Financial calendar for DNB ASA
FINANCIAL YEAR 2021
27.04.2021 - Annual General Meeting
29.04.2021 - Quarterly Report - Q1
13.07.2021 - Half-yearly Report
21.10.2021 - Quarterly Report - Q3
10.02.2022 - Quarterly Report - Q4
FINANCIAL YEAR 2022
10.03.2022 - Annual Report 2021
26.04.2022 - Annual General Meeting
28.04.2022 - Quarterly Report - Q1
12.07.2022 - Half-yearly Report
20.10.2022 - Quarterly Report - Q3
DNB will publish its results for the first quarter of 2021 on Thursday 29 April at 7:30 CET.
9:30 CET: Presentation
CEO Kjerstin Braathen and CFO Ottar Ertzeid present the results at a live streamed press conference. A broadcast will be available on the Investor Relations pages at ir.dnb.no.
13:30 CET: Conference call for analysts and investors
Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 212 999 6659. Password: DNB Q1 2021. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.
The conference call (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN CANADA, AUSTRALIA, NEW ZEALAND, SOUTH-AFRICA, HONG KONG, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL
Oslo, 15 April 2021 - DNB ASA announces today that its wholly owned subsidiary DNB Bank ASA ("DNB" or the "Offeror") has reached an agreement with Sbanken ASA ("Sbanken" or the "Company"), the Oslo Stock Exchange-listed company, to launch a recommended voluntary cash tender offer (the "Offer") for 100% of the shares (the "Shares") of the Company.
A cash consideration of NOK 103.85 (the "Offer Price") will be offered per Share, which implies a total consideration for all the Shares of approximately NOK 11.1 billion (based on 106,869,333 shares outstanding as per 14 April 2021). The Offer Price represents a premium of 29.8% over the closing price of the Shares on 14 April 2021 of NOK 80.0 and a premium of 49.8% over the average volume weighted share price adjusted for dividend during the last six months up to and including 14 April 2021 of NOK 69.3.
The Company's Board of Directors recommends the Offer. Shareholders representing a total of approximately 29% of the outstanding Shares have, on certain terms and conditions, undertaken to accept the Offer, including the Company's largest shareholders Altor Invest 3 AS and Altor Invest 4 AS which hold in aggregate 25% of the outstanding Shares in the Company. Additionally, DNB currently owns approximately 1% of the outstanding Shares in the Company.
Kjerstin Braathen, CEO of DNB, comments:
"We now have an opportunity to combine two of Norway's top providers of digital customer experiences into one large innovative environment spread across our offices in Bergen and Oslo. We'll be able to achieve so much more together than we can separately, and we'll strive to create Norway's best customer experiences - regardless of industry".
Key terms of the Offer
The Company's shareholders will be offered NOK 103.85 per Share in cash consideration. The Offer Price implies:
The Offer Price will be reduced by the amount of any dividend or other distributions made by Sbanken.
The complete details of the Offer, including all terms and conditions, will be contained in an offer document (the "Offer Document") to be sent to the Company's shareholders following review and approval by the Oslo Stock Exchange pursuant to Chapter 6 of the Norwegian Securities Trading Act. The Offer Document is expected to be approved during the week commencing 19 April 2021. The Offer may only be accepted on the basis of the Offer Document.
The Offer is not subject to any financing condition. As further detailed and specified in the Offer Document, completion of the Offer will be subject to fulfilment or waiver by the Offeror (in its sole discretion) of the following conditions: (1) valid acceptance of the Offer by eligible Sbanken shareholders to such extent that DNB becomes the owner of shares representing more than 90% of the issued and outstanding shares and voting rights in the Company on a fully diluted basis (which in no event may be waived by the Offeror below an acceptance level of 2/3 of the issued and outstanding share capital and voting rights of the Company on a fully diluted basis), (2) obtaining any required regulatory approval from (i) the Financial Supervisory Authority of Norway (Nw. Finanstilsynet) and/or the Norwegian Ministry of Finance (Nw. Finansdepartementet), as applicable and (ii) the Norwegian Competition Authority (Nw. Konkurransetilsynet), including completion of any waiting periods, (3) no material adverse change in the Company having occurred, (4) the Company conducting its business in the ordinary course, (5) the board of the Company not having qualified, amended or withdrawn its recommendation of the Offer, (6) no governmental interference hindering consummation of the Offer in accordance with its terms, and (7) the Company shall not be in material breach of the agreement entered into between the Offeror and the Company in connection with the Offer.
