Strategic assessment of credit card operations
DNB has decided to initiate a process to assess various strategic alternatives related to the bank’s credit cards that are provided through external channels. This affects around one-third of the bank’s total credit card portfolio. Credit cards under the DNB brand are not encompassed by this process.
The operations under review are organised in a separate unit in DNB Finans called Cards External Channels which distributes credit cards under the Cresco brand, along with other credit and loyalty cards. In addition to pure credit card-based products, the unit offers consumer loans and combined deposit and credit cards. This unit has assets of about NOK 6 billion. The products are distributed through separate distribution channels (such as www.cresco.no) and through third-party distributors and partners, mainly retailers and organisations.
Credit cards operated under the DNB brand represent around two-thirds of the bank’s total credit card portfolio. These operations are not encompassed by the above strategic assessment.
DNB will now explore all possibilities and seek to find the best long-term solution for both DNB and these operations. The assessment could result in the sale of all or parts of the operations, though it is also possible that the operations will be retained in DNB. A potential sale will have a positive effect on DNB’s Tier 1 capital.
DNB Markets serves as financial advisors.
Rune Helland, head of Investor Relations, tel: +47 977 13 250
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
This information is subject to the disclosure requirements according to Section 5-12 of the Norwegian Securities Trading Act.