DNB Bank ASA

Quarterly Report • Jul 11, 2019

Second quarter 2019 (Unaudited)

Contact information

Group management Rune Bjerke, CEO Kjerstin Braathen, CFO

For further information, please contact

Rune Helland, head of Investor Relations	rune.helland@dnb.no	+47 2326 8400
Jan Ole Huseby, Investor Relations	jan.ole.huseby@dnb.no	+47 2326 8408
Ida Eilertsen Nygård, Investor Relations	ida.eilertsen.nygard@dnb.no	+47 9861 1952
Thor Tellefsen, Long Term Funding	thor.tellefsen@dnb.no	+47 2326 8404
Mathias Bruvik, head of Group Financial Reporting	mathias.bruvik@dnb.no	+47 9175 8774

Address

DNB ASA, P.O.Box 1600 Sentrum, N-0021 Oslo Visiting address: Dronning Eufemias gate 30, Bjørvika, 0191 Oslo

Telephone number

+47 915 04800

Information on the Internet

DNB's Investor Relations page: ir.dnb.no

Financial calendar

2019

24 October	3Q19
20 November	Capital markets day

2020

6 February	Q4 2019
5 March	Annual report 2019
28 April	Annual general meeting
29 April	Ex-dividend date
30 April	Q1 2020
as of 8 May	Distribution of dividends
13 July	Q2 2020
22 October	Q3 2020

Statements regarding DNB's relative market positions are, unless otherwise specified, based on internal DNB analyses.

Major changes from 1Q19

No major changes from 1Q19.

Contents chapter 1 - DNB Group

Financial results and key figures

• 1.1.1 Income statement condensed
• 1.1.2 Income statement quarterly figures
• 1.1.3 Income statement five years
• 1.1.4 Comprehensive income statement quarterly figures
• 1.1.5 Comprehensive income statement five years
• 1.1.6 Balance sheet quarterly figures
• 1.1.7 Balance sheet five years
• 1.1.8 Key figures quarterly figures
• 1.1.9 Key figures five years
• 1.1.10 Key figures definitions

Net interest income

• 1.2.1 Net interest income split by segments
• 1.2.2 Average volumes split by segments
• 1.2.3 Interest rate spreads split by segments
• 1.2.4 Quarterly development in average interest rate spreads
• 1.2.5 Net interest income
• 1.2.6 Changes in net interest income

Net other operating income

• 1.3.1 Net other operating income
• 1.3.2 Net gains on financial instruments at fair value

Operating expenses

• 1.4.1 Operating expenses
• 1.4.2 Number of employees full-time positions
• 1.4.3 IT expenses

Loans and financial commitments

• 1.5.1 Loans and financial commitments to customers by industry segment
• 1.5.2 Development in maximum exposure of loans and financial commitments to customers
• 1.5.3 Development in accumulated impairment of loans and financial commitments to customers
• 1.5.4 Stage 3 development in net loans and financial commitments to customers
• 1.5.5 Impairment of financial instruments

Exposure at default (EAD) and risk classification

• 1.6.1 DNB Group
  • Exposure at default by industry segment
  • Risk classification of portfolio
• 1.6.2 Customer segments
  • Exposure at default by industry segment
  • Risk classification of portfolio
• 1.6.3 Breakdown of commercial real estate
  • Exposure at default by segment
  • Risk classification of portfolio
    • Exposure at default by geographic distribution
• 1.6.4 Breakdown of shipping
  • Exposure at default by segment
    • Risk classification of portfolio
    • Risk classification of portfolio breakdown into sub-segments
• 1.6.5 Breakdown of oil, gas and offshore
  • Exposure at default by segment
    • Risk classification of portfolio
  • Risk classification of portfolio breakdown into sub-segments
• 1.6.6 DNB's risk classification

Contents chapter 1 - DNB Group (continued)

Liquidity, funding and shareholder structure

• 1.7.1 Development in volumes deposits from customers
• 1.7.2 Deposits per customer group
• 1.7.3 Funding
• 1.7.4 Redemption profile (table and graph)
• 1.7.5 Asset encumbrance DNB Bank Group
• 1.7.6 Liquid assets
• 1.7.7 Liquidity Coverage Ratio
• 1.7.8 Rating
• 1.7.9 Major shareholders
• 1.7.10 Ownership according to nationality (graph)
• 1.7.11 Share buy-back programmes

Capital adequacy

• 1.8.1 Primary capital DNB Group
• 1.8.2 Leverage ratio
• 1.8.3 Specification of capital requirements
• 1.8.4 Specification of capital requirements for credit risk
• 1.8.5 Primary capital including DNB Bank ASA and DNB Bank Group
• 1.8.6 Cross-sectoral financial group

Contents chapter 2 - Segmental reporting

Financial performance

• 2.1.1 Extracts from income statement
• 2.1.2 Main balance sheet items and key figures
• 2.1.3 Key figures Norwegian and international units

DNB's market shares in Norway

• 2.2.1 Retail market and Corporate market (graphs)
• 2.2.2 Development in market shares, loans and deposits
• 2.2.3 DNB Livsforsikring market shares
• 2.2.4 DNB Asset Management market shares retail market

Personal customers (PC)

• 2.3.1 Financial performance
• 2.3.2 Risk classification of portfolio
• 2.3.3 Exposure at default by industry segment
• 2.3.4 Distribution of loan to value
• 2.3.5 DNB Boligkreditt Average mortgage lending volumes and spreads
• 2.3.6 DNB Eiendom Residential real estate broking in Norway

Small and medium-sized enterprises (SME)

• 2.4.1 Financial performance
• 2.4.2 Risk classification of portfolio
• 2.4.3 Exposure at default by industry segment

Large corporates and international customers (LCI)

• 2.5.1 Financial performance
• 2.5.2 Risk classification of portfolio
• 2.5.3 Exposure at default by industry segment

Other operations

2.6.1 Financial performance

Main subsidiaries and product units

Total DNB Markets activity:

• 2.7.1 Financial performance
• 2.7.2 Break down of revenues
• 2.7.3 Value-at-Risk

DNB Livsforsikring Group:

• 2.7.4 Financial performance
• 2.7.5 Reconciliation of the DNB Livsforsikring Group's and the DNB Group's financial statements
• 2.7.6 Value-adjusted return on assets
• 2.7.7 Financial exposure per sub-portfolio
• 2.7.8 Financial exposure common portfolio
• 2.7.9 Balance sheets
• 2.7.10 Solvency II margin

DNB Asset Management:

2.7.11 Financial performance

Contents chapter 3 - The Norwegian economy

• 3.1.1 Basic information about Norway
• 3.1.2 Government net financial liabilities (graph)
• 3.1.3 GDP growth mainland Norway and unemployment rate (graph)
• 3.1.4 Contribution to volume growth in GDP, mainland Norway
• 3.1.5 Composition of GDP (graph)
• 3.1.6 Composition of exports (graph)
• 3.1.7 Key macro-economic indicators, Norway
• 3.1.8 Credit market, 12 month percentage growth (graph)
• 3.1.9 Deposit market, 12 month percentage growth (graph)
• 3.1.10 House prices (graph)
• 3.1.11 Household debt burden and interest burden (graph)

Appendix

Disclosure for main features of regulatory capital instruments

Chapter 1 - DNB Group

Financial results and key figures

Net interest income

Net other operating income

Operating expenses

Loans and financial commitments

Exposure at default and risk classification

Liquidity, funding and shareholder structure

Capital adequacy

1.1.1 Income statement - condensed 1)

2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
9 581	9 289	9 611	9 152	9 052	9 007	8 863	9 007	9 031
2 538	2 219	2 660	2 082	2 453	2 116	2 064	2 150	2 161
1 351	751	430	616	134	162	1 693	1 065	982
285	356	387	215	162	205	266	335	454
		189	127	153	154	164	176	189
298	446	226	303	542	230	228	197	196
4 472	3 772	3 891	3 343	3 445	2 867	4 415	3 922	3 982
14 053	13 062	13 502	12 495	12 497	11 874	13 278	12 929	13 014
							(5 321)	(5 518)
							(199)	(97)
8 158	7 575	7 322	7 157	7 113	6 719	7 260	7 409	7 399
	1 739	49		465	18		750	17
				54	330		(867)	(597)
7 705	8 998	7 136	7 144	7 632	7 066	6 823	7 292	6 819
							(1 677)	(1 568)
							33	(14)
6 134	7 582	6 872	5 673	6 084	5 653	6 374	5 648	5 237
5 888	7 339	6 601	5 440	5 850	5 432	6 132	5 430	5 000
		(5 674) (221) (3) (450) (1 541) (30)	(5 465) (22) (316) (1 365) (51)	(5 716) (464) (235) (124) (141)	(5 313) (26) (3) (11) (1 429) (42)	(5 330) (54) (1 526) (21)	(5 131) (24) (1 413)	(5 346) (672) (35) (402) (446) (3)

1) See table 1.1.2 "Income statement" for more details.

2) See table 1.3.2 "Net gains on financial instruments at fair value" for specification.

3) See table 1.3.1 "Net other operating income" for specification.

1.1.2 Income statement - quarterly figures

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Interest income, amortised cost	14 631	14 231	14 013	13 225	13 028	12 355	11 687	11 925	12 012
Other interest income	1 299	1 330	1 229	1 278	1 309	1 224	1 595	1 725	1 697
Interest expenses, amortised cost	(7 027)	(7 187)	(6 413)	(6 054)	(5 721)	(5 463)	(3 902)	(3 870)	(3 809)
Other interest expenses	678	915	781	703	436	892	(518)	(774)	(868)
Net interest income	9 581	9 289	9 611	9 152	9 052	9 007	8 863	9 007	9 031
Commission and fee income etc.	3 449	3 107	3 600	3 034	3 553	3 049	3 255	3 054	3 026
Commission and fee expenses etc.	(912)	(887)	(940)	(952)	(1 100)	(932)	(1 191)	(904)	(866)
Net gains on financial instruments at fair value 1)	1 351	751	430	616	134	162	1 693	1 065	982
Net financial result, life insurance	183	256	361	47	103	63	168	147	372
Net risk result, life insurance	103	100	26	167	60	142	98	187	83
Net insurance result, non-life insurance			189	127	153	154	164	176	189
Profit from investments accounted for by the equity method	85	178	(10)	94	267	(37)	(74)	(17)	23
Net gains on investment properties	(11)	5	(6)	17	9	42	146	(3)	(14)
Other income	225	263	243	193	266	225	155	217	187
Net other operating income	4 472	3 772	3 891	3 343	3 445	2 867	4 415	3 922	3 982
Total income	14 053	13 062	13 502	12 495	12 497	11 874	13 278	12 929	13 014
Salaries and other personnel expenses	(3 114)	(3 009)	(3 048)	(2 942)	(2 975)	(2 900)	(3 023)	(3 056)	(3 049)
Other expenses	(2 106)	(1 771)	(2 189)	(1 901)	(1 931)	(1 768)	(1 977)	(1 938)	(2 088)
Depreciation and impairment of fixed and intangible assets	(674)	(706)	(942)	(495)	(478)	(488)	(1 018)	(525)	(478)
Total operating expenses	(5 895)	(5 487)	(6 179)	(5 338)	(5 384)	(5 155)	(6 018)	(5 520)	(5 615)
Pre-tax operating profit before impairment	8 158	7 575	7 322	7 157	7 113	6 719	7 260	7 409	7 399
Net gains on fixed and intangible assets	(3)	1 739	49	(3)	465	18	(35)	750	17
Impairment of financial instruments	(450)	(316)	(235)	(11)	54	330	(402)	(867)	(597)
Pre-tax operating profit	7 705	8 998	7 136	7 144	7 632	7 066	6 823	7 292	6 819
Tax expense	(1 541)	(1 365)	(124)	(1 429)	(1 526)	(1 413)	(446)	(1 677)	(1 568)
Profit from operations held for sale, after taxes	(30)	(51)	(141)	(42)	(21)		(3)	33	(14)
Profit for the period	6 134	7 582	6 872	5 673	6 084	5 653	6 374	5 648	5 237
Portion attributable to shareholders	5 888	7 339	6 601	5 440	5 850	5 432	6 132	5 430	5 000
Portion attributable to additional Tier 1 capital holders	246	243	270	233	234	221	243	218	238
Profit for the period	6 134	7 582	6 872	5 673	6 084	5 653	6 374	5 648	5 237
Earnings/diluted earnings per share (NOK)	3.71	4.61	4.14	3.41	3.65	3.36	3.79	3.34	3.07
Earnings per share excluding operations held for sale (NOK)	3.73	4.64	4.23	3.44	3.66	3.36	3.79	3.32	3.08
Average exchange rates in the period:

EUR/NOK	9.72	9.75	9.64	9.58	9.55	9.64	9.61	9.34	9.37
USD/NOK	8.64	8.59	8.45	8.24	8.02	7.84	8.17	7.97	8.51

1) See table 1.3.2 "Net gains on financial instruments at fair value" for specification.

1.1.3 Income statement - five years

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Interest income, amortised cost	28 862	52 621	47 318	46 645	50 301	52 654
Other interest income	2 629	5 039	6 547	5 779	7 232	8 792
Interest expenses, amortised cost					(14 213) (23 650) (15 472) (16 561) (20 399) (24 552)
Other interest expenses	1 593	2 812	(2 970)	(1 753)	(1 775)	(4 407)
Net interest income	18 870	36 822	35 422	34 110	35 358	32 487
Commission and fee income etc.	6 556	13 235	12 279	11 452	11 963	11 565
Commission and fee expenses etc.	(1 799)	(3 925)	(3 831)	(3 172)	(3 101)	(2 597)
Net gains on financial instruments at fair value 1)	2 103	1 342	4 548	6 513	8 683	5 317
Net financial result, life insurance	438	574	804	(72)	(1 251)	(79)
Net risk result, life insurance	203	395	491	736	861	688
Net insurance result, non-life insurance	0	622	683	648	534	491
Profit from investments accounted for by the equity method	262	314	(112)	1 189	(72)	226
Net gains on investment properties	(7)	62	143	(35)	269	82
Other income	488	926	713	795	762	1 182
Net other operating income	8 244	13 546	15 718	18 053	18 648	16 877
Total income	27 115	50 368	51 140	52 163	54 006	49 363
Salaries and other personnel expenses				(6 124) (11 864) (12 184) (11 904)		(9 822) (10 872)
Other expenses	(3 877)	(7 789)	(7 878)	(7 251)	(7 790)	(7 645)
Depreciation and impairment of fixed and intangible assets	(1 380)	(2 404)	(2 531)	(2 177)	(2 298)	(2 158)
Total operating expenses					(11 381) (22 057) (22 593) (21 333) (19 910) (20 675)
Pre-tax operating profit before impairment	15 733	28 311	28 547	30 830	34 096	28 689
Net gains on fixed and intangible assets	1 737	529	738	(19)	45	52
Impairment of financial instruments	(766)	139	(2 428)	(7 424)	(2 270)	(1 639)
Pre-tax operating profit	16 704	28 979	26 858	23 387	31 871	27 102
Tax expense	(2 906)	(4 493)	(5 054)	(4 140)	(7 048)	(6 463)
Profit from operations held for sale, after taxes	(81)	(204)	(1)	4	(51)	(22)
Profit for the period	13 716	24 282	21 803	19 251	24 772	20 617
Portion attributable to shareholders	13 227	23 323	20 865	18 656	24 398	20 617
Portion attributable to additional Tier 1 capital holders	489	959	938	595	374
Profit for the period	13 716	24 282	21 803	19 251	24 772	20 617
Earnings/diluted earnings per share (NOK)	8.33	14.56	12.84	11.46	14.98	12.67
Earnings per share excluding operations held for sale (NOK)	8.38	14.69	12.84	11.46	15.01	12.68
Average exchange rates in the period:

USD/NOK	8.61	8.14	8.27	8.40	8.07	6.30
EUR/NOK	9.73	9.60	9.33	9.29	8.95	8.36

1) See table 1.3.2 "Net gains on financial instruments at fair value" for specification.

