Stock and press releases

DNB is hosting its Capital Markets Day in London today.

DNB’s key financial ambitions for 2016 - 2018 are:

Return on equity (ROE): Above 12%

CET1 capital ratio: Minimum 15% as capital level (CET1) as at 31 December 2016

Dividend ambitions: 2015: around 30%, 2016: 30-50% and 2017: >50%

Cost/income ratio: Below 40% towards 2018

Other ambitions are covered in the attached presentations.

DNB will reach the capital requirement of 15 per cent through strong retained earnings and capital efficiency measures. The capital efficiency measures expect to have a total effect of 80–120 bps from end Q3 2015 to Q4 2016 and include asset disposal/reallocation and financial restructuring. DNB’s capital target for 2017 is about 15.5% and includes a management buffer of approximately 50 bps.

For more information:

Rune Helland, head of Investor Relations, mobile (+47) 977 13 250

Thomas Midteide, group EVP, Corporate Communications, mobile (+47) 962 32 017

The presentations from the event are attached below or available on www.dnb.no/ir

See the presentation from the CMD on Web-TV from your desktop PC here from 12.30 GMT / 13.30 CET or if problems with link go to https://www.dnb.no/en/about-us/investor-realtions/capitalmarketday2015.html or www.dnb.no/ir

See the presentation from the CMD on Web-TV from your mobile device / tablet here from 12.30 GMT / 13.30 CET or if problems go to https://www.dnb.no/en/about-us/investor-realtions/capitalmarketday2015.html or: m.dnb.no

DNB is pleased to invite you to our

CAPITAL MARKETS DAY

Date: Wednesday 25 November 2015

Time: 12:30 pm – 4:30 pm GMT including Q&A

Location: Hotel Claridge's, Brook Street, Mayfair, London W1K 4HR, England

Registration & lunch from 11:30 am – 12:30 pm GMT

We will present important issues for DNB in today’s rapidly changing business environment. Topics will include operating environment, financial ambitions, capital management and business units’ updates with focus on development in Retail Banking, IT and Risk Management. The full DNB management team will be present.

REGISTRATION

We encourage you to register online at https://www.deltager.no/CMD2015.
The closing date for registration is 20 November 2015.
The event will also be webcasted.

We look forward to seeing you in London.

On behalf of DNB ASA,
Rune Bjerke,
CEO, DNB

DNB has decided to initiate a process to assess various strategic alternatives related to the bank’s credit cards that are provided through external channels. This affects around one-third of the bank’s total credit card portfolio. Credit cards under the DNB brand are not encompassed by this process.

The operations under review are organised in a separate unit in DNB Finans called Cards External Channels which distributes credit cards under the Cresco brand, along with other credit and loyalty cards. In addition to pure credit card-based products, the unit offers consumer loans and combined deposit and credit cards. This unit has assets of about NOK 6 billion. The products are distributed through separate distribution channels (such as www.cresco.no) and through third-party distributors and partners, mainly retailers and organisations.

Credit cards operated under the DNB brand represent around two-thirds of the bank’s total credit card portfolio. These operations are not encompassed by the above strategic assessment.

DNB will now explore all possibilities and seek to find the best long-term solution for both DNB and these operations. The assessment could result in the sale of all or parts of the operations, though it is also possible that the operations will be retained in DNB. A potential sale will have a positive effect on DNB’s Tier 1 capital.

DNB Markets serves as financial advisors.

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Contact persons:
Rune Helland, head of Investor Relations, tel: +47 977 13 250
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017

DNB is pleased to invite you to our

CAPITAL MARKETS DAY

Date: Wednesday 25 November 2015

Time: 12:30 pm – 4:30 pm including Q&A

Location: Hotel Claridge's, Brook Street, Mayfair, London W1K 4HR, England

Registration & lunch from 11:30 am – 12:30 pm

We will present important issues for DNB in today’s rapidly changing business environment. Topics will include operating environment, financial ambitions, capital management and business units’ updates with focus on development in Retail Banking, IT and Risk Management.

REGISTRATION

We encourage you to register online at https://www.deltager.no/CMD2015.
The closing date for registration is 20 November 2015.
The event will also be webcasted.

We look forward to seeing you in London.

On behalf of DNB ASA,
Rune Bjerke,
CEO, DNB

The outcome from the Norwegian FSA’s Supervisory Review and Evaluation Process (SREP) for 2015 is now finalised. The Pillar 2 requirement for DNB Bank, the DNB Bank Group and the DNB Group is 1.5 per cent of risk-weighted assets (RWA). The Pillar 2 requirement relates to risks not covered by Pillar 1 and must be met with CET1 capital.

