Stock and press releases

The Norwegian central bank, Norges Bank, yesterday raised the key policy rate by 0.25 percentage points. DNB has today decided to increase the interest rate on home mortgages by up to 0.25 percentage points. 

"Norges Bank’s key policy rate increase marks the end of an historical period with zero interest rates. We are approaching normality. Our home mortgage customers will still have a very low interest rate after this adjustment," says Ingjerd Blekeli Spiten, Group Executive Vice President for Personal Banking in DNB. 

All customers whose interest rates are adjusted, will be given information in the Internet bank or receive a letter by regular post, explaining how their home mortgage will be affected. The new interest rates will be effective from 28 September for new customers, and from 12 November for existing customers. 

For further information:  

Vibeke Hansen Lewin, EVP Communications, tel. (+47) 990 13 349 

Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00/(+47) 977 13 250 

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

Ida Lerner is the new CFO of DNB, effective from 1 November.

“Now that Ottar wants to make the transition to a new working life, I’m very pleased that Ida has accepted this exciting challenge. She has extensive insight into DNB’s operations, risk, strategy and financial situation. Over a number of years, Ida has stood out as a strong and brave manager who has what it takes to be a CFO,” says Group Chief Executive Officer Kjerstin Braathen.

Ida Lerner has 14 years’ experience from DNB, the last four as Group Executive Vice President for Risk Management. She has previously been Head of DNB CEMEA (Central Europe, Middle East and Africa) in London, and also has experience from Large Corporate Banking at HSBC and stock brokerage at Nordea.

"I look forward to starting in a new role. DNB is one of Europe’s best capitalised banks, and one of a few banks to successfully implement its dividend policy, even through the past few, challenging years. I’m taking over the responsibility as CFO in a bank that has strong financial results and a solid portfolio quality,” says Ida Lerner.

Ottar Ertzeid has decided to leave DNB after 32 years of employment in the Group. For 18 years he was in charge of Norway’s largest brokerage house, DNB Markets, and he has served as CFO for the past two years.

"I am grateful and privileged to be able to look back on fantastic career in DNB. It was a difficult decision to leave my exciting tasks and good colleagues. I have complete faith in the bank’s financial and strategic position. I would, however, like to spend the remaining years of my working life using my expertise in a freer role, such as board positions. I also want to be more active in the securities market with my own funds, and these wishes are incompatible with my current position as CFO,” says Ottar Ertzeid.

Ertzeid will act as an M&A adviser in DNB until the spring of 2022.

"Ottar has made a lasting impact in DNB. I am very thankful for the job he has done, in particular the significant results he helped us achieve. Through a difficult period for the Norwegian economy, he has remained rock solid. His track record as Head of DNB Markets for 18 years is impressive. We hope we can continue to use his expertise in boards within the DNB Group,” says Braathen.

As of September, DNB’s Group Management Team also includes the following new members:
Sverre Krog, Chief Risk Officer
Anne Sigrun Moen, Group EVP of People
Benjamin Golding, Group EVP of Payments & Innovation

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, INTO OR WITHIN CANADA, AUSTRALIA, NEW ZEALAND, SOUTH AFRICA, HONG KONG, JAPAN OR ANY OTHER JURISDICTION IN WHICH THE DISTRIBUTION OR RELEASE WOULD BE UNLAWFUL

Oslo, 26 August 2021

Reference is made to the offer document dated 23 April 2021 (the "Offer Document") and subsequent stock exchange announcements for the recommended voluntary offer by DNB Bank ASA (the "Offeror") to acquire all outstanding shares (the "Shares") in Sbanken ASA (the "Company") not already owned by the Offeror (the "Offer").

Today, The Norwegian Competition Authority (“NCA”) issued a reasoned Statement of Objections against the Offeror’s contemplated acquisition of the Company. The Statement of Objections is based on the NCA’s preliminary concerns related to possible effects on competition caused by the acquisition in the market for fund distribution.

The market for fund distribution is dynamic and rapidly growing, and the Offeror experiences strong competition in the market from a range of incumbents and new market players. The Offeror will now thoroughly examine the Statement of Objections and the NCA’s preliminary assessment of how the acquisition may affect competition in the market.

The NCA emphasises that the issuing of a Statement of Objections is the NCA’s preliminary assessment, and does not prejudge the outcome of the NCA’s investigations.  The parties have until 16 September 2021 to reply to the Statement of Objections. The final deadline for the NCAs review will expire on 7 October 2021. The NCA may however at any stage close its investigation of the acquisition provided that it finds that the criteria for intervention is not met.

The Offeror will continue to cooperate closely with the NCA and provide all relevant information in order for the NCA to close its investigation as quickly as possible.

DNB Markets, a part of DNB Bank ASA is acting as financial advisor to the Offeror. Advokatfirmaet BAHR AS is the legal advisor to the Offeror in connection with the Offer. Arctic Securities AS is acting as financial advisor and Advokatfirmaet Thommessen AS is the legal advisor to the Company in connection with the Offer.