1.1.4 Comprehensive income statement - quarterly figures

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Profit for the period	6 134	7 582	6 872	5 673	6 084	5 653	6 374	5 648	5 237
Actuarial gains and losses			(117)				(93)
Property revaluation	243	1	37	0	(22)	(36)	5	(35)	(28)
Items allocated to customers (life insurance)	(243)	(1)	(37)	(0)	22	36	(5)	35	28
Financial liabilities designated at fair value through profit or loss, changes in credit risk	53	(147)	241	78	29	(128)
Tax	(13)	37	(23)	(20)	(7)	32	(10)
Items that will not be reclassified to the income statement	40	(110)	102	59	22	(96)	(104)	0	0
Currency translation of foreign operations	(784)	(1 151)	4 239	(343)	148	(2 735)	2 739	(2 975)	895
Currency translation reserve reclassified to the income statement				(2)			(1 306)
Hedging of net investments	780	915	(3 469)	307	(284)	2 386	(2 187)	2 525	(688)
Hedging reserve reclassified to the income statement				1			1 224
Financial assets at fair value through OCI	(23)	5
Investments according to the equity method							41	20	12
Tax	(189)	(230)	867	(77)	71	(596)	547	(631)	172
Tax reclassified to the income statement							(338)
Items that may subsequently be reclassified to the income statement	(216)	(461)	1 637	(114)	(65)	(946)	719	(1 062)	391
Other comprehensive income for the period	(177)	(572)	1 739	(55)	(43)	(1 042)	615	(1 062)	391
Comprehensive income for the period	5 958	7 011	8 611	5 618	6 041	4 611	6 989	4 586	5 629

1.1.5 Comprehensive income statement - five years

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Profit for the period	13 716	24 282	21 803	19 251	24 772	20 617
Actuarial gains and losses	0	(117)	(93)	(237)	932	(2 902)
Property revaluation	243	(21)	(35)	47	(204)	191
Items allocated to customers (life insurance)	(243)	21	35	(47)	204	(191)
Financial liabilities designated at fair value through profit or loss, changes in credit risk	(94)	221
Tax	24	(18)	(10)	53	(259)	802
Items that will not be reclassified to the income statement	(71)	86	(104)	(183)	673	(2 101)
Currency translation of foreign operations	(1 935)	1 309	1 190	(6 476)	9 612	7 149
Currency translation reserve reclassified to the income statement		(2)	(1 306)	(43)
Hedging of net investments	1 695	(1 060)	(687)	5 795	(8 497)	(6 200)
Hedging reserve reclassified to the income statement		1	1 224
Financial assets at fair value through OCI	(18)
Investments according to the equity method			160	(25)	889
Investments according to the equity method reclassified to the income statement				(855)
Tax	(419)	265	172	(1 449)	2 294	1 674
Tax reclassified to the income statement			(338)
Items that may subsequently be reclassified to the income statement	(677)	512	414	(3 052)	4 298	2 623
Other comprehensive income for the period	(748)	599	311	(3 236)	4 972	522
Comprehensive income for the period	12 968	24 881	22 113	16 015	29 744	21 138

1.1.6 Balance sheet - quarterly figures

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Assets
Cash and deposits with central banks	395 080	353 045	155 592	312 366	381 327	275 298	151 595	325 842	265 552
Due from credit institutions	133 207	99 260	130 146	123 979	190 592	181 002	239 328	156 146	160 749
Loans to customers	1 643 244	1 623 428	1 597 758	1 564 318	1 561 572	1 532 395	1 545 415	1 536 167	1 551 738
Commercial paper and bonds at fair value	342 098	388 515	409 328	393 535	381 949	370 091	422 606	359 740	362 449
Shareholdings	35 814	38 132	39 802	42 030	36 383	32 617	28 220	26 683	26 794
Financial assets, customers bearing the risk	89 715	85 192	77 241	82 380	78 277	74 630	75 206	70 690	67 680
Financial derivatives	117 339	109 086	124 755	105 229	116 979	113 255	132 349	130 282	139 643
Investment property	16 717	16 591	16 715	16 168	16 318	16 273	16 306	15 919	16 139
Investments accounted for by the equity method	20 973	21 067	16 362	15 831	15 876	15 202	15 609	8 562	7 936
Intangible assets	5 365	5 396	5 455	5 589	5 572	5 555	5 600	5 904	5 854
Deferred tax assets	880	1 038	996	1 166	1 162	1 160	769	1 180	1 391
Fixed assets	18 338	15 121	9 240	8 801	8 643	8 653	8 704	8 353	8 317
Assets held for sale	1 180	1 138	5 044	1 343	1 293	0	0	70 359	55 950
Other assets	58 673	58 706	46 469	58 129	60 608	46 894	56 559	51 204	52 616
Total assets	2 878 624	2 815 716	2 634 903	2 730 865	2 856 551	2 673 026	2 698 268	2 767 030	2 722 809
Liabilities and equity
Due to credit institutions	230 197	234 446	188 063	252 032	301 895	251 533	224 107	246 222	215 633
Deposits from customers	991 766	967 705	927 092	984 518	1 029 812	954 826	971 137	1 010 092	1 008 878
Financial derivatives	103 649	98 652	110 116	94 969	105 850	96 194	110 262	107 731	111 659
Debt securities issued	912 239	877 858	801 918	781 201	798 094	759 608	780 247	756 134	758 402
Insurance liabilities, customers bearing the risk	89 715	85 192	77 241	82 380	78 277	74 630	75 206	70 690	67 680
Liabilities to life insurance policyholders	206 918	206 848	204 280	207 527	207 685	207 753	208 500	208 844	209 230
Non-life insurance liabilities	0	0	0	2 250	2 352	2 440	2 043	2 047	2 206
Payable taxes	4 243	3 226	2 461	7 844	6 365	5 585	4 599	4 000	1 900
Deferred taxes	4 359	4 402	4 216	2 802	2 686	2 591	2 574	4 003	3 915
Other liabilities	75 162	71 614	55 424	64 493	69 617	55 016	68 078	62 045	58 603
Liabilities held for sale	237	224	3 037	268	231	0	0	51 001	43 106
Provisions	2 344	2 381	2 536	2 316	2 617	3 129	1 812	1 940	2 129
Pension commitments	3 794	3 614	3 472	3 592	3 489	3 374	3 267	3 047	2 974
Subordinated loan capital	30 504	30 347	31 082	29 267	36 781	38 208	29 538	28 554	29 426
Total liabilities	2 655 128	2 586 509	2 410 937	2 515 460	2 645 754	2 454 888	2 481 371	2 556 351	2 515 741
Share capital	15 803	15 885	15 944	15 944	16 003	16 127	16 180	16 227	16 288
Share premium	22 609	22 609	22 609	22 609	22 609	22 609	22 609	22 609	22 609
Additional Tier 1 capital	18 493	15 595	16 194	15 969	15 782	15 594	16 159	15 960	15 787
Other equity	166 591	175 118	169 220	160 883	156 403	163 809	161 948	155 883	152 385
Total equity	223 496	229 207	223 966	215 405	210 797	218 138	216 897	210 679	207 069
Total liabilities and equity	2 878 624	2 815 716	2 634 903	2 730 865	2 856 551	2 673 026	2 698 268	2 767 030	2 722 809

Exchange rates at the end of the period:

EUR/NOK	9.72	9.68	9.94	9.46	9.52	9.69	9.83	9.41	9.59
USD/NOK	8.54	8.62	8.68	8.17	8.18	7.85	8.20	7.98	8.40

1.1.7 Balance sheet - five years

	31 Dec.	31 Dec.	31 Dec.	31 Dec.	31 Dec.
Amounts in NOK million	2018	2017	2016	2015	2014
Assets
Cash and deposits with central banks	155 592	151 595	208 263	19 317	58 505
Due from credit institutions	130 146	239 328	176 442	301 216	373 409
Loans to customers	1 597 758	1 545 415	1 509 078	1 542 744	1 438 839
Commercial paper and bonds	409 328	422 607	390 649	394 919	386 970
Shareholdings	39 802	28 220	22 512	19 341	26 870
Financial assets, customers bearing the risk	77 241	75 206	60 220	49 679	42 866
Financial derivatives	124 755	132 349	157 940	203 029	235 736
Investment properties	16 715	16 306	15 912	16 734	30 404
Investments accounted for by the equity method	16 362	15 609	7 768	9 525	5 866
Intangible assets	5 455	5 600	5 814	6 076	6 286
Deferred tax assets	996	769	1 404	1 151	1 213
Fixed assets	9 240	8 704	7 949	8 860	13 830
Assets held for sale	5 044	0	52 541	200	692
Other assets	46 469	56 559	36 709	25 739	27 855
Total assets	2 634 903	2 698 268	2 653 201	2 598 530	2 649 341
Liabilities and equity
Due to credit institutions	188 063	224 107	212 882	161 537	214 214
Deposits from customers	927 092	971 137	934 897	944 428	941 534
Financial derivatives	110 116	110 262	130 161	154 663	184 971
Debt securities issued	801 918	780 247	765 869	804 928	812 025
Insurance liabilities, customers bearing the risk	77 241	75 206	60 220	49 679	42 866
Liabilities to life insurance policyholders	204 280	208 500	208 160	208 726	216 577
Non-life insurance liabilities	0	2 043	1 892	1 846	1 737
Payable taxes	2 461	4 599	8 874	2 093	1 723
Deferred taxes	4 216	2 574	3 816	7 672	6 130
Other liabilities	55 424	68 078	44 568	37 675	31 908
Liabilities held for sale	3 037	0	41 243	71	100
Provisions	2 536	1 812	2 094	1 285	1 172
Pension commitments	3 472	3 267	2 756	2 549	6 006
Subordinated loan capital	31 082	29 538	29 347	30 953	29 319
Total liabilities	2 410 937	2 481 371	2 446 779	2 408 105	2 490 282
Share capital	15 944	16 180	16 286	16 257	16 273
Share premium	22 609	22 609	22 609	22 609	22 609
Additional Tier 1 capital	16 194	16 159	15 952	8 353
Other equity	169 220	161 948	151 576	143 207	120 178
Total equity	223 966	216 897	206 423	190 425	159 059
Total liabilities and equity	2 634 903	2 698 268	2 653 201	2 598 530	2 649 341

Exchange rates at the end of the period:

EUR/NOK	9.94	9.83	9.08	9.60	8.98
USD/NOK	8.68	8.20	8.61	8.80	7.39

1.1.8 Key figures - quarterly figures

		2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
	Interest rate analysis
1	Combined weighted total average spread for lending and deposits (%)	1.32	1.32	1.31	1.30	1.27	1.30	1.31	1.31	1.32
2	Average spread for ordinary lending to customers (%)	1.85	1.90	1.92	1.95	1.89	2.01	2.08	2.09	2.07
3	Average spread for deposits from customers (%)	0.46	0.39	0.36	0.29	0.32	0.20	0.13	0.15	0.19
	Rate of return/profitability
4	Cost/income ratio (%)	41.9	42.0	45.8	42.7	43.1	43.4	45.3	42.7	43.1
5	Return on equity, annualised (%)	11.3	14.1	12.9	10.9	11.8	11.0	12.3	11.2	10.4
6	RAROC, annualised (%)	9.5	10.1	9.1	9.2	10.0	9.8	9.5	10.6	10.4
7	Average equity including allocated dividend (NOK million) 1)	209 115	210 499	203 362	197 499	198 591	200 566	197 613	191 649	193 406
	Financial strength at end of period Common Equity Tier 1 capital ratio, transitional rules (%) 1)
8		16.5	16.4	16.4	16.5	16.2	16.6	16.4	16.3	15.8
9	Tier 1 capital ratio, transitional rules (%) 1)	18.0	17.6	17.7	17.9	17.7	18.0	17.9	17.7	17.3
10	Capital ratio, transitional rules (%) 1)	20.0	19.7	19.9	20.0	20.2	20.7	20.0	19.6	19.2
	Loan portfolio and impairment
11	Net loans and financial commitments in stage 2, per cent of net loans	6.08	6.66	6.99	6.64	6.39	6.61
12	Net loans and financial commitments in stage 3, per cent of net loans	1.27	1.33	1.45	1.64	1.69	1.49	1.12	1.21	1.47
13	Impairment relative to average net loans to customers, annualised (per cent)	(0.11)	(0.08)	(0.06)	(0.00)	0.01	0.09	(0.10)	(0.22)	(0.15)
Liquidity
14	Ratio of customer deposits to net loans to customers at end of period (%)	60.4	59.6	58.0	62.9	65.9	62.3	62.8	65.8	65.0
	Total assets owned or managed by DNB
15	Customer assets under management at end of period (NOK billion)	644	634	597	625	613	603	614	591	582
16	Total combined assets at end of period (NOK billion)	3 226	3 157	2 951	3 064	3 181	2 991	3 026	3 076	3 026
17	Average total assets (NOK billion)	2 859	2 874	2 710	2 780	2 762	2 835	2 799	2 815	2 947
Staff
18	Number of full-time positions at end of period	8 962	8 990	9 196	9 172	9 100	9 107	9 144	10 785	10 697
	The DNB share
19	Number of issued shares at end of period (1 000)	1 580 301	1 604 367	1 604 367	1 604 367	1 604 367	1 628 799	1 628 799	1 628 799	1 628 799
20	Number of outstanding shares at end of period (1 000)	1 580 301	1 588 484	1 594 352	1 594 352	1 600 254	1 612 674	1 618 049	1 622 743	1 628 799
21	Average number of outstanding shares (1 000)	1 585 756	1 591 317	1 594 352	1 595 550	1 602 996	1 614 465	1 619 871	1 623 815	1 628 761
22	Earnings per share (NOK)	3.71	4.61	4.14	3.41	3.65	3.36	3.79	3.34	3.07
23	Earnings per share excl. operations held for sale (NOK)	3.73	4.64	4.23	3.44	3.66	3.36	3.79	3.32	3.08
24	Dividend per share (NOK)	-	-	-	-	-	-	-	-	-
25	Total shareholder's return (%)	5.4	14.9	(15.4)	12.8	9.9	0.0	(1.2)	17.9	8.8
26	Dividend yield (%)	-	-	-	-	-	-	-	-	-
27	Book value per share incl. allocated dividend at end of period (NOK)	129.72	134.48	130.32	125.09	121.86	125.60	124.06	119.99	117.44
28	Share price at end of period (NOK)	158.70	158.80	138.15	171.25	159.30	152.15	152.10	160.50	142.00
29	Price/earnings ratio	10.68	8.61	8.34	12.56	10.91	11.31	10.05	12.00	11.57
30	Price/book value	1.22	1.18	1.06	1.37	1.31	1.21	1.23	1.34	1.21
31	Market capitalisation (NOK billion)	250.8	252.3	220.3	273.0	254.9	245.4	246.1	260.5	231.3

1) Including 50 per cent of profit for the period, except for the full year figures.

For definitions of selected key figures, see table 1.1.10.

1.1.9 Key figures - five years

		YTD 2019	2018	2017	2016	2015	2014
	Interest rate analysis
1	Combined weighted total average spread for lending and
	deposits (%)	1.32	1.30	1.30	1.32	1.33	1.31
2	Average spread for ordinary lending to customers (%)	1.88	1.94	2.07	2.04	2.17	2.33
3	Average spread for deposits from customers (%)	0.42	0.29	0.17	0.21	0.01	(0.25)
	Rate of return/profitability
4	Cost/income ratio (%)	42.0	43.8	44.2	40.9	36.9	41.9
5	Return on equity, annualised (%)	12.7	11.7	10.8	10.1	14.5	13.8
6 7	RAROC, annualised (%) Average equity including allocated dividend (NOK million) 1)	9.8 209 807	9.5 200 004	10.0 193 686	11.1 184 056	11.2 168 674	12.3 149 460
	Financial strength at end of period
8	Common Equity Tier 1 capital ratio, transitional rules (%) 2)	16.5	16.4	16.4	16.0	14.4	12.7
9	Tier 1 capital ratio, transitional rules (%) 2)	18.0	17.7	17.9	17.6	15.3	13.0
10	Capital ratio, transitional rules (%) 2)	20.0	19.9	20.0	19.5	17.8	15.2
	Loan portfolio and impairment
11	Net loans and financial commitments in stage 2, per cent of net
	loans	6.08	6.99
12	Net loans and financial commitments in stage 3, per cent of net
13	loans Impairment relative to average net loans to customers,	1.27	1.45	1.12	1.70	0.91	1.20
	annualised (per cent)	(0.09)	0.01	(0.15)	(0.48)	(0.15)	(0.12)
Liquidity
14	Ratio of customer deposits to net loans to customers at end of
	period (%)	60.4	58.0	62.8	62.0	61.2	65.4
	Total assets owned or managed by DNB
15	Customer assets under management at end of period (NOK
	billion)	644	597	614	548	562	549
16	Total combined assets at end of period (NOK billion)	3 226	2 951	3 026	2 931	2 901	2 936
17	Average total assets (NOK billion)	2 866	2 772	2 857	2 841	2 946	2 712
Staff
18	Number of full-time positions at end of period	8 962	9 196	9 144	11 007	11 380	11 643
	The DNB share
19	Number of issued shares at end of period (1 000) 1)	1 580 301	1 604 367	1 628 799	1 628 799	1 628 799	1 628 799
20	Number of outstanding shares at end of period (1 000) 1)	1 580 301	1 594 352	1 618 049	1 628 578	1 625 658	1 627 269
21	Average number of outstanding shares (1 000) 1)	1 588 537	1 601 841	1 625 258	1 627 735	1 627 744	1 627 566
22	Earnings per share (NOK)	8.33	14.56	12.84	11.46	14.99	12.67
23	Earnings per share excl. operations held for sale (NOK)	8.38	14.69	12.84	11.46	15.02	12.68
24	Dividend per share (NOK)	-	8.25	7.10	5.70	4.50	3.80
25	Total shareholder's return (%)	21.2	(4.7)	23.5	22.2	1.9	4.7
26 27	Dividend yield (%)	-	5.97	4.67	4.44	4.10	3.16
	Book value per share incl. allocated dividend at end of period (NOK)	129.72	130.32	124.06	116.95	112.00	97.75
28	Share price at end of period (NOK)	158.70	138.15	152.10	128.40	109.80	110.70
29	Price/earnings ratio	9.47	9.41	11.85	11.20	7.33	8.74
30	Price/book value	1.22	1.06	1.23	1.10	0.98	1.13
31	Market capitalisation (NOK billion) 1)	250.8	220.3	246.1	209.1	178.5	180.1

1) The Annual General Meeting held on 30 April 2019 resolved a reduction in share capital by cancelling own shares and redeeming shares held by the Norwegian government. The number of issued shares has been reduced by 24 065 503 to 1 580 301 385 and was reflected in the accounts as of June 2019. The cancellation of the shares will be formally registered in the Register of Business Enterprises in and is expected in July/August 2019. For information on share buy-back programme initiated in June 2018, refer to table 1.7.11

2) Including 50 per cent of profit for the period, except for the full year figures.

For definitions of selected key figures, see table 1.1.10.