If as a result of the Offer, the Offeror acquires and holds more than 90% of the total issued share capital of the Company representing more than 90% of the voting rights in the Company, the Offeror intends to carry out a compulsory acquisition of the remaining Shares in the Company. Also, if, as a result of the Offer, a subsequent mandatory offer or otherwise, the Offeror holds a sufficient majority of the Shares in the Company, the Offeror intends to propose to the general meeting of the Company that an application is filed with Oslo Stock Exchange to de-list the shares of the Company.
The initial acceptance period in the Offer will commence following publication of the Offer Document and is expected to last for 20 business days, subject to any amendments by the Offeror. Barring unforeseen circumstances or any extensions of the acceptance period of the Offer, it is expected that the Offer will be completed in Q3 2021 following receipt of regulatory approvals.
DNB and Sbanken have entered into a transaction agreement (the "Transaction Agreement") regarding the Offer. As part of the Transaction Agreement, and subject to customary conditions, Sbanken has entered into undertakings to only amend or withdraw its recommendation of the Offer if a competing offer is made, and the Board of Directors of Sbanken determines in good faith that the competing offer is capable of being completed and is more favorable to the shareholders, and the Offeror has not matched the superior offer within up to five business days. In the event the Offer is not completed due to the condition related to regulatory approvals not being satisfied, DNB shall compensate Sbanken for its external reasonable costs incurred in respect of the Offer, limited upwards to NOK 10 million. In the event the Offer is not completed due to withdrawal by the Board of Directors of Sbanken of its recommendation of the Offer, Sbanken shall compensate DNB for its external reasonable costs incurred in respect of the Offer, limited upwards to NOK 10 million
The Offer will not be made in any jurisdiction in which the making of the Offer would not be in compliance with the laws of such jurisdiction.
Background and transaction rationale
Sbanken was established in 2000 as the first pure-play digital bank in Norway and was listed on the Oslo Stock Exchange in 2015. Sbanken is today positioned as one of the leading digital retail banks in Norway with 476,000 retail customers at year-end 2020. The Company has had the most satisfied banking customers in Norway the last 19 years. In addition to a strong position within current accounts and mortgages, Sbanken also has a good position in the savings market with NOK 23 billion customers' investments in mutual funds, built a position in the consumer finance market with NOK 1.7 billion in outstanding loans and launched several successful offerings in the SME segment with 8,000 customers at year-end 2020.
The loan book of Sbanken has low risk as 95% of Sbanken's NOK 83 billion loan book consists of high-quality residential mortgages with a loan-to-value ratio of approximately 53% as of fourth quarter-end 2020 and an average loan loss ratio of 0.11% over the last four years.
DNB believes that Sbanken will further strengthen its position within retail banking in its home market. DNB's market share within mortgages in Norway is estimated to increase from approximately 24% to approximately 27%. In addition, Sbanken will complement DNB within the savings area, which is a growth area for DNB, and add highly skilled technology resources.
The transaction is estimated to be accretive and positively impact earnings per share and return on equity of DNB. Cost synergies are expected to be realised within both Sbanken and DNB. The transaction is expected to reduce DNB's CET 1 ratio with approximately 100 bps at completion of the Offer.
Advisers
DNB Markets is acting as financial advisor for the Offeror. Advokatfirmaet BAHR AS is acting as legal advisor for the Offeror.
Investor call
Investors and analysts are hereby invited to participate in an investor call about the Offer at 11:00 am (CEST) 15 April 2021. The investor call will be hosted by DNB's CFO Ottar Ertzeid. The investor call will also include a Q&A session and will be held in English.
Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 212 999 6659. Password: dnb1504. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time. A recording of the call will be available on the Investor Relations pages at ir.dnb.no.
