Stock and press releases

Oslo (13 June 2019) The Board of Directors of DNB has appointed Kjerstin Braathen as new Group Chief Executive of DNB. Rune Bjerke has notified the Board that he wishes to step down as of 1 September, after nearly 13 years as head of DNB. The Chair of the Board, the present CEO and the newly appointed CEO will meet the press today at 10:00 a.m. in DNB’s head office in Bjørvika. 

The Board of Directors of DNB has carried out an extensive process to find the right person to take over the baton from Rune Bjerke.

"The Board has been looking for the most eligible candidate to lead DNB on the next leg of the race. We have found the perfect candidate, and we are very happy that Kjerstin has agreed to take on this task. DNB is an institution of great importance to society. Therefore, we need a CEO who helps build a high level of trust from society, who promotes good customer experiences and who ensures high profitability so that the bank can invest in growth and new products," says Chair of the Board Olaug Svarva.

The Board started the process of finding Rune’s replacement this winter, and has considered several good candidates.

"In the Board’s view, it is a great advantage to have found an internal successor with 20 years’ experience from DNB. We are confident that Kjerstin, along with all the skilled employees in DNB, will continue to develop great products and services for our customers," says Olaug Svarva.

Kjerstin Braathen is leaving the position as Chief Financial Officer in DNB, and before that, held the position as Group Executive Vice President for Corporate Banking. She worked in the bank’s department for shipping and offshore for 13 years, and has been Chair of the Board of several of DNB’s wholly-owned subsidiaries. Kjerstin comes from Lillestrøm north of Oslo, is married and has three children.

"I feel incredibly privileged to be given the opportunity to lead this super strong DNB team. We have a major corporate responsibility, and DNB is important to and for customers all over Norway. We are there for our customers through all important phases of life, and we root for those who dare follow their dreams, thereby creating jobs and value for society. I am really looking forward to 1 September," says Kjerstin Braathen.

Rune Bjerke has been Group Chief Executive of DNB since 1 January 2007. From 2008 until today, DNB has shown the best value development of the 30 largest European banks. DNB has gone from being the fifth largest bank in Scandinavia to becoming the largest in terms of market value.

"I would like to congratulate the Board on making such a good recruitment choice, and I want to thank everyone in DNB for all the fantastic experiences I’ve had working in the bank. There hasn’t been one boring day at work, and every single day, I’ve met new customers and employees who have reaffirmed my faith in our project. It’s great to finish off this leg of the race seeing that our customers and investors also seem to believe in what we have been working with over the past few years," Rune finishes off.

"Rune has made an impressive effort for DNB and has implemented a number of major changes, both culturally and financially. Today, DNB is a solid and profitable bank that is also able to create future-oriented services, as demonstrated through the development of Vipps. The Board is extremely grateful for the efforts Rune has put in over many years," says Olaug Svarva.

According to his employment contract, Rune Bjerke was to step down by the summer
of 2020.

Invitation to press conference:
Chair of the Board Olaug Svarva, the present Group Chief Executive Rune Bjerke and the newly appointed Group Chief Executive Kjerstin Braathen will meet the press in DNB’s premises in Bjørvika today at 10:00 a.m. Attendees are kindly asked to be there a little in advance. Individual interviews will be given after the press conference.

New photos of Kjerstin Braathen are freely available to the press here: https://www.dnbnyheter.no/bildebank/kjerstin-r-braathen/ 

Graph showing the value development of European banks over the last 10 years: https://www.dnbnyheter.no/wp-content/uploads/2019/06/Avkastning-europeiske-banker.png

CV Kjerstin Braathen

Chief Financial Officer, DNB
2017 – Present

Group Executive Vice President of Corporate Banking, DNB
2013 – 2017

Several positions in shipping & offshore, DNB
1999 – 2013

Trainee and Chartering Manager, Norsk Hydro ASA
1995 – 1999

DNB Livsforsikring AS (“DNB Liv”) – a wholly owned subsidiary of DNB ASA – has today accepted Euronext’s offer to buy all of the 8.522.045 shares that DNB Liv holds in Oslo Børs VPS Holding ASA, meaning that DNB Liv’s total shareholding is reduced from 19.82 per cent to 0. The accepted offer price is NOK 158 per share plus interest payment (which amounts to approximately NOK 3 per share). 

For further information please contact:
Rune Helland, Head of Investor Relations, tlf. 23 26 84 00 / 977 13 250
Thomas Midteide, Group Executive VP, Media & Marketing, 962 32 017

On 11 April 2019, the Board of Directors of DNB ASA decided to offer employees in DNB ASA shares with a discount of 20 % (up to NOK 14,500 per employee).