1.1.10 Key figures - definitions

1, 2, 3	Based on customer segments and nominal values and excluding impaired loans. Measured against the 3-month money market rate.
4	Total operating expenses relative to total income.
5	Return on equity represents the shareholders' share of profit for the period relative to average equity excluding additional Tier 1 capital.
6	RAROC (Risk-Adjusted Return On Capital) is defined as risk-adjusted profits (shareholders' share) relative to average equity excluding additional Tier 1 capital. Risk-adjusted profits indicate the level of profits in a normalised situation. Among other things, recorded impairment losses on loans are replaced by normalised losses.
11	Net loans and financial commitments in stage 2 divided by net loans to customers.
12	Net loans and financial commitments in stage 3 divided by net loans to customers. Comparable to previously reported figures under IAS 39.
13	Impairment losses on loans and financial commitments divided by average net loans to customers, annualised.
15	Total assets under management for external clients in DNB Asset Management, DNB Livsforsikring and DNB Forsikring (until 31 December 2018).
16	Total assets and customer assets under management.
19	Number of issued shares. For information about the share buy-back programme, refer to table 1.7.11
20	Number of issued shares excluding DNB shares owned for trading purpose and as part of buy-back programmes. For more information, refer to table 1.7.11
22	The shareholders' share of profits relative to the average number of outstanding shares.
23	The shareholders' share of profits excluding profits from operations held for sale relative to the average number of outstanding shares.
25	Closing price at end of period less closing price at beginning of period, including dividends reinvested in DNB shares on the dividend payment date, relative to closing price at beginning of period.
27	The shareholders' share of equity, excluding additional Tier 1 capital, at end of period relative to the number of outstanding shares.
29	Closing price at end of period relative to annualised earnings per share.
30	Share price at end of period relative to book value per share.
31	Number of outstanding shares multiplied by the closing share price, at end of period.

1.2.1 Net interest income - split by segments

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income from loans to customers 1)	7 201	7 153	7 202	7 272	6 789	7 118	7 593	7 805	7 673
Personal customers	2 747	2 855	2 987	3 036	2 871	3 241	3 485	3 404	3 204
Small and medium-sized enterprises	1 920	1 885	1 897	1 895	1 785	1 783	1 842	1 790	1 769
Large corporates and international customers	2 368	2 287	2 245	2 286	2 083	2 042	2 213	2 570	2 679
Other	166	127	73	54	50	51	54	40	21
Net interest income on deposits from customers	1 073	905	852	703	765	463	318	362	475
Personal customers	638	514	465	354	403	185	132	173	257
Small and medium-sized enterprises	353	314	296	263	274	211	157	157	177
Large corporates and international customers	77	71	76	74	74	66	32	32	39
Other	5	6	15	11	13	1	(2)	(1)	3
Equity and non-interest bearing items	644	560	523	448	482	386	353	361	402
Personal customers 2)	166	145	132	79	71	47	33	36	45
Small and medium-sized enterprises 2)	94	81	70	42	37	24	19	21	27
Large corporates and international customers 2)	227	195	182	113	105	71	60	73	98
Other	157	140	139	213	269	245	242	231	232
Other	663	671	1 033	730	1 016	1 040	599	480	481
Total net interest income	9 581	9 289	9 611	9 152	9 052	9 007	8 863	9 007	9 031

1.2.2 Average volumes - split by segments

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Loans to customers 3)				1 619 010 1 594 542 1 562 046 1 551 548 1 513 557 1 507 615 1 527 201 1 518 889 1 523 259
Personal customers	778 193	770 771	767 482	761 467	751 582	745 978	740 219	727 659	715 809
Small and medium-sized enterprises	316 206	310 935	306 150	298 622	293 125	288 815	283 203	273 968	270 755
Large corporates and international customers	429 365	418 720	402 856	406 883	388 794	391 738	415 269	475 011	496 706
Other	95 246	94 116	85 558	84 576	80 056	81 083	88 510	42 252	39 989
Deposits from customers 3)		966 073		950 778 1 000 007	971 413			992 909 1 046 040 1 041 670 1 037 930
Personal customers	417 703	412 882	407 741	416 265	405 145	400 896	401 850	405 116	398 046
Small and medium-sized enterprises		212 022	211 580	215 554	210 175	206 881	209 977	208 161	204 904
Large corporates and international customers		301 958	307 694	315 977	320 904	317 608	337 424	376 811	391 560
Other	16 887	39 211	23 763	52 211	35 190	67 523	96 788	51 583	43 420
Equity and non-interest bearing items	183 806	184 033	181 241	175 423	176 432	177 858	175 273	169 765	171 821
Personal customers 2)	48 433	47 664	47 036	46 330	47 392	47 100	39 828	38 921	39 389
Small and medium-sized enterprises 2)	32 169	31 225	29 223	28 557	28 149	27 910	26 258	25 913	26 066
Large corporates and international customers 2)	65 665	64 135	63 254	65 234	68 280	69 972	73 707	82 379	86 083
Other	37 540	41 009	41 729	35 301	32 611	32 876	35 481	22 551	20 283

1.2.3 Interest rate spreads - split by segments 4)

Per cent	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Total lending - customer segments	1.85	1.90	1.92	1.95	1.89	2.01	2.08	2.09	2.07
Personal customers	1.42	1.50	1.54	1.58	1.53	1.76	1.87	1.86	1.80
Small and medium-sized enterprises	2.44	2.46	2.46	2.52	2.44	2.50	2.58	2.59	2.62
Large corporates and international customers	2.21	2.21	2.21	2.23	2.15	2.11	2.11	2.15	2.16
Total deposits - customer segments		0.39	0.36	0.29	0.32	0.20	0.13	0.15	0.19
Personal customers	0.61	0.50	0.45	0.34	0.40	0.19	0.13	0.17	0.26
Small and medium-sized enterprises	0.65	0.60	0.56	0.48	0.52	0.41	0.30	0.30	0.35
Large corporates and international customers	0.10	0.10	0.10	0.09	0.09	0.08	0.04	0.03	0.04
Combined spread - customer segments - weighted total
average	1.32	1.32	1.31	1.30	1.27	1.30	1.31	1.31	1.32

1) Excluding impaired loans.

2) Allocated capital.

3) Average nominal amount, excluding impaired loans.

4) Spreads are calculated based on money market rates and do not include additional funding costs related to liquidity measures.

1.2.4 Quarterly development in average interest rate spreads

Customer segments

Per cent

2.07	2.09	2.08	2.01	1.89	1.95	1.92	1.90	1.85	Lending spread
1.32	1.31	1.31	1.30	1.27	1.30	1.31	1.32	1.32	Combined spread - weighted average
0.19	0.15	0.13	0.20	0.32	0.29	0.36	0.39	0.46	Deposit spread
2Q17	3Q17	4Q17	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19

Personal customers

Per cent

1.80	1.86	1.87	1.76
				1.53	1.58	1.54	1.50	1.42	Lending spread
1.25	1.25	1.26	1.21	1.14	1.14	1.17	1.15	1.14	Combined spread
									- weighted average
				0.40	0.34	0.45	0.50	0.61	Deposit spread
0.26	0.17	0.13	0.19

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

1.2.4 Quarterly development in average interest rate spreads (continued)

Small and medium-sized enterprises

Per cent
2.62	2.59	2.58	2.50	2.44	2.52	2.46	2.46	2.44	Lending spread
1.64	1.60	1.61	1.63	1.64	1.67	1.68	1.71	1.71	Combined spread - weighted average
			0.41	0.52	0.48	0.56	0.60	0.65	Deposit spread
0.35	0.30	0.30
2Q17	3Q17	4Q17	1Q18	2Q18	3Q18	4Q18	1Q19	2Q19
Large corporates and international customers
Per cent
2.16	2.15	2.11	2.11	2.15	2.23	2.21	2.21	2.21	Lending spread
1.23	1.21	1.18	1.21	1.22	1.30	1.30	1.33	1.33	Combined spread
									- weighted average

0.04 0.03 0.04 0.08 0.09 0.09 0.10 0.10 0.10 Deposit spread

2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19

1.2.5 Net interest income

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Interest on amounts due from credit institutions	871	1 109	852	1 100	1 011	971	767	767	632
Interest on loans to customers	12 803	12 185	12 097	11 357	11 032	10 626	10 922	11 203	11 285
Interest on impaired loans and guarantees	295	265	351	207	381	221	285	329	291
Interest on commercial paper and bonds	1 092	1 128	1 143	1 069	1 069	944	946	955	1 117
Front-end fees etc.	84	76	84	67	65	68	66	76	84
Other interest income	784	798	715	701	778	748	296	322	299
Total interest income	15 929	15 561	15 242	14 503	14 336	13 579	13 283	13 651	13 709
Interest on amounts due to credit institutions	(1 006)	(1 357)	(1 112)	(1 038)	(966)	(864)	(711)	(655)	(625)
Interest on deposits from customers	(2 361)	(2 295)	(2 149)	(2 123)	(1 969)	(1 905)	(1 931)	(1 928)	(1 872)
Interest on debt securities issued	(3 828)	(3 592)	(3 296)	(3 113)	(3 008)	(2 850)	(2 794)	(2 700)	(2 821)
Interest on subordinated loan capital	(116)	(112)	(109)	(131)	(133)	(112)	(107)	(105)	(105)
Resolution and guarantee fund levy 1)	(219)	(274)	(136)	(124)	(140)	(164)	(113)	(173)	(176)
Other interest expenses 2)	1 181	1 357	1 172	1 178	932	1 324	1 237	918	922
Total interest expenses	(6 349)	(6 272)	(5 631)	(5 350)	(5 284)	(4 572)	(4 420)	(4 644)	(4 677)
Net interest income	9 581	9 289	9 611	9 152	9 052	9 007	8 863	9 007	9 031

Full year figures

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Interest on amounts due from credit institutions	1 980	3 935	2 713	1 340	1 608	1 814
Interest on loans to customers	24 988	45 112	44 447	44 229	48 728	52 139
Interest on impaired loans and guarantees	560	1 161	1 172	911	619	643
Interest on commercial paper and bonds	2 220	4 227	4 200	4 626	4 655	5 078
Front-end fees etc.	160	284	300	294	337	316
Other interest income	1 582	2 942	1 033	1 024	1 584	1 456
Total interest income	31 491	57 660	53 865	52 424	57 532	61 445
Interest on amounts due to credit institutions	(2 363)	(3 981)	(2 465)	(1 705)	(1 365)	(1 755)
Interest on deposits from customers	(4 656)	(8 146)	(7 519)	(6 645)		(9 394) (13 827)
Interest on debt securities issued					(7 419) (12 267) (11 139) (12 385) (12 809) (12 633)
Interest on subordinated loan capital	(228)	(484)	(452)	(532)	(569)	(572)
Resolution and guarantee fund levy 1)	(492)	(564)	(637)	(768)	(845)	(780)
Other interest expenses 2)	2 538	4 605	3 770	3 720	2 809	608
Total interest expenses					(12 620) (20 838) (18 442) (18 314) (22 174) (28 959)
Net interest income	18 870	36 822	35 422	34 110	35 358	32 487

1) The amounts represent a proportional share of the estimated annual levy.

2) Other interest expenses include interest rate adjustments resulting from interest swaps.

1.2.6 Changes in net interest income

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	9 581	9 289	9 611	9 152	9 052	9 007	8 863	9 007	9 031
Changes from previous quarters:	Changes from 1Q19	Changes from 4Q18	Changes from 3Q18	Changes from 2Q18	Changes from 1Q18	Changes from 4Q17	Changes from 3Q17	Changes from 2Q17
Lending volumes	103	95	15	142	15	(29)	(8)	58
Deposit volumes	15	2	(17)	7	7	(7)	(3)	4
Lending spreads	(175)	(72)	(135)	233	(434)	(244)	(1)	70
Deposit spreads	144	77	161	(78)	277	159	(35)	(115)
Exchange rate movements	3	30	34	32	14	(39)	48	(103)
Interest days	88	(173)		82	84	(171)		89
Long term funding	(46)	3	3	(11)	8	37	(1)	15
Amortisation effects and fees	20	(32)	50	(30)	27	50	52	(4)
Resolution and guarantee fund levy	55	(137)	(13)	16	25	(51)	43	(3)
Interest income on loans subject to impairment provisions	33	(95)	149	(197)	121	(42)	(24)	21
Other net interest income	52	(19)	212	(96)	(97)	480	(214)	(56)
Total	291	(321)	458	100	45	144	(144)	(24)

7AO

1.3.1 Net other operating income

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Money transfer and interbank transactions	423	443	501	461	444	454	409	495	461
Guarantee commissions 1)	192	225	201	193	193	222
Asset management services	327	307	428	332	309	298	379	332	310
Credit broking	135	85	249	100	136	90	123	75	111
Corporate finance	324	196	201	47	244	106	202	151	161
Real estate broking	364	265	284	269	346	244	251	277	354
Custodial services	32	35	30	38	42	35	33	42	57
Securities broking	88	100	181	120	209	115	147	189	132
Sale of insurance products	605	533	529	501	511	501	503	513	513
Other income from banking services	48	30	54	20	18	50	18	75	61
Net commissions and fees	2 538	2 219	2 660	2 082	2 453	2 116	2 064	2 150	2 161
Net gains on financial instruments at fair value	1 351	751	430	616	134	162	1 693	1 065	982
Net financial result, life insurance	183	256	361	47	103	63	168	147	372
Net risk result, life insurance	103	100	26	167	60	142	98	187	83
Net financial and risk result, life insurance	285	356	387	215	162	205	266	335	454
Net premium income/insurance claims, non-life insurance			189	127	153	154	164	176	189
Profit from investments accounted for by the equity method	85	178	(10)	94	267	(37)	(74)	(17)	23
Net gains on investment properties	(11)	5	(6)	17	9	42	146	(3)	(14)
Other income	225	263	243	193	266	225	155	217	187
Other operating income	298	446	226	303	542	230	228	197	196
Net other operating income, total	4 472	3 772	3 891	3 343	3 445	2 867	4 415	3 922	3 982

Full year figures

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Money transfer and interbank transactions	866	1 861	1 810	1 896	1 893	2 103
Guarantee commissions 1)	417	809
Asset management services	634	1 367	1 298	1 162	1 117	1 033
Credit broking	220	576	440	465	754	574
Corporate finance	520	598	684	694	555	740
Real estate broking	628	1 143	1 150	1 121	1 201	1 095
Custodial services	68	146	165	143	162	193
Securities broking	188	625	637	440	363	219
Sale of insurance products	1 138	2 042	2 049	2 216	2 482	2 668
Other income from banking services	78	141	214	142	336	344
Net commissions and fees	4 757	9 310	8 448	8 280	8 862	8 969
Net gains on financial instruments at fair value	2 103	1 342	4 548	6 513	8 683	5 317
Net financial result, life insurance	438	574	804	(72)	(1 251)	(79)
Net risk result, life insurance	203	395	491	736	861	688
Net financial and risk result, life insurance	641	969	1 295	664	(389)	609
Net premium income/insurance claims, non-life insurance		622	683	648	534	491
Profit from investments accounted for by the equity method	262	314	(112)	1 189	(72)	226
Net gains on investment properties	(7)	62	143	(35)	269	82
Other income	488	926	713	795	762	1 182
Other operating income	744	1 302	744	1 948	959	1 490
Net other operating income, total	8 244	13 546	15 718	18 053	18 648	16 877

1) With effect from January 2018 Guarantee commissions have been reclassified to Net commissions and fees from Net gains on financial instruments at fair value.

1.3.2 Net gains on financial instruments at fair value

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Customer revenues in DNB Markets	563	493	452	477	550	525	600	573	587
Trading revenues in DNB Markets (excl. CVA/DVA/FVA and credit spread effects)	21	148	150	98	74	174	551	516	393
Credit spread effects on bonds in DNB Markets	12	139	(170)	(12)	(4)	226	(23)	127	86
Financial guarantees 1)							246	300	192
Basis swaps	740	(187)	(342)	103	(747)	(372)	62	(54)	(60)
CVA/DVA/FVA	(72)	6	(91)	108	14	205	94	128	(0)
Exchange rate effects on additional Tier 1 capital	(125)	(88)	768	(18)	497	(527)	330	(624)	(296)
Other mark-to-market adjustments	214	240	(339)	(140)	(249)	(69)	(166)	98	80
Net gains on financial instruments at fair value	1 351	751	430	616	134	162	1 694	1 065	982

1) Please see footnote to table 1.3.1 Net other operating income.

