DNB recorded profits of NOK 5 648 million in the third quarter of 2017, up NOK 1 568 million
from the third quarter of 2016. A solid momentum in the Norwegian economy contributed to lower losses and higher income for the bank.

“In many ways, DNB is a reflection of the Norwegian economy. When Norway Ltd. performs well,
so does the bank. This is exactly what is happening now. Optimism has got a sound foothold in the Norwegian economy. DNB’s profit performance has improved in all customer segments, ranging from private individuals to the largest companies,” says Rune Bjerke, DNB’s group chief executive.

High level of activity

DNB’s accounts for the third quarter showed a moderate reduction of NOK 24 million in net interest income from the second quarter. Lending spreads have widened somewhat during the past year, but remain below the average level in a five-year perspective.

Net other operating income was NOK 3 922 million, down NOK 7 million from the third quarter of 2016. There was a high level of activity in many of the areas where DNB holds a leading position, such as capital market transactions, real estate broking and asset management. There was also a positive contribution from DNB Livsforsikring during a quarter with sound operations.

DNB experienced a continued strong interest in savings in the third quarter. 40,000 customers established Share Savings Accounts. The bank also launched an improved version of its BSU product (home savings scheme for young people) during the quarter, allowing savings to start from birth.

Crisis control

Impairment losses on loans and guarantees totalled NOK 867 million in the third quarter, down
NOK 1 309 million from the corresponding quarter in 2016. Improved macroeconomic prospects have resulted in lower individual impairment losses and a reduction in collective impairment in the industries which have thus far been most exposed. DNB has also contributed to the successful restructuring of companies, especially in oil-related industries and shipping.

“One of the key gauges to measure the temperature of the economy is whether small and medium-sized enterprises dare take a step further, borrow money, invest, and employ more people. More than 183 000 small enterprises across Norway are DNB customers, and the figures we present today send a clear message from the Norwegian business community that we have put the oil collapse behind us. We will now look to the future,” says Bjerke.

Operating expenses increased by NOK 476 million compared with the third quarter of 2016, but declined by NOK 95 million from the preceding quarter. The increase stemmed mainly from the introduction of financial activities tax in 2017 and higher IT investments.

Financial key figures for the third quarter of 2017

•  Pre-tax operating profit before impairment was NOK 7.4 billion (7.4)
•  Profit for the period was NOK 5.6 billion (4.1)
•  Earnings per share were NOK 3.34 (2.43)
•  Return on equity was 11.2 per cent (8.5)
•  The cost/income ratio was 42.7 per cent (40.6)
•  The common equity Tier 1 capital ratio (transitional rules) was 16.3 per cent (15.7)

Comparable figures for the third quarter of 2016 in parentheses.

The quarterly report, presentation and Fact Book can be downloaded from
www.ir.dnb.no

DNB is pleased to invite you to the Group’s Capital Markets Day.

Date: Tuesday 21 November 2017
Time: 12:30 pm – 3:30 pm GMT. Registration and lunch from 11:30 am – 12:30 pm GMT 
Location: Hotel Claridge's, Brook Street, Mayfair, London W1K 4HR, England

We will present the most important challenges and opportunities facing DNB in today’s rapidly changing business environment. Topics will include the Group’s operating environment, ROE, digitalisation, asset quality and capital.

Speakers at the CMD will be:
- Rune Bjerke, CEO
- Kjerstin Braathen, CFO
- Terje Turnes, CRO
- Harald Serck-Hanssen, head of Large Corporates and International
- Trond Bentestuen, head of Personal Banking Norway
- Rune Garborg, CEO Vipps

Registration
Please register your attendance with [email protected]
The closing date for registration is 15 November 2017.
The event will be webcasted. The CMD presentation will be published on ir.dnb.no at 11:00 am GMT on the day of the presentation.

We look forward to seeing you in London.

Best regards
Rune Bjerke
CEO, DNB

During week 43 and 44 2017, DNB ASA has purchased 1,267,034 own shares at an average price of NOK 158.24 per share. During this programme DNB ASA has bought 2,085,034 own shares and now owns a total of 7,460,068 own shares.

