DnB NOR has undergone the European Banking Authority's (EBA) sovereign exposure buffer requirements test of European banks. This was carried out in cooperation with Finanstilsynet (the Financial Supervisory Authority of Norway).

The conclusion is that DnB NOR will pass the sovereign exposure buffer requirements and that the bank has no government bonds which have been written down in its portfolio. The bank does not have a need for a buffer to be held against sovereign debt exposures based on current market prices. 

The EBA has set the limit for common equity Tier 1 capital at minimum 9 per cent. According to the test, DnB NOR Bank ASA has a common equity Tier 1 capital ratio of 7.9 per cent. However, the Group can raise this level to 9 per cent with immediate effect by using available internal funds.

In line with the Group's capitalisation policy, DnB NOR has chosen to keep a significant liquidity reserve in DnB NOR ASA (the holding company) for capitalisation of DnB NOR Bank ASA and other subsidiaries. The DnB NOR Group is able to meet EBA's sovereign exposure buffer requirements by redistributing available internal capital resources. No external capital injection is required.

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

Contact person for analysts:
Per Sagbakken, head of IR/Long-term Funding, tel.: +47 90 66 11 59

Contact persons for the press:
Bjørn Erik Næss, CFO, tel.: +47 41 50 52 01
Trond Bentestuen, group executive vice president, Corporate Communications, tel.: +47 95 02 84 48

Today, DnB NOR ASA will change its name to DNB ASA. The new name will be registered in the Norwegian Register of Business Enterprises in the course of today.

The ticker will be changed to DNB with effect from Monday, 14 November 2011.

A new statement will be issued once the registration in the Register of Business Enterprises has been completed.

Contact persons:
Trond Bentestuen, group executive vice president, Marketing and Communications,
tel.: +47 950 28 448
Thomas Midteide, executive vice president, External Communication,
tel.: +47 962 32 017

This information is subject to the disclosure requirement as laid down in Section 5-12 of the Norwegian Securities Trading Act.

 

The Norwegian Register of Business Enterprises has today registered the name change from DnB NOR ASA to DNB ASA.

The ticker will be changed to DNB with effect from Monday, 14 November 2011.

 

This information is subject to the disclosure requirement as laid down in Section 5-12 of the Norwegian Securities Trading Act.

The European Banking Authority (EBA) has published the formal recommendation and the final aggregate results of the recapitalisation exercise.

The conclusion is that DNB will pass the sovereign exposure buffer requirements and that the bank has no government bonds which have been written down in its portfolio. The bank does not have a need for a buffer to be held against sovereign debt exposures based on current market prices. 

The EBA has set the limit for common equity Tier 1 capital at minimum 9 per cent. According to the recapitalisation exercise, DNB Bank ASA has a common equity Tier 1 capital ratio of 7.82 per cent. The Group raised this level to 9 per cent with immediate effect by using available internal funds during Q4.

In line with the Group's capitalisation policy, DNB has chosen to keep a significant liquidity reserve in DnB ASA (the holding company) for capitalisation of DNB Bank ASA and other subsidiaries. The DNB Group was able to meet EBA's sovereign exposure buffer requirements by redistributing available internal capital resources. No external capital injection is required.

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Contact person for analysts:
Per Sagbakken, head of IR/Long-term Funding, tel.: +47 90 66 11 59

Contact persons for the press:
Bjørn Erik Næss, CFO, tel.: +47 41 50 52 01
Trond Bentestuen, group executive vice president, Corporate Communications, tel.: +47 95 02 84 48

 

The EBA's capital requirements calculation was carried out for the DNB Bank Group and showed that the bank has a common equity Tier 1 capital ratio of 7.8 per cent. DNB Bank has had no exposure to Southern European sovereign debt, and the test thus gave no reduction in Tier 1 capital. The bank will need approximately NOK 12 billion to meet the 9 per cent requirement. These funds are available through the holding company and will be transferred to the bank through an increase in equity during the fourth quarter of 2011 and by retaining profits in the bank. The DNB Bank Group will thus pass the stress test and meet the authorities' requirements.

The Norwegian implementation of the EBA requirements differs from the implementation in Sweden in the following key areas:

1. Norwegian banks have been tested in accordance with the Basel II transitional rules. The Swedish banks have been tested based on full implementation of Basel II IRB. If DNB Bank had been tested in line with Swedish banks, its common equity Tier 1 capital ratio would have been 8.4 per cent. 2. Based on IRB measurement, DNB Bank probably has generally higher risk weights on its loans than the Swedish banks. A harmonisation of the weights would most likely have given DNB Bank a significantly higher capital adequacy ratio. 3. DNB Bank has not yet received approval from the Financial Supervisory Authority of Norway to use IRB measurement for all credit portfolios for which such approval has been requested. Such approval may result in a further increase in the capital adequacy ratio.

