Stock and press releases

As a result of recent events and current circumstances related to one specific loan engagement, DNB expects to make a loan loss provision for this in the third quarter of about NOK 1,000m.

As of today, DNB has a new organisational structure and a new Group Management team. The main changes are:

• Corporate Banking is a new business area that will provide more consistent and comprehensive service to corporate customers. The area consists of the former business areas Corporate Banking (‘Bedriftsmarked’) and Large Corporates and International.
• IT development resources are being incorporated into the business areas to strengthen the focus on digital customer channels and ensure good digital customer experiences.
• Group-wide IT services and operations and automation responsibilities are transferred to the new support unit called Technology & Services. This unit will also strengthen the Group’s work with safety, compliance and stable operations.
• People has become a separate support unit, responsible for employee development and efficient job transition management.

DNB’s Group Management team has a 50/50 gender distribution and as of today includes the following members:

Group Chief Executive, CEO: Kjerstin Braathen

Group Finance, CFO: Ottar Ertzeid

Corporate Banking: Harald Serck-Hanssen

Personal Banking: Ingjerd Blekeli Spiten

Wealth Management: Håkon Hansen

Technology & Services: Maria Ervik Løvold

Markets: Alexander Opstad

Group Risk Management: Ida Lerner

Group Compliance: Mirella E. Wassiluk

People: Kari Bech-Moen

Payments & Innovation: Rasmus Figenschou

Communications: Thomas Midteide

On Thursday, Norges Bank raised the key policy rate by 0.25 percentage points. The price that banks pay to borrow money has also gone up in the past months. 

DNB has therefore decided to increase the interest rate on home mortgages by up to 0.25 percentage points.  

"The last few years, the interest rates in Norway have been record low, and an increasing key policy rate from the Norwegian central bank is a sign that the Norwegian economy is still doing well. This has an effect on mortgage interest rates, and that is why they are now being raised. DNB will continue to offer competitive terms on loans," says Ingjerd Blekeli Spiten, head of Personal Banking in DNB. 

"We also want to help young customers enter the housing market by offering them favourable interest rates, while green home mortgages will have our best indicative floating interest rate of 2.89 per cent," she continues.  

The customers whose interest rates will be adjusted, will be given information in the Internet bank or receive a letter by regular mail, explaining how their mortgage will be affected. For these customers, the interest rate adjustments will become effective as of 7 November. 

In accordance with the purpose of the buy-back programmes carried out by DNB ASA between the annual general meetings in 2018 and 2019, the company's annual general meeting held on 30 April 2019 decided to reduce the company's share capital of NOK 240 655 030, from NOK 16 043 668 880 to NOK 15 803 013 850, by deletion or redemption of a total of 24 065 503 shares.

The capital reduction was filed with the Norwegian Register of Business Enterprises on 14 May 2019. The following 6 week creditor notice period has now expired, and the capital reduction has been completed in accordance with the resolution from the annual general meeting.

The new share capital of DNB ASA is NOK 15 803 013 850 divided into 1 580 301 385 shares of NOK 10.00 each.

For further information, please contact:
Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

Ottar Ertzeid will be the new CFO of DNB, starting 1 September 2019.

Ertzeid is a graduate of BI Norwegian Business School, and has been head of DNB Markets for nearly 18 years. He is also a board member in Oslo Børs, the Norwegian Investor Compensation Scheme and Dextra Artes.

"It is a great advantage for us that we are getting a CFO with such a strong commercial instinct, who already has detailed knowledge of DNB's business operations. Ottar has delivered excellent results over a long period of time, and also has deep insight into all the regulatory processes that apply to the financial services industry," says newly appointed Group Chief Executive, Kjerstin Braathen.

The CFO is currently responsible for DNB’s financial management, accounting and reporting, DNB Legal, Treasury, M&A and Investor Relations.

“I am excited about taking on new challenges in DNB as CFO. This is a discipline and function that I'm passionate about and that I'm looking forward to developing further in DNB," says Ottar Ertzeid.

Alexander Opstad will become acting head of DNB Markets. He is currently head of Equities in DNB Markets. Ottar Ertzeid is replacing Kjerstin Braathen, who will become new CEO of DNB on 1 September.

Photos: https://www.dnbnyheter.no/bildebank/alexander-opstad/

DNB’s profits in the second quarter of 2019 were NOK 6 134 million, an increase of NOK 50 million from the same quarter last year. The bank is experiencing strong growth in its main digital channels.

The mobile bank is the bank's most important ‘branch office’, as it has been for a long time. The figures for the first half of the year show that the digital development has gained even more momentum in 2019. DNB launched several new digital services in the second quarter, including a digital fund adviser and the accounting solution DNB Regnskap, which makes life easier for small businesses. DNB’s new mobile bank, which was launched in January this year, already has 826 000 users.

“More than 60 per cent of our active customers use the new mobile bank. This trend will continue as we develop new functionality, and we see the same tendency within savings. Customers are logging in more often and also buying more in the savings app Spare, which has now sold mutual funds for a total of NOK 2.3 billion. So far this year, sales are up 50 per cent,” says CEO Rune Bjerke, who today is presenting DNB's quarterly figures for the fiftieth and last time.

Growth in all areas
Net interest income in the second quarter amounted to NOK 9 581 million, up NOK 291 million from the previous quarter. Once again, the bank is able to present quarterly results with growth in all business areas.

In total, lending volumes have increased by 6.3 per cent, backed by a strong development in the Norwegian economy. Macroeconomic prospects also contribute to keeping impairment losses at a relatively low level in a historical perspective.

With strong contributions from real estate broking and the sale of non-life insurance products, the net commission and fee income was NOK 85 million higher than in the same quarter last year.  

"I am very pleased with the team effort in DNB these days. We are constantly becoming better at helping our customers through the various phases of their lives, whether they are purchasing a home, starting their own business or saving money for the next generation. We have a total customer offering that few of our competitors can match,” says Bjerke.

"But then, good feedback and trust from both our customers and owners are what we live on. Therefore, we were especially pleased when we in June were the largest bank in the Nordic region in terms of market value,” adds the departing CEO.  

Financial key figures for the second quarter of 2019 (compared with figures for the corresponding quarter in 2018): 

•  Pre-tax operating profit before impairment amounted to NOK 8.2 billion (7.1) 
•  Profit for the quarter was NOK 6.1 billion (6.1) 
•  Earnings per share were NOK 3.71 (3.65) 
•  Return on equity was 11.3 per cent (11.8) 
•  Cost/income ratio ended at 41.9 per cent (43.1) 
•  CET1 capital ratio (according to transitional rules) was 16.5 per cent (16.2) 

Details concerning DNB’s results can be found on dnb.no/ir. 

Contact:
Thomas Midteide, Group Executive Vice President of Media & Marketing, tel. (+47) 962 32 017
Rune Helland, head of Investor Relations, tel. (+47) 977 13 250
Jan Ole Huseby, senior adviser in Investor Relations, tel. (+47) 958 61 003