The repurchase of shares is part of the new share buy-back programme announced by DNB ASA on 21 September 2017. The buy-back programme comprises up to approximately 8.1 million shares, of which up to approximately 5.4 million will be repurchased in the open market. The rest will be redeemed from the state of Norway on a proportionate basis, subject to approval from DNB ASA’s annual general meeting in 2018, so that its current ownership interest of 34.00% will remain unaffected following completion of the buy-back programme. 

For further information about the share buy-back programme, DNB ASA refers to the Oslo Stock Exchange notification made on 21 September 2017 (available from www.newsweb.no). 

During week 45 2017, DNB ASA has purchased 910,000 own shares at an average price of NOK 159.06 per share. During this programme DNB ASA has bought 2,995,034 own shares and now owns a total of 8,370,068 own shares.

The repurchase of shares is part of the new share buy-back programme announced by DNB ASA on 21 September 2017. The buy-back programme comprises up to approximately 8.1 million shares, of which up to approximately 5.4 million will be repurchased in the open market. The rest will be redeemed from the state of Norway on a proportionate basis, subject to approval from DNB ASA’s annual general meeting in 2018, so that its current ownership interest of 34.00% will remain unaffected following completion of the buy-back programme. 

For further information about the share buy-back programme, DNB ASA refers to the Oslo Stock Exchange notification made on 21 September 2017 (available from www.newsweb.no). 

DNB is pleased to invite you to the Group’s Capital Markets Day.

Date: Tuesday 21 November 2017
Time: 12:30 pm – 3:30 pm GMT. Registration and lunch from 11:30 am – 12:30 pm GMT 
Location: Hotel Claridge's, Brook Street, Mayfair, London W1K 4HR, England

We will present the most important challenges and opportunities facing DNB in today’s rapidly changing business environment. Topics will include the Group’s operating environment, ROE, digitalisation, asset quality and capital.

Speakers at the CMD will be:
- Rune Bjerke, CEO
- Kjerstin Braathen, CFO
- Terje Turnes, CRO
- Harald Serck-Hanssen, head of Large Corporates and International
- Trond Bentestuen, head of Personal Banking Norway
- Rune Garborg, CEO Vipps

Registration
Please register your attendance with [email protected]
The closing date for registration is 15 November 2017.
The event will be webcasted. The CMD presentation will be published on ir.dnb.no at 11:00 am GMT on the day of the presentation.

We look forward to seeing you in London.

Best regards
Rune Bjerke
CEO, DNB

During week 46 2017, DNB ASA has purchased 290,000 own shares at an average price of NOK 156.71 per share. During this programme DNB ASA has bought 3,285,034 own shares and now owns a total of 8,660,068 own shares.

The repurchase of shares is part of the new share buy-back programme announced by DNB ASA on 21 September 2017. The buy-back programme comprises up to approximately 8.1 million shares, of which up to approximately 5.4 million will be repurchased in the open market. The rest will be redeemed from the state of Norway on a proportionate basis, subject to approval from DNB ASA’s annual general meeting in 2018, so that its current ownership interest of 34.00% will remain unaffected following completion of the buy-back programme. 

For further information about the share buy-back programme, DNB ASA refers to the Oslo Stock Exchange notification made on 21 September 2017 (available from www.newsweb.no). 

Our financial ambitions remain firm.

ROE above 12%
C/I ratio below 40%
Dividend payout ratio above 50%
CET1 ratio ~16.1%

Please find the CMD presentation attached. The presentation is also available at ir.dnb.no

The CMD presentation will be streamed live from 12:30 GMT / 13:30 CET.

During week 47 2017, DNB ASA has purchased 470,000 own shares at an average price of NOK 151.59 per share. During this programme DNB ASA has bought 3,755,034 own shares and now owns a total of 9,130,068 own shares.