DNB is of the opinion that it is unfortunate that different supervisory regimes in Norway and Sweden give the market divergent impressions of the strength of the two countries' financial systems and hopes that, in the longer term, regulations will become more harmonised. DNB Bank is adequately capitalised today and will loyally meet requirements and instructions which will be introduced in the future, while seeking to ensure controlled growth and pursuing a prudent dividend policy.   

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

Contact person for analysts:
Per Sagbakken, head of IR/Long-term Funding, tel.: +47 90 66 11 59
Contact persons for the press:
Bjørn Erik Næss, CFO, tel.: +47 41 50 52 01
Trond Bentestuen, group executive vice president, Corporate Communications, tel.: +47 95 02 84 48

 

On Friday, 16 December 2011 at 11.30 am CET (= Norwegian time), DNB will hold a conference call about developments in the international shipping markets and the possible effects on the bank's loan portfolio. Participants from DNB will be Leif Teksum, group executive vice president and head of Large Corporates and International, Harald Serck-Hanssen, head of Shipping, Offshore and Logistics, and Trygve Young, chief risk officer. The participants will start by providing background information about the Shipping Division's strategy and portfolio and move on to discussing relevant topics relating to rate developments, newbuilding activity and second-hand ship prices. Examples of how doubtful commitments are handled will also be given. Thereafter, questions will be accepted. The conference call is expected to last for approximately one hour and will be held in English.

Please do the following to participate:

Conference call
Please dial: +47-23184532
State your name and company.

As the conference call will begin promptly, you are kindly asked to dial in 10 minutes before start.

Q and A session
There will be a Q and A session after the presentation.

Replay:
A replay will be available after the conference call.
Please dial: +47-23184502
Pin code: 1862#
Ref. no.: 862#

 

 

 

On 19 December 2011, the share capital of DNB Bank ASA was increased by NOK 800,000,000 by means of a cash injection of NOK 8,000,000,000 from its sole shareholder, DNB ASA. Following the capital increase, DNB Bank ASA has issued a total number of 183 143 110 shares, each with a par value of NOK 100.

The capital increase will have no effect on the DNB Group's consolidated capitalisation.

 

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

DNB Liv has entered into an agreement to purchase the DNB Group's new head office in Bjørvika in Oslo.

Based on the current value of the Norwegian krone, the property is valued at just under NOK 4.8 billion. The gross yield during the first year will be just over 5.3 per cent. The purchase has been made by DNB Livsforsikring ASA and DNB Scandinavian Property Fund. Each of the buildings will be taken over upon completion, starting with the first and middle building on 1 July 2012. DNB Bank is the lessee of all the buildings, and the lease agreement will run for 15 years from the time of delivery, with an option for a 5 + 5 year extension.

 

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

DNB Markets, Inc., the U.S. investment banking unit of DNB Bank ASA, has named Jim Cirenza as Managing Director and Head of Institutional Sales and Trading.

DNB Bank ASA is a global financial services group and a leading institution in serving the international maritime, oil service and energy sectors. DNB Markets is the bank's investment banking division and is Norway's largest capital markets intermediary offering a complete range of investment banking products and services.

DNB Markets, Inc. is a registered broker/dealer in the United States providing advisory as well as full equity and debt capital markets services to the bank's clients in the maritime, oil service and energy sectors, as well as assisting other DNB clients with their U.S. investment banking needs.

"We are very pleased that Jim Cirenza is joining our team as overall head of our U.S. institutional sales and trading activities. DNB is firmly committed to building its international distribution capabilities as an integral part of a global, niche-oriented investment banking business. Jim's experience and track record on the sell side in the U.S. equity market, combined with his in-depth exposure to the Nordic markets and the niche sectors where DNB is focused internationally: shipping, oil services and energy, uniquely position him to help drive our business to the next level," says Ted Jadick, Managing Director and CEO of DNB Markets, Inc.

Cirenza has spent the last two years as CEO of Olivetree USA, a New York based registered broker dealer. Prior to that, he was Global Head of Securities in Carnegie Investment Bank, President of Carnegie Inc. and head of European salestrading in US for JPMorgan. He has also previously worked for Barclays Bank/BZW, Natwest Markets and Goldman Sachs in equity sales management roles.

"I am very happy to have Jim on board. With his background and experience he will significantly strengthen our international operation", says Paal Karstensen, Head of Equities, DNB Markets.

Contact:
Ted Jadick, Managing Director & CEO, DNB Markets, Inc.: +1 212-551-9801 (New York)
Paal Karstensen, Head of Equities, DNB Markets: +47 991 50 388 (Oslo)