Competitive return on equity in a period with extensive capital build-up

(London, 21 Nov. 2013) DNB has set itself ambitious, but realistic financial targets towards 2016. At the Capital Markets Day in London today, DNB is presenting its plan for how the bank can reach its target of a return on equity above 12 per cent while adapting to the regulatory requirements.

“Due to the new banking reality and regulatory environment, every manager and employee in DNB is working to optimise our use of capital and increase our profitability. We raise our expected common equity Tier 1 capital ratio from 12–12.5 per cent to 13.5–14 per cent due to signals we have received from the Norwegian regulatory authorities. DNB is on track to meet these new capital requirements, and is already among the best capitalised banks globally. Although there is still some regulatory uncertainty, we have several measures to ensure organic capital growth,” says Rune Bjerke, CEO of the DNB Group.

At the Capital Markets Day in London today, DNB’s CEO can report to the market that the bank is on track to meet previously announced cost initiatives and sees even further potential for cost savings. He states that DNB is among the most cost-efficient banks in the Nordic region, and aims to maintain this position. DNB is also raising the bar when it comes to increasing sales of capital-light products. According to the CEO, DNB has an untapped potential in covering a broader range of customer needs across the different customer segments, from debt capital market activity in the large corporate segment to non-life insurance in the retail market.

During the capital build-up phase till 2016, DNB will do its utmost to keep a dividend payout ratio above 25 per cent, while maintaining its long-term policy of 50 per cent payout.

 “In a rapidly changing banking reality, it is all about flexibility and adaptability. DNB is well positioned to meet customer demands and comply with regulatory requirements in a time when the rate of change is extremely high,” says Rune Bjerke.

For more information:
Per Sagbakken, Head of Investor Relations, mobile +47 90 66 11 59
Thomas Midteide, Group EVP Corporate Communications, mobile +47 962 32 017

See the presentation from the CMD on webcast here from 9.00 am GMT.

The presentations from the event are attached or available on www.dnb.no/ir

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