DnB NOR - financial performance and future prospects

Based on recent speculation relating to potential losses in DnB NOR's loan portfolio, DnB NOR would like to make the following clarification: As previously announced, the Group will present results for the fourth quarter and full year 2008 on 12 February 2009. DnB NOR has previously indicated that pre-tax operating profits before write-downs will total approximately NOK 15 billion for 2008. There is reason to believe that profits will be well above this. Income for the fourth quarter has increased considerably, costs are under control, while write-downs on loans have risen. The most pronounced increase in write-downs is taking place in DnB NORD's Danish property portfolio and in parts of the Norwegian SME portfolio. Losses are expected to total approximately NOK 2-2.5 billion in the fourth quarter, which represents 0.70-0.80 per cent on an annual basis. In spite of the write-downs, profits after write-downs and taxes are expected to be just over NOK 2 billion in the fourth quarter. There is some uncertainty associated with the future level of loan losses. DnB NOR's anticipated underlying earnings are sound and are expected, in spite of the high level of losses, to generate net profits and thus an increase in equity. DnB NOR is thus keeping to its plan to strengthen the core capital ratio without raising new equity. Contact persons: Bjørn Erik Næss, CFO Trond Bentestuen, group executive vice president, Corporate Communications Per Sagbakken, executive vice president, IR/Long-term Funding This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.