DNB Group: Basis swap impact in third quarter

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.