2021
Finanstilsynet confirms administrative fine
Finanstilsynet confirms administrative fine
On 7 December 2020, DNB announced that a preliminary report from Finanstilsynet (the Financial Supervisory Authority of Norway) indicated the possibility of an administrative fine of NOK 400 million, due to inadequate compliance with the Norwegian Anti-Money Laundering Act. Today, Finanstilsynet publishes its final report in this case, confirming that the fine is imposed. DNB has already recorded the total fine in its annual accounts for 2020.
Finanstilsynet today also publishes a report from December 2020 on investigations regarding the Icelandic fisheries company Samherji. Samherji has been accused of money laundering and corruption in connection with the company's activities in Namibia. Økokrim (the Norwegian National Authority for Investigation and Prosecution of Economic and Environmental Crime) carried out a thorough investigation of DNB's role in the Samherji case. The police dropped the case against DNB on 11 February 2021, after DNB had disclosed all relevant information.
The incidents covered by Finanstilsynet in the Samherji case partly took place so many years ago that they are time-barred, and occurred when the old anti-money laundering act was still in force. DNB's anti-money laundering efforts have since been significantly intensified.
DNB acknowledges that there were shortcomings related to customer due diligence in the six companies as noted by Finanstilsynet in connection with the Samherji case. The bank's own investigations have uncovered the same shortcomings that Finanstilsynet points to.
Partly as a result of the Samherji case, DNB has done a great deal of work on reviewing the customer portfolio. The purpose is for the bank to know the customers and understand the money laundering risk they represent. This work is extensive.
Not under suspicion of money laundering
DNB has not been under suspicion of money laundering or complicity in money laundering. Finanstilsynet is critical of DNB's compliance with the AML regulations. Meeting the authorities' expectations in the area of anti-money laundering to help combat financial crime is an important part of DNB's corporate responsibility.
DNB spends considerable resources in the battle against money laundering. Nevertheless, DNB acknowledges that the anti-money laundering efforts had not given sufficient results at the time of the inspection, and the bank therefore accepts Finanstilsynet's fine.
The Board's top priority
In the past few years, DNB has implemented several measures to strengthen its anti-money laundering efforts. Organisation, risk assessment, risk classification and electronic monitoring are areas that have been significantly strengthened. The Board and Group Management regularly follow up this important work.
DNB does not recognize Finanstilsynet's assessment that the Board and management failed to prioritise anti-money laundering.
The fight against money laundering is at the top of the Board's agenda. Finanstilsynet is right to say that there are areas in which we need to improve, but we have also made great strides in the past few years. These efforts can be continually improved, and DNB will continue to prioritise this in the years ahead.
Correction: Acquisition of shares by primary insiders
Correction: Acquisition of shares by primary insiders
Today, 30 April 2020, a total of 178,106 shares in DNB ASA were acquired on behalf of certain leading employees and risk takers. The purchase was executed collectively at an average price per share of NOK 180.6076.
The shares were acquired in accordance with the regulation on remuneration in financial institutions etc., which states that at least half of annual variable remuneration shall be awarded as shares and be subject to certain lock-up mechanisms.
The employees have been given a compensation for decreased share value resulting from the lock-up at approximately 12.0%.
A list of primary insiders of DNB ASA that have increased their shareholding is attached.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Acquisition of shares by primary insiders
Acquisition of shares by primary insiders
Today, 30 April 2020, a total of 178,106 shares in DNB ASA were acquired on behalf of certain leading employees and risk takers. The purchase was executed collectively at an average price per share of NOK 180.6076.
The shares were acquired in accordance with the regulation on remuneration in financial institutions etc., which states that at least half of annual variable remuneration shall be awarded as shares and be subject to certain lock-up mechanisms.
The employees have been given a compensation for decreased share value resulting from the lock-up at approximately 12.0%.
A list of primary insiders of DNB ASA that have increased their shareholding is attached.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Paradigm shift in saving and historically high capitalisation
Paradigm shift in saving and historically high capitalisation
DNB’s profit for the first quarter of 2021 was NOK 5 885 million, which is NOK 1 884 million higher than in the corresponding period of 2020. The bank is experiencing an explosive growth in the savings area, and DNB’s financial position has never been stronger.
The market for savings products, shares and mutual funds reached historically high levels in the quarter, and DNB now has record volumes under management, with strong deposit growth in all customer segments. The Norwegian economy continued to recover in the first quarter, and the authorities’ zero-interest-rate policy has contributed to increasing the liquidity of Norwegian companies and households.
“We’re seeing a paradigm shift in the savings area. DNB has sold more mutual funds this quarter than ever before. During the period, we have also seen great interest in investing in sustainable alternatives. We have recently strengthened our commitment to offering ESG funds, and soon we will be launching 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 Paris Agreement,” says CEO Kjerstin Braathen.
Personal customers’ net subscriptions to mutual funds through DNB’s own channels reached an unprecedented NOK 6.9 billion in the first quarter. At the same time, the personal customers segment saw an explosive growth in savings agreements, with the number of agreements exceeding 500 000 in total. DNB also set new records for digital sales in the quarter, reaching 250 000 users of the Spare app, which now accounts for 30 per cent of the bank’s sales of mutual funds.
High activity in all segments
The low interest rate level continues to affect banks’ interest income. Net interest income in the first quarter was NOK 9 230 million, which is NOK 1 166 million, or 11.2 per cent, lower than in the corresponding quarter of 2020. The decline in interest income can mainly be attributed to last year’s interest rate reductions and a stronger Norwegian krone.
