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DNB continues to build up capital after a strong quarterly performance

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DNB recorded profits of NOK 5 686 million in the third quarter of 2014, up NOK 805 million from the third quarter of 2013. Very low impairment losses and rising lending volumes ensure that DNB is on schedule in building up own funds in spite of tough competition in the banking market.

“We are very pleased with these figures. Financially, our first priority is to meet the capital requirements imposed by the authorities. Based on our current earnings, we continue to build up capital and see that we will reach the targets by the set deadline. Since 2008, we have increased our equity by more than NOK 70 billion, and we will continue to build up additional capital,” says Rune Bjerke, group chief executive.

DNB’s common equity Tier 1 capital ratio was 12.6 per cent at end-September 2014, including 50 per cent of interim profits. If DNB had been able to report based on the Swedish authorities’ regulations, the Group could have reported a common equity Tier 1 capital ratio of as much as 18.0 per cent.

Sweden: Healthy profits and a high return on invested capital
Pre-tax operating profits for DNB Sweden in the third quarter of 2014 were SEK 748 million, compared with SEK 513 million for the same period last year. Profits before impairment losses were SEK 832 million for the period, up from SEK 742 million in the third quarter of 2013.

Operating expenses in the third quarter of 2014, adjusted for companies divested in 2013, were SEK 876 million, an increase from SEK 845 million for the same period last year. The cost increase is due to investments made by DNB in the Markets segment in Sweden.

Growth in Markets Sweden, FICC and Equity Research and Sales, is progressing according to plan, and financial performance in 2014 is stronger than in 2013. The newly formed Investment Banking Division Sweden (IBD) also continues to grow. DNB Sweden has witnessed a strong positive contribution from all product areas: Bonds, Loans and Advisory. These developments indicate that DNB Sweden is on the right course to achieving a record annual performance in 2014.

"With respect to Markets Sweden, it is very promising that we have been able to attract highly competent employees from our competitors at such an early stage in the expansion process. This is crucial for our long-term growth," says Peter H. Carlsson, Head of DNB Sweden.

Key figures for the DNB Group, third quarter of 2014 (NOK)

  • Pre-tax operating profit before impairment was NOK 7.6 billion (6.8)
  • Profit for the period was NOK 5.7 billion (4.9)
  • Earnings per share were NOK 3.49 (3.00)
  • Return on equity was 15 per cent (14.4)
  • The ordinary cost/income ratio was 40.4 per cent (43.4)

Comparable figures for the third quarter of 2013 in parentheses.

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

Contact person:
Thomas Midteide, group executive vice president, Corporate Communications, tel.: + 47 962 32 017
Peter H. Carlsson, Head of DNB Sweden, 0+ 46 (0)8-473 41 00

The quarterly report, presentation and Fact Book can be downloaded from www.dnb.no/investor-relations.

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