DNB Group: Basis swap impact in third quarter

10/4/2012 6:00 AM EST

In the third quarter of 2012, the DNB Group will record approximately
NOK 570 million as an unrealised loss arising from basis swaps connected
to funding. In the third quarter of 2011, a positive effect of NOK 1 398
million was recognised. There was a corresponding negative effect of NOK
2 432 million in the first quarter of 2012 and a positive effect of NOK
1 078 million in the second quarter of 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. Mark-to-market adjustments of basis swaps will vary
significantly depending of developments in financial markets, and this
will lead to volatility in the P/L from quarter to quarter. These swaps
are hedging instruments, and over the lifetime of the derivatives the
mark-to-market adjustments will have zero effect.

Investor contacts:
Jan Erik Gjerland, Investor Relations: +47 46930410
Trond Sannes Marthinsen, Investor Relations: +47 23268403 or +47
99034820

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