Stock and press releases

Oslo, 4 May 2015

Today, 4 May 2015, a total of 192 263 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 136.7735.

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 6.9%.

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.

DNB recorded profits of NOK 6 533 million in the first quarter of 2015, up NOK 1 054 million from the first quarter of 2014. The increase largely reflected exchange rate movements and a positive development in the bank’s basis swaps. Low impairment losses on loans also contributed to the strong performance.

“As we entered 2015, there were many predictions of a sharp drop in Norwegian economic activity. We have our fingers on the pulse of every third Norwegian company, and it is clear that the economy is still in good health, even though these are difficult times for companies in the oil sector,” says Rune Bjerke, group chief executive.

From savings accounts to asset management
DNB is currently experiencing strong interest in long-term savings and asset management among its customers. Thus far this year, the bank has helped 40 000 customers start long-term mutual fund or pension savings schemes. This is an increase of 150 per cent compared with last year.

“In consequence of the low interest rate level, Norwegians have taken a more proactive approach to their own savings, which is a very positive development. The pension reform imposes much greater responsibility on each of us when it comes to managing our personal pension savings and the need to save for the future,” says Bjerke.

The first quarter of 2015 was also the first quarter when DNB’s mobile bank overtook DNB’s Internet bank as Norway’s largest banking service platform. During the first three months of the year, the mobile bank was used more than 34 million times. In addition, services that previously required customers to visit a branch office in person are increasingly being digitalised. As an example, the number of digital loan applications rose by 70 per cent during the quarter, while more than 86 per cent of savings schemes were initiated online.

Sound portfolio with lower impairment losses
There was an increase in DNB’s loan portfolio of 8.6 per cent parallel to a 7.0 per cent increase in deposit volumes from the first quarter of 2014 to the first quarter of 2015. The strong volume growth was partly due to exchange rate movements. Lending spreads narrowed marginally during the quarter, while deposit spreads widened slightly. The cost/income rato was 37 per cent. Impairment losses on loans and guarantees totalled NOK 575 million for the quarter, a reduction from NOK 821 million in the fourth quarter of 2014, but an increase from the first quarter of 2014. Non-performing and doubtful loans and guarantees were reduced by NOK 2.6 billion from end-March 2014, totalling NOK 13.9 billion.

Restructuring requires courage
The turnaround in the Norwegian economy and falling oil prices have so far had a limited effect on the labour market. The fall in the price of oil and prospects of even lower interest rates have resulted in a pronounced weakening of the Norwegian krone and thus improved competitiveness. In addition, lower wage inflation will stimulate mainland industries exposed to competition, which will also benefit from a certain increase in international demand.

“We still see many opportunities in the Norwegian market, and the need for restructuring and innovation in a number of sectors creates new dynamics. DNB is rooting for everyone who is dreaming of starting their own business. According to a report that was recently issued by DNB, there are one million dreams out there. Maybe one of them will be the new Snapchat or Alibaba? Whatever the outcome, we will be there and provide good advice to entrepreneurs who aspire to start their own business, all over Norway,” concludes Bjerke.

Key figures for the first quarter of 2015:

• Pre-tax operating profits before impairment were NOK 9.3 billion (7.4)

• Profit for the period was NOK 6.5 billion (5.5)

• Earnings per share were NOK 4.01 (3.37)

• Return on equity was 16.1 per cent (15.4)

• The ordinary cost/income ratio was 37.0 per cent (41.3)

  Comparable figures for 2014 in parentheses.
  
  

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

Contact person:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017

The quarterly report, presentation and Fact Book can be downloaded from www.dnb.no/investor-relations

The Annual General Meeting in DNB ASA was held on 23 April 2015 in Oslo.

The minutes of the Annual General Meeting is enclosed.

07:30 CET – result release
DNB’s 1Q 2015 results will be released at 07:30 am CET on Thursday, 30 April 2015, and we would like to invite you to the following presentations:

09:30 CET – press conference & live web-TV
A press conference (in Norwegian) will be held on Thursday, 30 April at 9:30 am CET at DNB’s head office in Bjørvika, Dronning Eufemias gate 30, Oslo. For those who are unable to attend the presentation in Bjørvika, there will be a live web-TV broadcast of the conference (in Norwegian). For further information, please visit www.dnb.no/ir. Please register your attendance in Oslo at [email protected]

14:00 CET – investors and analyst conference call & phone-cast
A conference call for investors and analysts will be held on Thursday, 30 April at 2:00 pm CET. To attend the conference call we kindly ask you to dial in 10 minutes before start +47 21 56 33 18 or international: +44 (0) 20 3003 2666 or US+1 212 999 6659. Password: DNB Q1. You can also attend the call by listen only mode at the phone-cast link: http://presenter.qbrick.com/?pguid=a44776ad-3917-469b-b4a4-45f243de74d0. A replay of the phone-cast will be available after the call (same link as above).

Friday 1 May 0745 for 0800 GMT – analyst breakfast meeting in London
An analyst breakfast meeting will be held in London on Friday, 1 May 0745 am for 0800 am (local time) at DNB’s London Branch, (please note the address) 8th Floor, The Walbrook Building, 25 Walbrook, London EC4N 8AF. Please register your attendance in London: [email protected]

For further information, please contact:
Jan Erik Gjerland, IR, e-mail: [email protected], phone +47 23 26 84 08
Sindre Nikolaisen, IR, e-mail: [email protected], phone +47 23 26 84 02

In the first quarter of 2015, the DNB Group will record a positive effect of basis swaps connected to funding of approximately NOK 1 810 million.

In the first quarter of 2014, there was a negative effect of basis swaps of NOK 596 million.

Basis swaps are derivative contracts entered into in connection with long-term funding in international capital markets where the relevant currency is converted to Norwegian kroner. These swaps are hedging instruments, and over the lifetime of the derivatives the mark-to-market adjustments will have zero effect.

For further information, please contact Investor Relations in DNB:
Jan Erik Gjerland: +47 23268408
Sindre Nikolaisen: +47 23268402

The annual report and PILAR 3-report for the DNB Group for 2014 will be published on theGroup's website at www.dnb.no/ir today.

For further information, please contact:
Thomas Midteide, Corporate Communication, mobile: +47 962 32 017
Jan Erik Gjerland, Investor Relations, direct line: +47 23 26 84 00.