intends to be a safe and predictable partner for our customers, through this crisis and for many years to come. We will continue to be here for customers across the country, and help find solutions for those who find themselves in a difficult situation, she continues.

- A huge number of Norwegians are now applying for interest-only periods, and we want to help them as quickly possible. We therefore ask that customers who have questions about interest rates, wait to contact us until they have received information on how their loans are affected by this interest rate change," says Spiten.

The interest rate change for existing home mortgages comes into effect from 2 May. Our new rates will apply to new mortgages from 24 March. Next week, all customers whose interest rates are adjusted will be given information in the Internet bank or receive a letter by regular mail, explaining how their mortgage is affected.

DNB ASA normally holds its Annual General Meeting in April each year. Due to the extraordinary situation caused by the spread of the corona virus and the authorities' restrictions on mass gatherings, the Board of Directors of DNB ASA has decided to postpone the general meeting.

In addition, the Board refers to Oslo municipality's ban on gatherings in the regulations relating to the prevention of the spread of the corona virus in the municipality of Oslo, adopted by the Oslo City Council on March 27th, 2020. A new Annual General Meeting will be called within the ordinary deadline stipulated by the Norwegian Public Limited Companies Act, which is June 30th, 2020.

DNB is one of the most solid banks in Europe. Norwegian authorities have expressed an expectation that financial institutions postpone the distribution of dividends until the great uncertainty surrounding the economic development has been reduced. On March 27th, 2020, the European Central Bank (ECB) published a recommendation (ECB / 2020/19) that banks refrain from making dividend distributions and performing share buy-backs until October 1st, 2020 at the earliest. The Board of Directors is committed to support our customers though challenging times.

On this basis, dividends for 2019 will not be considered at the Annual General Meeting, but at an extraordinary General Meeting held no later than December 2020. The same applies to the consideration of the authorisation to the Board of Directors to repurchase shares.

DNB ASA will revert with updated key information on dividends. 

In the first quarter of 2020, the DNB Group will recognise a positive effect of NOK 1 060 million from basis swaps connected to funding. Furthermore, a positive effect of NOK 4 097 million from the Additional Tier 1 capital will also be recognised.

DNB will publish its results for the first quarter of 2020 on Thursday 30 April at 7.30 a.m. CET.

9:30 am CET: Presentation
CEO Kjerstin Braathen, CFO Ottar Ertzeid, and CRO Ida Lerner will present the results at a live streamed press conference. Due to the Covid-19 situation it is not possible to physically attend the first quarter presentation. A broadcast will be available on the Investor Relations pages at ir.dnb.no.

1:30 pm CET: Conference call for analysts and investors
To attend the conference call: (+47) 21 56 33 18, or International line: (+44) (0) 20 30 03 26 66. Password: DNB Q1. The phone conference (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.

DNB will publish its results for the first quarter of 2020 on Thursday 30 April at 7.30 a.m. CET.

9:30 am CET: Presentation
CEO Kjerstin Braathen, CFO Ottar Ertzeid, and CRO Ida Lerner present the results at a live streamed press conference. Due to the Covid-19 situation it is not possible to physically attend the first quarter presentation. It will be possible for analysts and investors to ask questions to management online at the press conference. A broadcast will be available on the Investor Relations pages at ir.dnb.no.

1:30 pm CET: Conference call for analysts and investors
To attend the conference call, please register here.  
The phone conference (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.

The Board of Directors of DNB ASA has decided to hold the annual general meeting on 30 June 2020. Invitation to the annual general meeting will be sent in due time.

Dividends for 2019 will not be considered at the annual general meeting, but at an extraordinary general meeting that will be held no later than December 2020. The new ex-dividend date will be the day after the extraordinary general meeting.

On 2 April 2020, the Board of Directors of DNB ASA announced that the annual general meeting, planned to be held on 28 April 2020, would be postponed due to the extraordinary situation caused by the spread of the coronavirus and the authorities' restrictions on mass gatherings (read statement here).

DNB's result for the first quarter of 2020 was NOK 4 000 million, a reduction of NOK 3 582 million from the first quarter of 2019. The bank has built up record-high capital that can act as a buffer in an uncertain time for the Norwegian business community.

The coronavirus and the drop in the oil price have given the Norwegian economy twice as much to contend with. Private individuals, the business community and banks are all affected by the infection control measures in Norway and internationally.

"The most important thing for us this quarter has been to help customers who are affected by the situation we're currently in," says CEO Kjerstin Braathen.

DNB is well equipped to handle challenging times, both in a short and long-term perspective. With a higher level of equity than ever, the bank has the capacity to help customers in the time ahead.