Full year figures

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Customer revenues in DNB Markets	1 056	2 004	2 348	2 441	2 331	1 908
Trading revenues in DNB Markets (excl. CVA/DVA/FVA and credit spread effects)	169	497	1 963	2 563	2 207	1 282
Credit spread effects on bonds in DNB Markets	151	40	375	225	(809)	302
Financial guarantees		0	907	595	876	879
Basis swaps	553	(1 358)	(672)	(542)	2 685	394
CVA/DVA/FVA	(66)	236	270	22	181	(597)
Exchange rate effects on additional Tier 1 capital	(213)	721	(616)	(624)	197
Other mark-to-market adjustments	454	(797)	(25)	1 834	1 016	1 149
Net gains on financial instruments at fair value	2 103	1 342	4 548	6 513	8 683	5 317

1.4.1 Operating expenses

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Salaries	(2 129)	(2 047)	(2 162)	(2 073)	(2 059)	(2 027)	(2 047)	(2 147)	(2 101)
Employer's national insurance contributions	(371)	(381)	(390)	(370)	(363)	(381)	(389)	(388)	(367)
Pension expenses	(399)	(393)	(219)	(349)	(367)	(327)	(379)	(325)	(328)
Restructuring expenses	(3)	(8)	(62)	(6)	(35)	(20)	(68)	(31)	(89)
Other personnel expenses	(213)	(180)	(215)	(144)	(151)	(144)	(139)	(165)	(164)
Total salaries and other personnel expenses	(3 114)	(3 009)	(3 048)	(2 942)	(2 975)	(2 900)	(3 023)	(3 056)	(3 049)
Fees	(149)	(167)	(225)	(167)	(146)	(122)	(138)	(124)	(188)
IT expenses	(1 002)	(937)	(1 115)	(934)	(889)	(838)	(933)	(864)	(918)
Postage and telecommunications	(40)	(41)	(41)	(37)	(47)	(48)	(36)	(63)	(54)
Office supplies	(7)	(8)	(11)	(9)	(11)	(11)	(10)	(17)	(18)
Marketing and public relations	(233)	(196)	(180)	(173)	(224)	(171)	(190)	(163)	(278)
Travel expenses	(66)	(44)	(108)	(48)	(65)	(40)	(113)	(54)	(67)
Reimbursement to Norway Post for transactions executed	(41)	(47)	(45)	(45)	(45)	(45)	(52)	(44)	(44)
Training expenses	(14)	(15)	(23)	(9)	(17)	(18)	(16)	(14)	(17)
Operating expenses on properties and premises	(137)	(91)	(271)	(275)	(276)	(274)	(279)	(298)	(289)
Operating expenses on machinery, vehicles and office equipment	(16)	(18)	(20)	(15)	(20)	(16)	(17)	(23)	(23)
Other operating expenses	(401)	(208)	(151)	(189)	(190)	(186)	(194)	(274)	(193)
Total other expenses	(2 106)	(1 771)	(2 189)	(1 901)	(1 931)	(1 768)	(1 977)	(1 938)	(2 088)
Impairment losses for goodwill 1)			(0)				(510)
Depreciation and impairment of fixed and intangible assets	(674)	(706)	(942)	(495)	(478)	(488)	(508)	(525)	(478)
Total depreciation and impairment of fixed and intangible assets	(674)	(706)	(942)	(495)	(478)	(488)	(1 018)	(525)	(478)
Total operating expenses	(5 895)	(5 487)	(6 179)	(5 338)	(5 384)	(5 155)	(6 018)	(5 520)	(5 615)

Full year figures

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Salaries	(4 175)	(8 322)	(8 316)	(8 190)	(8 269)	(7 959)
Employer's national insurance contributions	(752)	(1 504)	(1 546)	(1 301)	(1 220)	(1 146)
Pension expenses	(793)	(1 262)	(1 347)	(1 035)	799	(899)
Restructuring expenses	(11)	(123)	(346)	(720)	(390)	(239)
Other personnel expenses	(393)	(654)	(629)	(658)	(742)	(628)
Total salaries and other personnel expenses		(6 124) (11 864) (12 184) (11 904)				(9 822) (10 872)
Fees	(316)	(660)	(559)	(514)	(506)	(465)
IT expenses	(1 939)	(3 775)	(3 593)	(3 245)	(3 483)	(3 176)
Postage and telecommunications	(82)	(173)	(209)	(238)	(287)	(297)
Office supplies	(15)	(43)	(62)	(76)	(89)	(101)
Marketing and public relations	(429)	(749)	(810)	(815)	(859)	(863)
Travel expenses	(110)	(261)	(284)	(237)	(285)	(258)
Reimbursement to Norway Post for transactions executed	(88)	(179)	(183)	(177)	(149)	(204)
Training expenses	(29)	(66)	(65)	(62)	(75)	(61)
Operating expenses on properties and premises	(227)	(1 096)	(1 174)	(1 191)	(1 114)	(1 284)
Operating expenses on machinery, vehicles and office
equipment	(33)	(71)	(82)	(93)	(101)	(103)
Other operating expenses	(609)	(716)	(857)	(604)	(844)	(834)
Total other expenses	(3 877)	(7 789)	(7 878)	(7 251)	(7 790)	(7 645)
Impairment losses for goodwill 1)		(0)	(545)	(5)		(5)
Depreciation and impairment of fixed and intangible assets	(1 380)	(2 404)	(1 986)	(2 172)	(2 298)	(2 153)
Total depreciation and impairment of fixed and intangible assets	(1 380)	(2 404)	(2 531)	(2 177)	(2 298)	(2 158)
Total operating expenses					(11 381) (22 057) (22 593) (21 333) (19 910) (20 675)

1) Impairment losses for goodwill of NOK 502 million relating to Cresco were recorded in the fourth quarter of 2017.

1.4.2 Number of employees - full-time positions based on the operational structure of the DNB Group

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Full-time positions	2019	2019	2018	2018	2018	2018	2017	2017	2017
Total ordinary operations	8 961	8 969	9 196	9 172	9 100	9 107	9 144	10 785	10 697

*) Of which:
Personal Banking	2 711
Corporate Banking	1 139
Large Corporates and International	1 073
IT	861
Wealth Management & Insurance	698
Markets	728
Other entities	1 752

1.4.3 IT expenses

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
IT operating expenses	(602)	(627)	(695)	(597)	(550)	(569)	(481)	(569)	(578)
Depreciation	(43)	(45)	(60)	(27)	(27)	(26)	(25)	(29)	(30)
Impairment			(232)
Total IT operating expenses	(645)	(672)	(986)	(623)	(578)	(596)	(506)	(598)	(608)
Systems development expenses	(400)	(310)	(420)	(337)	(339)	(268)	(452)	(295)	(340)
Depreciation	(76)	(76)	(91)	(75)	(74)	(68)	(69)	(52)	(56)
Impairment			(146)				(24)	(31)	(8)
Total systems development expenses	(476)	(386)	(657)	(412)	(412)	(337)	(544)	(379)	(405)
Total IT expenses 1)	(1 120)	(1 058)	(1 643)	(1 035)	(990)	(932)	(1 051)	(976)	(1 012)
Capitalised systems development expenses	1 017	1 043	1 081	1 242	1 230	1 190	1 203	1 038	993

1) The figures do not include salaries and indirect expenses.

1.5.1 Loans and financial commitments to customers by industry segment

As at 30 June 2019

		Maximum exposure		Net
Amounts in NOK million	Stage 1	Stage 2	Stage 3	Total	Stage 1	Stage 2	Stage 3	Total	Total
Bank, insurance and portfolio management	116 736	2 582	39	119 358	(11)	(9)	(21)		(40) 119 317
Commercial real estate	200 998	3 596	809	205 403	(15)	(48)	(323)		(386) 205 018
Shipping	55 931	8 252	2 453	66 636	(69)	(133)	(372)	(574)	66 062
Oil, gas and offshore	91 493	22 392	12 797	126 682	(140)	(1 068)	(4 130)		(5 337) 121 345
Power and renewables	58 716	564	471	59 751	(10)	(25)	(62)	(97)	59 654
Healthcare	43 642	335		43 976	(10)	(10)		(20)	43 957
Public sector	22 213	140	1	22 353	(1)	(0)	(0)	(1)	22 352
Fishing, fish farming and farming	51 832	1 246	294	53 372	(9)	(20)	(92)	(121)	53 251
Trade	60 995	6 858	2 250	70 103	(21)	(41)	(700)	(762)	69 341
Manufacturing	93 101	2 769	1 705	97 576	(34)	(35)	(363)	(433)	97 143
Technology, media and telecom	45 232	1 133	88	46 453	(27)	(15)	(33)	(75)	46 378
Services	85 651	3 681	1 912	91 245	(31)	(49)	(658)	(738)	90 507
Residential property	128 299	2 744	594	131 637	(11)	(20)	(243)		(273) 131 364
Personal customers	1 001 372	36 120	3 433	1 040 925	(90)	(369)	(655)		(1 114) 1 039 811
Other corporate customers	90 938	7 381	2 441	100 760	(18)	(73)	(841)	(932)	99 828
Total	2 147 148	99 794	29 289	2 276 231	(496)	(1 915)	(8 492)		(10 903) 2 265 328

Maximum exposure is the gross carrying amount of loans to customers plus off-balance exposure, which mainly includes guarantees, unutilised credit lines and loan offers.

Stage 1 - loans and financial commitments to customers by industry segment

		Maximum exposure
	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.
Amounts in NOK million	2019	2019	2018	2018	2019	2019	2018	2018
Bank, insurance and portfolio management	116 736	116 361	87 880	58 177	(11)	(17)	(16)	(13)
Commercial real estate	200 998	194 586	190 690	182 221	(15)	(17)	(11)	(13)
Shipping	55 931	53 956	54 728	56 282	(69)	(82)	(72)	(132)
Oil, gas and offshore	91 493	95 989	88 585	88 266	(140)	(123)	(107)	(70)
Power and renewables	58 716	55 716	58 524	51 552	(10)	(14)	(13)	(10)
Healthcare	43 642	45 786	46 249	40 645	(10)	(14)	(14)	(11)
Public sector	22 213	21 310	32 394	48 277	(1)	(1)	(1)	(5)
Fishing, fish farming and farming	51 832	49 685	47 755	42 519	(9)	(7)	(6)	(6)
Trade	60 995	61 783	63 610	61 173	(21)	(25)	(23)	(23)
Manufacturing	93 101	91 669	97 034	94 031	(34)	(35)	(36)	(31)
Technology, media and telecom	45 232	44 727	45 455	47 909	(27)	(38)	(36)	(34)
Services	85 651	88 087	86 967	69 231	(31)	(39)	(28)	(15)
Residential property	128 299	125 632	121 779	124 099	(11)	(13)	(9)	(10)
Personal customers	1 001 372	982 424	961 106	965 403	(90)	(127)	(106)	(98)
Other corporate customers	90 938	88 751	79 561	111 938	(18)	(29)	(22)	(21)
Total	2 147 148	2 116 461	2 062 316	2 041 720	(496)	(580)	(501)	(490)

1.5.1 Loans and financial commitments to customers by industry segment (continued)

Stage 2 - loans and financial commitments to customers by industry segment

		Maximum exposure			Accumulated impairment
	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.
Amounts in NOK million	2019	2019	2018	2018	2019	2019	2018	2018
Bank, insurance and portfolio management	2 582	1 810	1 672	1 611	(9)	(8)	(10)	(7)
Commercial real estate	3 596	4 047	4 598	4 724	(48)	(42)	(44)	(53)
Shipping	8 252	8 661	11 817	12 042	(133)	(103)	(139)	(338)
Oil, gas and offshore	22 392	27 448	30 958	26 872	(1 068)	(1 268)	(1 396)	(1 325)
Power and renewables	564	2 323	1 602	1 554	(25)	(54)	(123)	(48)
Healthcare	335	341	351	891	(10)	(10)	(9)	(49)
Public sector	140	98	620	840	(0)	(0)	(1)	(2)
Fishing, fish farming and farming	1 246	1 202	1 540	1 639	(20)	(12)	(13)	(18)
Trade	6 858	5 279	4 921	4 057	(41)	(40)	(17)	(14)
Manufacturing	2 769	3 838	2 836	2 360	(35)	(48)	(37)	(38)
Technology, media and telecom	1 133	499	568	999	(15)	(7)	(7)	(33)
Services	3 681	4 102	3 561	3 080	(49)	(33)	(29)	(24)
Residential property	2 744	3 197	3 518	3 252	(20)	(12)	(10)	(13)
Personal customers	36 120	38 711	37 238	36 028	(369)	(343)	(351)	(319)
Other corporate customers	7 381	6 388	5 982	4 030	(73)	(76)	(40)	(31)
Total	99 794	107 944	111 783	103 979	(1 915)	(2 056)	(2 226)	(2 311)

Stage 3 - loans and financial commitments to customers by industry segment

					Accumulated impairment
		Maximum exposure
	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.
Amounts in NOK million	2019	2019	2018	2018	2019	2019	2018	2018
Bank, insurance and portfolio management	39	126	108	336	(21)	(57)	(55)	(68)
Commercial real estate	809	850	783	797	(323)	(303)	(264)	(298)
Shipping	2 453	2 573	2 829	3 493	(372)	(394)	(655)	(821)
Oil, gas and offshore	12 797	15 049	15 604	16 662	(4 130)	(4 783)	(4 658)	(4 221)
Power and renewables	471	468	912	1 213	(62)	(97)	(107)	(190)
Healthcare			0	0			(0)	(0)
Public sector	1	0	0	193	(0)	(0)	(0)	(180)
Fishing, fish farming and farming	294	220	265	227	(92)	(68)	(72)	(67)
Trade	2 250	2 476	2 065	2 308	(700)	(725)	(692)	(756)
Manufacturing	1 705	2 166	2 436	2 335	(363)	(325)	(344)	(361)
Technology, media and telecom	88	95	112	172	(33)	(34)	(32)	(118)
Services	1 912	1 081	1 279	1 011	(658)	(539)	(557)	(399)
Residential property	594	519	505	738	(243)	(233)	(224)	(219)
Personal customers	3 433	3 483	3 743	3 601	(655)	(657)	(679)	(705)
Other corporate customers	2 441	1 265	1 356	1 600	(841)	(590)	(550)	(620)
Total	29 289	30 373	31 998	34 686	(8 492)	(8 806)	(8 891)	(9 023)

1.5.2 Development in maximum exposure of loans and financial commitments to customers

Maximum exposure at end of period	2 276 231	2 254 778	2 206 097	2 180 384	2 186 446	2 159 204
Other	(1)	252	7	(1 573)	1 385	146
Exchange rate movements	(4 628)	(6 725)	19 861	(10 214)	(2 176)	(2 489)
Derecognition		(210 910) (172 218) (188 981) (165 119) (189 503) (136 181)
Originated and purchased	236 991	227 371	194 824	170 845	217 536	122 655
Maximum exposure at beginning of period	2 254 778	2 206 097	2 180 384	2 186 446	2 159 204	2 175 073
Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18

Stage 1 - development in maximum exposure of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Maximum exposure at beginning of period	2 116 461	2 062 316	2 041 720	2 054 286	2 023 850	2 027 562
Transfer into Stage 1	26 611	22 114	20 106	18 387	12 902	20 941
Transfer to Stage 2	(26 383)	(24 340)	(34 365)		(28 718) (14 739) (17 574)
Transfer to Stage 3	(1 902)	(491)	(1 001)	(2 565)	(996)	(1 084)
Originated and purchased	236 670	225 851	189 154	168 076	210 773	120 043
Derecognition			(200 047) (162 821) (171 484) (156 713) (176 577) (124 210)
Exchange rate movements	(4 261)	(6 421)	18 180	(9 460)	(1 992)	(2 296)
Other	(1)	252	7	(1 573)	1 065	466
Maximum exposure at end of period	2 147 148	2 116 461	2 062 316	2 041 720	2 054 286	2 023 850

Stage 2 - development in maximum exposure of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Maximum exposure at beginning of period	107 944	111 783	103 979	96 506	102 962	118 460
Transfer to Stage 1	(26 485)	(21 695)	(19 333)		(18 150) (12 508) (20 719)
Transfer into Stage 2	27 813	25 425	34 925	29 373	16 297	17 991
Transfer to Stage 3	(1 515)	(1 059)	(3 771)	(668)	(4 715)	(4 298)
Originated and purchased	321	1 275	3 138	1 873	3 900	1 040
Derecognition	(8 006)	(7 536)	(8 475)	(4 430)	(9 545)	(9 098)
Exchange rate movements	(279)	(249)	1 319	(524)	(135)	(165)
Other					250	(250)
Maximum exposure at end of period	99 794	107 944	111 783	103 979	96 506	102 962

Stage 3 - development in maximum exposure of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Maximum exposure at beginning of period	30 373	31 998	34 686	35 655	32 393	29 052
Transfer to Stage 1	(126)	(419)	(774)	(237)	(394)	(222)
Transfer to Stage 2	(1 430)	(1 085)	(559)	(655)	(1 558)	(417)
Transfer into Stage 3	3 417	1 550	4 772	3 233	5 711	5 381
Originated and purchased	(0)	245	2 533	897	2 864	1 573
Derecognition	(2 857)	(1 861)	(9 022)	(3 977)	(3 383)	(2 874)
Exchange rate movements	(88)	(55)	362	(230)	(49)	(29)
Other					70	(70)
Maximum exposure at end of period	29 289	30 373	31 998	34 686	35 655	32 393

From 2Q18 the assessment of originated or purchased during the period and derecognition are presented net per customer instead of per financial instrument. The 1Q18 figures have been adjusted accordingly.

Maximum exposure is the gross carrying amount of loans to customers plus off-balance exposure, which mainly includes guarantees, unutilised credit lines and loan offers.

1.5.3 Development in accumulated impairment of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Accumulated impairment at beginning of period	(11 442)	(11 617)	(11 823)		(12 282) (13 936) (14 984)
Originated and purchased	(155)	(99)	(191)	(146)	(392)	(80)
Increased expected credit loss 1)	(1 721)	(2 197)	(1 980)	(2 235)	(1 573)	(2 421)
Decreased (reversed) expected credit loss 1)	1 497	2 092	1 788	2 303	2 011	2 886
Write-offs	775	214	640	324	1 476	471
Derecognition (including repayments)	115	138	140	95	111	182
Exchange rate movements	25	28	(190)	118	20	10
Other	4	0			(0)	1
Accumulated impairment at end of period	(10 903)	(11 442)	(11 617)	(11 823)	(12 282)	(13 936)

Stage 1 - development in accumulated impairment of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Accumulated impairment at beginning of period	(580)	(501)	(490)	(502)	(505)	(554)
Changes due to significant change in credit risk	(102)	(81)	(105)	(56)	(142)	(238)
Originated and purchased	(140)	(91)	(82)	(96)	(75)	(58)
Increased expected credit loss 1)	(39)	(84)	(64)	(58)	(34)	(54)
Decreased (reversed) expected credit loss 1)	358	170	247	189	242	561
Write-offs		0	0		(0)	(0)
Derecognition (including repayments)	6	3	6	26	11	(163)
Exchange rate movements	2	4	(12)	6	1	1
Other		(0)
Accumulated impairment at end of period	(496)	(580)	(501)	(490)	(502)	(505)

Stage 2 - development in accumulated impairment of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Accumulated impairment at beginning of period	(2 056)	(2 226)	(2 311)	(2 498)	(3 768)	(5 210)
Changes due to significant change in credit risk	82	81	219	34	817	1 175
Originated and purchased	(16)	(9)	(109)	(49)	(317)	(22)
Increased expected credit loss 1)	(465)	(344)	(348)	(387)	(244)	(546)
Decreased (reversed) expected credit loss 1)	455	300	256	501	913	488
Write-offs		0	1		(0)	(0)
Derecognition (including repayments)	75	135	131	66	100	345
Exchange rate movements	9	7	(65)	23	1	1
Other		1
Accumulated impairment at end of period	(1 915)	(2 056)	(2 226)	(2 311)	(2 498)	(3 768)

Stage 3 - development in accumulated impairment of loans and financial commitments to customers

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Accumulated impairment at beginning of period	(8 806)	(8 891)	(9 023)	(9 282)	(9 663)	(9 220)
Changes due to significant change in credit risk	19	0	(114)	21	(675)	(938)
Originated and purchased			0	(1)
Increased expected credit loss	(1 217)	(1 769)	(1 568)	(1 790)	(1 294)	(1 821)
Decreased (reversed) expected credit loss	684	1 623	1 285	1 613	856	1 837
Write-offs	775	214	639	324	1 459	471
Derecognition (including repayments)	33	0	3	3	17	0
Exchange rate movements	14	16	(113)	89	18	7
Other	4	0			(0)	1
Accumulated impairment at end of period	(8 492)	(8 806)	(8 891)	(9 023)	(9 282)	(9 663)

1) DNB has performed a recalibration of the IFRS 9 models used for stage 1 and stage 2 loans and financial commitments in the second quarter of 2019. The net effect of the recalibration is a decrease in expected credit loss of NOK 6 million. As the recalibration resulted in both increases and decreases on a financial instrument level, the effect is included in the flows 'increased expected credit loss' and 'decreased (reversed) expected credit loss'.

