DnB NOR recorded profits of NOK 1 689 million in the fourth quarter of 2009, up from NOK 1 629 million in the year-earlier period. Profits for the year came to NOK 7 026 million, which demonstrates sound performance in a very demanding year for both the Norwegian and the international economy.

Full year 2009
· Pre-tax operating profits before write-downs were NOK 18.7 billion (15.6)
· Profit for the year was NOK 7.0 billion (8.9)
· Profit after minority interests was NOK 8.6 billion (9.2)
· Earnings per share were NOK 6.43 (6.91)
· Return on equity was 10.6 per cent (12.4)
· The cost/income ratio, excluding impairment losses for goodwill, was 48.3 per cent (51.4)
· The proposed divided per share is NOK 1.75 (0)
(Comparable figures for 2008 in parentheses)

2009 was a turbulent and demanding year for DnB NOR, characterised by financial turmoil and a period of contraction both in Norway and internationally. However, the economic situation gradually improved during the second half of the year.

"As one of few banks in Europe, we have delivered profits throughout the financial crisis. We managed to do so through 2009 on account of our highly competent and dedicated employees, who have practised the craft of banking in a good manner in all parts of our operations. These results also enable us to start the normalisation of our dividend policy," says Rune Bjerke, group chief executive of DnB NOR.

Write-downs on loans were lower than expected in 2009 and totalled NOK 7.7 billion for the full year. DnB NORD accounted for 51 per cent of total write-downs on loans in the DnB NOR Group in 2009.

"At our Capital Markets Day in March 2009, we presented a write-down estimate of NOK 8-10 billion for 2009. It is gratifying to note that our write-downs are below this estimate," says Bjerke.

Fourth quarter 2009
· Pre-tax operating profits before write-downs were NOK 4.1 billion (5.2)
· Profit for the period was NOK 1.7 billion (1.6)
· Profit after minority interests was NOK 2.1 billion (2.0)
· Earnings per share were NOK 1.58 (1.52)
· Return on equity was 10.1 per cent (10.7)
· The cost/income ratio, excluding impairment losses for goodwill, was 49.3 per cent (42.2)
· The core capital ratio was 9.3 per cent (6.7)
(Comparable figures for the fourth quarter of 2008 in parentheses)

Write-downs totalled NOK 1 517 million in the fourth quarter of 2009, which was significantly lower than in the two preceding quarters. NOK 845 million of the write-downs related to operations in DnB NORD, and the Group's financial performance is thus still materially affected by the recession in the Baltic States.

Future prospects
The Group is not departing from its goal to achieve pre-tax operating profits before write-downs of NOK 20 billion in 2010, though this will be challenging to reach.

"We are winning market shares in the retail market and have just been named Norway's best housing loan bank. In addition, we were one of the world's largest arrangers of shipping and energy loans last year. We also plan to step up our initiatives in selected segments such as energy in future," says Bjerke.

DnB NOR expects limited growth in the first half of 2010, followed by a slight rise in activity levels in the second half of the year. The future level of write-downs in both Norwegian-related and international operations is uncertain. However, write-downs in 2010 are expected to be roughly on a level with 2009.

Towards the end of 2009, DnB NOR's equity was strengthened by NOK 13.9 billion. The capital increase will make the Group better positioned for stricter future capital adequacy requirements while enhancing the Group's ability to meet customers' future financing needs and to pursue profitable business opportunities as part of its future growth strategy.

The capital increase helped raise the core capital ratio from 6.7 per cent at year-end 2008 to 9.3 per cent at end-December 2009. Subject to full implementation of the Basel II regulations, the core capital ratio would have been 11.7 per cent. DnB NOR is adequately capitalised in relation to regulatory requirements and its competitors.

Contact person:
Trond Bentestuen, group executive vice president, Marketing and Corporate Communications,
tel.: +47 950 28 448

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnbnor.com

In a meeting on Wednesday, 17 March 2009, the Board of Directors of DnB NOR Bank ASA approved the annual accounts for 2009. DnB NOR Bank's annual report for 2009 has been published on www.newsweb.no

DnB NOR will hold a Capital Markets Day in London on 18 March 2010 at 09.00 hrs local time.

The presentations will be published on dnbnor.com and are enclosed herewith.

Group chief executive Rune Bjerke will give an account of the Group's position and ambitions in the Norwegian market. The Group's international ambitions, financial status and new target figures will also be presented.

The presentations will be broadcast on web-TV. For more information, please visit dnbnor.com.

DnB NOR will hold a Capital Markets Day in London on 18 March 2010 at 09.00 hrs local time.

The presentations will be published on dnbnor.com and are enclosed herewith.

Group chief executive Rune Bjerke will give an account of the Group's position and ambitions in the Norwegian market. The Group's international ambitions, financial status and new target figures will also be presented.

The presentations will be broadcast on web-TV. For more information, please visit dnbnor.com.

The Annual General Meeting in DnB NOR ASA on 27 April 2010 approved the Board of Directors' proposal for the 2009 annual report and accounts, including the distribution of a dividend for 2009 of NOK 1.75 per share to registered shareholders as at 27 April 2010, to be distributed as from 11 May 2010. The shares in DnB NOR ASA will be quoted ex-dividend on 28 April 2010.

