Stock and press releases

DnB NOR achieved profits of NOK 3 577 million in the first half of 2009, a reduction from NOK 4 480 million in the corresponding period in 2008. Performance reflected sound operations and improved earnings from core activities. The core capital ratio rose to
7.3 per cent, from 6.9 per cent at end-June 2008.

"In light of the current economic downturn, we are satisfied with these figures," says group chief executive Rune Bjerke.

Mark-to-market adjustments which are not related to underlying operations had a negative effect on the accounts. Total write-downs developed in line with expectations, with high write-downs on loans and large impairment losses for goodwill in the Baltic region. Developments in Norway were better than anticipated.

First half 2009
· Pre-tax operating profits before write-downs were NOK 9.6 billion (6.1)
· Profit for the period was NOK 3.6 billion (4.5)
· Profit after minority interests was NOK 4.3 billion (4.4)
· Earnings per share were NOK 3.22 (3.27)
· Return on equity was 10.8 per cent (11.8)
· The cost/income ratio, excluding impairment losses for goodwill, was 48.6 per
· cent (58.7)
· The core capital ratio, including 50 per cent of interim profits, was 7.3 per cent (6.9)

Second quarter 2009
· Pre-tax operating profits before write-downs were NOK 3.5 billion (4.6)
· Profit for the period was NOK 0.6 billion (3.4)
· Profit after minority interests was NOK 1.2 billion (3.3)
· Earnings per share were NOK 0.90 (2.47)
· Return on equity was 6.0 per cent (18.1)
· The cost/income ratio, excluding impairment losses for goodwill, was 55.1 per
· cent (49.0)
· The core capital ratio, including 50 per cent of interim profits, was 7.3 per cent (6.9)

Comparable figures for 2008 in parentheses.

Stable combined spread
Average net customer lending increased from NOK 1 026 billion in the April through June period in 2008, to NOK 1 151 billion in the corresponding period in 2009, though the upward trend levelled off through 2009. Average lending spreads widened from 0.81 per cent to 1.60 per cent during the corresponding period, reflecting higher credit risk margins in the market. Parallel to this, there was a narrowing in deposit spreads.

"Our spreads have been maintained in a low interest rate regime," says Rune Bjerke. "Parallel to this, we continue to offer Norwegian housing loan customers competitive terms. DnB NOR has reduced housing loan rates by 5.0 percentage points from October 2008."

Losses in the Baltic region
"In spite of the write-downs on loans in the Baltic States, our previously communicated estimates remain unchanged," says Rune Bjerke. The Group still estimates that total write-downs in 2009 will reach NOK 8-10 billion.

The operating loss recorded by DnB NORD was mainly due to impairment losses for goodwill in Latvia and Lithuania and large write-downs on loans in the second quarter and is the main reason for the decline in group profits. The write-downs resulted from a major deterioration in the macroeconomic situation in the region and significant fiscal tightening. Write-downs are expected to remain high in DnB NORD over the next few quarters. 51 per cent of the write-downs affect
DnB NOR's shareholders.

Cost programme ahead of schedule
Operating expenses, adjusted for impairment losses for goodwill, rose by NOK 155 million from the second quarter of 2008. The number of full-time positions was reduced by 208 during the same period, to 13 711. Adjusted for the transition from operational to financial leasing in DnB NOR Finans, an increase in IT development activity, a rise in performance-based pay and the transfer
of financial consultants from Norway Post, there was a sight decline in costs.

The Group's cost programme was ahead of schedule, generating cost savings of NOK 112 million compared with the second quarter of 2008. Operating expenses, adjusted for impairment losses for goodwill, were brought down NOK 115 million compared with the first quarter of 2009.

Improved capital adequacy ratio
The core capital ratio was strengthened and represented 7.3 per cent at end-June, up from 6.9 per cent a year earlier.

"This is in line with our previously communicated ambition to continually work to improve our core capital ratio," says Rune Bjerke.

Profit target unchanged
During the second quarter, a number of restructuring processes and other projects were implemented to help increase income and reduce costs. The business area Retail Norway became operative on 1 July 2009 and will serve both retail customers and small and medium-sized businesses in Norwegian regions. The business area Large Corporates and International will ensure better follow-up of the largest clients.

"The Group has a good chance of strengthening income in the business areas while reducing costs through streamlining measures," says Rune Bjerke. "Business operations will generate sufficient capital to compensate for higher write-downs. Pre-tax operating profits before write-downs were NOK 9.6 billion in the first half of 2009, up from NOK 6.1 billion in the year-earlier period.
The target of pre-tax operating profits before write-downs of NOK 20 billion in 2010 remains firm, as does the estimate for total write-downs of NOK 8-10 billion in 2009 and NOK 10-12 billion in 2010.

Contact person:
Trond Bentestuen, group executive vice president, Marketing and Communications,
tel.: +47 950 28 448

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnbnor.com

Bank DnB NORD A/S, a joint venture owned 51% by Norwegian DnB NOR ASA and 49% by German NORD/LB Norddeutsche Landesbank and headquartered in Copenhagen, today decided to reorganise its operations in Denmark and Finland. Bank DnB NORD will now focus on its Eastern European core markets Estonia, Latvia, Lithuania and Poland where the bank has a relevant market size or reasonable growth potential.

While the headquarters will remain in Copenhagen, customers in the Danish and Finnish portfolio will be serviced by DnB NOR and NORD/LB directly. Customer relationships in Denmark and Finland will be continued according to the shareholding split in the joint venture. The ownership of DnB NORD A/S remains unchanged.