From 2Q18 the assessment of increased and decreased expected credit loss are presented net per customer instead of per financial instrument. The 1Q18 figures have been adjusted accordingly.

1.5.4 Stage 3 - development in net loans and financial commitments to customers

1) As a result of the transition to IFRS 9 from 1 January 2018, unutilised credit lines and other financial commitments have been included.

1.5.5 Impairment of financial instruments

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18
Personal customers	32	(7)	(6)	(2)	4	30
Small and medium-sized enterprises	(20)	(6)	(8)	(2)	3	(1)
Large corporates and international customers	62	(56)	(31)	63	(5)	53
Other	(2)	(1)	(1)	(1)	(0)	0
Stage 1	72	(70)	(47)	58	3	82
Personal customers	(4)	(5)	(20)	(8)	(8)	(3)
Small and medium-sized enterprises	(99)	1	(15)	(31)	6	1
Large corporates and international customers	252	143	230	184	1 311	1 339
Other	(1)	0	0	1	(0)
Stage 2	148	139	196	147	1 309	1 337
Personal customers	(104)	(88)	(62)	(65)	(97)	(80)
Small and medium-sized enterprises	(142)	(170)	(77)	(184)	(42)	(215)
Large corporates and international customers	(425)	(126)	(244)	34	(1 118)	(794)
Other	(0)	(0)	0	(0)	(0)	(0)
Stage 3	(670)	(384)	(384)	(215)	(1 257)	(1 089)
Total	(450)	(316)	(235)	(11)	54	330

1.6.1 DNB Group

Exposure at default by industry segment *)

Exposure at default, EAD, is the share of the approved credit that is expected to be drawn at the time of any future default at the same time as there is a downturn in the market. Exposures at default are based on full implementation of IRB.

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Commercial real estate 1)	184.7	180.1	176.5	173.9	186.6	180.7	183.4	187.4	196.8
Shipping 1)	62.4	66.6	70.6	71.5	72.8	76.6	87.9	90.8	101.0
Oil, gas and offshore 1)	99.2	105.3	101.9	100.2	103.8	99.8	108.9	114.5	122.9
Power and renewables	47.5	46.3	48.2	41.8	39.0	38.3	40.1	39.8	47.6
Healthcare	36.2	37.7	37.8	33.5	35.6	32.4	32.7	34.2	33.3
Public sector	11.5	11.3	10.6	11.7	10.6	9.1	10.4	32.4	33.9
Fishing, fish farming and farming	44.2	42.6	41.0	35.9	35.1	35.7	35.8	39.6	37.3
Trade	52.5	50.0	50.2	49.6	51.2	49.6	47.5	53.9	53.8
Manufacturing	74.4	71.8	76.2	74.6	78.7	78.3	78.4	80.7	87.0
Technology, media and telecom	40.0	38.9	38.4	42.3	44.0	33.8	39.6	37.6	42.4
Services	58.6	61.5	59.0	55.6	52.0	47.2	52.5	38.9	40.3
Residential property	110.6	111.0	108.7	104.0	95.0	91.9	91.0	91.3	80.1
Personal customers **)	1 034.7	1 016.4	999.3	997.0	978.8	971.5	960.7	978.9	975.2
Other corporate customers	74.6	71.8	71.6	76.2	80.6	81.0	72.6	74.6	80.2
Total customers	1 931.1	1 911.2	1 890.0	1 867.7	1 863.8	1 825.8	1 841.6	1 894.5	1 931.7
Credit institutions	60.2	57.9	49.9	47.7	47.8	42.4	35.7	35.4	34.7
Total net exposure at default, DNB Group	1 991.3	1 969.1	1 939.9	1 915.4	1 911.6	1 868.2	1 877.4	1 929.9	1 966.4
*) Of wich international portfolio	409.9	418.7	415.6	395.9	388.2	373.7	389.3	438.2	470.2
**) Of which:
Mortgages	900.6	884.3	865.4	865.3	852.6	832.1	829.3	848.2	835.4
Other exposures	134.1	132.1	133.8	131.6	126.2	139.4	131.4	130.6	139.9

1) For a breakdown, see tables 1.6.3 - 1.6.5.

Includes volumes in the Baltics up to and including 30 September 2017.

1.6.1 DNB Group (continued)

Risk classification of portfolio 1) *)

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -	1 468.0	1 439.7	1 414.8	1 391.8	1 399.1	1 354.8	1 354.9	1 373.1	1 391.1
PD 0.75% -	424.7	428.7	424.4	414.8	409.3	408.0	407.8	424.2	435.8
PD 3.00% -	77.3	78.5	76.7	81.9	76.6	80.0	92.2	107.6	110.1
Net commitments in stage 3	21.2	22.2	23.9	26.8	26.5	25.3	22.6	25.0	29.4
Total portfolio	1 991.3	1 969.1	1 939.9	1 915.4	1 911.6	1 868.2	1 877.4	1 929.9	1 966.4
*) Of wich international portfolio:
PD 0.01% -	289.6	290.0	288.6	278.0	271.5	250.8	258.6	281.5	298.2
PD 0.75% -	90.6	96.0	94.4	82.3	84.5	85.7	87.5	104.4	113.5
PD 3.00% -	22.7	25.2	23.1	24.2	22.6	27.6	33.5	39.3	43.1
Net commitments in stage 3	7.0	7.5	9.5	11.4	9.7	9.6	9.8	12.9	15.2
Total international portfolio	409.9	418.7	415.6	395.9	388.2	373.7	389.3	438.2	470.2

1) For a breakdown of commercial real estate, shipping and oil, gas and offshore, see tables 1.6.3 - 1.6.5.

Based on DNB's risk classification system. The volumes represent the expected outstanding amount in the event of default. PD = probability of default.

**) Of which mortgages 47 per cent of total exposure at default.

Exposure at default by industry segment Risk classification of portfolio

1.6.2 Customer segments

Exposure at default by industry segment

Personal customers

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Mortgages	899.9	883.5	864.6	864.5	851.7	831.2	828.4	817.4	804.1
Other exposures	90.6	89.1	90.8	90.9	91.2	99.6	92.7	99.5	110.7
Total customers	990.4	972.6	955.4	955.4	942.9	930.8	921.1	916.9	914.7
Credit institutions
Total net exposure at default	990.4	972.6	955.4	955.4	942.9	930.8	921.1	916.9	914.7

Small and medium-sized enterprises

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Commercial real estate	114.7	111.1	108.5	106.5	110.0	105.7	105.0	102.5	112.0
Shipping	0.3	0.3	0.5	0.5	0.6	0.6	0.6	0.8	0.9
Oil, gas and offshore	0.6	0.5	0.6	0.8	0.6	0.6	0.4	0.3	0.4
Power and renewables	11.7	11.2	11.6	10.3	9.8	9.8	10.1	8.7	8.6
Healthcare	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.0	0.1
Public sector	2.4	2.6	2.7	3.1	3.3	2.6	3.5	14.2	14.8
Fishing, fish farming and farming	18.8	18.3	18.8	16.9	16.7	16.0	15.6	15.1	14.6
Trade	21.3	19.6	19.3	18.8	19.2	19.2	18.8	17.5	17.3
Manufacturing	19.4	18.6	18.8	18.9	18.7	18.5	18.7	18.6	16.7
Technology, media and telecom	3.1	2.6	2.7	2.6	2.4	2.3	2.4	2.1	2.1
Services	24.8	24.3	21.8	20.6	19.4	18.7	21.1	13.1	13.1
Residential property	71.8	73.2	73.7	68.2	67.7	63.2	62.5	59.7	47.5
Personal customers	37.5	36.8	36.6	34.6	28.6	32.9	31.6	29.1	27.3
Other corporate customers	32.7	28.7	32.3	34.7	33.9	34.2	29.2	28.8	28.7
Total customers	359.2	347.9	347.9	336.2	330.9	324.4	319.6	310.7	303.9
Credit institutions	7.0	5.8	5.6	8.6	8.6	3.2	5.0	3.5	3.8
Total net exposure at default	366.2	353.7	353.5	344.8	339.5	327.6	324.6	314.2	307.8

Large corporates and international customers

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Commercial real estate	70.0	69.0	68.0	67.4	76.5	75.0	78.4	84.9	84.8
Shipping	62.1	66.3	70.1	71.0	72.2	76.0	87.3	90.0	100.1
Oil, gas and offshore	98.6	104.8	101.4	99.5	103.2	99.2	108.5	114.1	122.5
Power and renewables	35.8	35.1	36.6	31.5	29.2	28.5	30.0	31.1	39.0
Healthcare	36.2	37.7	37.8	33.5	35.6	32.3	32.7	34.2	33.3
Public sector	9.0	8.8	7.8	8.6	7.3	6.5	6.9	18.1	19.1
Fishing, fish farming and farming	25.3	24.3	22.2	19.1	18.4	19.7	20.2	24.5	22.7
Trade	31.1	30.4	30.8	30.8	31.9	30.4	28.7	36.4	36.5
Manufacturing	54.9	53.1	57.4	55.7	60.0	59.8	59.8	62.1	70.3
Technology, media and telecom	36.9	36.3	35.7	39.7	41.6	31.5	37.2	35.5	40.3
Services	33.8	37.1	37.2	35.0	32.6	28.5	31.5	25.8	27.2
Residential property	38.9	37.8	35.0	35.8	27.3	28.7	28.5	31.6	32.6
Personal customers	6.9	7.1	7.4	7.2	7.4	7.7	8.0	32.9	33.2
Other corporate customers	41.9	43.0	39.2	41.5	46.7	46.8	43.4	45.8	51.5
Total customers	581.4	590.7	586.6	576.1	589.9	570.6	600.9	666.9	713.0
Credit institutions	53.2	52.2	44.2	39.1	39.2	39.2	30.7	31.9	30.9
Total net exposure at default	634.7	642.8	630.9	615.2	629.1	609.7	631.6	698.8	743.9

1.6.2 Customer segments (continued)

Risk classification of portfolio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -
Personal customers	789.8	776.1	763.9	762.8	756.2	739.8	736.9	726.2	722.0
Small and medium-sized enterprises	231.3	221.6	220.6	214.7	212.3	205.4	202.7	194.0	190.4
Large corporates and international customers	446.9	442.0	430.3	414.4	430.6	409.6	415.2	452.9	478.7
Total DNB Group	1 468.0	1 439.7	1 414.8	1 391.8	1 399.1	1 354.8	1 354.9	1 373.1	1 391.1
PD 0.75% -
Personal customers	183.2	179.5	174.5	175.2	169.4	174.4	167.4	172.8	175.3
Small and medium-sized enterprises	107.0	107.1	107.1	103.9	103.4	98.2	97.5	94.4	92.5
Large corporates and international customers	134.5	142.1	142.9	135.6	136.5	135.3	142.9	157.0	168.0
Total DNB Group	424.7	428.7	424.4	414.8	409.3	408.0	407.8	424.2	435.8
PD 3.00% -
Personal customers	14.9	14.6	14.6	14.7	14.5	14.1	14.4	15.6	14.8
Small and medium-sized enterprises	24.0	21.0	21.6	21.7	19.7	19.7	20.7	21.8	20.0
Large corporates and international customers	38.4	42.9	40.5	45.5	42.5	46.2	57.0	70.2	75.3
Total DNB Group	77.3	78.5	76.7	81.9	76.6	80.0	92.2	107.6	110.1
Net commitments in stage 3
Personal customers	2.5	2.4	2.5	2.7	2.8	2.5	2.4	2.3	2.6
Small and medium-sized enterprises	3.9	3.9	4.2	4.4	4.1	4.2	3.8	3.9	4.9
Large corporates and international customers	14.9	15.9	17.2	19.7	19.5	18.6	16.4	18.7	21.9
Total DNB Group	21.2	22.2	23.9	26.8	26.5	25.3	22.6	25.0	29.4
Total Personal customers	990.4	972.6	955.4	955.4	942.9	930.8	921.1	916.9	914.7
Total Small and medium-sized enterprises	366.2	353.7	353.5	344.8	339.5	327.6	324.6	314.2	307.8
Large corporates and international customers	634.7	642.8	630.9	615.2	629.1	609.7	631.6	698.8	743.9
Total risk classification of portfolio - DNB Group	1 991.3	1 969.1	1 939.9	1 915.4	1 911.6	1 868.2	1 877.4	1 929.9	1 966.4

1.6.3 Breakdown of commercial real estate

Exposure at default by segment

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Retail store facility building loans	1.7	1.9	1.7	1.9	1.7	1.7	1.7	1.7	1.5
Hotel building loans	5.3	6.0	4.7	3.7	4.3	3.8	3.5	2.6	2.2
Shopping centre building loans	0.3	0.3	0.3	0.3	0.2	0.1	0.3	0.3	0.3
Office premises building loans	4.9	4.1	3.7	3.0	3.4	3.0	2.9	3.1	3.2
Leasing of retail store facilities	17.9	16.4	15.8	16.2	13.1	13.1	13.5	13.2	9.0
Leasing of hotels	20.4	20.6	20.6	21.1	20.2	22.9	23.7	23.7	22.2
Leasing of shopping centres	10.9	11.5	10.9	10.5	10.3	10.2	11.7	12.7	11.8
Leasing of office premises	78.7	80.3	79.3	80.8	80.9	82.6	84.8	89.4	88.0
Leasing of warehouse/ logistics/ multi-purpose buildings	24.3	22.7	23.6	23.4	20.4	20.0	20.0	18.8	14.3
Other	20.2	16.1	15.9	13.0	31.9	23.1	21.3	22.0	44.2
Total	184.6	180.0	176.5	173.9	186.6	180.7	183.4	187.4	196.8

Risk classification of portfolio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -	138.6	133.7	130.1	126.6	137.1	134.7	137.0	135.3	138.6
PD 0.75% -	40.2	40.4	40.1	41.1	42.9	39.4	39.7	44.0	48.1
PD 3.00% -	5.3	5.4	5.7	5.5	6.0	5.8	6.1	6.3	8.0
Net commitments in stage 3	0.5	0.6	0.5	0.7	0.6	0.7	0.7	1.8	2.1
Total	184.6	180.0	176.5	173.9	186.6	180.7	183.4	187.4	196.8

Exposure at default by segment Risk classification of portfolio

1.6.3 Breakdown of commercial real estate (continued)

Exposure at default by geographic distribution

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Oslo/ Akershus	57.9	56.1	55.8	53.6	58.3	58.5	62.5	59.0	61.5
Eastern Norway excl. Oslo/ Akershus	48.3	46.0	43.6	43.4	43.2	43.2	43.1	43.3	45.6
Western Norway	34.6	33.7	33.4	32.4	32.5	31.5	32.5	31.8	34.2
Central/ Northern Norway	32.8	31.6	31.4	31.0	33.5	30.7	28.6	32.5	34.4
Sweden	6.3	6.8	7.0	7.0	12.6	10.5	9.9	9.0	9.5
Baltics and Poland	0.2	0.2	0.2	0.3	0.4	0.4	0.4	9.2	8.9
Other Europe	4.6	5.6	5.0	6.2	6.0	5.8	6.4	2.7	2.7
Total	184.6	180.0	176.5	173.9	186.6	180.7	183.4	187.4	196.8

Exposure at default by geographic distribution

1.6.4 Breakdown of shipping

Exposure at default by segment

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Chemical and product tankers	6.5	7.0	7.7	8.1	8.8	10.6	11.6	11.9	13.3
Container	9.0	8.5	9.4	11.2	12.0	11.9	13.2	14.1	16.7
Crude oil carriers	11.8	15.1	17.0	17.0	16.5	16.7	20.0	20.0	23.1
Dry bulk	15.2	15.0	12.8	13.3	13.8	13.4	16.2	16.6	18.4
Gas carriers	15.0	14.9	13.5	12.5	12.3	13.3	15.9	15.7	16.4
Other shipping	5.0	6.1	10.3	9.4	9.3	10.8	11.0	12.4	13.1
Total	62.4	66.6	70.6	71.5	72.8	76.6	87.9	90.8	101.0

Risk classification of portfolio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -	13.6	11.6	13.1	13.2	13.1	14.9	15.7	13.6	14.1
PD 0.75% -	42.2	45.2	43.2	43.4	46.4	48.1	55.7	57.5	66.8
PD 3.00% -	4.5	7.7	11.7	11.8	11.4	11.5	14.4	16.7	15.3
Net commitments in stage 3	2.1	2.2	2.6	3.1	1.9	2.0	2.2	3.1	4.8
Total 1)	62.4	66.6	70.6	71.5	72.8	76.6	87.9	90.8	101.0

1) For a breakdown into sub-segments, see next page.

