Stock and press releases

DNB ASA has decided to initiate a new share buy-back programme. Similarly to the share buy-back programme completed by DNB ASA on 8 December 2017, the new share buy-back programme would also comprise up to 0.5% of its registered shares, representing a total of approximately 8.1 million shares.

The share buy-back programme will be carried out on the basis of the authorization given by DNB ASA’s annual general meeting on 25 April 2017, where it was approved that DNB ASA may repurchase shares up to a maximum of 1.5% of its registered shares for purposes of enabling an optimal level of capital in the company. Based on the authorization, DNB ASA has completed two share buy-back programmes in 2017 in which a total of 16 287 982 shares shall be redeemed by the general meeting.

Under the new share buy-back programme, up to approximately 5.4 million of the shares comprised by the share buy-back programme will be repurchased in the open market. In addition, a proportionate amount of the shares owned by the state of Norway through the Ministry of Trade, Industry and Fisheries will be redeemed, in accordance with an agreement between DNB ASA and the state of Norway. The redemption of the shares owned by the state of Norway is subject to approval from DNB ASA’s annual general meeting in 2018. According to the agreement, the state of Norway shall redeem shares on a proportionate basis so that its current ownership interest in DNB ASA of 34.00% remains unaffected following completion of the buy-back programme.

DNB ASA will seek approval from the annual general meeting in 2018 for cancellation of the repurchased shares and a corresponding redemption of the proportionate number of shares owned by the state of Norway. The redemption of the shares owned by the state of Norway shall be made against a payment which shall correspond to an average volume weighted price of DNB ASA’s repurchase of shares in the open market as a part of the buy-back programme, including an interest compensation and an agreed adjustment for dividend paid on the redemption shares in the buy-back period (if any).

For further information, DNB ASA refers to the minutes from DNB ASA’s annual general meeting of 25 April 2017, available at www.dnb.no.

DNB recorded profits of NOK 6 374 million in the fourth quarter of 2017, up NOK 994 million
from the fourth quarter of 2016. An increasing number of customers in both the personal and corporate customer markets show trust in DNB. The Board of Directors has proposed a dividend of NOK 7.10 per share.  

2017 was a good year for the Norwegian economy and a good year for DNB.

For DNB, this was the year when home mortgage customers could apply for loans and get an answer in less than two minutes – all on their mobile phones. More than 135 000 home mortgages were granted in the course of the year. 2017 was also the year when the mobile app ‘Spare’ (Save) helped change our customers' savings habits. Spare was a major contributor to the more than 300 000 savings schemes established by DNB customers during the year.

“In DNB, it is our job to create the best customer experiences. We meet the customer where the customer is. We have closed a large number of branch offices, but our home mortgage portfolio is nevertheless growing. This is possible because we have the best and most customer-friendly digital solutions. It is inspiring to see the efforts made to automate the home mortgage process. Now we are also focusing strongly on simplifying the loan process for our corporate customers. We are going to make everyday life easier for entrepreneurs and business managers,” says Rune Bjerke, group chief executive in DNB.  

Improved prospects, lower losses

Profits for the year totalled NOK 21.8 billion, an increase from NOK 19.3 billion in 2016, mainly due to lower impairment losses on loans. The Norwegian economy has picked up speed, and future prospects look good.

DNB can also report a healthy influx of new customers, both private individuals and businesses. Home mortgages and other loans to personal customers were up 5.8 per cent during 2017. Loans to small and medium-sized enterprises increased by 9.5 per cent during the same period. This trend is also good for Norway – and good for DNB.

“It is easy to forget the important role small and medium-sized enterprises play in society. Looking just at the taxes paid by these companies, they can cover the salaries of all teachers, the entire police force and all nursing home places in Norway for a whole year – and there will still be NOK 83 billion left. These ripple effects are absolutely essential to our welfare, and that is why we are cheering for entrepreneurs in DNB. The more entrepreneurs, the larger the ripple effects," says Bjerke.

Higher dividends

Interest income for the fourth quarter increased by NOK 491 million compared with the fourth quarter of 2016, reflecting higher lending volumes. In addition, lower funding costs had a positive effect on lending spreads.