For further information, please contact the following persons in the Offeror:

Rune Helland, Head of Investor Relations, telephone +47 97 71 32 50

Media contact:

Thomas Midteide, GEVP Communications & Sustainability: +47 96 23 20 17

The following persons in the Company may also be contacted in connection with the Offer:

Jesper M. Hatletveit, Head of Investor Relations, +47 95 94 00 45

Henning Nordgulen, CFO, +47 95 26 59 90

Media contact:

Kristian K. Fredheim, Head of Communications, +47 92 44 74 07

***

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

The Offer and the distribution of this announcement and other information in connection with the Offer may be restricted by law in certain jurisdictions. When published, the Offer Document and related acceptance forms will not and may not be distributed, forwarded or transmitted into or within any jurisdiction where prohibited by applicable law, including, without limitation, Canada, Australia, New Zealand, South Africa, Hong Kong and Japan. The Offeror does not assume any responsibility in the event there is a violation by any person of such restrictions. Persons into whose possession this announcement or such other information should come are required to inform themselves about and to observe any such restrictions.

This announcement is not a tender offer document and, as such, does not constitute an offer or the solicitation of an offer to acquire the Shares. Investors may accept the Offer only on the basis of the information provided in the Offer Document. Offers will not be made directly or indirectly in any jurisdiction where either an offer or participation therein is prohibited by applicable law or where any tender offer document or registration or other requirements would apply in addition to those undertaken in Norway.

Notice to U.S. Holders

U.S. Holders (as defined below) are advised that the Shares are not listed on a U.S. securities exchange and that the Company is not subject to the periodic reporting requirements of the U.S. Securities Exchange Act of 1934, as amended (the "U.S. Exchange Act"), and is not required to, and does not, file any reports with the U.S. Securities and Exchange Commission (the "SEC") thereunder. The Offer will be made to holders of Shares resident in the United States ("U.S. Holders") on the same terms and conditions as those made to all other holders of Shares of the Company to whom an offer is made. Any information documents, including the Offer Document, will be disseminated to U.S. Holders on a basis comparable to the method that such documents are provided to the Company's other shareholders to whom an offer is made. The Offer will be made by the Offeror and no one else.

The Offer will be made to U.S. Holders pursuant to Section 14(e) and Regulation 14E under the U.S. Exchange Act as a "Tier II" tender offer, and otherwise in accordance with the requirements of Norwegian law. Accordingly, the Offer will be subject to disclosure and other procedural requirements, including with respect to the offer timetable, settlement procedures and timing of payments, that are different from those that would be applicable under U.S. domestic tender offer procedures and law.

Pursuant to an exemption from Rule 14e-5 under the U.S. Exchange Act, the Offeror and its affiliates or brokers (acting as agents for the Offeror or its affiliates, as applicable) may from time to time, and other than pursuant to the Offer, directly or indirectly, purchase or arrange to purchase, Shares or any securities that are convertible into, exchangeable for or exercisable for such Shares outside the United States during the period in which the Offer remains open for acceptance, so long as those acquisitions or arrangements comply with applicable Norwegian law and practice and the provisions of such exemption. To the extent information about such purchases or arrangements to purchase is made public in Norway, such information will be disclosed by means of an English language press release via an electronically operated information distribution system in the United States or other means reasonably calculated to inform U.S. Holders of such information. In addition, the financial advisors to the Offeror may also engage in ordinary course trading activities in securities of the Company, which may include purchases or arrangements to purchase such securities.

Neither the SEC nor any securities supervisory authority of any state or other jurisdiction in the United States has approved or disapproved the Offer or reviewed it for its fairness, nor have the contents of the Offer Document or any other documentation relating to the Offer been reviewed for accuracy, completeness or fairness by the SEC or any securities supervisory authority in the United States. Any representation to the contrary is a criminal offence in the United States.

13 July 2021 

DNB is experiencing increased customer activity and optimism in step with the reopening of the Norwegian economy. The profit for the second quarter of 2021 was NOK 6 432 million, an increase of NOK 548 million from the first quarter of this year.  

After a very good first quarter, DNB’s financial performance has been further strengthened in the second quarter, supported by higher growth as a result of the reopening of the Norwegian economy and solid liquidity in most households.  

“Even though we haven’t put the pandemic completely behind us yet, a sense of optimism has definitely returned to the Norwegian business community and Norwegian households. We’re seeing growth in all parts of the bank, and I can’t remember a quarter with comparably high customer activity across the entire spectrum of the services we offer. I’m pleased that our customers are choosing DNB to an even greater extent than before, now that we’re preparing ourselves for more normal times,” says CEO Kjerstin Braathen. 

