On 12 June 2012, the Supervisory Board elected Berit Svendsen as a new member of the Board of Directors of DNB ASA. Anne Carine Tanum, Bente Brevik and Tore Olaf Rimmereid were re-elected as members of the Board of Directors of DNB ASA. Anne Carine Tanum was re-elected as chairman of the board, and Tore Olaf Rimmereid was elected as new vice-chairman of the board. Vigdis Mathisen was elected as a new board member to represent the employees, with Bente Hornsrud Espenes as a new deputy. All were elected with a term of office of up to two years.

The Board of Directors of DNB ASA now has the following composition:

Members representing the shareholders (end of term):
Anne Carine Tanum, chairman (2014)
Tore Olaf Rimmereid, vice-chairman (2014)
Jarle Bergo (2013)
Bente Brevik (2014)
Berit Svendsen (2014)

Members representing the employees (end of term):
Sverre Finstad (2013)
Carl A. Løvvik (2013)
Vigdis Mathisen (2014)

Deputies representing the employees (end of term):
Bente Hornsrud Espenes (2014)
Jørn O. Kvilhaug (2013)
Hans-Kristian Sætrum (2013)

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

DNB recorded profits of NOK 4 580 million in the second quarter of 2012, up from NOK 3 546 million in the second quarter of 2011. The bank is still experiencing sound growth in both the personal and corporate markets.

All business areas, apart from Insurance and Asset Management, achieved considerably higher operating profits than in the second quarter of 2011.

“We are very pleased with the Group’s second quarter performance. While a number of European banks are now scaling back lending, DNB is still experiencing strong, profitable growth. We are growing parallel to strengthening our capital adequacy,” says Rune Bjerke, group chief executive.

DNB’s common equity Tier 1 capital ratio increased to 9.6 per cent at end-June.

In the first quarter of the year, the effects of basis swaps (derivative contracts) had a pronounced negative effect on DNB’s profits. In the second quarter, the situation was the opposite, and such derivative contracts had a positive effect of NOK 1 078 million. Though these effects vary considerably from quarter to quarter, over time their effect will be neutral. “We are very pleased with our profit figures, even when adjusted for this effect,” says Bjerke.

DNB has experienced strong growth in both home mortgages and lending to small and medium-sized businesses, while there has been lower growth in lending to large corporates and international customers. Average lending volumes increased by 9.1 per cent compared with the second quarter of 2011.

Strong deposit growth
Average deposit volumes rose 17.3 per cent from the second quarter of 2011, which helped raise DNB’s ratio of deposits to lending to 65.3 per cent at end-June.

“There is strong competition for deposits, which results in narrowing spreads. This quarter, DNB launched a number of account-based savings products, such as Supersave and Junior Homesave, in order to meet Norwegian customers’ demand for safe savings alternatives with good returns,” says Bjerke.

Low write-downs
Write-downs on loans and guarantees remained at a low level.

“Write-downs in our operations in the Baltics have been further reduced, while there has been an increase in write-downs relating to a few commitments in Large Corporates and International. Several segments in the shipping markets are now going through a difficult period. In spite of this, however, our shipping losses were relatively low and stable this quarter,” says Bjerke.

Continued growth in Norway 
DNB believes that the Norwegian housing market is robust, in spite of the strong growth in house prices. A high level of investment in the oil and energy sector also generates growth in the Norwegian economy.

“The Norwegian economy is strong, and we expect continued growth in Norway, where we have 80 per cent of our operations. We believe that the uncertain situation in Europe will prevail, which could also have an impact on the Norwegian economy in the longer term,” says Bjerke.

Key figures for the second quarter of 2012
• Pre-tax operating profits before write-downs were NOK 6.7 billion (5.1)
• Profit for the period was NOK 4.6 billion (3.5)
• Earnings per share were NOK 2.82 (2.18)
• Return on equity was 15.3 per cent (12.6)
• The ordinary cost/income ratio was 43.5 per cent (49.2)

Comparable figures for the second quarter of 2011 in parentheses.