Considerable activity relating to capital raising and management has generated a healthy income for the bank. Net commission and fee income increased by NOK 394 million, or 17.6 per cent, compared with the first quarter of 2020. A high level of activity in the housing market resulted in good income for real estate brokerage and solid growth in lending to personal customers.
“Although some industries and regions are still affected by the infection control measures, it is gratifying to see that the authorities’ plan for the reopening of society is generating increased activity and optimism, among both businesses and the population as a whole. The lending growth in the SME market continued in the first quarter, with an increase of 2.3 per cent. At the same time, our start-up advisers saw a significant growth in the number of startups. This says something about the strong restructuring power inherent in the Norwegian business community,” says Braathen.
Strong capitalisation and net reversals
Earnings per share (EPS) were NOK 3.65 in the first quarter, compared with NOK 2.28 in the first quarter of 2020 and NOK 3.28 in the fourth quarter of 2020. DNB’s financial position has never been stronger, with a common equity Tier 1 (CET1) capital ratio of 19.2 per cent.
The bank had net reversals on impairment provisions of NOK 110 million in the first quarter. This is an improvement compared with both the previous quarter and the first quarter of last year, which saw net impairment provisions of NOK 1 250 million and NOK 5 771 million, respectively.
Financial key figures for the first quarter of 2021 (figures for the corresponding quarter in 2020):
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Pre-tax operating profit before impairment amounted to NOK 7.5 billion (10.1)
- Profit for the quarter was NOK 5.9 billion (4.0)
- Earnings per share were NOK 3.65 kroner (2.28)
- Return on equity was 10.0 per cent (6.5)
- Cost/income ratio was 43.6 per cent (35.3)
- Common equity Tier 1 (CET 1) capital ratio was 19.2 per cent (17.7)
Further details on DNB’s results can be found on ir.dnb.no.
Board election in DNB ASA
Board election in DNB ASA
The Annual General Meeting of DNB ASA was held on 27 April 2021. At the Annual General Meeting Gro Bakstad was re-elected as a board member until the completion of the merger between DNB ASA and DNB Bank ASA.
The Board of Directors of DNB ASA has the following members until the completion of the merger:
Olaug Svarva (Chair of the Board)
Svein Richard Brandtzæg (Vice Chair of the Board)
Jens Petter Olsen
Jaan Ivar Semlitsch
Gro Bakstad (re-election)
Lillian Hattrem (employee representative)
Stian Tegler Samuelsen (employee representative)
Ann-Mari Sæterlid (deputy employee representative)
Sigmund Hollerud (deputy employee representative)
Further, the Annual General Meeting of DNB ASA endorsed the recommendation of the Election Committee to the Annual General Meeting of DNB Bank ASA.
The Annual General Meeting of DNB Bank ASA was also held on 27 April 2021. The Annual General meeting endorsed the Election Committee’s proposal to continue the current Board of Directors until the completion of the merger between DNB ASA and DNB Bank ASA.
The Board of Directors of DNB Bank ASA has the following members until the completion of the merger:
Olaug Svarva (Chair of the Board)
Kim Wahl (Vice Chair of the Board)
Julie Galbo
Eli Solhaug (employee representative)
Jannicke Skaanes (employee-elected observer)
Tore Müller Andresen (deputy employee representative)
Roy Olsen-Nauen (deputy employee-elected observer)
Effective from the merger date, the Annual General Meeting of DNB Bank ASA elected Svein Richard Brandtzæg as the new Vice Chair of the Board, and Jaan Ivar Semlitsch, Gro Bakstad and Jens Petter Olsen as new board members with a term of office of up to two years.
Following this, the Board of Directors of DNB Bank ASA will have the following members effective from the merger date:
Olaug Svarva (Chair of the Board) 2022
Svein Richard Brandtzæg (new Vice Chair of the Board) 2023
Gro Bakstad (new election) 2023
Jaan Ivar Semlitsch (new election) 2023
Jens Petter Olsen (new election) 2023
Kim Wahl 2022
Julie Galbo 2022
Stian Tegler Samuelsen (employee representative) 2022
Lillian Christin Hattrem (employee representative) 2022
Eli Solhaug (employee representative) 2022
Jannicke Skaanes (employee-elected observer) 2022
Ann-Mari Sæterlid (deputy employee representative) 2022
Sigmund Hollerud (deputy employee representative) 2022
Tore Müller Andresen (deputy employee representative) 2022
Roy Olsen-Nauen (deputy employee-elected observer) 2022
Company information
The information is subject to the disclosure requirements set out in section 5-12 of the Norwegian Securities Trading Act. This email was sent by DNB.
Visit our website dnb.no for more information.
DNB ASA - Annual General Meeting held on 27 April 2021
DNB ASA - Annual General Meeting held on 27 April 2021
DNB's Annual General Meeting was held on 27 April 2021. The Annual General Meeting was held digitally due to COVID-19.
All items on the agenda were adopted as proposed, cf. the notice published on 6 April 2021. Regarding item 10, the Annual General meeting endorsed the continuation of the Articles of Association adopted as part of the merger plan, which stipulate a maximum of eight shareholder-elected members of the Board of Directors.
The minutes from the Annual General Meeting are attached.
Company information
The information is subject to the disclosure requirements set out in section 5-12 of the Norwegian Securities Trading Act. This email was sent by DNB.
Visit our website dnb.no for more information.