Exposure at default by segment Risk classification of portfolio

1.6.4 Breakdown of shipping (continued)

Breakdown into sub-segments

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -
Crude oil sector	1.4	2.0	2.0	1.3	1.3	1.3	0.4	0.4	0.4
Dry bulk sector	2.2	1.0	0.4	0.4	0.3	0.3	0.2	0.1	0.1
Container sector	3.4	3.1	3.3	3.9	4.5	3.7	4.1	3.5	4.1
Other	6.6	5.5	7.4	7.7	6.9	9.6	11.0	9.6	9.5
Total	13.6	11.6	13.1	13.2	13.1	14.9	15.7	13.6	14.1
PD 0.75% -
Crude oil sector	10.2	11.2	10.6	11.6	10.7	10.8	14.0	13.9	17.1
Dry bulk sector	9.8	11.1	8.4	8.7	9.2	8.1	10.4	9.7	11.1
Container sector	4.4	4.3	5.0	5.1	6.6	7.3	8.1	9.1	10.8
Other	17.8	18.6	19.1	18.0	19.8	21.9	23.2	24.8	27.8
Total	42.2	45.2	43.2	43.4	46.4	48.1	55.7	57.5	66.8
PD 3.00% -
Crude oil sector	0.2	1.9	4.2	4.0	4.5	4.6	5.7	5.7	5.6
Dry bulk sector	1.8	1.4	2.2	3.2	3.0	3.4	3.8	5.1	5.0
Container sector	0.9	0.8	0.8	0.8	0.6	0.6	0.6	0.7	0.8
Other	1.7	3.5	4.5	3.8	3.4	3.0	4.2	5.3	3.9
Total	4.5	7.7	11.7	11.8	11.4	11.5	14.4	16.7	15.3
Net commitments in stage 3
Crude oil sector	-	-	0.2	0.2	-	-	-	-	-
Dry bulk sector	1.5	1.5	1.7	1.1	1.3	1.6	1.7	1.8	2.3
Container sector	0.3	0.3	0.3	1.4	0.3	0.3	0.4	0.8	0.9
Other	0.4	0.4	0.4	0.4	0.2	0.2	0.1	0.4	1.6
Total	2.1	2.2	2.6	3.1	1.9	2.0	2.2	3.1	4.8
Total shipping	62.4	66.6	70.6	71.5	72.8	76.6	87.9	90.8	101.0

1.6.5 Breakdown of oil, gas and offshore

Exposure at default by segment

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Oil and gas	39.3	45.1	38.3	39.9	40.3	39.5	41.1	39.2	41.4
Offshore	36.5	35.2	34.0	35.4	35.7	34.6	40.2	41.8	42.6
Oilfield services	15.7	17.7	22.2	17.7	18.7	16.8	17.6	19.5	23.5
Midstream	7.7	7.3	7.4	7.2	9.1	8.8	10.0	13.9	15.5
Total	99.2	105.3	101.9	100.2	103.8	99.8	108.9	114.5	122.9

Risk classification of portfolio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -	42.9	45.7	43.3	42.4	44.8	42.2	46.4	47.9	49.8
PD 0.75% -	27.0	29.0	31.3	27.7	27.0	21.9	20.9	17.9	19.1
PD 3.00% -	20.50	20.2	16.0	17.8	19.0	25.6	32.5	38.7	43.0
Net commitments in stage 3	8.8	10.4	11.4	12.4	13.0	10.1	9.2	10.0	11.0
Total 1)	99.2	105.3	101.9	100.2	103.8	99.8	108.9	114.5	122.9

1) For a breakdown into sub-segments, see next page.

Exposure at default by segment Risk classification of portfolio

1.6.5 Breakdown of oil, gas and offshore (continued)

Breakdown into sub-segments

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
PD 0.01% -
Oil and gas sector	31.4	34.1	32.1	33.0	35.0	33.9	36.3	36.5	37.9
Offshore sector	4.5	3.4	1.6	1.9	2.0	1.9	2.6	1.7	1.8
Oilfield services sector	7.0	8.2	9.5	7.5	7.8	6.5	7.5	9.6	10.1
Total	42.9	45.7	43.3	42.4	44.8	42.2	46.4	47.9	49.8
PD 0.75% -
Oil and gas sector	11.0	13.7	10.2	9.5	9.5	7.5	6.5	9.0	9.8
Offshore sector	9.4	8.2	12.1	11.4	10.5	7.7	7.9	3.3	3.9
Oilfield services sector	6.5	7.1	9.1	6.7	7.0	6.7	6.5	5.5	5.3
Total	27.0	29.0	31.3	27.7	27.0	21.9	20.9	17.9	19.1
PD 3.00% -
Oil and gas sector	4.6	3.7	2.5	3.8	4.0	6.2	7.4	6.9	7.3
Offshore sector	14.1	14.6	10.5	11.0	11.7	16.4	22.0	28.2	28.4
Oilfield services sector	1.8	1.8	3.1	2.9	3.3	3.0	3.0	3.6	7.3
Total	20.5	20.2	16.0	17.8	19.0	25.6	32.5	38.7	43.0
Net commitments in stage 3
Oil and gas sector	0.0	0.9	0.9	0.8	0.8	0.8	0.9	0.7	1.8
Offshore sector	8.4	9.0	9.9	11.1	11.6	8.6	7.7	8.6	8.4
Oilfield services sector	0.4	0.6	0.6	0.6	0.6	0.7	0.7	0.7	0.8
Total	8.8	10.4	11.4	12.4	13.0	10.1	9.2	10.0	11.0
Total oil, gas and offshore	99.2	105.3	101.9	100.2	103.8	99.8	108.9	114.5	122.9

Based on DNB's risk classification system. The volumes represent the expected outstanding amount in the event of default. PD = probability of default.

1.6.6 DNB's risk classification

		Probability of default (per cent)	External rating
Risk class	As from	Up to	Moody's	Standard & Poor's
1	0.01	0.10	Aaa – A3	AAA – A
2	0.10	0.25	Baa1 – Baa2	BBB+ – BBB
3	0.25	0.50	Baa3	BBB
4	0.50	0.75	Ba1	BB+
5	0.75	1.25	Ba2	BB
6	1.25	2.00
7	2.00	3.00	Ba3	BB
8	3.00	5.00	B1	B+
9	5.00	8.00	B2	B
10	8.00	impaired	B3, Caa/C	B-, CCC/C

DNB's risk classification system, where 1 represents the lowest risk and 10 the highest risk.

1.7.1 Development in volumes - deposits from customers

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Deposits at end of period	992	968	927	985	1 030	955	971	1 010	1 009
Deposits adjusted for exchange rate movements	993	968	924	990	1 039	969	976	1 023	1 009
Deposits adjusted for short-term money market investments	963	937	917	941	971	911	935	949	963
Deposits adjusted for short-term money market investments and exchange rate movements	964	937	914	946	981	925	940	962	963

1.7.2 Deposits per customer group

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK billion	2019	2019	2018	2018	2018	2018	2017	2017	2017
Households	404	389	387	389	398	411	374	374	379
Non-financial corporates	446	445	433	448	472	429	458	470	468
Other financial corporates	86	89	77	101	115	68	94	124	111
Other	60	56	49	60	62	55	55	60	67
Credit institutions	233	231	182	240	292	243	222	240	212
Total deposits	1 230	1 211	1 128	1 238	1 338	1 206	1 204	1 267	1 237
Of which repo trading volumes	74.4	64.7	40.7	45.0	79.3	46.8	32.5	13.8	17.8

The above table shows the split of deposits for the CRD IV reporting according to EU regulations and does not include non-financial companies in the DNB Group.

1.7.3 Funding

DNB Bank ASA issues senior debt and subordinated debt. DNB Boligkreditt AS, which is a wholly owned subsidiary of DNB Bank ASA, issues covered bonds. DNB issues bonds through large public transactions and private placements.

		NOK billion	Maturity (years)
	Covered bonds	38.3	7.0
	Senior bonds	30.1	4.2
2019 1)	Total	68.4	4.9
	Additional Tier 1 capital and Tier 2 loans	2.7	-
	Total including Tier 1 capital and Tier 2 loans	71.1	4.9
	Covered bonds	78.1	7.3
	Senior bonds	11.2	4.9
2018	Total	89.3	7.0
	Additional Tier 1 capital and Tier 2 loans	9.7	5.0
	Total including Tier 1 capital and Tier 2 loans	98.9	6.8
	Covered bonds	73.4	8.0
	Senior bonds	16.0	3.0
2017	Total	89.4	7.1
	Additional Tier 1 capital and Tier 2 loans	10.6	5.0
	Total including Tier 1 capital and Tier 2 loans	99.9	6.8

1) As of 30 June 2019.

1.7.4 Redemption profile as at 30 June 2019

Amounts in NOK billion	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	>2028
Senior unsecured bonds	0.0	51.3	38.0	32.0	26.7	12.8	0.4	1.9	1.6	1.2	0.5
Covered bonds	20.8	53.0	74.6	93.0	66.0	34.0	25.0	37.2	3.8	4.7	38.2
Total	20.8	104.3	112.5	125.0	92.7	46.8	25.4	39.1	5.4	5.9	38.7

A total overview of subordinated loans as at 30 June 2019 can be found in the appendix.

1.7.5 Asset encumbrance DNB Bank Group as at 31 March 2019

		Un
	Encum-	encum
	bered	bered	Total
Amounts in NOK million	assets	assets	assets
Equity instruments	129	7 145	7 273
Debt securities:	22 496	212 861	235 357
Covered bonds	4 800	80 597	85 397
Issued by general governments	9 305	65 457	74 762
Issued by financial corporations	13 191	124 619	137 811
Issued by non-financial corporations	0	22 784	22 784
Other assets *)	530 107	1 750 096	2 280 203
Total	552 732	1 970 101	2 522 833
*) of which home mortgage loans	480 279	477 391	957 670

Encumbered and unencumbered assets, carrying amounts

Collateral received, fair value

		Collateral
	Encum-	received
	bered	available for	Total
	collateral	encum-	collateral
Amounts in NOK million	received	brance	received
Equity instruments	13 635	43 838	57 473
Debt securities:	38 322	143 911	182 233
Covered bonds	619	34 082	34 701
Issued by general governments	37 487	81 298	118 785
Issued by financial corporations	792	38 634	39 426
Issued by non-financial corporations	44	23 978	24 022
Other collateral received		39 479	39 479
Total	51 957	227 228	279 185

Sources of encumbrance

		Encum
		bered
		assets and
		encum
		bered
	Matching	collateral
Amounts in NOK million	liabilities	received
Derivatives	34 822	34 822
Repurchase agreements	51 767	51 797
Collateralised deposits other than
repurchase agreements	14 451	13 763
Debt securities issued: covered bonds	494 418	504 307
Total	595 459	604 689

The above tables are according to the CRD IV reporting according to EU regulations and do not include non-financial companies in the DNB Bank Group.

1.7.6 Liquid assets as at 30 June 2019

Amounts in NOK million	NOK	EUR	USD	Other	Total *)
Cash and deposits with central banks	10 859	316 863	39 714	799	368 235
Deposits with other banks 1)	43 064	(9 436)	57 674	5 239	96 541
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks	39 803	4 868	31 360	3 413	79 444
Securities issued or guaranteed by municipalities or public sector entities	4 899	124	13 356	6 230	24 608
Covered bonds
- issued by other institutions	50 819	2 288	4 755	7 497	65 358
- own issued	13 816	7		47	13 870
Securities issued by non-financial corporates	135	47	145	35	361
Securities issued by financial corporates and ABS	5 461	216	12	229	5 918
Total	168 855	314 977	147 016	23 489	654 336

*) Total figures per quarter

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Cash and deposits with central banks	368 235	296 984	123 061	287 208	378 164	269 251	146 312	315 004	261 020
Deposits with other banks 1)	96 541	110 778	114 664	97 638	138 616	79 226	211 896	157 176	157 018
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks	79 444	115 024	133 808	123 871	121 402	111 012	154 619	95 933	99 029
Securities issued or guaranteed by municipalities or public sector entities	24 608	16 799	14 734	16 797	15 143	13 435	13 921	13 412	13 778
Covered bonds
- issued by other institutions	65 358	84 978	86 318	82 080	74 406	67 579	66 656	63 865	67 834
- own issued	13 870	11 917	9 684	5 622	3 500	7 869	11 942	11 012	7 259
Securities issued by non-financial corporates	361	335	525	469	507	755	778	1 240	615
Securities issued by financial corporates and ABS	5 918	5 377	7 135	4 616	2 701	3 331	15 341	15 183	14 045
Total	654 336	642 191	489 929	618 301	734 440	552 458	621 465	672 826	620 598

1) Including netting of repo transactions.

Excluding assets in DNB Livsforsikring and encumbered securities. Including trading portfolio.

1.7.7 Liquidity Coverage Ratio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Per cent	2019	2019	2018	2018	2018	2018	2017	2017	2017
EUR	249	155	190	201	282	208	191	247	591
USD	261	276	243	175	136	153	137	112	147
NOK	71	69	65	70	78	62	93	87	76
Total	146	123	117	129	131	110	117	118	123

1.7.8 DNB Bank ASA - credit ratings from international rating agencies

		Moody's	Standard & Poor's
	Long-term Short-term		Long-term	Short-term
As at 30 June 2019	Aa2 1)	P-1	AA-1)	A-1+
As at 31 March 2019	Aa2 2)	P-1	AA-1)	A-1+
As at 31 December 2018	Aa2 2)	P-1	A+ 3)	A-1
As at 30 September 2018	Aa2 2)	P-1	A+ 3)	A-1
As at 30 June 2018	Aa2 2)	P-1	A+ 3)	A-1
As at 31 March 2018	Aa2 2)	P-1	A+ 3)	A-1
As at 31 December 2017	Aa2 2)	P-1	A+ 1)	A-1
As at 30 September 2017	Aa2 2)	P-1	A+ 1)	A-1

1) Stable outlook.

2) Negative outlook.

3) Positive outlook.

Covered bonds issued by DNB Boligkreditt are rated Aaa by Moody's and AAA by Standard & Poor's, both with a stable outlook.

1.7.9 Major shareholders as at 30 June 2019

	Shares in 1 000	Ownership in per cent
Norwegian Government/Ministry of Trade, Industry and Fisheries	545 485	34.3
DNB Savings Bank Foundation	130 001	8.2
Folketrygdfondet	96 594	6.1
The Vanguard Group, Inc.	31 551	2.0
BlackRock Institutional Trust Company, N.A.	29 386	1.8
DWS Investment GmbH	29 075	1.8
Fidelity International	26 741	1.7
Schroder Investment Management Ltd. (SIM)	20 011	1.3
Capital World Investors	18 714	1.2
Storebrand Kapitalforvaltning AS	17 285	1.1
DNB Asset Management AS	16 421	1.0
T. Rowe Price Associates, Inc.	16 305	1.0
KLP Forsikring	14 597	0.9
Davis Selected Advisers, L.P.	14 460	0.9
Nordea Funds Oy	13 900	0.9
SAFE Investment Company Limited	12 248	0.8
State Street Global Advisors (US)	12 183	0.8
Polaris Capital Management, LLC	11 248	0.7
Newton Investment Management Ltd.	10 700	0.7
Danske Capital (Norway)	10 671	0.7
Total largest shareholders	1 077 574	67.8
Other shareholders	510 910	32.2
Total	1 588 484	100.0

The owners of shares in nominee accounts are determined on the basis of third-party analyses.

For information related to the share buy-back programmes and redemption of shares, refer to table 1.7.11.

Norwegian Government/Ministry of Trade, Industry and Fisheries 34.3% DNB Savings Bank Foundation 8.2% Other Norwegian 15.7% US 16.6% UK 13.2% Luxembourg 3.5% Other international 8.4% Norwegian investors: 58% International investors: 42%

1.7.10 Ownership according to nationality as at 30 June 2019

1.7.11 Share buy-back programmes

The Annual General Meeting (AGM) held on 30 April 2019 resolved a reduction in the company's share capital by cancelling or redeeming a total of 24 065 503 shares repurchached according to the authorisation given by the 2018 AGM. The total number of issued shares after the cancellation is 1 580 301 385 , which has been reflected in the accounts as of 30 June 2019. The transaction is expected to be completed and formally registred in July.

In addition, the AGM authorised DNB ASA to repurchase up to 3.5 per cent of the company's share capital. In addition, DNB Markets was authorised to purchase 0.5 per cent for hedging purposes. The authorization is valid up to the Annual General Meeting in 2020. Initially, DNB has applied and received approval for a 2.5 per cent repurchase limit from Finanstilsynet (the Financial Supervisory Authority of Norway), whereof 0.5 per cent can only be used for hedging purposes by DNB Markets.

As at 30 June 2019, the authorisation has not been used and there were no share buy-backs in the second quarter of 2019.

Buy-back programmes

Number of shares	30 June 2019	31 March 2019	31 Dec. 2018	30 Sept. 2018	30 June 2018
The Group's portfolio of own shares aquired under the share buy-back programme		15 883 232	10 015 000	10 015 000	4 113 000
Redemption of shares from the state of Norway		8 182 271	5 159 242	5 159 242	2 118 817
Total purchased shares	0	24 065 503	15 174 242	15 174 242	6 231 817
Total price of repurchased shares (NOK)	-	2 544 017 269	1 607 572 829	1 607 572 829	642 965 613
Average price of repurchased shares (NOK)	-	160.17	160.52	160.52	156.33
	Announced	Completed
1.5 per cent 1)	6 June 2018	14 March 2019

1) Including redemption of goverment shares.

1.8.1 Primary capital - DNB Group

Capital adequacy is calculated and reported in accordance with the EU capital requirements regulations for banks and investment firms (CRD IV/CRR). The regulatory consolidation deviates from consolidation in the accounts and comprises the parent company, subsidiaries and associated companies within the financial sector, excluding insurance companies. Associated companies are consolidated pro rata. June figures are partially based on estimates.