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

The quarterly report, presentation and Supplementary Information for Investors and Analysts can be downloaded from www.dnb.no/investor-relations

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

DNB is a world-leading energy bank and has a major presence at this year’s oil conference in Stavanger. DNB’s stand will be an integrated part of the ONS ”Centre Court” which is a dynamic arena for presentations, debates and discussions on topical energy issues.

”The debate arena is built like an amphitheatre inspired by the Colosseum to give an informal setting to the talks and debates. This will facilitate lively discussions between the speakers and the audience during and after the presentations, both within and outside the Center Court,” says Morten Kreutz, section head in DNB’s Energy Division.

ONS has been held every other year since 1974 and this year on 28-31 August is the twentieth oil conference. The event is a showcase for the energy sector, a place to meet and discuss energy issues. The main topic this year is ”Confronting Energy Paradoxes”.

A call to debate
In 2010 ONS organised the first Centre Court, in the heart of the exhibition arena at the Stavanger Forum. The aim was to offer a dynamic arena for presentations, debates and discussions, and more than 60 presentations were held during the four days.

”The Centre Court was very popular in connection with the Renewable Park at the ONS in 2010 and was a popular arena for the conference participants where they could share their experiences and knowledge. When DNB became involved, we had no hesitation in thinking along the same lines in the planning of ONS 2012, and we have also further developed the concept,” says Morten Kreutz.

Why has DNB chosen to have a stand at the oil conference?

”This will be something completely new and unlike any other traditional trade fair stand. DNB is a facilitator for players in the energy sector and therefore not just a source of credit, but also a source of knowledge. At ONS, we will show our competitive advantages within energy expertise and corporate social responsibility, strengthen relations with our existing customers and form new ties with other players in this industry sector,” says Kreutz.

It has been confirmed that the Norwegian King Harald V, the Norwegian Prime Minister Jens Stoltenberg and Ola Borten Moe, the Norwegian Minister of Petroleum and Energy, will attend the conference. In addition, there will be many other prominent national and international participants from the energy business both as speakers and as debate participants. Representatives from DNB will also address the Centre Court audience: Rune Bjerke, Leif Teksum, Marte Gerhardsen, Torbjørn Kjus, Per Aage Jacobsen, Øystein Dørum and Trond Bentestuen, to name just a few.

”Thanks to close and effective cooperation with the organisers of ONS, we have been able to influence the design of the entire Centre Court and become an integrated part of the concept. A top-quality programme is of course crucial to ensure that this will be a popular meeting place. We have therefore focused on subjects which the entire energy sector will find topical, whether they are in oil, gas or renewable energy. Consequently, we will address topics such as the world’s energy needs, the price of oil, Carbon Capture and Storage (CCS), technology transfer from offshore oil to wind, innovative developments, and environmental issues. However, as a bank, we also want to think outside the box and therefore we wish to focus on new dimensions. We believe that topics such as the importance of a good corporate reputation, ethical issues and the significance of the financial crisis for the energy sector will also generate a lot of attention,” says Kreutz.

Sharing knowledge and expertise
A new element this year is the streaming of meetings on the Internet for those who are unable to attend this year’s ONS. ”The energy sector is global and we know that important new developments within energy announced at ONS will arouse international attention. It has therefore been important for us to make what happens at the Centre Court accessible to all. In addition, those who miss a presentation will be able to see these online at their convenience.

Contact:
Morten Kreutz, section head in DNB’s Energy Division
Phone: +47 48111911

DNB is arranging a Capital Markets Day in London on 6 September 2012 at 09.00 a.m. local time.

The presentations are enclosed and are available on dnb.no.

On the Capital Markets Day, an account will be given of the Group’s market and financial position as well as plans and ambitions for the 2012-2015 period.

The presentations will be shown on web TV. More information is available on dnb.no.

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

The insurance company Folksam will purchase SalusAnsvar AB from DNB.

SalusAnsvar is a wholly-owned subsidiary of DNB Bank ASA. The company primarily offers non-life insurance and personal insurance in the Swedish market. The company has 170 employees and recorded total sales of SEK 176 million in 2011. SalusAnsvar has a total of approximately 550 000 customers.