The Pillar 2 requirement comes in addition to the minimum and combined buffer requirements under Pillar 1. By year-end 2015, the resulting CET1 requirement will be 13.5 per cent. Due to increases in the combined buffer requirements in 2016, the CET1 requirement will be 15.0 per cent by year-end 2016. The requirements will be adjusted to reflect any future changes in the Pillar 2 add-on or the buffer requirements.

The DNB Group reported a CET1 ratio of 13.1 per cent as at 30 September 2015, including 50 per cent of interim profits (13.4 per cent when including 70 per cent of profits).

DNB will reach the requirements through a combination of retained earnings, dynamic management of the balance sheet and strengthened capital efficiency measures. Further details will be communicated at DNB’s Capital Markets Day on 25 November.

DNB’s dividend policy remains unchanged, targeting a payout ratio of more than 50 per cent once the capital requirement has been reached. The dividend for 2015 is expected to be at approximately the same level as for 2014.

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

Contact person:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
Rune Helland, head of Investor Relations, tel: +47 977 13 250

DNB recorded profits of NOK 6 363 million in the third quarter of 2015, up NOK 743 million from the third quarter of 2014. Higher volumes and wider deposit spreads helped raise profits.

“This is one of DNB’s best quarterly performances ever, which gives us reason to be satisfied. The figures show that the Norwegian economy is still growing, even though the situation is challenging for many companies in oil-related industries. I am also very pleased that our customer satisfaction scores are continuing to improve,” says Rune Bjerke, group chief executive.

There was an average increase in the healthy loan portfolio of 10.0 per cent parallel to a 12.6 per cent increase in average deposit volumes from the third quarter of 2014. The growth in volumes reflected the weaker Norwegian krone rate. Lending spreads narrowed slightly during the quarter, while deposit spreads widened. Volume-weighted interest rate spreads were unchanged compared with the third quarter of 2014.

Increase in Tier 1 capital
Including 50 per cent of interim profits, the common equity Tier 1 capital ratio increased from 12.6 per cent at end-September 2014, to 13.1 per cent. Based on an unchanged dividend payout ratio from 2014 (30 per cent), the common equity Tier 1 capital ratio was 13.4 per cent.
 “DNB is one of the world’s best capitalised banks, and we are continuing to build more Tier 1 capital in line with the regulatory requirements. We are following our plan to reach the targets set to be able
to normalise our dividend payments as soon as possible,” says Bjerke.

Focus on digital products
DNB is continuing its modernisation process by developing new digital products.
“Vipps is our most important product launch in a very long time. It is hard to believe that more than 900 000 Norwegians have downloaded the app four months after it was introduced. We will work contiuously to build more functions into Vipps in cooperation with our customers,” says Bjerke.

DNB’s customers are continuing to increase their use of the bank’s digital services, and the mobile phone will represent the largest growth. In the third quarter, 86 per cent of savings products were sold online, which is a significant rise from last year.
"This is the first quarter we have registered more than 40 million visits to our mobile bank. The launch of FingerID enables even faster log-on, and some 40 000 customers already use their finger to identify themselves in the mobile bank. It cannot be done faster than this," says Bjerke.

Increase in impairment losses
Ordinary operating expenses were on a level with the year-earlier period.
There were net reversals on impairment losses of NOK 392 million in the third quarter.
In late September, DNB signed an agreement with Lindorff Capital AS to sell portfolios of non-performing loans. Adjusted for this transaction, impairment losses totalled NOK 675 million for the quarter, compared with NOK 183 million in the third quarter of 2014.
The largest impairment losses on individual loans stemmed from the mining industry and the shipping sector. The total level of impairment was nevertheless below the normalised long-term level.

Key figures for the third quarter of 2015

• Pre-tax operating profits before impairment were NOK 8.1 billion (7.6)

• Profit for the period was NOK 6.4 billion (5.6)

• Earnings per share were NOK 3.83 (3.45)

• Return on equity was 14.7 per cent (14.8)

• The ordinary cost/income ratio was 39.6 per cent (40.4)

• The common equity Tier 1 capital ratio (transitional rules) was 13.1 per cent (12.6)

  Comparable figures for 2014 in parentheses.

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

Contact person:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
Rune Helland, head of Investor Relations, tel: +47 977 13 250

The quarterly report, presentation and Fact Book can be downloaded from
www.dnb.no/investor-relations