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.

On 12 June 2012, the Supervisory Board elected Berit Svendsen as a new member of the Board of Directors of DNB ASA. Anne Carine Tanum, Bente Brevik and Tore Olaf Rimmereid were re-elected as members of the Board of Directors of DNB ASA. Anne Carine Tanum was re-elected as chairman of the board, and Tore Olaf Rimmereid was elected as new vice-chairman of the board. Vigdis Mathisen was elected as a new board member to represent the employees, with Bente Hornsrud Espenes as a new deputy. All were elected with a term of office of up to two years.

The Board of Directors of DNB ASA now has the following composition:

Members representing the shareholders (end of term):
Anne Carine Tanum, chairman (2014)
Tore Olaf Rimmereid, vice-chairman (2014)
Jarle Bergo (2013)
Bente Brevik (2014)
Berit Svendsen (2014)

Members representing the employees (end of term):
Sverre Finstad (2013)
Carl A. Løvvik (2013)
Vigdis Mathisen (2014)

Deputies representing the employees (end of term):
Bente Hornsrud Espenes (2014)
Jørn O. Kvilhaug (2013)
Hans-Kristian Sætrum (2013)

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

DNB recorded profits of NOK 4 580 million in the second quarter of 2012, up from NOK 3 546 million in the second quarter of 2011. The bank is still experiencing sound growth in both the personal and corporate markets.

All business areas, apart from Insurance and Asset Management, achieved considerably higher operating profits than in the second quarter of 2011.

“We are very pleased with the Group’s second quarter performance. While a number of European banks are now scaling back lending, DNB is still experiencing strong, profitable growth. We are growing parallel to strengthening our capital adequacy,” says Rune Bjerke, group chief executive.

DNB’s common equity Tier 1 capital ratio increased to 9.6 per cent at end-June.

In the first quarter of the year, the effects of basis swaps (derivative contracts) had a pronounced negative effect on DNB’s profits. In the second quarter, the situation was the opposite, and such derivative contracts had a positive effect of NOK 1 078 million. Though these effects vary considerably from quarter to quarter, over time their effect will be neutral. “We are very pleased with our profit figures, even when adjusted for this effect,” says Bjerke.

DNB has experienced strong growth in both home mortgages and lending to small and medium-sized businesses, while there has been lower growth in lending to large corporates and international customers. Average lending volumes increased by 9.1 per cent compared with the second quarter of 2011.

Strong deposit growth
Average deposit volumes rose 17.3 per cent from the second quarter of 2011, which helped raise DNB’s ratio of deposits to lending to 65.3 per cent at end-June.

“There is strong competition for deposits, which results in narrowing spreads. This quarter, DNB launched a number of account-based savings products, such as Supersave and Junior Homesave, in order to meet Norwegian customers’ demand for safe savings alternatives with good returns,” says Bjerke.

Low write-downs
Write-downs on loans and guarantees remained at a low level.

“Write-downs in our operations in the Baltics have been further reduced, while there has been an increase in write-downs relating to a few commitments in Large Corporates and International. Several segments in the shipping markets are now going through a difficult period. In spite of this, however, our shipping losses were relatively low and stable this quarter,” says Bjerke.

Continued growth in Norway 
DNB believes that the Norwegian housing market is robust, in spite of the strong growth in house prices. A high level of investment in the oil and energy sector also generates growth in the Norwegian economy.

“The Norwegian economy is strong, and we expect continued growth in Norway, where we have 80 per cent of our operations. We believe that the uncertain situation in Europe will prevail, which could also have an impact on the Norwegian economy in the longer term,” says Bjerke.

Key figures for the second quarter of 2012
• Pre-tax operating profits before write-downs were NOK 6.7 billion (5.1)
• Profit for the period was NOK 4.6 billion (3.5)
• Earnings per share were NOK 2.82 (2.18)
• Return on equity was 15.3 per cent (12.6)
• The ordinary cost/income ratio was 43.5 per cent (49.2)

Comparable figures for the second quarter of 2011 in parentheses.

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

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

DNB is a world-leading energy bank and has a major presence at this year’s oil conference in Stavanger. DNB’s stand will be an integrated part of the ONS ”Centre Court” which is a dynamic arena for presentations, debates and discussions on topical energy issues.

”The debate arena is built like an amphitheatre inspired by the Colosseum to give an informal setting to the talks and debates. This will facilitate lively discussions between the speakers and the audience during and after the presentations, both within and outside the Center Court,” says Morten Kreutz, section head in DNB’s Energy Division.

ONS has been held every other year since 1974 and this year on 28-31 August is the twentieth oil conference. The event is a showcase for the energy sector, a place to meet and discuss energy issues. The main topic this year is ”Confronting Energy Paradoxes”.

A call to debate
In 2010 ONS organised the first Centre Court, in the heart of the exhibition arena at the Stavanger Forum. The aim was to offer a dynamic arena for presentations, debates and discussions, and more than 60 presentations were held during the four days.

”The Centre Court was very popular in connection with the Renewable Park at the ONS in 2010 and was a popular arena for the conference participants where they could share their experiences and knowledge. When DNB became involved, we had no hesitation in thinking along the same lines in the planning of ONS 2012, and we have also further developed the concept,” says Morten Kreutz.

Why has DNB chosen to have a stand at the oil conference?

”This will be something completely new and unlike any other traditional trade fair stand. DNB is a facilitator for players in the energy sector and therefore not just a source of credit, but also a source of knowledge. At ONS, we will show our competitive advantages within energy expertise and corporate social responsibility, strengthen relations with our existing customers and form new ties with other players in this industry sector,” says Kreutz.

It has been confirmed that the Norwegian King Harald V, the Norwegian Prime Minister Jens Stoltenberg and Ola Borten Moe, the Norwegian Minister of Petroleum and Energy, will attend the conference. In addition, there will be many other prominent national and international participants from the energy business both as speakers and as debate participants. Representatives from DNB will also address the Centre Court audience: Rune Bjerke, Leif Teksum, Marte Gerhardsen, Torbjørn Kjus, Per Aage Jacobsen, Øystein Dørum and Trond Bentestuen, to name just a few.

”Thanks to close and effective cooperation with the organisers of ONS, we have been able to influence the design of the entire Centre Court and become an integrated part of the concept. A top-quality programme is of course crucial to ensure that this will be a popular meeting place. We have therefore focused on subjects which the entire energy sector will find topical, whether they are in oil, gas or renewable energy. Consequently, we will address topics such as the world’s energy needs, the price of oil, Carbon Capture and Storage (CCS), technology transfer from offshore oil to wind, innovative developments, and environmental issues. However, as a bank, we also want to think outside the box and therefore we wish to focus on new dimensions. We believe that topics such as the importance of a good corporate reputation, ethical issues and the significance of the financial crisis for the energy sector will also generate a lot of attention,” says Kreutz.

Sharing knowledge and expertise
A new element this year is the streaming of meetings on the Internet for those who are unable to attend this year’s ONS. ”The energy sector is global and we know that important new developments within energy announced at ONS will arouse international attention. It has therefore been important for us to make what happens at the Centre Court accessible to all. In addition, those who miss a presentation will be able to see these online at their convenience.

Contact:
Morten Kreutz, section head in DNB’s Energy Division
Phone: +47 48111911

DNB is arranging a Capital Markets Day in London on 6 September 2012 at 09.00 a.m. local time.

The presentations are enclosed and are available on dnb.no.

On the Capital Markets Day, an account will be given of the Group’s market and financial position as well as plans and ambitions for the 2012-2015 period.

The presentations will be shown on web TV. More information is available on dnb.no.

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