Robust Norwegian economy in spite of falling oil prices
DNB recorded profits of NOK 6 533 million in the first quarter of 2015, up NOK 1 054 million from the first quarter of 2014. The increase largely reflected exchange rate movements and a positive development in the bank’s basis swaps. Low impairment losses on loans also contributed to the strong performance.
“As we entered 2015, there were many predictions of a sharp drop in Norwegian economic activity. We have our fingers on the pulse of every third Norwegian company, and it is clear that the economy is still in good health, even though these are difficult times for companies in the oil sector,” says Rune Bjerke, group chief executive.
SWEDEN: Strong performance in the first quarter of 2015
Pre-tax operating profits for DNB Sweden in the first quarter of 2015 were SEK 247 million, compared with SEK 201 million in the same period last year. Profits before impairment losses were SEK 347 million in the first quarter of 2015, up from SEK 297 million in the first quarter of 2014.
Operating expenses totalled SEK 353 million in 2015, compared with SEK 308 million in the same period last year. Part of the cost increase was related to investments made by DNB Markets in Sweden, just as in the previous quarter.
“All business areas are doing better than in the same period last year due to high levels of activity. Revenues increased across the board, and costs did not increase at the same rate as revenues. This gave us a lower cost/income ratio compared with the first quarter of 2014,” says Peter H. Carlsson, head of DNB Sweden.
There is still a very positive trend in the Markets business area. At the beginning of 2015, DNB was the first Nordic commercial bank to issue a green bond to support financing of renewable energy projects. As a significant market participant within the financing of energy and the renewable sector internationally, DNB is well positioned for the strong growth that is anticipated within renewable energy, especially solar, wind and hydroelectric power. DNB Markets acted as the arranger of the green bond issue.
“We believe that the green bond market has a bright future, and DNB would like to be part of this. It gives us access to new and different sources of capital than our ordinary bond issues, which is very interesting and exciting. We look forward to this development,” concludes Carlsson.
Key figures for the DNB Group, first quarter of 2015 (NOK)
• Pre-tax operating profits before impairment were NOK 9.3 billion (7.4)
• Profit for the period was NOK 6.5 billion (5.5)
• Earnings per share were NOK 4.01 (3.37)
• Return on equity was 16.1 per cent (15.4)
• The ordinary cost/income ratio was 37.0 per cent (41.3)
Comparable figures for 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.