DNB recorded profits of NOK 4 089 million in the fourth quarter of 2011, compared with NOK 5 284 million in the fourth quarter of 2010. Profits for the full year 2011 were NOK 12 979 million, a reduction of NOK 1 083 million compared with 2010.

"This was another quarter affected by financial turmoil. However, there was a high level of activity in the bank, with a close to NOK 1.7 billion rise in income. We are pleased to note that we are continuing to gain market share and that we are the preferred bank for a large number of large and small customers. Total lending was up 9.3 per cent from end-December 2010, which is a gratifying development," says Rune Bjerke, group chief executive.

At year-end 2011, DNB had lent a total of NOK 1 279 billion to companies and households.

DNB has also succeeded in increasing the bank's deposit volumes. Deposits were up 15.3 per cent from end-December 2010, and the bank's ratio of deposits to lending increased to 57.8 per cent at year-end 2011. Average lending spreads contracted by 0.03 percentage points from the fourth quarter of 2010, but widened compared with the third quarter of 2011.

Increase in write-downs
Write-downs on loans and guarantees totalled NOK 926 million for the quarter, an increase of NOK 397 million from the fourth quarter of 2010, but a reduction of NOK 244 million from the third quarter of 2011.

"Though write-downs have increased somewhat compared with the corresponding period last year, they remain at a low level," says Bjerke.

The volume of non-performing and doubtful commitments increased during the fourth quarter, related to a few large commitments which have been subject to relatively low write-downs due to a limited risk of losses.

"Write-downs for the Group in 2012 are expected to be on a level with 2011," says Bjerke. 

A good year for DNB
The Group's performance in 2011 reflected the significant financial market turmoil in the second half of the year.

"Even though we have no exposure to the crisis-hit countries in Europe, we are also affected by the financial market turmoil and fall in share prices. This has a particular impact on operations in DNB Livsforsikring. On the other hand, the financial turmoil ensures higher income in other areas due to mark-to-market adjustments of foreign exchange and interest rate instruments," says Bjerke.

Pre-tax operating profits before write-downs rose by NOK 752 million, to NOK 21 833 million.

The Board of Directors has proposed dividend for 2011 of NOK 2.00 per share. The dividend for 2010 was NOK 4.00. When considering the dividend proposal for 2011, the Board of Directors has taken the new regulatory capital adequacy require¬ments into account while focusing on conducting a consistent long-term dividend policy.

Expecting further growth in 2012 
"DNB has 80 per cent of its operations in Norway, and the economic crisis in Europe is expected to have a relatively limited impact on our home market. Still, a prolonged European recession may have negative consequences even for us," says Bjerke.

The bank's funding costs are expected to remain at a high level, reflecting strong demand for capital due to new requirements from the authorities. Profits will be challenged by rising funding costs, though DNB nevertheless anticipates a positive trend in 2012.

Operations in the Baltics and Poland are expected to show further improvement, though the situation may remain challenging.

Key figures for the fourth quarter of 2011
· Pre-tax operating profits before write-downs were NOK 6.8 billion (6.1)
· Profit for the period was NOK 4.1 billion (5.3)
· Earnings per share were NOK 2.51 (3.25)
· Return on equity was 13.8 per cent (19.6)
· The ordinary cost/income ratio was 42.0 per cent (43.1)

Comparable figures for the fourth quarter of 2010 in parentheses.

Key figures for 2011
· Pre-tax operating profits before write-downs were NOK 21.8 billion (21.1)
· Profit for the period was NOK 13.0 billion (14.1)
· Earnings per share were NOK 7.98 (8.66)
· Return on equity was 11.4 per cent (13.6)
· The ordinary cost/income ratio was 47.1 per cent (47.6)
· The proposed dividend per share is NOK 2.00 (4.00)

Comparable figures for 2010 in parentheses.

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

Contact persons:
Trond Bentestuen, group executive vice president, Marketing, Communications and eBusiness,
tel.: +47 950 28 448
Thomas Midteide, executive vice president External Communication,
tel.: + 47 962 32 017

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnb.no/investor-relations

 

In a meeting on Wednesday, 14 March 2012, the Board of Directors of DNB ASA approved the annual accounts for 2011. The DNB Group's annual report for 2011 has been published on newsweb.no (http://www.newsweb.no/newsweb/search.do?siteLanguage=en)
The report is also available on dnb.no/about us (https://www.dnb.no/en/about_us.html?la=EN&site=DNB_NO)

 

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

 

Shareholders in DNB ASA are invited to attend the Annual General Meeting to be held at 6.00 pm on Wednesday, 25 April 2012 at DNB's premises in Kirkegaten 21, Oslo, Norway. The Notice of Annual General Meeting is attached.

 

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

 

The Annual General Meeting in DNB ASA was held on 25 April 2012 in Oslo.

The General Meeting endorsed the Election Committee's proposal for the election of ten members to the Supervisory Board, four members to the Election Committee and one member and one deputy to the Control Committee. The General Meeting also approved the Election Committee's proposal for remuneration rates for the Supervisory Board, Control Committee and Election Committee.

In addition, the Annual General Meeting in DNB ASA approved the Board of Directors' proposal for the 2011 annual report and accounts, including the distribution of a dividend for 2011 of NOK 2.00 per share to registered shareholders as at 25 April 2012, to be distributed as from 7 May 2012. The shares in DNB ASA will be quoted ex-dividend on 26 April 2012.

