Stock and press releases

Since November 2016, DNB has reviewed various options for its involvement in the project financing of the Dakota Access Pipeline. The bank has now entered into an agreement to sell its share of the loan.

“By selling our stake, we wish to signal how important it is that the affected indigenous population is involved and that their opinions are heard in these types of projects. Although there have been attempts at consultation by the project parties, the outcome of the process suggests that these have been inadequate," says Harald Serck-Hanssen, group executive vice president and head of Large Corporates and International in DNB.

DNB Asset Management chose to sell their mutual fund investments in the companies behind the pipeline in November 2016. Several other Norwegian financial institutions followed suit and have since also sold their investments. At that time, DNB communicated that a sale of the project financing was one of the options under review, but that such a sale would take longer than the sale of shareholdings. In the meantime, DNB has used its position as a lender to try to influence the process, call for a lower level of conflict and took the initiative to carry out an independent investigation of how indigenous people's rights are being safeguarded.

“During the process, we have met several interest groups and listened to their suggestions. We have met, among others, representatives from the Standing Rock Sioux Tribe. We have also engaged in an ongoing dialogue with the company building the pipeline. Many of our customers have contacted us and expressed what they expect from us as a Norwegian bank. In our evaluations, we have taken account of all the input we have received,” says Serck-Hanssen.

Following the sale of the loan, DNB no longer has any direct financial exposure to the Dakota Access Pipeline.

Press contact:

Even Westerveld, EVP, Corporate Communications tel. no. (+47) 400 16 744

The DNB group’s annual report and Pillar 3-report for 2016 is published today, 9th of March 2017, at DNB’s website www.dnb.no/en/ir.

Corporate customers are becoming increasingly digital and the competitive situation is changing. DNB must therefore adapt its organisation to meet the future needs of small and medium-sized enterprises (SMEs). Today, DNB’s Corporate Banking business area has been presented with a new organisational structure, which also involves downsizing. 

“Personal customers are not the only customers who have increased their use of self-service solutions. SME customers also solve most of their daily banking needs themselves. At the same time, the bank is digitalising its own processes. Consequently, we, as a bank, must meet new requirements and are strengthening our commitment to developing simple digital solutions and useful tools to help increase our customers chances of success," says Benedicte Schilbred Fasmer, group executive vice president and head of Corporate Banking in DNB. 

DNB’s Corporate Banking business area is merging its current seven regions into four regions, and is also merging customer teams to build larger specialist groups. At the same time, units involved in the development of digital solutions for the SME market are being strengthened.  

The restructuring means that the Corporate Banking business area will reduce staff levels by approximately 100 full-time positions. Some employees will have a new work location. DNB will continue to capitalise on the Group’s current branch office network to be able to meet SME customers where they are. After the change, there will still be more than 1 200 employees who work in DNB to help small and medium-sized enterprises in Norway. 

“We are changing to be there for our customers and offer relevant solutions where customers want them, both physically and digitally. Our aim is to be an attractive partner for companies across Norway. We will be a long-term, relationship-based and predictable bank for our customers. DNB will lend at least as much money to Norwegian small and medium-sized enterprises in 2017 as we have done in the past," says Fasmer. 

This week, downsizing plans and changes have also been communicated in the Group’s product organisation in the Personal Banking business area, which in total affect 17 FTEs. 

Facts about SME customers' use of DNB’s banking products and services:
Customer behaviour is changing rapidly and the digital banking revolution is developing a lot faster than many envisaged just a few years ago, also on the corporate side: 

•  9 out of 10 SME customer relationships are established digitally.  
•  SME customers used the Internet bank and the mobile bank more than 12.7 million times in 2016. 
•  The use of DNB’s mobile bank increased by 52 per cent from the first to the second half of 2016. 
•  SME customers wish to talk to DNB in new ways, and the use of telephone, email and chat is increasing rapidly.  
•  1 out of 4 customer calls to the customer centre is now via chat and this has doubled within a period of one year.  
•  30 000 SME customers use Vipps. 

