Since November 2016, DNB has reviewed various options for its involvement in the project financing of the Dakota Access Pipeline. The bank has now entered into an agreement to sell its share of the loan.

“By selling our stake, we wish to signal how important it is that the affected indigenous population is involved and that their opinions are heard in these types of projects. Although there have been attempts at consultation by the project parties, the outcome of the process suggests that these have been inadequate," says Harald Serck-Hanssen, group executive vice president and head of Large Corporates and International in DNB.

DNB Asset Management chose to sell their mutual fund investments in the companies behind the pipeline in November 2016. Several other Norwegian financial institutions followed suit and have since also sold their investments. At that time, DNB communicated that a sale of the project financing was one of the options under review, but that such a sale would take longer than the sale of shareholdings. In the meantime, DNB has used its position as a lender to try to influence the process, call for a lower level of conflict and took the initiative to carry out an independent investigation of how indigenous people's rights are being safeguarded.

“During the process, we have met several interest groups and listened to their suggestions. We have met, among others, representatives from the Standing Rock Sioux Tribe. We have also engaged in an ongoing dialogue with the company building the pipeline. Many of our customers have contacted us and expressed what they expect from us as a Norwegian bank. In our evaluations, we have taken account of all the input we have received,” says Serck-Hanssen.

Following the sale of the loan, DNB no longer has any direct financial exposure to the Dakota Access Pipeline.

Press contact:

Even Westerveld, EVP, Corporate Communications tel. no. (+47) 400 16 744

On 29 March 2017, S&P Global Ratings Revised its outlook on DNB Bank ASA to stable from negative and affirmed its ‘A+/A-1’ long- and short-term counterparty credit ratings.

The revised outlook to stable from negative reflects DNB’s improved capitalization, tightened efficiency and likely buildup of substantial bail-in buffer.

For further details, please see attached press release from S&P.

Overview of DNB Bank ASA’s long-term senior unsecured ratings:
Moody’s: Aa2, negative outlook
Standard & Poor’s: A+, stable outlook
DBRS: AA (low), stable outlook

Shareholders in DNB ASA are hereby invited to attend the Annual General Meeting to be held at 3.00 pm on Tuesday, 25 April 2017 in DNB's premises in Dronning Eufemias gate 30, Bjørvika, Oslo, Norway. The Notice of Annual General Meeting is attached.

DNB will publish its results for the first quarter of 2017 on Friday, 28 April 2017 at 7.30 am CET.

28 April at 9.30 am CET: press conference in English accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo. A live broadcast will be available at www.dnb.no/en/ir.
Please register your attendance in Oslo at [email protected].

The press conference will be held in English.

28 April at 1.30 pm CET: conference call for analysts and investors
To attend the conference call: dial (+47) 21 56 33 18 or from outside Norway: +44 (0) 20 3003 2666 or from the US: +1 212 999 6659.
Password: DNB Q1. The phonecast (listen only mode) and replay will be available at www.dnb.no/en/ir.

2 May at 7.45 am GMT: breakfast conference for analysts in London
Place: UBS 5 Broadgate, London, EC2M 2QS. Please register your attendance in London at [email protected]

Management will present the results followed by a Q&A session.

DNB held the Annual General Meeting on 25 April 2017 in Oslo.

All proposed resolutions on the agenda were approved, cf. the notice sent to the Oslo Stock Exchange on 31 March 2016.

The General Meeting approved the Board of Directors' proposal for the distribution of a dividend of NOK 5.70 per share to registered shareholders as at 25 April 2017, to be distributed as from 5 May 2017. The shares in DNB ASA will be quoted ex-dividend on 26 April 2017.

The minutes from the Annual General Meeting are attached.

DNB ASA held its annual general meeting on 25 April 2017. In this meeting, Karl-Christian Agerup was elected as new board member in DNB ASA, with a term of office of up two years.

The Board of Directors in DNB ASA consists of:

Anne Carine Tanum (chairman)
Tore Olaf Rimmereid (vice-chairman)
Karl-Christian Agerup
Jaan Ivar Semlitsch
Berit Svendsen
Vigdis Mathisen (employee representative)
Carl Løvvik (employee representative)
Jorunn Løvås (deputy for the employee representative)
Stian Samuelsen (deputy for the employee representative)

The shares in DNB ASA will be quoted ex-dividend on 26 April 2017. A dividend of NOK 5.7 per share will be distributed as from 5 May 2017 to registered shareholders as at 25 April 2017.

