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Sound Norwegian economy ensures healthy profits for DNB

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DNB recorded profits of NOK 20 617 million in 2014, an increase of NOK 3 105 million from 2013. The increase largely reflected a positive development in the bank’s basis swaps. Increased net interest income, reduced costs and low impairment losses on loans also contributed to the rise in profits.

“Our strong profit performance enables us to continue to build up equity and further improve the bank’s financial strength. It also demonstrates that there is a continued positive development for Norwegian companies and private individuals, who enjoy a strong financial position. This is good news for our customers, shareholders, employees and not least society at large,” says Rune Bjerke, group chief executive.

Sweden: High level of activity ensures profits on a par with 2013
Pre-tax operating profits for DNB Sweden in 2014 were SEK 918 million, compared with SEK 858 million in 2013. Profits before impairment losses were SEK 1 190 million in 2014, up from SEK 1 134 million in 2013.

Operating expenses totaled SEK 1 365 million in 2014, compared with SEK 1 268 million in 2013. Part of the cost increase was directly related to investments made by DNB Markets in Sweden, though non-recurring costs also had an effect.

“There was a continued high level of activity in all business areas, which ensured a stable level of profits. There is a very positive trend in the Markets business area, with a large influx of new customers and rising volumes. DNB Finans generated even higher profits in 2014 than in the previous year,” says Peter H. Carlsson, head of DNB Sweden.

DNB Sweden aspires to evolve from a pure corporate bank to becoming a strategic adviser for an increasing number of corporate customers.

“Market conditions remain favorable, and an increasing number of both existing and new customers show interest in different financing solutions. Based on this trend and a continued high level of activity in all business areas, we look forward to the rest of 2015 and to becoming a strategic partner for an increasing number of customers,” concludes Carlsson.

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

  • Pre-tax operating profits before impairment were NOK 7.0 billion (6.8)
  • Profit for the period was NOK 5.0 billion (5.7)
  • Earnings per share were NOK 3.05 (3.50)
  • Return on equity was 12.6 per cent (16.3)
  • The ordinary cost/income ratio was 42.2 per cent (40.4)

Comparable figures for the fourth quarter of 2013 in parentheses.

Key figures for the DNB Group, full year 2014:

  • Pre-tax operating profits before impairment were NOK 28.7 billion (24.7)
  • Profit for the year was NOK 20.6 billion (17.5)
  • The common equity Tier 1 capital ratio was 12.7 per cent (11.8)
  • Earnings per share were NOK 12.67 (10.75)
  • Return on equity was 13.8 per cent (13.1)
  • The ordinary cost/income ratio was 41.9 per cent (45.7)
  • The proposed dividend is NOK 3.80 per share (2.70)

Comparable figures for 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
Sture Holm, CFO DNB Sweden, +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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