On Thursday, 21 November 2013, the DNB Group will arrange a Capital Markets Day in London from 9:00 a.m. to 2:00 p.m. local time. The event will also be webcasted.
Further information about the agenda and practical details will be presented later.
Best regards,
Per Sagbakken, head of IR/Long-term Funding, tel. +47 23 26 84 00
In the third quarter of 2013, the DNB Group will record a negative effect of basis swaps connected to funding of NOK 223 million.
For the full year 2012 and the first half of 2013, there were negative effects of basis swaps of approximately NOK 1687 million and NOK 321 million, respectively. 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. Over time, the accounting effects will thus be reversed.
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Contact persons, Investor Relations: Per Sagbakken: +47 23268400
DNB’s 3Q 2013 results will be published at 07:30 am CET on Thursday, 24 October 2013. We would like to invite you to participate in the following presentations:
0930 CET Press conference & live web-TV
Press conference (in Norwegian only) will be held on Thursday 24 October at 9:30 am CET at DNB’s head office, Bjørvika, Dronning Eufemias gate 30, Oslo. For those who are unable to attend the presentation in Bjørvika, there will be a live web-TV of the conference (in Norwegian only). For further information, please visit www.dnb.no/ir.
To register your attendance in Oslo, please RVSP to [email protected]
1400 CET Analyst Conference Call
A conference call for analyst will be held Thursday 24 October at 2:00 pm CET. To attend the conference call we kindly ask you to dial in 10 minutes before start on +47 23 18 45 32. A replay will be available after the conference call. More details on the conference call can be found on our website www.dnb.no/ir.
Friday 25 October 0730 for 0745 GMT Analyst Meeting in London
An analyst meeting in London will be held on Friday 25 October at 07:30 for 07:45 am GMT at Nomura, One Angel Lane, London, EC4R 3AB, United Kingdom
To register your attendance in London, please RVSP to [email protected]
Contact
For further information, please contact:
Per Sagbakken, Head of Investor Relations, phone +47 23268400 or
Jan Erik Gjerland, e-mail: [email protected], phone +47 23268408.
DNB’s Investor Relations team is pleased to invite you to our
CAPITAL MARKETS DAY
Thursday 21 November 2013
Time: 9:00 am – 1:30 pm
Location: Hilton on Park Lane, 22 Park Lane, London W1K 1BE
Registration from 8:30 am – 9:00 am
We will provide you with insight into the most important issues for DNB in today’s rapidly changing business environment. Topics such as strategic direction, financial ambitions, regulation and capital management will be addressed.
REGISTRATION
We encourage you to register online at https://www.deltager.no/dnb_cmd_london2013. The closing date for registration is 18 November 2013. The event will also be webcasted.
We look forward to seeing you in London.
for DNB,
Per Sagbakken,
Head of Investor Relations / Long-term funding
Third quarter 2013
DNB recorded profits of NOK 4 881 million in the third quarter of 2013, up NOK 1 341 million from the third quarter of 2012. Adjusted for the effect of basis swaps, there was a NOK 1 093 million rise in profits. Wider lending spreads were the main factor behind the rise in profits and contributed to the necessary build-up of capital to meet stricter capital requirements. In October, the Ministry of Finance issued new regulations regarding a counter-cyclical capital buffer of between 0 and 2.5 per cent. In addition, the Ministry announced new rules governing the weighting of banksâ home mortgages in the capital adequacy calculations, while retaining the current transitional rules linked to the so-called Basel I floor. The requirements, which apply solely in Norway, entail that DNB appears more weakly capitalised than its international competitors, even though this is not the case in real terms. Compliance with the requirements necessitates a further significant increase in Tier 1 capital. DNBâs common equity Tier 1 capital has been increased by NOK 10.5 billion over the past twelve months. The common equity Tier 1 capital ratio, calculated according to the transitional rules, rose from 10.0 per cent in the third quarter of 2012 to 11.0 per cent, including 50 per cent of interim profits. Return on equity increased from 11.9 per cent to 14.4 per cent during the same period. Adjusted for the effect of basis swaps, return on equity was up from 13.2 to 14.9 per cent. DNB is well capitalised, but will build additional capital organically in order to meet the authoritiesâ requirements. Parallel to this, efforts to influence the regulatory framework will be continued.
DNB is arranging its Capital Markets Day in London today, 21 November, at 09.00 a.m. local time.
The presentations for the event are enclosed and are available on www.dnb.no/ir
DNB is targeting a return on equity above 12 per cent towards 2016 based on a 13.5-14.0 per cent core equity Tier 1 capital ratio requirement. DNB will build higher capital through its retained earnings capacity of well above 100 basis points per year.