28 April at 9.30 am CET: press conference in English accessible via live web TV
Place: DNB's head office in Bjørvika, Dronning Eufemias gate 30, Oslo. A live
broadcast will be available at www.dnb.no/en/ir.
Please register your attendance in Oslo at [email protected]

The press conference will be held in English.

28 April at 1.30 pm CET: conference call for analysts and investors
To attend the conference call: dial (+47) 21 56 33 18 or from outside Norway:
+44 (0) 20 3003 2666 or from the US: +1 212 999 6659.
Password: DNB Q1. The phonecast (listen only mode) and replay will be available at www.dnb.no/en/ir.

2 May at 7.45 am GMT: breakfast conference for analysts in London
Place: UBS 5 Broadgate, London, EC2M 2QS. Please register your attendance in
London at [email protected]

Management will present the results followed by a Q&A session.

DNB recorded profits of NOK 4 544 million in the first quarter of 2017, a reduction of NOK 678 million from the first quarter of 2016, reflecting negative effects from the bank’s basis swaps. The bank is further increasing its lending to private individuals and small and medium-sized enterprises and is strongly committed to developing new digital services. Impairment losses on loans to large corporates were somewhat lower in the first quarter.  

Home mortgages and other loans to private individuals constitute the largest business area in DNB. This trend has become even more evident over the past year. While lending to large corporates has been gradually reduced, there is an increase in lending to private individuals and small and medium-sized enterprises. Loans to private individuals now total more than NOK 700 billion.

DNB’s interest income was up in the first quarter compared with the previous quarter, in spite of two fewer interest days. The trend of declining spreads now appears to have been reversed.

“We are pleased that we have succeeded in increasing interest income in a market characterised by fierce competition and very low interest rates. We helped some 37 000 customers realise their dream of a new home during the quarter, and volumes were up for both private individuals and small and medium-sized enterprises, just as we planned,” says Rune Bjerke, group chief executive.

Leading the digital race
One of the highlights of the quarter was the news that DNB entered into an alliance with 105 Norwegian savings banks to join forces over the Vipps payment app. Together, they will ensure that Vipps will deliver the most user-friendly and innovative payment services to Norwegian private individuals and companies.

Vipps is also an example proving that DNB is launching new products and services on digital platforms at a high speed.

“The bank is undergoing extensive changes as it both renews its competencies and develops many new digital services. We are among the first banks in the world to fully automate the processing of home mortgages. Additional Vipps services will soon be launched, and we will also introduce a number of new apps which will make banking even easier for our customers,” says Bjerke.

From bank to adviser
DNB’s interest income increased by NOK 149 million from the fourth quarter of 2016. Compared with the first quarter of 2016, there was a NOK 192 million decline in interest income.

Other income from large corporates rose by NOK 174 million in the first quarter compared with the year-earlier period. Among other things, DNB has acted as adviser in an increasing number of syndications, debt capital issues and other investment banking services under the auspices of the brokerage house DNB Markets.

Operating expenses were reduced by NOK 270 million compared with the first quarter of 2016. However, there were significant restructuring costs in 2016 after DNB decided in February to close 59 branch offices.

Significant reduction in losses
Impairment losses on loans and guarantees totalled NOK 562 million for the first quarter, down NOK 612 million from the corresponding quarter in 2016. The outlook for the Norwegian economy is generally more positive.

“We have remained optimistic all along with respect to Norway’s ability to adjust to the changes. Even though some are still struggling, we are now seeing an increasing number of bright spots in the Norwegian economy. Investment is picking up, consumer confidence has risen, and the labour market has improved further. Norway is quite simply faring well through a demanding period of restructuring,” concludes Bjerke.

Financial key figures for the first quarter of 2017

•  Pre-tax operating profit before impairment was NOK 6.5 billion (7.9)
•  Profit for the period was NOK 4.5 billion (5.2)
•  The common equity Tier 1 capital ratio (transitional rules) was 15.8 per cent (15.2)
•  Earnings per share were NOK 2.64 (3.14)
•  Return on equity was 9.1 per cent (11.2)
•  The cost/income ratio was 45.6 per cent (41.8)

Comparable figures for the first quarter of 2016 in parentheses.

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

Contact persons:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
Rune Helland, head of Investor Relations, tel: +47 977 13 250

The quarterly report, presentation and Fact Book can be downloaded from
www.dnb.no/investor-relations