The General Meeting authorised the Board of Directors of DNB ASA to acquire own shares for a total face value of up to NOK 732,959,487, corresponding to 4.5 per cent of share capital. The shares may be purchased through the stock market. Each share may be purchased at a price between NOK 10 and NOK 150. Acquired shares shall be sold in accordance with regulations on the reduction of capital. The authorisation will be valid for a period of 12 months from 25 April 2012.

An agreement has been signed with the Norwegian Ministry of Trade and Industry for the redemption of a proportional share of government holdings to ensure that the government's percentage ownership does not change as a result of the redemption of repurchased shares.

The minutes of the Annual General Meeting will be published on www.dnb.no/agm.

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

DNB recorded profits of NOK 1 760 million in the first quarter of 2012, down from NOK 2 851 million in the year-earlier period. The bank is experiencing brisk growth in both the personal and corporate markets. 

The bank's ordinary operations were strong and showed a positive trend compared with previous quarters. The decline in profits is mainly a consequence of significant changes in the market value of so-called basis swaps from quarter to quarter. Basis swaps had an overall negative effect on income of NOK 2 432 million in the first quarter of 2012, an increase from NOK 584 million in the first quarter of 2011. Over time, the effect of such hedging instruments on recorded income will be nil.

"We are experiencing strong growth in lending to Norwegian small and medium-sized enterprises and are continuing to gain market share within savings and lending to Norwegian consumers. Lending to our largest customers increased by close to 14 per cent in the first quarter compared with the first quarter of 2011, which we are very pleased with," says Rune Bjerke, group chief executive.

Net interest income showed a healthy trend, rising by 10.6 per cent from the first quarter of 2011. Average lending volumes increased by 8.9 per cent, while deposit volumes were up 13.8 per cent from the first quarter of 2011.

Parallel to the strong growth in deposits, the bank has had good access to capital market funding and thus enjoys a healthy liquidity situation.

Lower write-downs
Write-downs on loans and guarantees totalled NOK 784 million, a reduction of more than NOK 100 million from the first quarter of 2011.

"As expected, there was an increase in write-downs within shipping, while there was a significant reduction in write-downs relating to our operations in the Baltics and Poland. Our shipping clients are generally large industrial companies which have been through market fluctuations before. Still, we are affected by the weak economic situation in parts of the shipping market," says Bjerke.

Total write-downs on loans and guarantees in 2012 are expected to be roughly on a level with 2011. 

Expecting continued growth in 2012 
"In spite of great uncertainty regarding global economic developments, Norway is doing well. The international turmoil appears to have a relatively limited impact on the Norwegian domestic economy. We have 80 per cent of our operations in Norway and thus believe that there are good growth and earnings prospects in this part of the bank," says Bjerke.

Rising funding costs and stricter capital adequacy and liquidity requirements will probably have an impact on the competitive situation in the entire financial services industry over the next few years. The Group's financial ambitions remain firm, but will be more challenging to reach due to lower interest rate expectations and the negative accounting effect of hedging instruments. DNB will maintain its customer-oriented strategy, which will provide a basis for reaching the long-term targets. 

Key figures for the first quarter of 2012
· Pre-tax operating profits before write-downs were NOK 3.2 billion (4.7)
· Profit for the period was NOK 1.8 billion (2.9)
· Earnings per share were NOK 1.08 (1.76)
· Return on equity was 6.0 per cent (10.3)
· The ordinary cost/income ratio was 61.8 per cent (50.5)

Comparable figures for the first quarter of 2011 in parentheses.

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

Contact persons:
Trond Bentestuen, group executive vice president, Marketing, Communications and eBusiness,
tel.: +47 950 28 448
Thomas Midteide, executive vice president External Communication, tel.: + 47 962 32 017

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnb.no/investor-relations

 

Today, 2 May 2012, a total of 488,259 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 61.9962.

The shares were acquired in accordance with the regulation on remuneration in financial institutions, which states that at least half of 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 6.9%.

The following primary insiders of DNB ASA have increased their shareholding:

Name Position in DNB No. of New holding shares purchased Rune Group chief executive officer 6,952  30,338 Bjerke Bjørn Erik Chief financial officer 5,162  33,529 Næss Trond Group executive vice president 3,747  8,629 Bentestuen Marketing,  Communications and e -Business Ottar Group executive vice president 12,434  161,395 Ertzeid Markets Liv Group executive vice president 3,578  12,233 Fiksdal Operations Solveig Group executive vice president HR 3,416  7,129 Hellebust Cathrine Group executive vice president IT 3,536  20,055 Klouman Kari Olrud Group executive vice president 3,043  12,135 Moen Corporate Centre Karin Bing Group executive vice president 3,656  11,496 Orgland Retail Banking Tom Rathke Group executive vice president 4,300  18,663 Insurance and Asset Management Leif Group executive vice president 5,040  53,276 Teksum Large Corporates and International Halfdan Executive Vice President Accounting 1,118 2,460 Bakøy Geir Executive Vice President Corporate 1,285 2,382 Oddvar Center Bergvoll

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

On 2 May 2012, a total of 488 259 shares in DNB ASA were acquired on behalf of certain senior executives and risk takers. The purchase was executed collectively at an average price per share of NOK 61.9962.

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

The employees have been given a compensation of approximately 6.9% for the decrease in share value resulting from the lock-up mechanisms.

The following primary insiders of DNB ASA have increased their shareholding:

Name Position in DNB No. of shares purchased New holding Trygve Young EVP Risk Management 1 505 13 320 Tom Andreassen EVP Staff 666 1 612 Bjørn Berg EVP Group Investments 1 158 2 341

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

On Thursday, 6 September 2012, the DNB Group will arrange a Capital Markets Day in London from 9.00 am - 2.00 pm.
Further information about the agenda and practical details will be presented later.

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