The shares were allotted today, 28 May 2019, at a gross price of NOK 153.2472 per share.

Attached is a list of the primary insiders that availed themselves of the offer.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

On 11 April 2019, the Board of Directors of DNB ASA decided to offer employees in DNB ASA shares with a discount of 20 % (up to NOK 14,500 per employee).

The shares were allotted today, 28 May 2019, at a gross price of NOK 153.2472 per share.

Attached is a list of the primary insiders that availed themselves of the offer.

This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.

Oslo, 3 May 2019

Today, 3 May 2019, a total of 178,382 shares in DNB ASA were acquired on behalf of certain leading employees and risk takers. The purchase was executed collectively at an average price per share of NOK 159.5625.

The shares were acquired in accordance with the regulation on remuneration in financial institutions etc., which states that at least half of annual variable remuneration shall be awarded as shares and be subject to certain lock-up mechanisms.

The employees have been given a compensation for decreased share value resulting from the lock-up at approximately 6.2%.

A list of primary insiders of DNB ASA that have increased their shareholding is attached.

DNB’s profit in the first quarter was NOK 7 582 million, an increase of 1 929 million from the same quarter the year before. Growth in all customer segments contributes to strong results. DNB is now strengthening its commitment to sustainability.

Norwegian economy has got off to a flying start in 2019. Current macro trends provide a tailwind for both businesses and private individuals who are customers in DNB. The past year, DNB's lending to personal customers and small and medium-sized enterprises has gone up by almost NOK 50 billion. The results for the first quarter also show growth in all customer segments. 

"Both companies and households want to realise their plans for the future, and we are pleased that many of them want to finance their dreams through us. The main reason for this is that we are able to develop new and customer-friendly products, while at the same time being a strong contender with competitive prices in a fierce competitive situation. It also helps that DNB is a well-liked bank that always has its customers' and society's best interest in mind," says Rune Bjerke, Group Chief Executive of DNB. 

Solid growth
Net interest income in the first quarter amounted to NOK 9 289 million, up 282 million from the same quarter last year. The total growth in lending is 5.9 per cent, well above the bank's long-term ambition.  

Net commission and fee income went up by NOK 103 million to 2 219 million. A higher level of activity within transaction advice and real estate broking are two of the explanations for this. Losses are still low, with NOK 316 million in the quarter.  

Together with the savings bank SpareBank 1, DNB has established Fremtind as a contender in the insurance sector. Fremtind will sell insurance policies to both companies and private individuals. The establishment resulted in an accounting gain of NOK 1.74 billion in the first quarter, and was a strong contributory factor to the return on equity (ROE) ending at 14.1 per cent. 

"Our good numbers are first and foremost a result of hard work and stable efforts over time. But we have also made some bold choices, which are now paying off. One example is that we have significantly reduced the prices on our actively managed mutual funds. This has had an immediate effect: More mutual fund customers choose DNB, and in the first quarter, we were behind half of the net sales to Norwegian personal customers," says Bjerke. 

Going green
Although the Norwegian business sector is doing well, it is highly noticeable that both the Norwegian and international economy is in a period of restructuring. Greenhouse gas emissions must be reduced, and the business community has to adapt to a low-carbon society. More investors are stipulating that their money should help finance green businesses. 

DNB is now strengthening its commitment to sustainability and has set clear ambitions for the future. Among other things, DNB will contribute to the financing of renewable energy and infrastructure with NOK 450 billion in the period leading up to 2025. Similarly, the bank has an ambition to contribute to the financing of green property development with NOK 130 billion.  

"Some see the 'green shift' as a big risk, but we choose to look at it as an opportunity. We know that new winning industries will emerge both at sea and on land. We believe that infrastructure and renewable energy will be two such industries. They constitute great business opportunities for DNB if we manage to combine banking products with industry knowledge," says Rune Bjerke.  

Financial key figures for the first quarter of 2019 (compared with figures from the year-earlier period): 

•  Pre-tax operating profit before impairment amounted to NOK 7.6 billion (6.7) 
•  Profit for the period was NOK 7.6 billion (5.7) 
•  Earnings per share were NOK 4.61 (3.36) 
•  Return on equity was 14.1 per cent (11.0) 
•  Cost/income ratio ended at 42.0 per cent (43.4) 
•  CET1 capital ratio (according to transitional rules) was 16.4 per cent (16.6) 

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