DNB Bank ASA

Capital/Financing Update • Dec 13, 2021

DNB Bank ASA - Supervisory Review and Evaluation Process (SREP)

DNB Bank ASA - Supervisory Review and Evaluation Process (SREP)

The Financial Supervisory Authority of Norway ("the FSA") regularly (and usually

each year) carries out a Supervisory Review and Evaluation Process ("SREP"),

where they evaluate DNB's risks and capital needs. The SREP includes a decision

regarding the Pillar 2 Requirement and the Pillar 2 Guidance for the following

year. DNB Bank ASA has now received this year's decision from the FSA, which

will apply from 31 December 2021.

The new Pillar 2 Requirement for DNB Bank ASA and the DNB Bank Group is 1.9 % of

the total risk exposure amount (TREA). The requirement must be met with common

equity tier 1 (CET1) capital and comes in addition to the minimum requirements

and combined buffer requirements under pillar 1. The current Pillar 2

Requirement is 1.8 % of TREA, but the requirement must be met with CET1 capital

of no less than 15.3 billion NOK for DNB Bank ASA and 19.4 billion NOK for the

DNB Bank Group, which at the end of Q3 2021 amounted to 1.8 and 2.0 % of TREA.

Further, the FSA expects DNB Bank ASA and the DNB Bank Group to maintain a

Pillar 2 Guidance, i.e. a margin in the form of CET1 capital, that exceeds the

total capital requirement with 1.5 % of TREA. The current expectation is a

margin in the form of CET1 capital that exceeds the total CET1 capital

requirement with 1.0 % of TREA.

Compared to the requirements at the end of Q3 2021, the overall CET1 ratio

requirement for DNB Bank ASA will increase from 14.7 to 14.8 %, while the

requirement for the DNB Bank Group will be reduced from 14.9 to 14.8 %.

Including the FSA's expectations regarding Pillar 2 Guidance, the ratios for DNB

Bank ASA and the DNB Bank Group will, respectively, increase from 15.7 to 16.3

%, and from 15.9 to 16.3%.

For capital planning purposes, DNB's ambition is a CET1 capital ratio above 17.1

%. This is based on the current Pillar 2 Requirement, current Pillar 2 Guidance

and a full countercyclical capital buffer rate of 2.5 %. As a result of the

FSA's Pillar 2 Guidance increasing from 1.0 % to 1.5 %, the ambition for the

CET1 capital ratio increases correspondingly, i.e. to 17.6 %.

At the end of Q3 2021, DNB Bank ASA and the DNB Bank Group had CET1 ratios of

21.9 % and 19.2 %.

For further information, please contact:

Investor contact: Rune Helland, head of Investor Relations, tel. (+47) 23 26 84

00 / (+47) 977 13 250

Media contact: Thomas Midteide, Group Executive Vice President, Communication &

Sustainability, tel. (+47) 962 32 017

This information is subject to the disclosure requirements according to Section

5-12 of the Norwegian Securities Trading Act.