SalusAnsvar will be sold for just over SEK 480 million. DNB will thus record a loss relative to book value of SEK 57 million. Due to reduced deductible items, the transaction will result in a 2 basis point increase in DNB’s Tier 1 capital.

Preliminary results 2012 and fourth quarter 2012:  7 February

Annual General Meeting:  30 April

Ex-dividend date:  2 May

First quarter 2013:  26 April

Second quarter 2013:  11 July

Third quarter 2013:  24 October

DNB Bank ASA will present its results on the same dates.

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

DNB is increasing its initiatives within the offshore and energy sector and has opened an office in Rio. The bank has already entered into several contracts from its new office in Brazil.

DNB is one of the largest banks within the energy sector and is continuing its initiatives within this sector. Last year, the bank opened an office in Aberdeen, and DNB also has energy teams in Houston, Singapore, Sweden and London, as well as in Oslo, Stavanger and Bergen.

”We have had a presence in Rio since 1968, but now the time is right to establish a more visible DNB office. Our role will be to advise our Norwegian and international clients on how to succeed in Brazil. This region is an important growth area for many of our customers, and it is therefore natural that we are by their side when they establish their operations here,” says Kristin H. Holth, head of DNB in the Americas.

The main initiatives for the Rio office will be within offshore and energy, and the office will be led by Arne Christian Haukeland.

”To have a Norwegian bank with local in-depth expertise and a local DNB team is very beneficial for Norwegian customers who are planning to expand their activities in Brazil. In addition, this makes us attractive for both local and international customers due to our extensive offshore and energy experience,” says Haukeland.

During the past six months, the office has been the financial adviser in several large contracts for both Brazilian and international companies. 

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DNB Bank Group notes the announcements made today by the European Banking Authority and The Financial Supervisory Authority of Norway regarding the final assessment of the capital exercise and fulfilment of the EBA December 2011 Recommendation, which shows the following result for DNB Bank Group.

DNB Bank Group meets the 9% Core Tier 1 ratio including the sovereign buffer as stated in the EBA December 2011 recommendation.

EBA Results DNB

Background on the EBA capital exercise
The EBA Recommendation on the creation of temporary capital buffers to restore market confidence was adopted by the Board of Supervisors on 8 December 2011 to address the difficult situation in the EU banking system, especially with regard to the sovereign exposures, by restoring stability and confidence in the markets. The Recommendation was part of a suite of measures agreed at EU level.

The Recommendation called on National Authorities to require banks included in the sample to strengthen their capital positions by building up an exceptional and temporary buffer such that their Core Tier 1 capital ratio reaches a level of 9% by the end of June 2012. In addition, banks were required to an exceptional and temporary capital buffer against sovereign debt exposures to reflect market prices as at the end of September 2011. The amount of the sovereign capital buffer has not been revised.

The initial sample of the Capital Exercise included 71 banks. However, the 6 Greek banks were treated separately as the country is currently under an EU/IMF assistance programme. Moreover, four banks (Öesterreichische Volksbank AG, Dexia, WestLB AG and Bankia) from the original sample have been identified as undergoing a significant restructuring process, and are being monitored separately. Therefore, the final assessment published today refers to 61 banks.

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Investor contact: Jan Erik Gjerland, Investor Relations: +47 46930410

In the third quarter of 2012, the DNB Group will record approximately NOK 570 million as an unrealised loss arising from basis swaps connected to funding. In the third quarter of 2011, a positive effect of NOK 1 398 million was recognised. There was a corresponding negative effect of NOK 2 432 million in the first quarter of 2012 and a positive effect of NOK 1 078 million in the second quarter of 2012. 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. Mark-to-market adjustments of basis swaps will vary significantly depending of developments in financial markets, and this will lead to volatility in the P/L from quarter to quarter. These swaps are hedging instruments, and over the lifetime of the derivatives the mark-to-market adjustments will have zero effect. 

Investor contacts:
Jan Erik Gjerland, Investor Relations: +47 46930410
Trond Sannes Marthinsen, Investor Relations: +47 23268403 or +47 99034820

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