"Ever since the financial crisis, we have built up capital with a view to withstanding hard times. We are reaping the benefits of this now. In addition, we have worked diligently to secure the bank's funding. Before Christmas, we borrowed almost NOK 60 billion in the bond market, which will now be used for loans, to the benefit of individuals and companies alike. So let there be no doubt -  the bank is still open," says Kjerstin Braathen.    

Furthermore, DNB has never had a higher credit rating, with the AA rating and the highest short-term rating from the two largest credit rating agencies.

Putting aside more to cover losses

However, the outlook for the Norwegian economy is leading to increased impairment losses for the DNB Group. Impairment losses amounted to NOK 5 771 million in the first quarter, compared with NOK 316 million in the first quarter last year.

The oil-related industries are the most vulnerable, especially offshore companies that provide services to oil companies both in Norway and internationally. Around 45 per cent of the impairment losses in the quarter are related to the oil and offshore industry.

"When the future prospects for the economy become weaker, we have a duty to set aside money for future losses straight away. The accounting rules have recently been made more stringent on this point. That's why impairment losses are increasing despite the fact that we haven't seen a wave of bankruptcies," says Kjerstin Braathen.

The general outlook for the Norwegian economy is also an important reason for the bank to put aside more money for covering future losses.

"One of our tasks in society is to invest and take risks together with companies and private individuals. When the level of uncertainty rises, both we and our customers stand the risk of losing money. But we also have another important task, and that is to help as many people as possible through the crisis. Then hopefully we can also reverse some of these impairment losses in the future," says Kjerstin Braathen.

Increasing income

The DNB Group's income is showing healthy development. Net interest income was NOK 10 395 million in the first quarter, up NOK 1 106 million from the same quarter last year. Other income is also higher than last year, up NOK 1 376 million in the first quarter, partly influenced by positive currency effects at a time when the NOK has weakened dramatically and we are seeing negative effects related to changes in value due to the turbulent market situation.

In certain areas, such as initial public offerings (IPOs) and other capital advisory services, income has been reduced as a result of lower activity than in the previous quarter.

"We entered the crisis with a strong starting point. We have built up capital and we have a robust portfolio. In addition, we have first-class digital solutions such as the mobile bank, the corporate app Puls and the savings app Spare. This means that we are in a good position to help our existing customers, and also to recruit new ones, even though we can't actually meet physically," says Kjerstin Braathen.  

As previously announced, the Board of Directors of DNB has postponed the decision on paying out a dividend to shareholders for 2019. The decision will be made at an extraordinary general meeting later this year.

Financial key figures for the first quarter of 2020 (compared with figures for the corresponding quarter in 2019):

• Pre-tax operating profit before impairment amounted to NOK 10.1 billion (7.6)
• Profit for the quarter was NOK 4.0  billion (7.6)
• Earnings per share were NOK 2.28 (4.61)
• Return on equity was 6.5 per cent (14.1)
• Cost/income ratio was 35.3 per cent (42.0)
• Common equity Tier 1 capital ratio was 17.7 per cent (17.1)

Details concerning DNB's results can be found on ir.dnb.no.

For further information:

Rune Helland, Head of Investor Relations, tel.: (+44) 23 26 84 00 / (+47) 97 71 32 50
Thomas Midteide, Group Executive Vice President for Communications, tel.: (+47) 96 23 20 17

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

Today, 4 May 2020, a total of 240,994 shares in DNB ASA were acquired on behalf of certain leading employees and risk takers. The purchase was executed collectively at an average price per share of NOK 120.2150.

The shares were acquired in accordance with the regulation on remuneration in financial institutions etc., which states that at least half of annual variable remuneration shall be awarded as shares and be subject to certain lock-up mechanisms.

The employees have been given a compensation for decreased share value resulting from the lock-up at approximately 10.6%.

A list of primary insiders of DNB ASA that have increased their shareholding is attached.

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

DNB has today decided to reduce the home mortgage interest rate by up to 0,4 percentage points.  

-The price of money has fallen over the past weeks, as a result of market developments and the uncertainty around the Norwegian economy. As Norway's largest bank, we must be a safe and predictable partner for our customers and offer competitive prices. We are therefore lowering the interest rate for home mortgages by up to 0,4 percentage points for new and existing customers, says Ingjerd Blekeli Spiten, head of Personal Banking in DNB.  

-DNB is one of the most solid banks in Europe, and we play an important role in society by helping to keep the wheels of the Norwegian economy turning. Over the last eight weeks we've helped thousands of customers with everything from interest-only periods to bridging loans, and we'll continue to do so. The bank is still open like before, and the corona situation has not made it more difficult for Norwegian consumers to get a loan in DNB, she continues.   

The interest rate change for existing home mortgages comes into effect from 25 May. Our new rates will apply to new mortgages from 11 May. All customers whose interest rates are adjusted will be given information in the Internet bank or receive a letter by regular mail, explaining how their mortgage is affected.