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Stock and press releases

DNB's stock and press releases

2014

DNB has signed an agreement to sell its shares in Nets Holding A/S

DNB has signed an agreement to sell its shares in Nets Holding A/S

DNB has signed an agreement to sell its shares in Nets Holding A/S to a consortium consisting of Advent International, ATP and Bain Capital. The cash consideration will increase the value of DNB’s holding by approximately NOK 900 million in the first quarter of 2014. The transaction is subject to approval by the authorities and is expected to be completed in the second quarter of 2014. Once the transaction has been completed, DNB’s Common Equity Tier 1 capital ratio (CET 1-ratio), calculated according to the transitional rules, will increase by approximately 0.1 percentage points. See the press release from Nets Holding A/S for more information.

For further information, please contact:
Thomas Midteide, Corporate Communications, tel. (+47) 96 23 20 17
Jan Erik Gjerland, Investor Relations, tel. (+47) 23 26 84 08

Rise in profits contributes to the necessary build-up of capital

Rise in profits contributes to the necessary build-up of capital

DNB recorded profits of NOK 17 526 million in 2013, up NOK 3 734 million from 2012. The healthy profits contributed to an increase in the Group’s common equity Tier 1 capital ratio from 10.7 per cent at year-end 2012 to 11.8 per cent at end-December 2013, calculated according to the transitional rules. A rise in net interest income, low impairment losses on loans and strict cost control were the main factors behind the positive profit trend.

“We are pleased with the results we managed to achieve in 2013. All business areas recorded a rise in profits. Parallel to this, we succeeded in reducing operating expenses adjusted for non-recurring effects. During the year, the banks were presented with a number of new requirements to increase their equity, and the profits recorded in 2013 thus contribute to a very necessary increase in the bank’s Tier 1 capital. DNB is well capitalised, but we need to build additional capital organically in order to meet the authorities’ requirements,” says Rune Bjerke, group chief executive.

Over the past twelve months, DNB has increased Tier 1 capital by NOK 12.4 billion. A futher increase
of more than NOK 40 billion will be required towards 2016.

Lower lending growth and an increase in other operating income
Adjusted for exchange rate movements, there was an average increase of NOK 11.6 billion in DNB’s healthy loan portfolio compared with 2012. Impairment losses on loans were at a very low level and were reduced by approximately NOK 1 billion from 2012 to 2013.

Other operating income increased by NOK 1 926 million from 2012, mainly in consequence of the rise in value of DNB’s shareholding in Nets and healthy profits from insurance operations.

“Impressive efforts were made throughout the Group to ensure positive experiences for both customers and employees in 2013. The year was characterised by extensive internal restructuring, new requirements from the authorities and tough competition in the market. DNB is still one of Norway’s best liked banks, and our recent employee survey shows that the employees enjoy their work and are highly dedicated. I am extremely proud of the efforts underlying the results achieved during the past year,” says Bjerke.

Continued progress in the fourth quarter
DNB recorded profits of NOK 5 665 million in the fourth quarter of 2013, up NOK 1 822 million from the fourth quarter of 2012. The improved profit performance reflected an increase in net interest income and lower impairment losses on loans.

Ordinary operating expenses, excluding non-recurring effects, declined by 1.1 per cent from the fourth quarter of 2012.

Future prospects
“While the global economy seems to be experiencing a cautious recovery, there are many indications
of a somewhat lower growth rate in the Norwegian economy. Activity levels remain high, and the weaker Norwegian krone rate gives a hard-tested export industry renewed belief in the future. Nevertheless, credit demand appears to be somewhat lower than in 2013, enabling us to both continue to finance sound business projects and to build up sufficient capital to reach the new requirements,” says Bjerke.

“However, due to the large differences in banking regulations between the Scandinavian countries, competitors that are not subject to the same Norwegian capital requirements may be in a better position to increase their market shares at the expense of Norwegian banks. This applies to international banks, but also to Norwegian government-backed institutions that offer home mortgages. We therefore appreciate the Norwegian government’s signals that the process of harmonising the rules across the Scandinavian countries is given high priority,” says Bjerke.

DNB expects impairment losses on loans to remain low in 2014, with individual impairment in the range of NOK 2-3 billion.

Key figures for the fourth quarter of 2013:

  • Pre-tax operating profits before impairment were NOK 6.8 billion (5.7)
  • Profit for the period was NOK 5.7 billion (3.8)
  • Earnings per share were NOK 3.48 (2.36)
  • Return on equity was 16.2 per cent (12.3)
  • The ordinary cost/income ratio was 40.4 per cent (47.1)

Comparable figures for the fourth quarter of 2012 in parentheses.

Key figures for the full year 2013:

  • Pre-tax operating profits before impairment were NOK 24.7 billion (21.0)
  • Profit for the year was NOK 17.5 billion (13.8)
  • The common equity Tier 1 capital ratio was 11.8 per cent (10.7)
  • Earnings per share were NOK 10.76 (8.48)
  • Return on equity was 13.2 per cent (11.7)
  • The ordinary cost/income ratio was 45.7 per cent (49.1)
  • The proposed dividend is NOK 2.70 per share (2.10)

Comparable figures for 2012 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
Also Attached

Invitation to DNB's presentation of the full year results for 2013

Invitation to DNB's presentation of the full year results for 2013

07:30 CET – result release
DNB’s 4Q 2013 results will be released at 07:30 am CET on Thursday, 6 February 2014. 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, 6 February 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].

13:30 CET – investors and analyst conference call & phone-cast
A conference call for investors and analysts will be held on Thursday, 6 February at 1:30 pm CET.
To attend the conference call we kindly ask you to dial in 10 minutes before start at: +44 (0) 20 3003 2666 or local +4721563318. Password: DNB2013. 
Phonecast: You can also attend the call in a listen-only-mode at the phone-cast link at www.dnb.no/ir.

A replay of the phone-cast will be available after the call. More details on the conference call can be found on our website www.dnb.no/ir.

Friday 7 February 0730 for 0745 GMT – analyst breakfast meeting in London
An analyst breakfast meeting will be held in London on Friday, 7 February at 0730am for 0745am start (local time) at DNB’s London Branch, 20, St. Dunstan's Hill, London EC3R 8HY.
Please register your attendance in London: [email protected]
 

Contact
For further information, please contact:
Per Sagbakken, head of Investor Relations, phone +47 23 26 84 00 or
Jan Erik Gjerland, e-mail: [email protected], phone +47 23 26 84 08.

DNB Group: Basis swap impact in fourth quarter 2013

DNB Group: Basis swap impact in fourth quarter 2013

In the fourth quarter of 2013, the DNB Group will record a negative effect of basis swaps connected to funding of approximately NOK 819 million. For the full year 2013, there will be a negative effect of NOK 1 364 million.

In the fourth quarter of 2012, there was a positive effect of basis swaps of approximately NOK 235 million, while there was a negative effect of approximately NOK 1 687 million for the full year 2012.

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. Over time, the accounting effects will thus be reversed, and the balance at year-end 2013 was NOK 1 250 million.

Contact persons, Investor Relations:
Per Sagbakken: +47 23268400
Jan Erik Gjerland: +47 23268408