Contacts
Rune Helland, Head of Investor Relations, telephone +47 97 71 32 50
Media contact: Thomas Midteide, GEVP Communications & Sustainability: +47 96 23 20 17
Key Sbanken financial information
| 2018 | 2019 | 2020 | |
| Net interest income NOKm | 1,371 | 1,564 | 1,644 |
| Net fee and commission NOKm | 204 | 215 | 184 |
| Operating expenses NOKm | 642 | 727 | 710 |
| Net profit NOKm | 723 | 710 | 783 |
| Return on equity | 12.9% | 11.4% | 11.4% |
| Loans NOKbn | 79.2 | 81.5 | 83.4 |
| Customer deposits NOKbn | 49.5 | 52.8 | 58.6 |
| Funds under management NOKbn | 11.5 | 15.8 | 23.2 |
| Total equity NOKm | 6,199 | 6,886 | 7,618 |
| Of which additional tier 1 capital | 505 | 706 | 701 |
| Risk weighted assets NOKbn | 37.2 | 37.6 | 38.8 |
| CET1 ratio | 14.6% | 15.6% | 15.5% |
***
This information is subject to the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act.
The Offer and the distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. When published, the Offer Document and related acceptance forms will not and may not be distributed, forwarded or transmitted into or within any jurisdiction where prohibited by applicable law, including, without limitation, Canada, Australia, New Zealand, South Africa, Hong Kong and Japan. The Offeror does not assume any responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.
This announcement is not a tender offer document and, as such, does not constitute an offer or the solicitation of an offer to acquire the Shares. Investors may accept the Offer only on the basis of the information provided in the Offer Document. Offers will not be made directly or indirectly in any jurisdiction where either an offer or participation therein is prohibited by applicable law or where any tender offer document or registration or other requirements would apply in addition to those undertaken in Norway.
Notice to U.S. Holders
U.S. Holders (as defined below) are advised that the Shares are not listed on a U.S. securities exchange and that the Company is not subject to the periodic reporting requirements of the U.S. Securities Exchange Act of 1934, as amended (the "U.S. Exchange Act"), and is not required to, and does not, file any reports with the U.S. Securities and Exchange Commission (the "SEC") thereunder. The Offer will be made to holders of Shares resident in the United States ("U.S. Holders") on the same terms and conditions as those made to all other holders of Shares of the Company to whom an offer is made. Any information documents, including the Offer Document, will be disseminated to U.S. Holders on a basis comparable to the method that such documents are provided to the Company's other shareholders to whom an offer is made. The Offer will be made by the Offeror and no one else.
The Offer will be made to U.S. Holders pursuant to Section 14(e) and Regulation 14E under the U.S. Exchange Act as a "Tier II" tender offer, and otherwise in accordance with the requirements of Norwegian law. Accordingly, the Offer will be subject to disclosure and other procedural requirements, including with respect to the offer timetable, settlement procedures and timing of payments, that are different from those that would be applicable under U.S. domestic tender offer procedures and law.
Pursuant to an exemption from Rule 14e-5 under the U.S. Exchange Act, the Offeror and its affiliates or brokers (acting as agents for the Offeror or its affiliates, as applicable) may from time to time, and other than pursuant to the Offer, directly or indirectly, purchase or arrange to purchase, Shares or any securities that are convertible into, exchangeable for or exercisable for such Shares outside the United States during the period in which the Offer remains open for acceptance, so long as those acquisitions or arrangements comply with applicable Norwegian law and practice and the provisions of such exemption. To the extent information about such purchases or arrangements to purchase is made public in Norway, such information will be disclosed by means of an English language press release via an electronically operated information distribution system in the United States or other means reasonably calculated to inform U.S. Holders of such information. In addition, the financial advisors to the Offeror may also engage in ordinary course trading activities in securities of the Company, which may include purchases or arrangements to purchase such securities.
Neither the SEC nor any securities supervisory authority of any state or other jurisdiction in the United States has approved or disapproved the Offer or reviewed it for its fairness, nor have the contents of the Offer Document or any other documentation relating to the Offer been reviewed for accuracy, completeness or fairness by the SEC or any securities supervisory authority in the United States. Any representation to the contrary is a criminal offence in the United States.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN CANADA, AUSTRALIA, NEW ZEALAND, SOUTH-AFRICA, HONG KONG, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL
Oslo, 16 April 2021 - Reference is made to the announcement on 15 April 2021 that DNB ASA's wholly owned subsidiary DNB Bank ASA ("DNB") had reached an agreement with Sbanken ASA ("Sbanken" or the "Company") to launch a recommended voluntary cash tender offer (the "Offer") for 100% of the shares of the Company for NOK 103.85 per share.
