Shareholders in DNB ASA are hereby invited to attend the Annual General Meeting to be held at 3.00 pm on Tuesday, 26 April 2016 in DNB's premises in Dronning Eufemias gate 30, Bjørvika, Oslo, Norway. The Notice of Annual General Meeting is attached.

In the first quarter of 2016, the DNB Group will record a positive effect of basis swaps connected to funding of NOK 1 003 million.

In the first quarter of 2015, there was a positive effect of basis swaps of NOK 1 810 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.

With effect from the second quarter of 2016, DNB will no longer report the basis swap impact ahead of its quarterly reporting.

The reason for this change is that the effect of basis swaps has become only one of many mark-to-market adjustments in the Group’s quarterly reporting, some of which will be negative and some positive. DNB believes it will be better to report and explain these effects all at once when its quarterly report is presented.

Today, the Board of Directors of DNB ASA has sent a written report to the Ministry of Trade, Industry and Fisheries at the request of the Minister.

The background for the report is that the bank’s subsidiary in Luxembourg facilitated the establishment of companies in the Seychelles for customers. In the report, the Board of Directors presents the findings which have thus far resulted from the internal investigations. Based on the report, the Board has already asked the company to implement several measures.

"Group Legal in DNB has done a thorough job, reviewed a large number of documents and interviewed a number of employees and former employees. Based on the investigations, the Board of Directors has prepared a written report which sums up the main findings and the measures which have already been initiated to ensure that DNB’s operations are in line with both regulations and the expectations of its owners, customers and society at large,” says board chairman Anne Carine Tanum.

In addition, the Board of Directors has decided to implement additional measures:

1.The Board of Directors asks the group chief executive to consider the organisation of DNB’s operations in Luxembourg (including a description of current procedures and the division of responsibilities and roles), with special focus on private banking operations.

2.The Board of Directors asks the group chief executive to consider the products and services distributed in the private banking channels, with special focus on aspects which may give rise to reputational issues.

3.The Board of Directors asks the group chief executive to consider the principles for the management and control of international subsidiaries, with special focus on the workforce situation and resources, governance, board composition and compliance.

4.The Board of Directors will, in cooperation with the group chief audit executive, consider the expertise and resources relating to the internal audit functions.

The report and attachments (in Norwegian only) are available at:
https://dnbfeed.no/nyheter/redegjorelse-om-dnb-luxembourg/

Contact person:
Even Westerveld, EVP Corporate Communications, tel. (+47) 400 16 744

DNB will publish its results for the first quarter of 2016 on Thursday, 28 April 2016 at 7.30 am CEST.

28 April at 9.30 am CEST: press conference accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo.
A live broadcast will be available at www.dnb.no/en/ir and direct link.
Please register your attendance in Oslo at [email protected].
The press conference will be held in Norwegian.

28 April at 1.30 pm CEST (new time): conference call for analysts and investors
To attend the conference call: dial (+47) 21 56 33 18 or from outside Norway: +44 (0) 20 3003 2666 or from the US: +1 646 843 4608. Password: DNB Q1.
The phonecast (listen only mode) and replay will be available at www.dnb.no/en/ir and direct link.

29 April at 07.30 am BST: conference for analysts and investors in London
Place: Deutsche Bank - 8th floor, Winchester House, 1 Great Winchester Street, London EC2N 2DB.
Please register your attendance in London at [email protected].

Management will present the results followed by a Q&A session.

DNB will publish its results for the first quarter of 2016 on Thursday, 28 April 2016 at 7.30 am CEST.

28 April at 9.30 am CEST: press conference accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo.
A live broadcast will be available at www.dnb.no/en/ir and direct link.
Please register your attendance in Oslo at [email protected].
The press conference will be held in Norwegian.

28 April at 1.30 pm CEST (new time): conference call for analysts and investors
To attend the conference call: dial (+47) 21 56 33 18 or from outside Norway: +44 (0) 20 3003 2666 or from the US: +1 646 843 4608. Password: DNB Q1.
The phonecast (listen only mode) and replay will be available at www.dnb.no/en/ir and direct link.

29 April at 07.30 am BST: conference for analysts and investors in London
Place: Deutsche Bank - 8th floor, Winchester House, 1 Great Winchester Street, London EC2N 2DB.
Please register your attendance in London at [email protected].

Management will present the results followed by a Q&A session.

DNB’s financial calendar for 2017 has been published today.

Financial calendar for 2016

Financial calendar for 2017

The shares in DNB ASA will be quoted ex-dividend on 27 April 2016. A dividend of NOK 4.50 per share will be distributed as from 4 May 2016 to registered shareholders as at 26 April 2016.

DNB held the Annual General Meeting on 26 April 2016 in Oslo.

All proposed resolutions on the agenda were approved, cf. the notice sent to the Oslo Stock Exchange on 1 April 2016.