The Annual General Meeting authorised the Board of Directors of DnB NOR ASA to acquire own shares for a total face value of up to NOK 1,547,358,918, corresponding to 9.5 per cent of share capital. The shares may be purchased through the stock market. Each share may be purchased at a price between NOK 10 and NOK 150. The authorisation will be valid for a period of 12 months from 27 April 2010. Acquired shares shall be sold in accordance with regulations on the reduction of capital. An agreement has been signed with the Ministry of Trade and Industry for the redemption of a proportional share of government holdings to ensure that the government's percentage ownership does not change as a result of the redemption of repurchased shares

In addition, the General Meeting endorsed the Election Committee's proposal for the election of members and a deputy to the Supervisory Board and members to the Election Committee.

The minutes of the Annual General Meeting will be published on www.dnbnor.com.

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

DnB NOR recorded profits of NOK 2 917 million in the first quarter of 2010, roughly on a level with the year-earlier period. Write-downs on loans have shown a positive trend, with a reduction of approximately 40 per cent from the first quarter of 2009.

"We are very pleased with the Group's sound first quarter performance, achieved in spite of somewhat lower-than-normal activity levels. It is good news for us all that write-downs on loans are lower than expected. Our daily contact with small and large customers throughout Norway confirms that the Norwegian economy is far stronger than in the rest of Europe," says Rune Bjerke, group chief executive.

Key figures for the first quarter of 2010:
· Pre-tax operating profits before write-downs were NOK 4.9 billion (6.1)
· Profit for the period was NOK 2.9 billion (2.9)
· Profit after minority interests was NOK 3.1 billion (3.1)
· Earnings per share were NOK 1.92 (2.32)
· Return on equity was 12.5 per cent (15.8)
· The ordinary cost/income ratio was 49.5 per cent (43.6)
· The Tier 1 capital ratio, including 50 per cent of interim profits, was 9.4 per cent (7.0)
(Comparable figures for the first quarter of 2009 in parentheses)

Lower-than-expected write-downs
Write-downs on loans came to NOK 947 million, which is significantly lower than in the corresponding period last year, when write-downs totalled NOK 1 598 million.

"It is very rewarding that we have been able to reduce the level of write-downs to such an extent compared with last year. We believe that this trend will continue over the next quarters," says Bjerke.

Future prospects
DnB NOR aims to achieve pre-tax operating profits before write-downs of NOK 20 billion in 2010.

"The global economy appears to be emerging from the recession. We expect renewed economic growth to lead to increased credit demand. Due to rising demand combined with lower write-downs and an effective cost programme, our NOK 20 billion target remains firm, though it will be challenging to reach," says Bjerke.

DnB NOR will continue to develop efficient technological solutions which save time and costs for customers and the bank.

"More than 6 000 customer loans were approved electronically in the first quarter, with no paper involved. So far, we are the only Norwegian bank offering this service, and we find that our customers clearly appreciate these efficient services," says Bjerke.

Contact persons:
Trond Bentestuen, group executive vice president, Corporate Communications,
tel.: +47 950 28 448
Thomas Midteide, vice president Media Relations, tel.: + 47 962 32 017

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnbnor.com

DnB NOR has strengthened its position as a leading shipping, offshore and logistics (SOL) bank in China with the gaining of a Renminbi (RMB) currency licence.

The license enables the bank to provide finance to customers in China in RMB across the country. DnB NOR believes the move could be attractive to Chinese customers, in particular state-run shipping lines, as around 95% of all China's domestic ship finance is carried out in RMB.

 The bank has built up a significant presence in China over the years and today has client relationships with many of the country's leading owners. This new licence builds upon the range of products it offers from its Shanghai branch.

China is undergoing a major expansion and renewal of its domestic shipping fleet. The ability to lend in RMB to the growing number of Chinese owners is seen as an important step forward in its China strategy by DnB NOR.

Espen Lund, DnB NOR's country manager in China and head of the Shanghai branch, said: "This is a historic move for the bank and something we have been working towards since we opened in Shanghai in the Autumn of 2006.

"We now have the capacity to lend to owners with vessels flying the People's Republic of China flag. It is a significant milestone for the bank.

"As far as I am aware, DnB NOR is the only foreign specialist ship finance bank with the combination of RMB capabilities and shipping expertise on the ground in China. We look forward to increasing our lending portfolio in this area," he added.

DnB NOR's Shanghai branch has already started lending in RMB to Nordic companies based in China who require a local currency bank.

The bank is also now able to offer deposit facilities in RMB to international companies, plus a range of payment transfer facilities and foreign exchange transactions.

Espen Lund added: "Estimates show that in the next decade, China's domestic shipping fleet will expand significantly. There is a need for Chinese owners to have long-term relationships with lenders who precisely understand the shipping business and are able to support their expansion strategies.

 "We believe DnB NOR can fulfil this role as we progress in China," he said.

ENDS

 

DnB Nor Bank ASA
Singapore Branch
Tel: +65 6220 6144
Fax: +65 6224 9743
Andrew Chiang
Regional Head of Asia Corporate Banking Department Shipping, Offshore & Logistics
DID: +65 6212 0686
Email: [email protected] ([email protected]) 
www.dnbnor.com (http://www.dnbnor.com)