DNB has today purchased 2,096,165 shares in the Company and consequently owns 10,103,363 shares in the Company, representing 9.5% of the outstanding shares and votes in the Company. As a result of the share purchases made since announcement of the Offer, the level of pre-acceptances from shareholders of the Company for the Offer is now 25.0% of the outstanding shares in the Company, on the terms described in the announcement from DNB on 15 April 2021 in connection with the Offer.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN CANADA, AUSTRALIA, NEW ZEALAND, SOUTH-AFRICA, HONG KONG, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL
Oslo, 23 April 2021 - Reference is made to the announcements on 15 April 2021, where it was announced that DNB ASA, through its wholly owned subsidiary DNB Bank ASA ("DNB" or the "Offeror"), had reached an agreement with Sbanken ASA ("Sbanken" or the "Company") to launch a recommended voluntary cash tender offer for 100% of the shares of the Company that are not already owned by DNB for NOK 103.85 per share (the "Offer").
The offer document for the Offer dated 23 April 2021 (the “Offer Document”) was approved by the Oslo Stock Exchange in its capacity as take-over supervisory authority today. The offer period will commence at 09:00 hours CEST on 26 April 2021 and expire at 16:30 hours CEST on 24 May 2021, subject to extensions at the sole discretion of DNB. The terms and conditions of the Offer, including procedures for how to accept the Offer, are set out in the Offer Document prepared by DNB.
Key terms of the Offer:
- Offer price: NOK 103.85 per share in Sbanken, subject to adjustment pursuant to the terms and conditions of the Offer
- Offer period: From 09:00 hours CEST on 26 April 2021 to 16:30 hours CEST on 24 May 2021, subject to extensions at the sole discretion of DNB. The Offer Period will in no event be extended beyond 5 July 2021
- Receiving agent: DNB Bank ASA, Registrars Department
As of the date hereof, DNB owns 10,469,519 shares in the Company, representing approximately 9.8% of the outstanding share capital and voting rights.
The Offer Document will be sent to all shareholders in the Company as registered in the Company's shareholder register in Euronext VPS as of the date of the Offer Document, in jurisdictions where the Offer Document may be lawfully distributed.
The Offer Document is, subject to regulatory restrictions in certain jurisdictions, also available at the following webpage: www.dnb.no/emisjoner.
Subject to regulatory restrictions in certain jurisdictions, the Offer Document may also be obtained free of charge during ordinary business hours at the offices of the receiving agent, DNB Bank ASA, Registrars Department, Dronning Eufemias gate 30, 0191 Oslo, Norway.
Contacts
Rune Helland, Head of Investor Relations, telephone +47 97 71 32 50
Media contact: Thomas Midteide, GEVP Communications & Sustainability: +47 96 23 20 17
This information is subject to the disclosure requirements according to section 5-12 of the Norwegian Securities Trading Act.
The Offer and the distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. When published, the Offer Document and related acceptance forms will not and may not be distributed, forwarded or transmitted into or within any jurisdiction where prohibited by applicable law, including, without limitation, Canada, Australia, New Zealand, South Africa, Hong Kong and Japan. The Offeror does not assume any responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.
This announcement is not a tender offer document and, as such, does not constitute an offer or the solicitation of an offer to acquire the Shares. Investors may accept the Offer only on the basis of the information provided in the Offer Document. Offers will not be made directly or indirectly in any jurisdiction where either an offer or participation therein is prohibited by applicable law or where any tender offer document or registration or other requirements would apply in addition to those undertaken in Norway.
Notice to U.S. Holders
U.S. Holders (as defined below) are advised that the Shares are not listed on a U.S. securities exchange and that the Company is not subject to the periodic reporting requirements of the U.S. Securities Exchange Act of 1934, as amended (the “U.S. Exchange Act”), and is not required to, and does not, file any reports with the U.S. Securities and Exchange Commission (the “SEC”) thereunder. The Offer will be made to holders of Shares resident in the United States (“U.S. Holders”) on the same terms and conditions as those made to all other holders of Shares of the Company to whom an offer is made. Any information documents, including the Offer Document, will be disseminated to U.S. Holders on a basis comparable to the method that such documents are provided to the Company’s other shareholders to whom an offer is made. The Offer will be made by the Offeror and no one else.
