Stock and press releases

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.

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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

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. 

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.

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.

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.