Net other operating income increased by NOK 185 million. Among other things, there was a high level of activity in DNB Markets’ Investment Banking Division throughout the year, mainly driven by a strong demand for bond issues and other debt instruments.

Impairment losses on loans and guarantees totalled NOK 402 million in the fourth quarter, down
NOK 1 352 million from the corre­sponding quarter in 2016. Operating expenses increased by
NOK 825 million, reflecting certain non-recurring effects and costs related to digitalisation and
IT projects.

“In order to stay ahead and offer the best solutions, it is both right and important to spend money on development, especially during the stage we are in now. The banking industry is opening up, and we are being challenged by new competitors. We expect to capitalise on our current initiatives in the future," says Rune Bjerke.

DNB’s Board of Directors has proposed a dividend of NOK 7.10 per share. This represents 55 per cent of profits for the 2017 accounting year. Including the repurchase of own shares, the total distribution to shareholders represents 73 per cent of profits.

DNB’s long-term ambition is to distribute a minimum of 50 per cent of profits as dividends to its shareholders.   

Financial key figures for the fourth quarter of 2017

• Pre-tax operating profit before impairment was NOK 7.3 billion (7.4)
• Profit for the period was NOK 6.4 billion (5.4)
• The common equity Tier 1 capital ratio (transitional rules) was 16.4 per cent (16.0)
• Earnings per share were NOK 3.79 (3.16)
• Return on equity was 12.3 per cent (10.9)
• The cost/income ratio was 45.3 per cent (41.2)

Financial key figures for the full year 2017

• Pre-tax operating profit before impairment was NOK 28.5 billion (30.8)
• Profit for the year was NOK 21.8 billion (19.3)
• The common equity Tier 1 capital ratio (transitional rules) was 16.4 per cent (16.0)
• Earnings per share were NOK 12.84 (11.46)
• Return on equity was 10.8 per cent (10.1)
• The cost/income ratio was 44.2 per cent (40.9)
• The proposed dividend is NOK 7.10 per share (5.70)

Comparable figures for 2016 in parentheses.

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

Contact persons:

Thomas Midteide, group executive vice president, Media & Marketing, tel.: + 47 962 32 017

Rune Helland, head of Investor Relations, tel: +47 977 13 250

The quarterly report, presentation and Fact Book can be downloaded from ir.dnb.no 

DNB will publish its results for the fourth quarter of 2017 on Thursday, 1 February 2018 at 7.30 am CET.

1 February at 9.30 am CET: press conference in English accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo. A live broadcast will be available on the Investor Relations pages at ir.dnb.no.
Please register your attendance in Oslo at [email protected].

The press conference will be held in English.

1 February at 1.30 pm CET: conference call for analysts and investors
To attend the conference call: (+47) 2156 3016 or from outside Norway: +44 (0) 20 3003 2666 or from the US: +1 646 843 4608.
Password: DNB Q4

The phonecast (listen only mode) and replay will be available on the Investor Relations pages at ir.dnb.no

2 February at 07:45 pm GMT: breakfast conference for analysts in London
Place: DNB Bank ASA, 8th Floor, The Walbrook Builiding, 25 Walbrook, London EC4N 8AF. Please register your attendance in London at [email protected] .

Management will present the results followed by a Q&A session.

DNB will publish its results for the fourth quarter of 2017 on Thursday, 1 February 2018 at 7.30 am CET.

1 February at 9.30 am CET: press conference in English accessible via live web TV
Place: DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo. A live broadcast will be available on the Investor Relations pages at ir.dnb.no.
Please register your attendance in Oslo at [email protected].

The press conference will be held in English.

1 February at 1.30 pm CET: conference call for analysts and investors
To attend the conference call: (+47) 2156 3016 or from outside Norway: +44 (0) 20 3003 2666 or from the US: +1 646 843 4608.
Password: DNB Q4

The phonecast (listen only mode) and replay will be available on the Investor Relations pages at ir.dnb.no

2 February at 07:45 pm GMT: breakfast conference for analysts in London
Place: DNB Bank ASA, 8th Floor, The Walbrook Builiding, 25 Walbrook, London EC4N 8AF. Please register your attendance in London at [email protected] .