Both parent banks welcome the sharpening of the strategic focus of DnB NORD on its core markets in the Baltics and Poland and confirm their continued and full support of the joint venture DnB NORD.

Based on the breach of the loan agreement between DnB NOR and Nordisk Tekstil Holding, DnB NOR has initiated a process to take over ownership of the subsidiary Kid Interiør AS.

As the company's owner, DnB NOR will continue the operations of Kid Interiør AS, which has 109 outlets and more than 1 000 employees. Kid Interiør has a dominant position in the Norwegian home textile market and had a total turnover of just over NOK 860 million in 2008.

A notification of the take-over has been sent to the Norwegian Competition Authority
on 7 May. Up until the take-over, which can take place in no less than three weeks, there will be continued dialogue with the owners to find an optimal solution for Kid Interiør AS.

Visit our website www.dnbnor.com

DnB NOR achieved pre-tax operating profits before write-downs of NOK 6 109 million
in the first quarter of 2009, which are the best operating profits ever recorded by the Group. The corresponding figure in 2008 was NOK 1 454 million. Profit for the period was NOK 2 934 million.

The improved performance was primarily due to a strong rise in other operating profits, which increased from NOK 625 million in the first quarter of 2008 to NOK 5 190 million.

First quarter 2009
· Pre-tax operating profits before write-downs were NOK 6.1 billion (1.5)
· Profit for the period was NOK 2.9 billion (1.1)
· Return on equity was 15.8 per cent (5.7)
· Earnings per share were NOK 2.32 (0.79)
· The cost/income ratio was 43.6 per cent (74.3)
· The core capital ratio, including 50 per cent of interim profits, was 7.0 per cent (7.0)

(Comparable figures for the first quarter of 2008 in parentheses.)

"We are very pleased to be able to record such healthy profits during a period characterised by great uncertainty, where the consequences of the financial turmoil have started to manifest themselves in the real economy," says DnB NOR's group chief executive, Rune Bjerke.

DnB NOR recorded profits of NOK 2 934 million in the first quarter of 2009, up from NOK 1 120 million in the year-earlier period. The Group thus built up a buffer to absorb expected future losses.

Net lending clearly levelled off in the first quarter of 2009, reflecting reduced exchange rates and lower demand for credit in the Norwegian market. Higher credit risk margins in the market and the effects of time lags due to the rapid decline in interest rate levels resulted in widening lending spreads. Parallel to this, there was a narrowing in deposit spreads.

Write-downs on loans were within previously estimated levels during the first quarter. There were relatively large write-downs in DnB NORD's operations in the Baltic region. Write-downs in the Group's Norwegian operations were at a normalised level, but showed a rising trend. Prior to the onset of the financial crisis, the credit quality of the Group's shipping portfolio was very sound. Consequently, the Group still did not have to record individual write-downs in this sector in the first quarter.

Cost programme on schedule
Operating expenses rose by 12.4 per cent from the first quarter of 2008, to NOK 4 714 million.

"Both growth initiatives implemented during the first half of 2008 and direct income-generating activities contributed to the cost increase. However, the Group's cost programme is on schedule, introducing measures which will have lasting cost-reducing effects. The annual cost reduction target in the cost programme has been increased from NOK 1.4 billion by year-end 2010 to NOK 2 billion by the end of 2012," says Rune Bjerke.

Long-term funding and capital position
Access to long-term funding improved during the first quarter, partly due to the scheme to exchange covered bonds for Treasury bills. Financial markets remained volatile, however, and the price of long-term funding was very high compared with historical levels.

Including 50 per cent of interim profits, the core capital ratio increased from 6.7 per cent at end-December 2008 to 7.0 per cent at end-March 2009. The Group is considered to be adequately capitalised relative to the risk in the loan portfolios and other operations, but the Board of Directors nevertheless aims to increase capital adequacy in future.

On 28 April 2009, Standard & Poor's affirmed DnB NOR Bank's AA- rating.

Contact person:
Trond Bentestuen, group executive vice president, Marketing and Communications,
tel.: +47 950 28 448

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnbnor.com

DnB NOR is establishing a new business area in Norway for retail customers and large parts of the corporate market segment in Norwegian regions. Karin Bing Orgland has been appointed group executive vice president and head of the new business area.

Karin Bing Orgland (49) leaves her position as head of Regional Division East in Corporate Banking and Payment Services (CBP) in DnB NOR. She has extensive experience from a number of specialist and managerial positions in product and customer units in the Group.

The new business area will be operative from 1 July 2009. Group chief executive Rune Bjerke emphasises that Karin Bing Orgland has been a central figure in the planning of the new business area.

"Given her long experience and wide range of expertise, she is tailor-made for the task. Karin Bing Orgland is a natural choice now that we are changing our Norwegian organisation so that we can present our customers with a more homogeneous and integrated DnB NOR," says Bjerke.

Karin Bing Orgland has studied at the University of Pittsburgh in the USA and has a business degree from the Norwegian School of Economics and Business Administration in Bergen. She owns 2 000 shares in DnB NOR.

Group executive vice president Leif Teksum will continue to head DnB NOR's large corporate operations, comprising Shipping, Offshore and Logistics, Nordic Corporate, International Corporate and Institutions and the bank's international operations.

DnB NOR is Norway’s largest financial services group with total combined assets of NOK 2 141 billion. The Group includes strong brands such as DnB NOR, Vital, Nordlandsbanken, Cresco, Postbanken, DnB NORD and Carlson.