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Total equity excluding interim profits	210 268	221 868	223 966	198 683	199 515	212 707	216 897	195 945	197 765
50 per cent of interim profits for the year to date	6 463	3 721		8 150	5 755	2 790		7 164	4 425
Effect from regulatory consolidation	(4 195)	(4 195)	(5 595)	(4 823)	(4 942)	(6 496)	(6 328)	(4 705)	(4 705)
Net additional Tier 1 capital instruments included in total equity	(18 438)	(15 590)	(16 039)	(15 870)	(15 730)	(15 589)	(16 013)	(15 863)	(15 734)
Total equity for capital adequacy purpose	194 098	205 804	202 333	186 140	184 597	193 412	194 557	182 541	181 752
Deductions	(14 503)	(28 864)	(25 501)	(13 243)	(13 622)	(21 131)	(23 218)	(11 247)	(9 720)
Common equity Tier 1 capital	179 595	176 940	176 831	172 896	170 975	172 281	171 339	171 295	172 031
Additional Tier 1 capital instruments, net	16 290	13 981	14 054	15 272	15 508	15 420	15 517	15 019	15 504
Tier 1 capital	195 885	190 922	190 886	188 169	186 483	187 701	186 856	186 314	187 536
Additional Tier 2 capital instruments, net	21 897	22 484	23 117	21 204	26 928	27 998	21 696	20 217	21 608
Total eligible capital	217 783	213 405	214 003	209 372	213 411	215 699	208 552	206 531	209 144
Risk-weighted assets, basis for transitional rules, Basel I	1 361 855	1 352 428	1 347 417	1 311 288	1 317 589	1 300 082	1 303 251	1 317 091	1 358 902
Risk-weighted assets, transitional rules 1)	1 089 484	1 081 942	1 077 934	1 049 030	1 054 071	1 040 066	1 042 601	1 053 673	1 087 122
Minimum capital requirement, transitional rules	87 159	86 555	86 235	83 922	84 326	83 205	83 408	84 294	86 970
Common equity Tier 1 capital ratio, transitional rules (%)	16.5	16.4	16.4	16.5	16.2	16.6	16.4	16.3	15.8
Tier 1 capital ratio, transitional rules (%)	18.0	17.6	17.7	17.9	17.7	18.0	17.9	17.7	17.3
Capital ratio, transitional rules (%)	20.0	19.7	19.9	20.0	20.2	20.7	20.0	19.6	19.2

Basel III without transitional rules:

Risk-weighted assets, Basel III	1 037 866	1 035 415	1 029 560	1 010 799	1 011 060	994 223	1 027 585	1 027 137	1 072 158
Minimum capital requirement, Basel III	83 029	82 833	82 365	80 864	80 885	79 538	82 207	82 171	85 773
Common equity Tier 1 capital ratio, Basel III (%)	17.3	17.1	17.2	17.1	16.9	17.3	16.7	16.7	16.0
Tier 1 capital ratio, Basel III (%)	18.9	18.4	18.5	18.6	18.4	18.9	18.2	18.1	17.5
Capital ratio, Basel III (%)	21.0	20.6	20.8	20.7	21.1	21.7	20.3	20.1	19.5
Leverage ratio, Basel III (%)	7.1	7.0	7.5	7.1	6.8	7.2	7.2	7.1	7.2

1) Due to transitional rules, the minimum capital adequacy requirements cannot be reduced below 80 per cent of the corresponding figure calculated according to the Basel I regulations.

Capital adequacy figures include 50 per cent of interim profits in all quarters. Annual figures are exclusive of dividend payments.

Basel III

The majority of the credit portfolios are reported according to the IRB approach. The portfolios "central governments" and "institutions" are, however, reported according to the standardised approach.

1.8.2 Leverage ratio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Tier 1 capital	195 885	190 922	190 866	188 169	186 483	187 701	186 863	186 314	187 536
Leverage exposure
Securities financing transactions (SFTs)	187 010	187 834	167 354	162 437	195 448	176 485	251 939	183 235	184 491
Derivatives market value	45 395	41 453	51 141	34 615	42 710	43 293	47 840	40 949	59 352
Potential future exposure on derivatives	30 988	28 129	29 507	29 748	27 911	29 257	37 363	29 653	23 891
Eligible cash variation margin	(20 458)	(18 100)	(22 642)	(13 519)	(17 463)	(15 758)	(28 744)	(17 526)	(18 697)
Off balance sheet commitments	233 052	234 914	236 929	233 316	236 550	231 676	235 576	235 491	246 002
Loans and advances and other assets	2 313 091	2 260 702	2 099 388	2 200 297	2 285 934	2 141 391	2 071 592	2 179 955	2 129 861
Deductions	(14 643)	(14 614)	(10 168)	(11 062)	(10 717)	(8 749)	(9 699)	(9 405)	(8 347)
Total exposure	2 774 434	2 720 316	2 551 508	2 635 832	2 760 372	2 597 595	2 605 867	2 642 352	2 616 552
Leverage ratio, Basel III (%)	7.1	7.0	7.5	7.1	6.8	7.2	7.2	7.1	7.2

1.8.3 Specification of capital requirements

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
IRB approach
Corporate	33 541	33 467	33 716	33 360	33 684	32 984	35 197	36 439	39 659
Specialised lending (SL)	557	573	526	524	449	441	454	461	497
Retail - mortgages	13 683	13 730	13 617	13 485	13 162	13 415	13 220	12 975	12 630
Retail - other exposures	1 722	1 700	1 727	1 744	1 740	1 791	1 745	1 730	1 866
Securitisation				1	1	140	626	671	818
Total credit risk, IRB approach	49 503	49 471	49 587	49 115	49 036	48 770	51 241	52 276	55 470
Standardised approach
Central government	8	13	12	11	11	8	6	5	5
Institutions	2 693	2 715	2 859	3 349	3 200	3 368	2 989	2 729	2 419
Corporate	11 462	11 829	11 824	10 600	10 469	9 649	9 796	9 588	9 770
Retail - mortgages	2 817	2 461	2 539	2 406	2 499	2 201	2 207	1 939	1 863
Retail - other exposures	3 392	3 172	2 958	2 941	3 153	2 909	2 941	3 060	3 664
Equity positions	3 784	3 795	3 753	3 574	3 641	3 716	3 742	3 727	3 685
Securitisation								22	24
Other assets	1 143	1 194	540	561	581	478	568	742	803
Total credit risk, standardised approach	25 298	25 178	24 484	23 441	23 553	22 328	22 249	21 812	22 232
Total credit risk 1)	74 802	74 650	74 070	72 556	72 589	71 099	73 490	74 088	77 702
Market risk
Position risk, debt instruments	748	803	927	806	782	877	1 120	957	899
Position risk, equity instruments	28	26	16	25	22	21	21	24	19
Currency risk	1	1
Commodity risk	0	0	1	1	2	1	2	2	2
Credit value adjustment risk (CVA)	410	313	311	399	413	463	468	430	481
Total market risk	1 187	1 143	1 254	1 231	1 219	1 362	1 611	1 413	1 401
Operational risk	7 040	7 040	7 040	7 077	7 077	7 077	7 077	6 670	6 670
Total capital requirements according to Basel III	83 029	82 833	82 365	80 864	80 885	79 538	79 538	82 171	85 773
Additional capital requirements according to transitional rules	4 129	3 722	3 870	3 058	3 441	3 667	1 230	2 123	1 197
Total capital requirements according to transitional rules	87 159	86 555	86 235	83 922	84 326	83 205	83 408	84 294	86 970

1) See next page for further details.

1.8.4 Specification of capital requirements for credit risk

As at 30 June 2019			Average
		EAD,	risk	Risk-	Capital
	Nominal	exposure weights		weighted	require
Amounts in NOK million	exposure	at default	(per cent)	assets	ments
IRB approach
Corporate	965 843	804 908	52.1	419 267	33 541
Specialised Lending (SL)	13 311	13 035	53.4	6 956	557
Retail - mortgages	780 315	780 313	21.9	171 039	13 683
Retail - other exposures	102 320	86 842	24.8	21 531	1 722
Securitisation
Total credit risk, IRB approach	1 861 790	1 685 099	36.7	618 793	49 503
Standardised approach
Central government	459 665	455 594	0.0	103	8
Institutions	247 379	139 508	24.1	33 660	2 693
Corporate	211 433	164 031	87.3	143 269	11 462
Retail - mortgages	79 135	74 102	47.5	35 212	2 817
Retail - other exposures	152 020	56 750	74.7	42 400	3 392
Equity positions	21 469	21 296	222.1	47 300	3 784
Other assets	22 573	21 330	67.0	14 282	1 143
Total credit risk, standardised approach	1 193 673	932 612	33.9	316 227	25 298
Total credit risk	3 055 463	2 617 710	35.7	935 020	74 802

As at 31 March 2019			Average
		EAD,	risk	Risk-	Capital
	Nominal	exposure	weights	weighted	require
Amounts in NOK million	exposure	at default	(per cent)	assets	ments
IRB approach
Corporate	955 246	790 067	52.9	418 340	33 467
Specialised Lending (SL)	13 478	13 125	54.6	7 167	573
Retail - mortgages	780 307	780 307	22.0	171 631	13 730
Retail - other exposures	100 700	86 335	24.6	21 252	1 700
Securitisation
Total credit risk, IRB approach	1 849 731	1 669 834	37.0	618 389	49 471
Standardised approach
Central government	392 730	383 712	0.0	159	13
Institutions	240 389	133 735	25.4	33 943	2 715
Corporate	219 878	167 565	88.2	147 858	11 829
Retail - mortgages	69 198	64 455	47.7	30 765	2 461
Retail - other exposures	141 758	53 077	74.7	39 650	3 172
Equity positions	21 647	21 446	221.2	47 433	3 795
Other assets	23 281	22 156	67.3	14 921	1 194
Total credit risk, standardised approach	1 108 880	846 147	37.2	314 730	25 178
Total credit risk	2 958 611	2 515 981	37.1	933 120	74 650

1.8.5 Primary capital - including DNB Bank ASA and DNB Bank Group

Capital adequacy is calculated and reported in accordance with the EU capital requirements regulations for banks and investment firms (CRR/CRD IV). The regulatory consolidation deviates from consolidation in the accounts and comprises the parent company, subsidiaries and associated companies within the financial sector, excluding insurance companies. Associated companies are consolidated pro rata. June figures are partially based on estimates.

	DNB Bank ASA				DNB Bank Group		DNB Group
	30 June	31 March	30 June	30 June	31 March	30 June	30 June	31 March	30 June
Amounts in NOK million	2019	2019	2018	2019	2019	2018	2019	2019	2018
Total equity excluding profit for the period	178 957	176 089	168 295	198 975	206 775	184 678	210 268	221 868	199 515
Effect from regulatory consolidation				(235)	(235)	(382)	(4 195)	(4 195)	(4 942)
Additional Tier 1 capital instruments included in total equity	(18 274)	(15 574)	(15 574)	(18 274)	(15 574)	(15 574)	(18 274)	(15 574)	(15 574)
Net accrued interest on additional Tier 1 capital instruments	(165)	(16)	(156)	(165)	(16)	(156)	(165)	(16)	(156)
Total equity	160 519	160 499	152 565	180 302	190 950	168 567	187 635	202 083	178 843
Deductions
Pension funds above pension commitments			(6)			(6)			(6)
Goodwill	(2 363)	(2 368)	(2 358)	(2 935)	(2 932)	(2 760)	(4 640)	(4 637)	(4 465)
Deferred tax assets that are not due to temporary differences	(562)	(562)	(574)	(524)	(524)	(441)	(524)	(524)	(441)
Other intangible assets	(973)	(998)	(1 105)	(1 636)	(1 677)	(1 811)	(1 636)	(1 677)	(1 811)
Dividends payable etc.					(10 758)			(14 416)	(3 178)
Significant investments in financial sector entities 1)							(4 904)	(4 896)	(1 749)
Expected losses exceeding actual losses,
IRB portfolios	(1 394)	(1 487)	(1 256)	(2 027)	(1 997)	(1 397)	(2 027)	(1 997)	(1 397)
Value adjustments due to the requirements for prudent valuation (AVA)	(465)	(483)	(426)	(912)	(883)	(849)	(912)	(883)	(849)
Adjustments for unrealised losses/(gains) on debt measured at fair value	90	92	108	247	287	416	247	287	416
Adjustments for unrealised losses/(gains) arising from the
institution's own credit risk related to derivative liabilities	(512)	(517)	(558)	(106)	(121)	(143)	(106)	(121)	(143)
Common Equity Tier 1 capital	154 341	154 176	146 390	172 409	172 345	161 576	173 132	173 220	165 220
Common Equity Tier 1 capital incl. 50 per cent of profit for the period	159 651	155 961	150 444	177 847	174 917	166 940	179 595	176 940	170 975
Additional Tier 1 capital instruments	18 274	15 574	15 574	18 274	15 574	15 574	18 274	15 574	15 574
Deduction of holdings of Tier 1 instruments in insurance companies 2)							(1 500)	(1 500)
Non-eligible Tier 1 capital, DNB Group 3)							(483)	(92)	(65)
Tier 1 capital	172 615	169 750	161 964	190 682	187 919	177 150	189 422	187 201	180 728
Tier 1 capital incl. 50 per cent of profit for the period	177 925	171 534	166 017	196 121	190 491	182 514	195 885	190 921	186 483
Perpetual subordinated loan capital	5 616	5 648	5 360	5 616	5 648	5 360	5 616	5 648	5 360
Term subordinated loan capital	24 508	24 462	31 094	24 508	24 462	31 094	24 508	24 462	31 094
Deduction of holdings of Tier 2 instruments in insurance companies 2)							(5 761)	(5 761)	(5 750)
Non-eligible Tier 2 capital, DNB Group 3)							(2 466)	(1 866)	(3 776)
Additional Tier 2 capital instruments, net	30 123	30 110	36 454	30 123	30 110	36 454	21 897	22 484	26 928
Total eligible capital	202 738	199 860	198 418	220 806	218 029	213 604	211 320	209 685	207 657
Total eligible capital incl. 50 per cent of profit for the period	208 048	201 645	202 471	226 244	220 601	218 968	217 783	213 655	213 411
Risk-weighted assets, transitional rules	848 356	846 289	854 152	1 062 683	1 054 900	1 028 396	1 089 484	1 081 942	1 054 071
Minimum capital requirement	67 868	67 703	68 332	85 015	84 392	82 272	87 159	86 555	84 326
Common equity Tier 1 capital ratio, transitional rules (%)	18.8	18.4	17.6	16.7	16.6	16.2	16.5	16.4	16.2
Tier 1 capital ratio, transitional rules (%)	21.0	20.3	19.4	18.5	18.1	17.7	18.0	17.6	17.7
Capital ratio, transitional rules (%)	24.5	23.8	23.7	21.3	20.9	21.3	20.0	19.7	20.2
Common equity Tier 1 capital ratio, transitional rules, excluding 50 per cent of profit for the period (%)	18.2	18.2	17.1	16.2	16.3	15.7	15.9	16.0	15.7
Tier 1 capital ratio, transitional rules, excluding 50 per cent of profit for the period (%)	20.3	20.1	19.0	17.9	17.8	17.2	17.4	17.3	17.1
Capital ratio, transitional rules, excluding 50 per cent of profit for the period (%)	23.9	23.6	23.2	20.8	20.7	20.8	19.4	19.4	19.7

1) Deductions are made for significant investments in financial sector entities if they each exceed 10 per cent of common equity Tier 1 capital.

The amounts that are not deducted are given a risk weight of 250 per cent. The increased deduction is due to the investment in Fremtind.

2) Investments in Tier 1 and Tier 2 instruments issued by the Group's insurance companies are deducted from the Group's Tier 1 and Tier 2 capital.

3) Tier 1 and Tier 2 capital in DNB Bank ASA not included in consolidated own funds, in accordance with Articles 85-88 of the CRR.

Due to transitional rules, the minimum capital adequacy requirements cannot be reduced below 80 per cent of the corresponding figure calculated according to the Basel I regulations.

1.8.6 Cross-sectoral financial group

Financial groups that consist of both a credit institution and an insurance undertaking and have been defined by the authorities as a "financial conglomerate" or cross-sectoral financial group, have to report capital adequacy on a consolidated basis. The cross-sectoral calculation tests that the DNB Group complies with both sectoral requirements, the "capital adequacy requirement in accordance with CRD IV" and "the Solvency II requirement". Intra group capital is excluded from the calculation.