DNB is reducing its guiding for impairments on loans and guarantees to below NOK 3 billion for the full year 2013, and below the 2013 level for the full year 2014. DNB will keep its dividend payout ratio at approximately 25 per cent during the capital build-up phase until 2016, and is maintaining its long-term policy of 50 per cent payout.
Presenters today will be the CEO, the CFO, the head of Personal Banking Norway and the head of Large Corporates and International.
The presentations will be shown on live web-TV from 09.00 a.m. GMT. More information is available on www.dnb.no/ir
For more information:
Per Sagbakken, Head of Investor Relations, mobile +47 90 66 11 59
(London, 21 Nov. 2013) DNB has set itself ambitious, but realistic financial targets towards 2016. At the Capital Markets Day in London today, DNB is presenting its plan for how the bank can reach its target of a return on equity above 12 per cent while adapting to the regulatory requirements.
“Due to the new banking reality and regulatory environment, every manager and employee in DNB is working to optimise our use of capital and increase our profitability. We raise our expected common equity Tier 1 capital ratio from 12–12.5 per cent to 13.5–14 per cent due to signals we have received from the Norwegian regulatory authorities. DNB is on track to meet these new capital requirements, and is already among the best capitalised banks globally. Although there is still some regulatory uncertainty, we have several measures to ensure organic capital growth,” says Rune Bjerke, CEO of the DNB Group.
At the Capital Markets Day in London today, DNB’s CEO can report to the market that the bank is on track to meet previously announced cost initiatives and sees even further potential for cost savings. He states that DNB is among the most cost-efficient banks in the Nordic region, and aims to maintain this position. DNB is also raising the bar when it comes to increasing sales of capital-light products. According to the CEO, DNB has an untapped potential in covering a broader range of customer needs across the different customer segments, from debt capital market activity in the large corporate segment to non-life insurance in the retail market.
During the capital build-up phase till 2016, DNB will do its utmost to keep a dividend payout ratio above 25 per cent, while maintaining its long-term policy of 50 per cent payout.
“In a rapidly changing banking reality, it is all about flexibility and adaptability. DNB is well positioned to meet customer demands and comply with regulatory requirements in a time when the rate of change is extremely high,” says Rune Bjerke.
For more information:
Per Sagbakken, Head of Investor Relations, mobile +47 90 66 11 59
Thomas Midteide, Group EVP Corporate Communications, mobile +47 962 32 017
See the presentation from the CMD on webcast here from 9.00 am GMT.
The presentations from the event are attached or available on www.dnb.no/ir
In the fourth quarter of 2013, the DNB Group will record a negative effect of basis swaps connected to funding of approximately NOK 819 million. For the full year 2013, there will be a negative effect of NOK 1 364 million.
In the fourth quarter of 2012, there was a positive effect of basis swaps of approximately NOK 235 million, while there was a negative effect of approximately NOK 1 687 million for the full year 2012.
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. Over time, the accounting effects will thus be reversed, and the balance at year-end 2013 was NOK 1 250 million.
Contact persons, Investor Relations:
Per Sagbakken: +47 23268400
Jan Erik Gjerland: +47 23268408
07:30 CET – result release
DNB’s 4Q 2013 results will be released at 07:30 am CET on Thursday, 6 February 2014. We would like to invite you to the following presentations:
09:30 CET – press conference & live web-TV
A press conference (in Norwegian) will be held on Thursday, 6 February at 9:30 am CET at DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo. For those who are unable to attend the presentation in Bjørvika, there will be a live web-TV broadcast of the conference (in Norwegian). For further information, please visit www.dnb.no/ir.
Please register your attendance in Oslo at [email protected].
13:30 CET – investors and analyst conference call & phone-cast
A conference call for investors and analysts will be held on Thursday, 6 February at 1:30 pm CET.
To attend the conference call we kindly ask you to dial in 10 minutes before start at: +44 (0) 20 3003 2666 or local +4721563318. Password: DNB2013.
Phonecast: You can also attend the call in a listen-only-mode at the phone-cast link at www.dnb.no/ir.
A replay of the phone-cast will be available after the call. More details on the conference call can be found on our website www.dnb.no/ir.
Friday 7 February 0730 for 0745 GMT – analyst breakfast meeting in London
An analyst breakfast meeting will be held in London on Friday, 7 February at 0730am for 0745am start (local time) at DNB’s London Branch, 20, St. Dunstan's Hill, London EC3R 8HY.
Please register your attendance in London: [email protected]
Contact
For further information, please contact:
Per Sagbakken, head of Investor Relations, phone +47 23 26 84 00 or
Jan Erik Gjerland, e-mail: [email protected], phone +47 23 26 84 08.