The Offer will be made to U.S. Holders pursuant to Section 14(e) and Regulation 14E under the U.S. Exchange Act as a “Tier II” tender offer, and otherwise in accordance with the requirements of Norwegian law. Accordingly, the Offer will be subject to disclosure and other procedural requirements, including with respect to the offer timetable, settlement procedures and timing of payments, that are different from those that would be applicable under U.S. domestic tender offer procedures and law.
Pursuant to an exemption from Rule 14e-5 under the U.S. Exchange Act, the Offeror and its affiliates or brokers (acting as agents for the Offeror or its affiliates, as applicable) may from time to time, and other than pursuant to the Offer, directly or indirectly, purchase or arrange to purchase, Shares or any securities that are convertible into, exchangeable for or exercisable for such Shares outside the United States during the period in which the Offer remains open for acceptance, so long as those acquisitions or arrangements comply with applicable Norwegian law and practice and the provisions of such exemption. To the extent information about such purchases or arrangements to purchase is made public in Norway, such information will be disclosed by means of an English language press release via an electronically operated information distribution system in the United States or other means reasonably calculated to inform U.S. Holders of such information. In addition, the financial advisors to the Offeror may also engage in ordinary course trading activities in securities of the Company, which may include purchases or arrangements to purchase such securities.
Neither the SEC nor any securities supervisory authority of any state or other jurisdiction in the United States has approved or disapproved the Offer or reviewed it for its fairness, nor have the contents of the Offer Document or any other documentation relating to the Offer been reviewed for accuracy, completeness or fairness by the SEC or any securities supervisory authority in the United States. Any representation to the contrary is a criminal offence in the United States.
DNB will publish its results for the first quarter of 2021 on Thursday 29 April at 7:30 CET.
9:30 CET: Presentation
CEO Kjerstin Braathen and CFO Ottar Ertzeid present the results at a live streamed press conference. A broadcast will be available on the Investor Relations pages at ir.dnb.no.
13:30 CET: Conference call for analysts and investors
Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 212 999 6659. Password: DNB Q1 2021. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.
The conference call (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.
DNB's Annual General Meeting was held on 27 April 2021. The Annual General Meeting was held digitally due to COVID-19.
All items on the agenda were adopted as proposed, cf. the notice published on 6 April 2021. Regarding item 10, the Annual General meeting endorsed the continuation of the Articles of Association adopted as part of the merger plan, which stipulate a maximum of eight shareholder-elected members of the Board of Directors.
The minutes from the Annual General Meeting are attached.
Company information
The information is subject to the disclosure requirements set out in section 5-12 of the Norwegian Securities Trading Act. This email was sent by DNB.
Visit our website dnb.no for more information.
The Annual General Meeting of DNB ASA was held on 27 April 2021. At the Annual General Meeting Gro Bakstad was re-elected as a board member until the completion of the merger between DNB ASA and DNB Bank ASA.
The Board of Directors of DNB ASA has the following members until the completion of the merger:
Olaug Svarva (Chair of the Board)
Svein Richard Brandtzæg (Vice Chair of the Board)
Jens Petter Olsen
Jaan Ivar Semlitsch
Gro Bakstad (re-election)
Lillian Hattrem (employee representative)
Stian Tegler Samuelsen (employee representative)
Ann-Mari Sæterlid (deputy employee representative)
Sigmund Hollerud (deputy employee representative)
Further, the Annual General Meeting of DNB ASA endorsed the recommendation of the Election Committee to the Annual General Meeting of DNB Bank ASA.
The Annual General Meeting of DNB Bank ASA was also held on 27 April 2021. The Annual General meeting endorsed the Election Committee’s proposal to continue the current Board of Directors until the completion of the merger between DNB ASA and DNB Bank ASA.
The Board of Directors of DNB Bank ASA has the following members until the completion of the merger:
Olaug Svarva (Chair of the Board)
Kim Wahl (Vice Chair of the Board)
Julie Galbo
Eli Solhaug (employee representative)
Jannicke Skaanes (employee-elected observer)
Tore Müller Andresen (deputy employee representative)
Roy Olsen-Nauen (deputy employee-elected observer)
Effective from the merger date, the Annual General Meeting of DNB Bank ASA elected Svein Richard Brandtzæg as the new Vice Chair of the Board, and Jaan Ivar Semlitsch, Gro Bakstad and Jens Petter Olsen as new board members with a term of office of up to two years.
