DNB Sweden shows strong performance in first half of 2015

Pre-tax operating profits for DNB Sweden in the second quarter of 2015 were SEK 535 million, compared with SEK 498 million in the same period last year. Profits before impairment losses were SEK 694 million for the same period, up from SEK 597 million in the second quarter of 2014.

Operating expenses totaled SEK 715 million in the second quarter of 2015, compared with SEK 641 million in the same period last year. Although there was a rise in operating expenses, DNB Sweden has cost control and delivered a cost/Income ratio of 50.7 per cent, down from 51.8 per cent in the same period last year.

All business areas contributed to the good results. DNB Finans achieved strong second-quarter profits, and we see a clearly positive trend in the figures for Large Corporates and International (LCI), with a strong contribution from product suppliers.

“We have been focused on improving already good customer relationships through cooperation between LCI, DNB Markets and DNB Finans. We can see that our customer teams across the organisation, both within LCI and with members from the product areas, strengthen our role as strategic advisers. I am very pleased with this and with the first six months of 2015,” says Peter H. Carlsson, head of DNB Sweden.

DNB has high recognition in the market today, but is continuing its work to clarify its offering and build long-term customer relationships.

“Our ambition is to continue to clarify what LCI can offer in the Swedish market, which is also in line with the other business areas' ambitions, such as DNB Markets and Autolease. Thus, we aim to achieve further progress in Sweden. By focusing on customer needs in this process, we will become even better positioned for the future,” concludes Carlsson.

Strong quarter for DNB Group 

DNB recorded profits of NOK 5 062 million in the second quarter of 2015, up NOK 508 million from 2014. Higher volumes, wider deposit spreads and an increase in net commissions and fees contributed to the sound performance.

“We are very satisfied with the Group’s second quarter results. We have a robust portfolio and low impairment losses on loans, and doubtful loans and guarantees show a downward trend. In addition, we are succeeding in increasing non-lending income, for example from real estate brokerage and interest rate and currency hedging. We observe that our customers appreciate that DNB can provide a total range of financial services,” says Rune Bjerke, group chief executive.

Key figures for the DNB Group, second quarter of 2015 (NOK)

• Pre-tax operating profits before impairment were NOK 7.4 billion (6.7)

• Profit for the period was NOK 5.1 billion (4.6)

• Earnings per share were NOK 3.04 (2.80)

• Return on equity was 12.1 per cent (12.4)

• The ordinary cost/income ratio was 42.8 per cent (43.8)

• The common equity Tier 1 capital ratio (transitional rules) was 13.0 per cent (12.1)

  
  Comparable figures for the second quarter of 2014 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, + 46 (0)8-473 41 00

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