Contact persons
Benedicte Schilbred Fasmer, group executive vice president and head of Corporate Banking in DNB, tel.: (+47) 950 60 034
Even Westerveld, EVP, Corporate Communications, tel.: (+47) 400 16 744 

DNB will host a conference call for analysts and investors about the changes to Vipps. Rune Bjerke, group chief executive, and Rune Garborg, group executive vice president Vipps and Payments, will host a Q&A session.

Date: 13 February at 2.30 pm CET

Telephone: (+47) 21 56 33 18 / +44 (0) 20 3003 2666 Password: DNB

See attached press release for further information.

Payments just got simpler. More than 100 Norwegian banks have teamed up with DNB as owners of Vipps. Together they will ensure that Vipps delivers the simplest and most innovative payment services to Norwegian private individuals and companies.

"Vipps has become the champion of person-to-person payments and, in a short amount of time, has rolled out mobile, online and in-store payment solutions. Over the course of 2017, Vipps will be available in far more places than we have seen up until now. This alliance will make us better equipped to win the race against Nordic and international market participants," says Rune Bjerke, group chief executive of DNB and incoming chairman of the board of Vipps.

DNB, the SpareBank 1 alliance, the Eika alliance, Sparebanken Møre and the 15 independent savings banks which also are co-owners of Frende Forsikring have signed a letter of intent, which entails that they together will develop Vipps to become the mobile wallet for the whole of Norway. The initiators represent a total of 106 Norwegian banks.

Up until now, Vipps has been part of the DNB Group, but it will now be an autonomous company with DNB as the largest owner with approximately 52 per cent of the shares. The SpareBank 1 alliance will own 25 per cent, the independent savings banks 12 per cent, the Eika alliance 10 per cent and Sparebanken Møre 1 per cent.

"Several market participants are competing to launch their own mobile payment solutions. A lot of people find this confusing, whether they are making payments or on the receiving end. Even though we have taken a firm market position in a short amount of time through our mCASH initiative, many of our customers have expressed a preference for one solution: a single strong and distinct provider. This is why Norwegian banks now join forces to create one single mobile wallet for all Norwegian bank customers,” says Finn Haugan, CEO of SpareBank 1 SMN, on behalf of the SpareBank 1 alliance.

"We want to build a strong Norwegian fintech market participant, which manages to develop and deliver simple and secure services at the lowest possible cost. We will develop expertise and technology in one company, and this will represent a big advantage for all bank customers across the country," says Geir Bergskaug, managing director of Sparebanken Sør, which represents the 15 15 independent savings banks which also are co-owners of Frende.

"The Vipps alliance will provide customers of the local banks with simple and future-oriented payment services. The partnership has a central position in Eika’s strategy for swift and cost-effective innovation and development. I am therefore very happy to be standing together to further develop Vipps as the leading mobile wallet in the Norwegian market,” says Hege Toft Karlsen, CEO of Eika Gruppen.

«Products and services are developed at an increasingly quicker rate. The winner will be the one who best succeeds at making things easier for the customer. The new company will be strong on know-how and innovation power, and we look forward to offering our customers simple, secure and exciting payment solutions», says Olav Arne Fiskerstrand, managing director of Sparebanken Møre.

Payment solutions that up to now have been jointly developed by the other banks will also be included in Vipps. SpareBank 1 will transfer its mobile payment solution mCASH, which delivers mainly of the same services as Vipps. All mCASH customers will be invited to transfer over to Vipps.

Rune Garborg, group executive vice president and head of Vipps and Payments in DNB, is appointed as head of Vipps. Elisabeth Haug, managing director of SpareBank 1 Mobile Payments, is appointed as deputy managing director.

The agreement is subject to the approval from Norwegian supervisory authorities.

This information is published in accordance with the requirements of the Continuing Obligations.