Finanstilsynet (the Financial Supervisory Authority of Norway) has completed a periodic review of DNB’s interim and annual financial statement for 2013. 

The review has covered, among other things, the bank’s portfolio of loans which are recognised at fair value, primarily fixed-rate loans.

Finanstilsynet has pointed at two issues in its final letter that both relate to future reporting. The first one is the process for calibrating the discount rate used to determine the fair value of fixed-rate loans. The second concerns information in the disclosures about the principles for determining the value of fixed rate loans, including the accounting principles for day 1 effects on these loans.

DNB has taken note of Finanstilsynet’s recommendations. DNB is not required to change previously released financial statements and the issues are immaterial for the financial statement.

According to DNB’s assessments, our approach and method for determining the discount rate are in conformity with prevailing accounting rules. This is in line with the expert panel’s unanimous statement which was attached to Finanstilsynet’s letter of 8 May 2015. DNB believes that it is important to have good processes and procedures for calibrating the models that are used for all types of valuations and will continue to place emphasis on this.

DNB continuously assesses what kind of information needs to be included in the disclosures.

Contact:
Jan Erik Gjerland, Investor Relations, phone +47 469 30 410
Even Westerveld, Executive Vice President Communications, phone +47 400 16 744

DNB Bank ASA and the municipalities Bremanger, Hattfjelldal, Hemnes, Kvinesdal, Narvik, Rana and Vik have agreed on a solution in the so-called ‘Terra case’.

This implies that the municipalities will pay NOK 650 million as a final settlement to DNB. The court proceedings scheduled for 21 September 2015 will thus not take place. 

The agreement is conditional on approval by the decision-making bodies in the respective municipalities and DNB. 

The settlement will reduce DNB’s pre-tax operating profits by NOK 159 million in the second quarter of 2015. 

The case concerns the financial settlement in the wake of a number of agreements entered into between the municipalities and the bank, based on advice from Terra,during the 2001-2006 period. According to the agreements, the municipalities were paid the current value of future income from power production and other sources of municipal revenues. Based on advice from Terra Securities, the municipalities invested this money in the financial market, whereafter they suffered sizeable losses. The municipalities have claimed compensation for the losses from Terra Securities, the insurance companies used by Terra Securities and Terra Securities’ bankruptcy estate.

Contact information:

Investors: Rune Helland, Investor Relations, tel. (+47) 977 13 250

Press: Thomas Midteide, group executive vice president, Corporate Communications, tel. (+47) 962 32 017

Moody’s concluded today their rating review on DNB Bank ASA. The review was initiated on 17 March 2015 following the publication of Moody’s revised bank rating methodology and revisions to Moody’s government support assumptions.

Moody’s upgraded DNB Bank ASA’s baseline credit assessment (BCA) from baa1 to a3, the long-term senior unsecured debt rating from A1 to Aa3, and the deposit rating from A1 to Aa2. As a result of the upgrade on DNB’s BCA, ratings on the bank’s subordinated instruments were also upgraded 1 notch. Furthermore, Moody’s now, as part of their new rating methodology, assigns Counterparty Risk (CR) assessments. DNB’s CR assessment was set at Aa1(cr). All ratings carrying outlooks are now stable.

For further details and complete overview of all rating upgrades related to DNB Bank ASA, please see attached press release.

VEDLEGG MOODY’S PRESS RELEASE

Overview of DNB Bank ASA’s official long-term senior unsecured ratings:

Moody’s: Aa3, Stable outlook

Standard & Poor’s: A+, Stable outlook

DBRS: AA, Under Review Negative

DNB is reducing its indicative interest rate on home mortgages to customers under the age of 34 and SAGA customers to 2.65 per cent, while the interest rate on ordinary mortgages in excess of NOK 2 million will be cut to 2.90 per cent.

“We are reducing mortgage rates for new and existing customers, and interest rates are now at historically low levels. This will benefit all loan customers, while customers with deposits in the bank will earn less interest,” says Trond Bentestuen, head of Personal Banking Norway.

After the reductions have been implemented, DNB’s indicative mortgage rate will be 2.65 per cent on home mortgages to customers under the age of 34 and SAGA customers, and 2.90 per cent on ordinary home mortgages in excess of NOK 2 million. The new prices will be effective immediately for new loans and from 23 August for existing loans.