Management will present the results followed by a Q&A session.

DNB Bank ASA has made changes to its group management team effective on Monday, 11 December 2017. The changes are made to reinforce DNB’s strategic priorities.

The company’s new group management team consists of:

Rune Bjerke: Group chief executive

Kjerstin Braathen, group executive vice president, Group Finance 

Harald Serck-Hanssen, group executive vice president, Large Corporates and International

Ingjerd Blekeli Spiten (starting in January 2018), group executive vice president, Personal Banking

Solveig Hellebust, group executive vice president, People & Operations

Alf Otterstad (acting), group executive vice president, IT

Ottar Ertzeid, group executive vice president, Markets

Benedicte Schilbred Fasmer, group executive vice president, Corporate Banking

Trond Bentestuen, group executive vice president, Wealth Management & Insurance

Ida Lerner, group executive vice president, Risk Management

Mirella Elisa Wassiluk (starting in April 2018), group executive vice president, Compliance

Rasmus Aage Figenschou (acting), group executive vice president, New Business

Thomas Midteide, group executive vice president, Media & Marketing

Contact persons:

Thomas Midteide, group executive vice president, Media & Marketing, mobile (+47) 96232017

Rune Helland, head of Investor Relations, mobile (+47) 97713250

DNB ASA has finalised its share buy-back programme announced on 21 September 2017. A total of 5.4 million shares were repurchased in the open market, whereas a total of 2.7 million shares will be redeemed from the state of Norway, so that its ownership interest in DNB ASA of 34 per cent will remain unaffected following completion of the buy-back programme. The weighted average purchase/redemption price for the 5.4 million shares is NOK 155.75 and with this DNB ASA will return approximately NOK 837 million to shareholders.

This is the second share buy-back programme that DNB has finalised in 2017. The two programs, including the shares from the state of Norway, total 16.3 million shares. Of the 16.3 million, 10.8 million shares have been bought in the open market.

The 16.3 million shares will be cancelled subject to approval by the annual general meeting in 2018, whereby the number of DNB ASA’s registered shares will be reduced by 1.0 per cent from today's 1 628 798 861.

For further information, please contact:

Investor contacts:
Rune Helland, head of Investor Relations, tel. ( 47) 23 26 84 00 / ( 47) 977 13 250
Amra Koluder, SVP Investor Relations, tel. ( 47) 23 26 84 08 / ( 47) 977 35 378

Background information about the finalised programme

DNB ASA has decided to initiate a share buy-back programme comprising up to 0.5 per cent of its registered shares, representing a total of 8.1 million shares.

The buy-back programme will be carried out on the basis of the authorization given by DNB ASA’s annual general meeting on 25 April 2017, where it was approved that DNB ASA may repurchase shares up to a maximum of 1.5 per cent of its registered shares. DNB ASA may at a later stage decide to initiate further share buy-back programmes, up to the maximum limit approved by the annual general meeting.

Up to 5.4 million of the shares comprised by the buy-back programme will be repurchased in the open market. The remaining shares will be redeemed from the state of Norway through the Ministry of Trade, Industry and Fisheries, according to an agreement between DNB ASA and the state of Norway and subject to approval from DNB ASA’s annual general meeting in 2018. According to the agreement, the state of Norway shall redeem shares on a proportionate basis so that its current ownership interest in DNB ASA of 34 per cent remains unaffected following completion of the buy-back programme.

DNB ASA will seek approval from the annual general meeting in 2018 for cancellation of the repurchased shares and a corresponding redemption of the proportionate number of shares owned by the state of Norway.The redemption of the shares owned by the state of Norway shall be made against a payment which shall correspond to an average volume weighted price of DNB ASA’s repurchase of shares in the open market as a part of the buy-back programme, including an interest compensation and an agreed adjustment for dividend paid on the redemption shares in the buy-back period (if any). Subject to approval by the annual general meeting in 2018, the total number of registered shares of DNB ASA will be reduced by up to 0.5 per cent.