The repurchase of shares is part of the new share buy-back programme announced by DNB ASA on 21 September 2017. The buy-back programme comprises up to approximately 8.1 million shares, of which up to approximately 5.4 million will be repurchased in the open market. The rest will be redeemed from the state of Norway on a proportionate basis, subject to approval from DNB ASA’s annual general meeting in 2018, so that its current ownership interest of 34.00% will remain unaffected following completion of the buy-back programme. 

For further information about the share buy-back programme, DNB ASA refers to the Oslo Stock Exchange notification made on 21 September 2017 (available from www.newsweb.no). 

During week 48 2017, DNB ASA has purchased 890,000 own shares at an average price of NOK 151.05 per share. During this programme DNB ASA has bought 4,645,034 own shares and now owns a total of 10,020,068 own shares.

The repurchase of shares is part of the new share buy-back programme announced by DNB ASA on 21 September 2017. The buy-back programme comprises up to approximately 8.1 million shares, of which up to approximately 5.4 million will be repurchased in the open market. The rest will be redeemed from the state of Norway on a proportionate basis, subject to approval from DNB ASA’s annual general meeting in 2018, so that its current ownership interest of 34.00% will remain unaffected following completion of the buy-back programme. 

For further information about the share buy-back programme, DNB ASA refers to the Oslo Stock Exchange notification made on 21 September 2017 (available from www.newsweb.no). 

DNB ASA has finalised its share buy-back programme announced on 21 September 2017. A total of 5.4 million shares were repurchased in the open market, whereas a total of 2.7 million shares will be redeemed from the state of Norway, so that its ownership interest in DNB ASA of 34 per cent will remain unaffected following completion of the buy-back programme. The weighted average purchase/redemption price for the 5.4 million shares is NOK 155.75 and with this DNB ASA will return approximately NOK 837 million to shareholders.

This is the second share buy-back programme that DNB has finalised in 2017. The two programs, including the shares from the state of Norway, total 16.3 million shares. Of the 16.3 million, 10.8 million shares have been bought in the open market.

The 16.3 million shares will be cancelled subject to approval by the annual general meeting in 2018, whereby the number of DNB ASA’s registered shares will be reduced by 1.0 per cent from today's 1 628 798 861.

For further information, please contact:

Investor contacts:
Rune Helland, head of Investor Relations, tel. ( 47) 23 26 84 00 / ( 47) 977 13 250
Amra Koluder, SVP Investor Relations, tel. ( 47) 23 26 84 08 / ( 47) 977 35 378

Background information about the finalised programme

DNB ASA has decided to initiate a share buy-back programme comprising up to 0.5 per cent of its registered shares, representing a total of 8.1 million shares.

The buy-back programme will be carried out on the basis of the authorization given by DNB ASA’s annual general meeting on 25 April 2017, where it was approved that DNB ASA may repurchase shares up to a maximum of 1.5 per cent of its registered shares. DNB ASA may at a later stage decide to initiate further share buy-back programmes, up to the maximum limit approved by the annual general meeting.

Up to 5.4 million of the shares comprised by the buy-back programme will be repurchased in the open market. The remaining shares will be redeemed from the state of Norway through the Ministry of Trade, Industry and Fisheries, according to an agreement between DNB ASA and the state of Norway and subject to approval from DNB ASA’s annual general meeting in 2018. According to the agreement, the state of Norway shall redeem shares on a proportionate basis so that its current ownership interest in DNB ASA of 34 per cent remains unaffected following completion of the buy-back programme.

DNB ASA will seek approval from the annual general meeting in 2018 for cancellation of the repurchased shares and a corresponding redemption of the proportionate number of shares owned by the state of Norway.The redemption of the shares owned by the state of Norway shall be made against a payment which shall correspond to an average volume weighted price of DNB ASA’s repurchase of shares in the open market as a part of the buy-back programme, including an interest compensation and an agreed adjustment for dividend paid on the redemption shares in the buy-back period (if any). Subject to approval by the annual general meeting in 2018, the total number of registered shares of DNB ASA will be reduced by up to 0.5 per cent.