On 23 April 2015, the Annual General Meeting approved new Articles of Association, including new requirements to the composition of the Board of Directors in accordance with the new Act on Financial Undertakings. Both the Act and the new Articles of Association are expected to enter into force as of 1 January 2016.

Against this background, the Supervisory Board today re-elected Jarle Bergo as a shareholder-elected board member in DNB ASA, with a term of office of up to two years.

In addition, the Supervisory Board re-elected Sverre Finstad and Carl A. Løvvik as board members elected by the employees and Jørn O. Kvilhaug and Hans-Kristian Sætrum as their deputies, with a term of office until the date the new Articles of Association enter into force.

With effect from the date the new Articles of Association enter into force Vigdis Mathisen and Carl A. Løvvik were re-elected as board members elected by the employees, with Jorunn Løvaas and Stian Samuelsen as their new deputies, all with a term of office of up to two years.

Until the date the new Articles of Association enter into force, the Board of Directors of DNB ASA will be comprised as follows:

Members elected by shareholders:
Anne Carine Tanum, chairman
Tore Olaf Rimmereid, vice-chairman
Jarle Bergo
Jaan Ivar Semlitsch
Berit Svendsen

Members elected by employees:
Sverre Finstad
Carl A. Løvvik
Vigdis Mathisen

Deputies elected by employees:
Jørn O. Kvilhaug
Marianne Haldis Steinsbu
Hans-Kristian Sætrum

With effect from the new Articles of Association enter into force, the Board of Directors of DNB ASA will be comprised as follows:

Shareholder-elected members (term of office up to):
Anne Carine Tanum, chairman (2016)
Tore Olaf Rimmereid, vice-chairman (2016)
Jarle Bergo (2017)
Jaan Ivar Semlitsch (2016)
Berit Svendsen (2016)

Members elected by employees:
Carl A. Løvvik (2017)
Vigdis Mathisen (2017)

Deputies elected by employees:
Jorunn Løvaas (2017)
Stian Samuelsen (2017)

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

07:30 CET – result release
DNB’s 2Q 2015 results will be released at 07:30 am CET on Friday, 10 July 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 Friday, 10 July at 9:30 am CET at DNB’s head office in Bjørvika, Dronning Eufemias gate 30, 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 Friday, 10 July at 2:00 pm CET. To attend the conference call we kindly ask you to regsitrer you at http://members.meetingzone.com/selfregistration/registration.aspx?booking=b8XNLJZVUO9FoSPiwUoBpbc9L4Y5emivbJwBlSnjipg=&b=8ef97267-f980-4869-8fb4-9efec2c17aac and dial in 10 minutes before start. You can also attend the call by listen only mode at the phone-cast link: http://presenter.qbrick.com/?pguid=bad8ae8f-ecb9-4cc2-abda-f7ff31c0aded. A replay of the phone-cast will be available after the call (same link as above).

Monday 13 July 0715 for 0730 GMT – analyst breakfast meeting in London
An analyst breakfast meeting will be held in London on Monday, 13 July 0715 am for 0730 am (local time) at Nomura’s London office, (please note the address) Thameside Suite 3, 1 Angel Lane, London EC4R 3AB. Please register your attendance in London: [email protected]

For further information, please contact:
Rune Helland, Head of IR, phone +47 23 26 84 00
Jan Erik Gjerland, IR, e-mail: [email protected], phone +47 23 26 84 08

In the second quarter of 2015, the DNB Group will record a negative effect of basis swaps connected to funding of approximately NOK 54 million.

In the second quarter of 2014, there was a positive effect of basis swaps of NOK 33 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.

For further information, please contact Investor Relations in DNB:
Rune Helland, +47 23 26 84 00
Jan Erik Gjerland, +47 23 26 84 08

FINANCIAL YEAR 2015

Quarterly Report - Q2 - 10.07.2015 at 0730 CET

Quarterly Report - Q3 - 22.10.2015

Quarterly Report - Q4 - 04.02.2016

Capital Markets Day - 25.11.2015

FINANCIAL YEAR 2016

Quarterly Report - Q1 - 28.04.2016

Quarterly Report - Q2 - 12.07.2016

Quarterly Report - Q3 - 27.10.2016

On Wednesday, 25th November 2015, the DNB Group will host a Capital Markets Day in London.  The event will also be webcasted.

Further information about the agenda and practical details will be presented later.

Best regards,
Rune Helland, head of Investor Relation, tel. +47 23 26 84 00