The General Meeting approved the Board of Directors’ proposal for the distribution of a dividend of NOK 4.50 per share to registered shareholders as at 26 April 2016, to be distributed as from 4 May 2016. The shares in DNB ASA will be quoted ex-dividend on 27 April 2016.

The minutes from the Annual General Meeting are attached.

DNB ASA held its annual general meeting on 26 April 2016. Four of five shareholder-elected members were up for re-election.

Anne Carine Tanum, Tore Olaf Rimmereid, Jaan Ivar Semlitsch and Berit Svendsen were re-elected as board members with a term of office of up to two years.

In addition, Anne Carine Tanum was re-elected as chairman and Tore Olaf Rimmereid as vice-chairman of the Board of Directors, with a term of office of up to two years.

The Board of Directors in DNB ASA consists of:

Anne Carine Tanum (chairman)
Tore Olaf Rimmereid (vice-chairman)
Jarle Bergo
Jaan Ivar Semlitsch
Berit Svendsen

Vigdis Mathisen (employee representative)
Carl Løvvik (employee representative)

Jorunn Løvås (deputy for the employee representative)
Stian Samuelsen (deputy for the employee representative)

DNB recorded profits of NOK 5 222 million in the first quarter of 2016, a reduction of NOK 1 315 million from the first quarter of 2015. Adjusted for the effect of basis swaps, the decline in profits was NOK 746 million, reflecting restructuring costs in connection with reorganisation processes and the closing of branch offices, as well as higher impairment losses. DNB’s common equity Tier 1 capital ratio increased from 12.7 per cent in the first quarter of 2015 to 15.2 per cent in 2016.

“This is a very strong financial performance which we are very satisfied with. For the first time, our common equity Tier 1 capital ratio has passed the 15 per cent mark. Thus, we have reached a milestone on our way to making DNB one of the world’s best capitalised banks,” says Rune Bjerke, group chief executive.

The first three months of 2015 were characterised by major changes. On 4 February, Personal Banking Norway in DNB announced its new strategy to meet tomorrow’s retail banking needs, with a large-scale reduction in the number of branch offices, and, at the same time, a clear focus on digital development and the customer service centre. Solutions for associations and companies have recently been launched in the payment app Vipps.

“We are now laying the groundwork to ensure that DNB will continue to be at the forefront with respect to customer service and digital solutions which make everyday banking easier for our customers. Nevertheless, we know that some customers still find the digital reality difficult to understand. Therefore, over the last few months, we have invited more than 50 000 customers to attend our Internet bank courses to ease the transition,” says Bjerke.

Increase in estimated impairment losses
Impairment losses on loans and guarantees totalled NOK 1 174 million for the quarter, up from NOK 575 million in the first quarter of 2015. More than 50 per cent of the impairment losses represented collective impairment, which is affected by a less positive outlook for the Norwegian economy and a negative trend in some sectors. Individual impairment losses were on a level with the year-earlier period. Non-performing and doubtful loans and guarantees increased by NOK 1 billion from 2015.

There was a negative trend in the offshore service vessel and rig markets during the quarter, which had an impact on collective impairment. In consequence of this, impairment losses are estimated to total up to NOK 6 billion in 2016. The level of impairment in 2017 is expected to be on a level with the estimate for 2016. A reduction in impairment losses is anticipated in 2018.

Net interest income increased by NOK 127 million, reflecting exchange rate movements and wider spreads. Currency-adjusted operating expenses, excluding non-recurring restructuring expenses, declined by NOK 159 million from the first quarter of 2015. The cost/income ratio for the quarter was 41.8 per cent.

Cautious slowdown in the Norwegian economy
Norwegian Mainland GDP rose by 1 per cent in 2015, which was lower than most forecasts. The trend at year-end 2015 carried on into 2016, with continued low oil prices and a slight increase in unemployment.

“We are working closely with the customers who are hardest hit by the oil price collapse. People must be able to rely on DNB, also when cash flows become strained and loans are due for repayment. The employees in DNB invest many working hours to put together sound restructuring processes for customers and to secure the bank’s values in challenging markets,” says Bjerke. “However, we are also seeing many good examples proving that it is in difficult times that new ideas are born, new companies are set up and jobs created, equipping the Norwegian economy for the future. DNB is focusing heavily on being there for entrepreneurs and innovators across the country,” concludes the group chief executive.

Key figures for the first quarter of 2016
• Pre-tax operating profits were NOK 6.8 billion (8.7)
• Profit for the period was NOK 5.2 billion (6.5)
• Earnings per share were NOK 3.14 (4.01)
• Return on equity was 11.2 per cent (16.1)
• The cost/income ratio was 41.8 per cent (37.0)
• The common equity Tier 1 capital ratio (transitional rules) was 15.2 per cent (12.7)

Comparable figures for 2015 in parentheses.