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DNB's stock and press releases

2015

Invitation to DNB's presentation of the third quarter results for 2015

Invitation to DNB's presentation of the third quarter results for 2015

07:30 CET – result release
DNB’s 3Q 2015 results will be released at 07:30 am CET on Thursday, 22 October 2015, and we would like to invite you to the following presentations:

09:30 CET – press conference & live web-TV
A press conference (in Norwegian) will be held on Thursday, 22 October at 9:30 am CET at DNB’s head office in Bjørvika, Dronning Eufemias gate 30, 0191 Oslo. For those who are unable to attend the presentation in Bjørvika, there will be a live web-TV broadcast of the conference (in Norwegian). For further information, please visit www.dnb.no/ir. Please register your attendance in Oslo at [email protected]

14:00 CET – investors and analyst conference call & phone-cast
A conference call for investors and analysts will be held on Thursday, 22 October at 2:00 pm CET. To attend the conference call we kindly ask you to dial in 10 minutes before start +47 21 56 33 18 or international: +44 (0)20 3003 2666 or US+1 646 843 4608. Password: DNB Q3. You can also attend the call by listen only mode at the phone-cast link: http://presenter.qbrick.com/?pguid=dfc3b0af-5b15-4ced-a6c2-b0ab64856964. A replay of the phone-cast will be available after the call (at the same link as above).

Friday 23 October 0715 for 0730 GMT – analyst/investor breakfast in London
An analyst/investor breakfast will be held in London on Friday, 23 October at 0715 am for 0730 am (local time/GMT) at Hotel Andaz, 40 Liverpool Street, EC2M 7QN London (please note the address). Please register your attendance in London: [email protected]

For further information, please contact:
Rune Helland, Head of IR, phone: +47 23 26 84 00 / mobile: +47 977 13 250
Thor Tellefsen, e-post: [email protected] phone: +47 23 26 84 04 / mobile:+47 915 44 385

DNB Group: Basis swap impact in third quarter 2015

DNB Group: Basis swap impact in third quarter 2015

In the third quarter of 2015, the DNB Group will record a positive effect of basis swaps connected to funding of approximately NOK 933 million.

In the third quarter of 2014, there was a positive effect of basis swaps of NOK 449 million.

Basis swaps are derivative contracts entered into in connection with long-term funding in international capital markets where the relevant currency is converted to Norwegian kroner. These swaps are hedging instruments, and over the lifetime of the derivatives the mark-to-market adjustments will have zero effect.

The positive basis swap effect in the third quarter will be partly offset by negative effects from increased credit spreads and increased credit costs on derivatives (CVA/DVA).

For further information, please contact Investor Relations in DNB:
Rune Helland : +47 97713250
Thor Tellefsen : +47 91544385

DNB sells portfolios of non-performing loans to Lindorff

DNB sells portfolios of non-performing loans to Lindorff

DNB has agreed with Lindorff Capital AS, part of the Lindorff Group, to sell several portfolios of non-performing loans in Norway. The portfolios consist of unsecured claims from DNB’s consumer and equipment financing operations and corporate banking operations, dating from 1984 to 2015.

As a result of the transaction, DNB will make reversals on earlier impairment losses related to the various portfolios. The current estimated pre-tax effect is approximately NOK 1.1 billion.

The sale has been initiated as part of the Group’s capital efficiency programme.

Lindorff Group is one of Europe’s leading partners for handling non-performing portfolios. The company has 3,500 employees in 13 countries with headquarters in Oslo, Norway. In 2014, Lindorff generated € 475 million in net revenue.

DNB Markets acted as financial adviser for DNB in connection with the transaction

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Press contacts:

DNB: GEVP Corporate Communications, Thomas Midteide: (+47) 96 23 20 17

Lindorff Norway: Head of Communications, Stig Inge Eikemo: (+47) 90 07 03 84

Investor Relations contacts:

DNB: Head of Investor Relations, Rune Helland: (+47) 23 26 84 00

Lindorff Group: Director Investor Relations, André Adolfsen: (+ 47) 24 16 26 26


Strong quarter for DNB

Strong quarter for DNB

DNB recorded profits of NOK 5 062 million in the second quarter of 2015, up NOK 508 million from 2014. Higher volumes, wider deposit spreads and an increase in net commissions and fees contributed to the sound performance.

“We are very satisfied with the Group’s second quarter results. We have a robust portfolio and low impairment losses on loans, and doubtful loans and guarantees show a downward trend. In addition, we are succeeding in increasing non-lending income, for example from real estate brokerage and interest rate and currency hedging. We observe that our customers appreciate that DNB can provide a total range of financial services,” says Rune Bjerke, group chief executive.

Easier money transfers with DNB
At the beginning of June, DNB launched Vipps, a mobile app that conveniently and simply transfers money between people. Initial reactions show that this is something customers have been waiting for. After just five weeks, the app has been downloaded more than 390 000 times, and more than 285 000 people have started using it.

"Vipps is a success. The response from customers has been overwhelming, and we believe that this will further reinforce our position within payment transfers. DNB is at the forefront of digital development, but we find that our customers are actually one step ahead of us. Such an exciting situation challenges us to deliver continuous innovation," says Bjerke.

Sound portfolio, with reduction in non-performing loans
There was an average increase in DNB’s loan portfolio of 9.6 per cent parallel to a 7.3 per cent increase in deposit volumes from the second quarter of 2014. The strong rise in volumes was partly due to exchange rate movements. Lending spreads narrowed slightly during the quarter, while deposit spreads widened. The cost/income ratio for the quarter was 42.8 per cent. Impairment losses on loans and guarantees totalled NOK 667 million, increasing by NOK 113 million from the second quarter of 2014.

“We have previously estimated that impairment losses on loans will be in the range of NOK 3-4 billion in 2015. This is probably a bit too high. Based on the Group’s performance in the first half of the year and what we know today, we expect impairment losses to total just under NOK 3 billion,” says Bjerke.

Non-performing and doubtful loans and guarantees were reduced by NOK 3.0 billion from end-June 2014, totalling NOK 13.1 billion at end-June 2015. DNB Markets performed very well during the quarter and was a strong contributor, along with DNB Eiendom, to the 14.5 per cent* increase in commissions and fees. During the quarter, DNB Eiendom consolidated its position as Norway’s largest real estate broker. DNB Livsforsikring also reported strong profits.

“Buffers” in the Norwegian economy
There is still moderate growth in the global economy, and the Norwegian economy looks set to enter a period with considerably lower growth than in the past 6-7 years.

“The Norwegian economy has important buffers which nevertheless ensure a soft landing. Interest rate cuts are helping to sustain households’ purchasing power and to keep the Norwegian krone weak. A weak krone means higher profitability and improved competitiveness for exporters, who are also experiencing an increase in demand from other countries,” says Bjerke.

Key figures for the second quarter of 2015

  • Pre-tax operating profits before impairment were NOK 7.4 billion (6.7)

  • Profit for the period was NOK 5.1 billion (4.6)

  • Earnings per share were NOK 3.04 (2.80)

  • Return on equity was 12.1 per cent (12.4)

  • The ordinary cost/income ratio was 42.8 per cent (43.8)

  • The common equity Tier 1 capital ratio (transitional rules) was 13.0 per cent (12.1)

    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.

*The figure has been adjusted for income from public sector activities within life insurance that are in the process of being wound up.



Contact person:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017

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