DNB passes EBA's recapitalisation exercise

The European Banking Authority (EBA) has published the formal recommendation and the final aggregate results of the recapitalisation exercise.

The conclusion is that DNB will pass the sovereign exposure buffer requirements and that the bank has no government bonds which have been written down in its portfolio. The bank does not have a need for a buffer to be held against sovereign debt exposures based on current market prices. 

The EBA has set the limit for common equity Tier 1 capital at minimum 9 per cent. According to the recapitalisation exercise, DNB Bank ASA has a common equity Tier 1 capital ratio of 7.82 per cent. The Group raised this level to 9 per cent with immediate effect by using available internal funds during Q4.

In line with the Group's capitalisation policy, DNB has chosen to keep a significant liquidity reserve in DnB ASA (the holding company) for capitalisation of DNB Bank ASA and other subsidiaries. The DNB Group was able to meet EBA's sovereign exposure buffer requirements by redistributing available internal capital resources. No external capital injection is required.

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Contact person for analysts:
Per Sagbakken, head of IR/Long-term Funding, tel.: +47 90 66 11 59

Contact persons for the press:
Bjørn Erik Næss, CFO, tel.: +47 41 50 52 01
Trond Bentestuen, group executive vice president, Corporate Communications, tel.: +47 95 02 84 48