Stock and press releases

Oslo, 3 May 2019

Today, 3 May 2019, a total of 178,382 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 159.5625.

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 6.2%.

A list of primary insiders of DNB ASA that have increased their shareholding is attached.

DNB’s profit in the first quarter was NOK 7 582 million, an increase of 1 929 million from the same quarter the year before. Growth in all customer segments contributes to strong results. DNB is now strengthening its commitment to sustainability.

Norwegian economy has got off to a flying start in 2019. Current macro trends provide a tailwind for both businesses and private individuals who are customers in DNB. The past year, DNB's lending to personal customers and small and medium-sized enterprises has gone up by almost NOK 50 billion. The results for the first quarter also show growth in all customer segments. 

"Both companies and households want to realise their plans for the future, and we are pleased that many of them want to finance their dreams through us. The main reason for this is that we are able to develop new and customer-friendly products, while at the same time being a strong contender with competitive prices in a fierce competitive situation. It also helps that DNB is a well-liked bank that always has its customers' and society's best interest in mind," says Rune Bjerke, Group Chief Executive of DNB. 

Solid growth
Net interest income in the first quarter amounted to NOK 9 289 million, up 282 million from the same quarter last year. The total growth in lending is 5.9 per cent, well above the bank's long-term ambition.  

Net commission and fee income went up by NOK 103 million to 2 219 million. A higher level of activity within transaction advice and real estate broking are two of the explanations for this. Losses are still low, with NOK 316 million in the quarter.  

Together with the savings bank SpareBank 1, DNB has established Fremtind as a contender in the insurance sector. Fremtind will sell insurance policies to both companies and private individuals. The establishment resulted in an accounting gain of NOK 1.74 billion in the first quarter, and was a strong contributory factor to the return on equity (ROE) ending at 14.1 per cent. 

"Our good numbers are first and foremost a result of hard work and stable efforts over time. But we have also made some bold choices, which are now paying off. One example is that we have significantly reduced the prices on our actively managed mutual funds. This has had an immediate effect: More mutual fund customers choose DNB, and in the first quarter, we were behind half of the net sales to Norwegian personal customers," says Bjerke. 

Going green
Although the Norwegian business sector is doing well, it is highly noticeable that both the Norwegian and international economy is in a period of restructuring. Greenhouse gas emissions must be reduced, and the business community has to adapt to a low-carbon society. More investors are stipulating that their money should help finance green businesses. 

DNB is now strengthening its commitment to sustainability and has set clear ambitions for the future. Among other things, DNB will contribute to the financing of renewable energy and infrastructure with NOK 450 billion in the period leading up to 2025. Similarly, the bank has an ambition to contribute to the financing of green property development with NOK 130 billion.  

"Some see the 'green shift' as a big risk, but we choose to look at it as an opportunity. We know that new winning industries will emerge both at sea and on land. We believe that infrastructure and renewable energy will be two such industries. They constitute great business opportunities for DNB if we manage to combine banking products with industry knowledge," says Rune Bjerke.  

Financial key figures for the first quarter of 2019 (compared with figures from the year-earlier period): 

•  Pre-tax operating profit before impairment amounted to NOK 7.6 billion (6.7) 
•  Profit for the period was NOK 7.6 billion (5.7) 
•  Earnings per share were NOK 4.61 (3.36) 
•  Return on equity was 14.1 per cent (11.0) 
•  Cost/income ratio ended at 42.0 per cent (43.4) 
•  CET1 capital ratio (according to transitional rules) was 16.4 per cent (16.6) 

Details concerning DNB’s results can be found on dnb.no/ir. 

The shares in DNB ASA will be quoted ex-dividend on 2 May 2019. A dividend of NOK 8.25 per share will be distributed as from 10 May 2019 to registered shareholders as at 30 April 2019.

DNB ASA’s Annual General Meeting was held on 30 April 2019 in Oslo. At the meeting, Gro Bakstad was elected as a new board member in DNB ASA, with a term of office of up to two years. Karl-Christian Agerup was re-elected as a board member, with a term of office of up to two years.

The Board of Directors of DNB ASA now consists of the following members:

Olaug Svarva (chair)
Tore Olaf Rimmereid (vice chair)
Karl-Christian Agerup
Jaan Ivar Semlitsch
Gro Bakstad

Vigdis Mathisen (employee representative)
Carl Løvvik (employee representative)

Jorunn Løvås (deputy employee representative)
Stian Samuelsen (deputy employee representative)

DNB’s Annual General Meeting was held on 30 April 2019 in Oslo. 

All items on the agenda were adopted as proposed, cf. the notification sent to Oslo Børs (Oslo Stock Exchange) on 5 April 2019. 

The General Meeting approved the Board of Directors' proposed distribution of a dividend of NOK 8.25 per share to registered shareholders as at 30 April 2019, to be distributed as from 10 May 2019. The shares in DNB ASA will be quoted “ex-dividend” on 2 May 2019. 

The General Meeting granted the Board of Directors an authorisation for the repurchase of up to 3.5 per cent of the company's share capital, as well as an authorisation to DNB Markets of 0.5 per cent for hedging purposes, valid up to the Annual General Meeting in 2020.  

The minutes from the Annual General Meeting are attached.  

DNB will publish its results for the first quarter of 2019 on Friday 3 May 2019 at 07.30 a.m. Oslo time. The first quarter results presentation will be held in London the same morning, at 08:30 a.m. London time. The event will be webcasted. Link to the webcast will be made available at ir.dnb.no. The presentation will also be published at 08:30 a.m. London time. An analyst and investor conference call will be held after the presentation.

Please note that no first quarter results presentation will be held in Oslo.

Presentation details:

Agenda:
08:30 a.m. (London time)             First quarter results presented by Rune Bjerke (CEO) and Kjerstin Braathen (CFO)
12:30 a.m. (London time)             Conference call for investors and analysts (call details will be published at ir.dnb.no)

Place:
DNB Bank ASA, 8th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF

Registration:
Please register your attendance in London to [email protected], no later than 26 April 2019.

We look forward to seeing you in London.

For further information, please contact:
Rune Helland, Head of Investor Relations, tel. +47 23 26 84 00 / +47 977 13 250
Jan Ole Huseby, Senior Advisor Investor Relations, tlf. +47 23 26 84 08 / +47 958 61 003

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