Following this, the Board of Directors of DNB Bank ASA will have the following members effective from the merger date:
Olaug Svarva (Chair of the Board) 2022
Svein Richard Brandtzæg (new Vice Chair of the Board) 2023
Gro Bakstad (new election) 2023
Jaan Ivar Semlitsch (new election) 2023
Jens Petter Olsen (new election) 2023
Kim Wahl 2022
Julie Galbo 2022
Stian Tegler Samuelsen (employee representative) 2022
Lillian Christin Hattrem (employee representative) 2022
Eli Solhaug (employee representative) 2022
Jannicke Skaanes (employee-elected observer) 2022
Ann-Mari Sæterlid (deputy employee representative) 2022
Sigmund Hollerud (deputy employee representative) 2022
Tore Müller Andresen (deputy employee representative) 2022
Roy Olsen-Nauen (deputy employee-elected observer) 2022
Company information
The information is subject to the disclosure requirements set out in section 5-12 of the Norwegian Securities Trading Act. This email was sent by DNB.
Visit our website dnb.no for more information.
DNB’s profit for the first quarter of 2021 was NOK 5 885 million, which is NOK 1 884 million higher than in the corresponding period of 2020. The bank is experiencing an explosive growth in the savings area, and DNB’s financial position has never been stronger.
The market for savings products, shares and mutual funds reached historically high levels in the quarter, and DNB now has record volumes under management, with strong deposit growth in all customer segments. The Norwegian economy continued to recover in the first quarter, and the authorities’ zero-interest-rate policy has contributed to increasing the liquidity of Norwegian companies and households.
“We’re seeing a paradigm shift in the savings area. DNB has sold more mutual funds this quarter than ever before. During the period, we have also seen great interest in investing in sustainable alternatives. We have recently strengthened our commitment to offering ESG funds, and soon we will be launching DNB Klima Indeks, a mutual fund that, to the best of our knowledge, is the very first in Norway to be fully aligned with the Paris Agreement,” says CEO Kjerstin Braathen.
Personal customers’ net subscriptions to mutual funds through DNB’s own channels reached an unprecedented NOK 6.9 billion in the first quarter. At the same time, the personal customers segment saw an explosive growth in savings agreements, with the number of agreements exceeding 500 000 in total. DNB also set new records for digital sales in the quarter, reaching 250 000 users of the Spare app, which now accounts for 30 per cent of the bank’s sales of mutual funds.
High activity in all segments
The low interest rate level continues to affect banks’ interest income. Net interest income in the first quarter was NOK 9 230 million, which is NOK 1 166 million, or 11.2 per cent, lower than in the corresponding quarter of 2020. The decline in interest income can mainly be attributed to last year’s interest rate reductions and a stronger Norwegian krone.
Considerable activity relating to capital raising and management has generated a healthy income for the bank. Net commission and fee income increased by NOK 394 million, or 17.6 per cent, compared with the first quarter of 2020. A high level of activity in the housing market resulted in good income for real estate brokerage and solid growth in lending to personal customers.
“Although some industries and regions are still affected by the infection control measures, it is gratifying to see that the authorities’ plan for the reopening of society is generating increased activity and optimism, among both businesses and the population as a whole. The lending growth in the SME market continued in the first quarter, with an increase of 2.3 per cent. At the same time, our start-up advisers saw a significant growth in the number of startups. This says something about the strong restructuring power inherent in the Norwegian business community,” says Braathen.
Strong capitalisation and net reversals
Earnings per share (EPS) were NOK 3.65 in the first quarter, compared with NOK 2.28 in the first quarter of 2020 and NOK 3.28 in the fourth quarter of 2020. DNB’s financial position has never been stronger, with a common equity Tier 1 (CET1) capital ratio of 19.2 per cent.
The bank had net reversals on impairment provisions of NOK 110 million in the first quarter. This is an improvement compared with both the previous quarter and the first quarter of last year, which saw net impairment provisions of NOK 1 250 million and NOK 5 771 million, respectively.
Financial key figures for the first quarter of 2021 (figures for the corresponding quarter in 2020):
Pre-tax operating profit before impairment amounted to NOK 7.5 billion (10.1)
Further details on DNB’s results can be found on ir.dnb.no.