 
Growth in all parts of the bank 

Throughout the quarter, DNB has experienced profitable growth on loans of 1.4 per cent and 2.7 per cent in the personal customer market and corporate customer market, respectively – in line with the plan for annual growth of around 3–4 per cent. Deposit growth for the quarter was 4.1 per cent, while net interest income was at the same level as in the corresponding quarter in 2020. 

DNB experienced growth in all customer segments and areas of the bank, and customer activity was particularly high in the areas of capital raising and initial public offerings (IPOs), as well as across the entire spectrum from long-term saving and asset management, to real estate and insurance. Income from customer-driven activities (commission and fee income) was record high, with an increase of NOK 486 million, or 20.3 per cent, compared with the corresponding period last year, and 9.6 per cent compared with the first quarter of 2021.  

Norwegians’ high level of saving and investing was maintained, even though consumption has increased along with the reopening of society.  

 
Will cooperate with customers on sustainable transition 

In the second quarter, DNB presented its revised sustainable strategy. The strategy states that DNB will be a driving force for sustainable transition, for instance by financing, facilitating, and investing in sustainable activities worth NOK 1 500 billion by 2030, and by increasing total assets in mutual funds with a sustainability profile to NOK 100 billion by 2025. 

During the course of last year, we saw a clear shift in mood, with many people looking for sustainable products and seeking to make sustainable investments. In May, DNB launched the index fund DNB Klima Indeks, a mutual fund that, to the best of our knowledge, is the very first in Norway to be fully aligned with the goals of the Paris Agreement. The fund reached NOK 1 billion in total assets just a few weeks after its launch in May.  

“The very strong reception DNB Klima Indeks has received provides additional motivation to further develop our range of sustainable and green products, in other parts of the personal customer and corporate customer markets, as well. Our customers will notice that sustainable transition is an issue that we’ll spend more time on in our customer dialogue in the time ahead,” says Kjerstin Braathen. 

 
Strong position for paying out dividends 

The bank maintained a very strong financial position throughout the quarter, with a common equity Tier 1 (CET1) capital ratio of 19.1 per cent. Return on equity (ROE) was 11.1 per cent for the quarter, and is the result of high activity and growth in all areas of the bank, as well as net reversals of impairment provisions. Earnings per share (EPS) were NOK 4.01 in the quarter, which is an increase of 31 per cent from the corresponding quarter last year.  

The bank is in a strong position to pay out dividends, and the Board of Directors has been authorised by the General Meeting to pay out up to NOK 9 per share for the year 2020, after 30 September this year. 

 
During the quarter, DNB also received acceptance for its offer to acquire Sbanken, and the Ministry of Finance approved the acquisition. The approval of the Norwegian Competition Authority remains, and the decision is expected during the third quarter.  

Financial key figures for the second quarter of 2021  
(figures for the corresponding quarter in 2020): 

• Pre-tax operating profit before impairment amounted to NOK 7.6 billion (8.4) 

• Profit for the quarter was NOK 6.4 billion (5.0) 

• Earnings per share were NOK 4.01 kroner (3.06) 

• Return on equity was 11.1 per cent (8.7) 

• Cost/income ratio was 44.4 per cent (40.4) 

• Common equity Tier 1 (CET 1) capital ratio was 19.1 per cent (18.2) 

Further details on DNB’s results can be found on dnb.no/ir. 

For further information:   

Rune Helland, Head of Investor Relations, tel.: (+47) 23 26 84 00/(+47) 977 13 250   

Thomas Midteide, Group Executive Vice President of Communications & Sustainability, tel.: (+47) 96 23 20 17   

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

DNB will publish its results for the second quarter of 2021 on Tuesday, 13 July 2021 at 7.30 CET.

9:30 CET: Presentation

CEO Kjerstin Braathen and CFO Ottar Ertzeid present the results at a live streamed press conference. A broadcast will be available on the Investor Relations pages at ir.dnb.no. It will also be possible to physically attend to the presentation at DNB's head office in Bjørvika, Dronning Eufemias gate 30. Please register your attendance in Oslo, at [email protected].

13:30 CET: Conference call for analysts and investors

Call in details: Norway +47 21 56 33 18, UK Wide +44 (0) 33 0551 0200, US +1 212 999 6659. Password: DNB Q2. Please join the call 5 minutes early to allow the operator to transfer you into the call by the scheduled start time.

The conference call (listen-only mode) and a recording of this will be available on the Investor Relations pages at ir.dnb.no.

For further information, please contact:

Investor contact:

Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

Media contact:

Thomas Midteide, Group Executive Vice President, Communication & Sustainability, tel. (+47) 962 32 017

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

In the second quarter of 2021, the DNB Group will recognise a negative effect of NOK 212 million from basis swaps connected to funding. Furthermore, a positive effect of NOK 59 million from the USD Additional Tier 1 capital will also be recognised.

For further information, please contact:

Rune Helland, head of Investor Relations, tel. (+47) 23 26 84 00 / (+47) 977 13 250

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