Strong first quarter performance in DNB Sweden
Pre-tax operating profits for DNB Sweden in the first quarter of 2016 were SEK 351 million, compared with SEK 247 million in the first quarter of 2015. Profits before impairment losses were SEK 362 million, up from SEK 347 million in the same period of 2015. Operating expenses totalled SEK 346 million in the first quarter of 2016, compared with SEK 353 million in 2015. The cost/income ratio was 48.8 per cent, down from 50.5 per cent in the same period of 2015.
Performance was better than last year, including lower loan losses. DNB Finans continued to generate healthy profits and made a strong contribution to group profits. Corporate Banking also delivered according to plan despite a tough market climate during the period. DNB Markets had a challenging first quarter, though the level of activity remained high.
"Overall I’m pleased with our returns and cost level this quarter, especially with DNB Finans’ strong performance each quarter. But I’m also very satisfied with our Corporate Banking unit. In a tough climate they continue to improve already good customer relations and contribute to group profits. Even though DNB Markets is operating in challenging market conditions, the investment in equity research and equity trading, with increased focus on the Swedish market, over the last couple of years is according to plan. I feel confident in that this investment will continue to contribute to a strong performance in 2016. Many new transactions, such as green bonds and preferred shares, were launched in the first quarter" says Peter H. Carlsson, head of DNB Sweden.
DNB Group: DNB’s capital ratio above 15 per cent
DNB recorded profits of NOK 5 222 million in the first quarter of 2016, a reduction of NOK 1 315 million from the first quarter of 2015. Adjusted for the effect of basis swaps, the decline in profits was NOK 746 million, reflecting restructuring costs in connection with reorganisation processes and the closing of branch offices, as well as higher impairment losses. DNB’s common equity Tier 1 capital ratio increased from 12.7 per cent in the first quarter of 2015 to 15.2 per cent in 2016.
"This is a very strong financial performance which we are very satisfied with. For the first time, our common equity Tier 1 capital ratio has passed the 15 per cent mark. Thus, we have reached a milestone on our way to making DNB one of the world’s best capitalised banks," says Rune Bjerke, group chief executive.
Key figures for the DNB Group, first quarter of 2016 (NOK)
- Pre-tax operating profits were NOK 6.8 billion (8.7)
- Profit for the period was NOK 5.2 billion (6.5)
- Earnings per share were NOK 3.14 (4.01)
- Return on equity was 11.2 per cent (16.1)
- The cost/income ratio was 41.8 per cent (37.0)
- The common equity Tier 1 capital ratio (transitional rules) was 15.2 per cent (12.7)
Comparable figures for first quarter 2015 in parentheses.
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
Peter H. Carlsson, head of DNB Sweden, tel. + 46 (0)8-473 41 00
The quarterly report, presentation and Fact Book can be downloaded from www.dnb.no/investor-relations.