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017
Capital requirements for the CRD IV group	199 016	197 331	197 536	190 083	190 549	187 809	188 198
Solvency capital requirements for the insurance companies	18 475	18 573	18 204	17 667	18 122	18 336	18 496
Total capital requirements	217 491	215 904	215 740	207 750	208 670	206 145	206 694
Net primary capital for entities included in the CRD IV report	211 320	209 685	214 003	201 223	207 657	212 909	208 559
Intercompany	(17 793)	(17 801)	(17 752)	(16 654)	(16 697)	(17 465)	(17 639)
Net primary capital for the insurance companies	34 878	34 612	33 758	33 739	34 334	33 958	35 194
Total net primary capital	228 404	226 496	230 009	218 308	225 294	229 403	226 114
Overfunding	10 914	10 592	14 269	10 558	16 624	23 257	19 420

Chapter 2 - Segmental reporting

Financial performance

Market shares

Personal customers

Small and medium-sized enterprises

Large corporates and international customers

Other operations

Main subsidiaries and product units

2.1.1 Extracts from income statement

	Personal customers		Small and medium sized enterprises		Large corporates and international customers		Other operations		Eliminations		DNB Group
Amounts in NOK million	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18
Net interest income	3 374	3 249	2 581	2 364	3 228	3 099	398	340			9 581	9 052
Net other operating income	1 282	1 337	577	558	1 481	1 481	1 739	637	(607)		(568) 4 472	3 445
Total income	4 657	4 586	3 157	2 922	4 709	4 580	2 137	977	(607)		(568) 14 053	12 497
Operating expenses							(2 133) (2 114) (1 140) (1 054) (1 752) (1 646) (1 476) (1 139)		607	568	(5 895) (5 384)
Pre-tax operating profit before impairment	2 524	2 472	2 017	1 868	2 957	2 934	660	(162)			8 158	7 113
Net gains on fixed and intangible assets			(0)	1	(0)	0	(2)	464			(3)	465
Impairment of financial instruments	(76)	(101)	(261)	(33)	(110)	189	(3)	(0)			(450)	54
Profit from repossessed operations			(1)	(1)	(47)	(17)	47	18
Pre-tax operating profit	2 448	2 371	1 755	1 835	2 800	3 106	702	320			7 705	7 632
Tax expense	(612)	(593)	(439)	(459)	(672)	(714)	182	239			(1 541) (1 526)
Profit from operations held for sale, after taxes					0		(30)	(21)			(30)	(21)
Profit for the period	1 836	1 778	1 316	1 376	2 128	2 392	854	538			6 134	6 084

2.1.2 Main balance sheet items and key figures

Average balance sheet items

	Personal customers		Small and medium sized enterprises		Large corporates and international customers		Other operations		Eliminations		DNB Group
Amounts in NOK billion	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18
Loans to customers 1)	781.0	755.4	320.4	297.1	441.8	403.8	123.9	108.0	(28.1)		(26.9) 1 639.1	1 537.3
Deposits from customers 1)	418.9	406.2	217.7	210.4	306.1	321.3	25.5	56.8	(8.6)	(21.6)	959.6	973.1
Assets under management	86.9	88.0	115.0	101.6	221.2	209.4	237.0	234.2			660.0	633.2
Allocated capital 2)	48.4	47.4	32.2	28.1	65.7	68.3	34.7	37.1

Key figures

		Personal customers		Large corporates Small and medium and international sized enterprises customers		Other operations		Eliminations		DNB Group
Per cent	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18	2Q19	2Q18
Cost/income ratio	45.8	46.1	36.1	36.1	37.2	35.9					41.9	43.1
Ratio of deposits to loans 1) 3)	53.6	53.8	68.0	70.8	69.3	79.5					58.5	63.3
Return on allocated capital, annualised 2)	15.2	15.0	16.4	19.6	13.0	14.0					11.3	11.8

Balance sheet items

	Personal customers		Small and medium sized enterprises		Large corporates and international customers		Other operations		Eliminations		DNB Group
	30 June		30 June		30 June		30 June		30 June		30 June
Amounts in NOK billion	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018	2019	2018
Loans to customers	787.7	762.0	323.8	300.4	435.9	415.8	124.0	111.2	(28.2)		(27.9) 1 643.2	1 561.6
Deposits from customers	435.6	424.9	217.5	210.6	308.5	324.5	38.0	88.2	(7.9)	(18.5)	991.8	1 029.8

1) Loans to customers include accrued interest, impairment and value adjustments. Correspondingly, deposits from customers include accrued interest.

2) Allocated capital for the segments is calculated based on the external capital adequacy requirement (Basel III/Solvency II) which must be met by the Group. The capital allocated in 2019 corresponds to a common equity Tier 1 capital ratio of 16.8 per cent compared to 16.2 per cent in 2018. Recorded capital is used for the Group.

3) Deposits from customers relative to loans to customers. Calculated on the basis of average balance sheet items.

2.1.3 Key figures - Norwegian and international units

Norwegian units

Per cent	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Share of group income	81.2	80.6	81.9	81.1	78.1	79.4	82.5	78.4	78.7
Cost/income ratio	42.4	42.5	46.5	43.7	45.6	45.0	45.6	42.8	43.5
Share of net group loans to customers	87.3	87.2	87.1	87.6	87.5	87.2	87.0	86.9	85.9
Net loans and financial commitments in stage 3, per cent of net
loans to customers 1)	1.2	1.2	1.3	1.5	1.6	1.3	0.8	0.8	1.0
Provision ratio (per cent) 2)	36.0	36.3	34.6	30.8	30.5	39.0	43.0	45.8	41.0
Impairment in stage 3, relative to net loans, annualised	(0.10)	(0.11)	(0.13)	(0.06)	(0.33)	(0.34)	(0.16)	(0.08)	(0.04)

International units

Per cent	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Share of group income	18.8	19.4	18.1	18.9	21.9	20.6	17.5	21.6	21.3
Cost/income ratio	39.9	40.0	42.7	38.5	34.2	37.4	43.9	42.4	41.8
Share of net group loans to customers	12.7	12.8	12.9	12.4	12.5	12.8	13.0	13.1	14.1
Net loans and financial commitments in stage 3, per cent of net
loans to customers 1) 3)	2.1	2.2	2.5	2.7	2.5	2.7	2.2	2.4	3.3
Provision ratio (per cent) 2) 3)	41.9	43.2	42.3	45.8	50.1	54.0	56.0	62.6	50.8
Impairment in stage 3, relative to net loans, annualised 3)	(0.66)	(0.03)	0.12	(0.02)	(0.44)	(0.04)	(0.66)	(0.10)	(0.10)

1) As a result of IFRS 9, unutilized credit lines and other financial commitments have been included.

2) The provision ratio includes impairment on loans and financial commitments as a percentage of gross loans and financial commitments in stage 3.

3) Volumes in the Baltics have been excluded in all periods.

The figures are based on the financial accounts.

2.2.1 DNB's market shares in Norway as at 31 March 2019

1) Includes the public sector.

Source: Statistics Norway and Finance Norway

2.2.2 Development in market shares, loans and deposits

Retail customers

	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March
Per cent	2019	2018	2018	2018	2018	2017	2017	2017	2017
Total loans to households 1) 2)	24.0	24.0	24.2	24.4	24.5	24.7	24.7	24.8	24.9
Bank deposits from households 1) 3)	28.9	29.1	29.1	29.3	29.3	29.5	29.4	29.6	29.8

Corporate customers

	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March
Per cent	2019	2018	2018	2018	2018	2017	2017	2017	2017
Total loans to corporate customers 4)	11.9	11.3	11.2	11.1	10.9	11.0	11.2	11.4	11.3
Deposits from corporate customers 5)	36.2	36.1	38.5	39.3	37.7	37.2	37.7	38.2	38.0

Based on nominal values.

1) Households are defined as employees, recipients of property income, pensions and social contributions, students etc., housing cooperatives etc.,

unincorporated enterprises within households and non-profit institutions serving households.

2) Total loans include all credits extended to Norwegian customers by domestic commercial and savings banks, state banks, insurance companies and finance companies.

3) Domestic commercial and savings banks.

4) Total loans include all credits extended to Norwegian customers by domestic commercial and savings banks, state banks, insurance companies, finance companies and foreign institutions, as well as bonds and commercial paper. Excluding loans to financial institutions, central government and social security services.

5) Excluding deposits from financial institutions, central government and social security services.

Source: Statistics Norway and DNB

2.2.3 DNB Livsforsikring - market shares

	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March
Per cent	2019	2018	2018	2018	2018	2017	2017	2017	2017
Insurance funds including products with a choice of investment
profile	21.1	21.0	21.3	21.3	21.6	22.0	22.1	22.3	22.4
Corporate market - defined benefit	41.4	41.3	41.3	41.2	41.6	41.6	41.7	42.0	41.5
Corporate market - defined contribution 1)	28.8	28.5	28.7	28.6	28.6	28.9	28.8	28.9	28.9
Retail market	39.6	40.0	40.7	41.6	41.9	41.6	43.8	44.4	45.0

1) Paid-up policies with choice of investment profile, which stem from defined-benefit schemes, are not included in defined-contribution schemes.

Source: Finance Norway

2.2.4 DNB Asset Management - market shares retail market

	31 May	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Per cent	2019	2019	2018	2018	2018	2018	2017	2017	2017
Equity funds	34.0	33.8	32.5	32.1	32.1	30.9	31.2	30.8	30.4
Balanced funds 1)	39.7	41.6	41.0	41.0	40.3	40.1	38.1	38.0	38.7
Fixed-income funds	26.4	26.7	26.4	25.2	25.0	23.8	26.6	25.7	25.4
Total mutual funds	32.2	32.4	31.5	31.1	31.0	29.8	30.7	30.1	29.9

1) Include hedge funds.

Source: Norwegian Mutual Fund Association

2.3.1 Personal customers (PC) - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	3 374	3 380	3 465	3 336	3 249	3 402	3 518	3 429	3 306
Net other operating income	1 282	1 143	1 313	1 269	1 337	1 198	1 154	1 376	1 392
Total income	4 657	4 523	4 778	4 605	4 586	4 600	4 672	4 805	4 698
Operating expenses	(2 133)	(2 087)	(2 281)	(1 997)	(2 114)	(1 993)	(1 978)	(2 086)	(2 111)
Pre-tax operating profit before impairment	2 524	2 436	2 497	2 608	2 472	2 606	2 693	2 719	2 587
Net gains on fixed and intangible assets			49				(0)		(0)
Impairment of financial instruments	(76)	(101)	(89)	(75)	(101)	(53)	(137)	(80)	(100)
Pre-tax operating profit	2 448	2 335	2 457	2 533	2 371	2 553	2 557	2 639	2 486
Tax expense	(612)	(584)	(614)	(633)	(593)	(638)	(639)	(660)	(622)
Profit from operations held for sale, after taxes
Profit for the period	1 836	1 751	1 843	1 900	1 778	1 915	1 917	1 979	1 865
Average balance sheet items in NOK billion:
Loans to customers 1)	781.0	773.5	770.8	764.4	755.4	749.2	743.6	730.9	719.1
Deposits from customers 1)	418.9	413.4	410.0	418.0	406.2	401.3	404.0	406.8	399.1
Assets under management	86.9	83.7	88.3	90.8	88.0	87.0	86.1	83.8	82.4
Allocated capital 2)	48.4	47.7	47.0	46.3	47.4	47.1	39.8	38.9	39.4
Key figures in per cent:
Cost/income ratio	45.8	46.1	47.7	43.4	46.1	43.3	42.3	43.4	44.9
Ratio of deposits to loans	53.6	53.4	53.2	54.7	53.8	53.6	54.3	55.6	55.5
Return on allocated capital, annualised 2)	15.2	14.9	15.5	16.3	15.0	16.5	19.1	20.2	19.0

Loans to personal customers including loans transferred to DNB Livsforsikring

Personal Banking Norway will continue to manage the portfolio on behalf of DNB Livsforsikring. See specification of the effects of the transfer on net interest income and loans to customers in the table below:

Amounts in NOK billion	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Loans to customers 1)	781.0	773.5	770.8	764.4	755.4	749.2	743.6	730.9	719.1
Home mortgages transferred to DNB Livsforsikring - assets under management	14.2	14.7	15.3	16.0	16.7	17.5	18.3	19.9	21.1
Loans to personal customers	795.2	788.3	786.1	780.3	772.1	766.7	761.9	750.9	740.2
Net interest income on the transferred portfolio (NOK million)	25	26	28	27	27	29	30	37	36

1) Loans to customers include accrued interest, impairment and value adjustments. Correspondingly, deposits from customers include accrued interest.

2) Allocated capital corresponds to the external capital adequacy requirement (Basel III) which must be met by the Group.

The establishment of Fremtind affects both inocome and cost in this segment. Up until year-end 2018, the activities in DNB Forsikring were entierly consolidated into the Personal customer segment, while as from January 2019, the segment's profit from the non-financial insurance activities will consist of sales commissions from Fremtind.

2.3.2 PC - Risk classification of portfolio

Based on DNB's risk classification system. The volumes represent the expected outstanding amount in the event of default. PD = probability of default.

2.3.3 PC - Exposure at default by industry segment as at 30 June 2019

2.3.4 PC - Distribution of loan to value

Loan to value per risk grade as at 30 June 2019

		Risk grade			Share of loan to
		Low Moderate	High	Total	value in per cent *)
Loan to value in NOK billion 1)
0-40	113	20	1	134	16.3 %
40-60	235	50	2	287	34.9 %
60-75	175	47	3	224	27.3 %
75-85	97	32	3	132	16.1 %
>85	32	12	1	45	5.5 %
Total exposure at default	652	160	10	822	100.0 %

		30 June 201 31 March 2031 Dec. 2018
*) Development in loan to value	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
	2019	2019	2018	2018	2018	2018	2017	2017	2017
Loan to value in per cent 1)
0-40	16.3 %	15.6 %	15.7 %	16.8 %	16.9 %	15.4 %	16.4 %	17.5 %	18.1 %
40-60	34.9 %	32.9 %	32.6 %	34.4 %	34.2 %	30.8 %	32.2 %	33.8 %	34.8 %
60-75	27.3 %	28.1 %	28.5 %	28.3 %	28.9 %	30.7 %	30.8 %	30.0 %	30.5 %
75-85	16.1 %	16.4 %	16.1 %	15.2 %	14.7 %	15.4 %	14.1 %	12.6 %	12.2 %
>85	5.5 %	7.0 %	7.0 %	5.2 %	5.2 %	7.7 %	6.5 %	6.0 %	4.3 %
Total	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %	100.0 %
Average loan to value	59.6 %	60.5 %	60.3 %	59.1 %	58.9 %	60.8 %	59.6 %	58.5 %	57.7 %
Total exposure at default (NOK billion)	822	812	803	799	790	779	771	762	750
Total drawn amount (NOK billion)	740	731	724	722	715	705	699	690	680

1) The total exposure (EAD) is included in the actual collateral category.

Distribution of home mortgages in the personal customers segment within actual collateral categories. The volumes represent the IRBapproved mortgage portfolio and are the expected outstanding amount in the event of default.

Development in loan to value

2.3.5 DNB Boligkreditt - Average mortgage lending - volumes and spreads

Amounts in NOK billion	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Average loans to customers	633	629	627	623	619	620	619	615	611
Spreads measured against actual funding costs (per cent)	0.60	0.62	0.73	0.68	0.65	0.87	0.91	0.90	0.81

2.3.6 DNB Eiendom - Residential real estate broking in Norway

	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Number of properties sold	6 994	5 723	5 155	5 810	7 233	5 365	4 945	5 727	7 077
Fees on real estate broking (NOK million)	344	272	248	272	350	255	233	270	344
Market shares (per cent) 1)	18.3	18.6	17.9	17.9	19.0	19.9	19.0	19.7	19.9

1) Management's estimates.

2.4.1 Small and medium-sized enterprises (SME) - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	2 581	2 504	2 474	2 387	2 364	2 306	2 281	2 141	2 121
Net other operating income	577	584	527	527	558	545	501	527	515
Total income	3 157	3 088	3 001	2 914	2 922	2 851	2 782	2 668	2 636
Operating expenses	(1 140)	(1 118)	(1 111)	(1 001)	(1 054)	(1 063)	(1 109)	(1 053)	(1 053)
Pre-tax operating profit before impairment	2 017	1 971	1 890	1 913	1 868	1 788	1 673	1 614	1 582
Net gains on fixed and intangible assets	(0)	(0)		2	1	0	(1)		(0)
Impairment of financial instruments	(261)	(176)	(101)	(217)	(33)	(215)	(150)	(146)	(127)
Profit from repossessed operations 1)	(1)	3	4	(1)	(1)	5	11	30	(17)
Pre-tax operating profit	1 755	1 798	1 794	1 698	1 835	1 578	1 534	1 498	1 438
Tax expense	(439)	(450)	(448)	(424)	(459)	(395)	(383)	(375)	(359)
Profit for the period	1 316	1 349	1 345	1 273	1 376	1 184	1 150	1 124	1 078
Average balance sheet items in NOK billion:
Loans to customers 2)	320.4	315.3	310.5	302.7	297.1	293.4	286.4	277.9	274.3
Deposits from customers 2)	217.7	212.2	212.1	215.9	210.4	207.0	210.5	208.6	205.2
Assets under management	115.0	111.4	108.1	106.5	101.6	99.4	95.2	89.6	86.3
Allocated capital 3)	32.2	31.2	29.2	28.6	28.1	27.9	26.3	25.9	26.1
Key figures in per cent:
Cost/income ratio	36.1	36.2	37.0	34.3	36.1	37.3	39.9	39.5	40.0
Ratio of deposits to loans	68.0	67.3	68.3	71.3	70.8	70.5	73.5	75.0	74.8
Return on allocated capital, annualised 3)	16.4	17.5	18.3	17.7	19.6	17.2	17.4	17.2	16.6

1) Profits from repossessed operations which are fully consolidated in the DNB Group are presented net under "Profit from repossessed operations" under the various segments.

2) Loans to customers include accrued interest, impairment and value adjustments. Correspondingly, deposits from customers include accrued interest.

3) Allocated capital corresponds to the external capital adequacy requirement (Basel III) which must be met by the Group.

2.4.2 SME - Risk classification of portfolio

Based on DNB's risk classification system. The volumes represent the expected outstanding amount in the event of default. PD = probability of default.

2.4.3 SME - Exposure at default by industry segment as at 30 June 2019

2.5.1 Large corporates and international customers (LCI) - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	3 228	3 055	3 141	3 020	3 099	2 851	3 041	3 211	3 330
Net other operating income	1 481	1 300	1 515	1 156	1 481	1 289	1 226	1 531	1 524
Total income	4 709	4 355	4 657	4 176	4 580	4 140	4 267	4 742	4 854
Operating expenses	(1 752)	(1 763)	(1 894)	(1 648)	(1 646)	(1 702)	(1 741)	(1 896)	(2 027)
Pre-tax operating profit before impairment	2 957	2 592	2 763	2 528	2 934	2 438	2 526	2 846	2 827
Net gains on fixed and intangible assets	(0)	(0)	(0)	0	0	0	0	(3)	18
Impairment of financial instruments	(110)	(39)	(45)	281	189	598	(99)	(642)	(362)
Profit from repossessed operations 1)	(47)	(86)	(151)	(98)	(17)	2	(13)	(2)	(4)
Pre-tax operating profit	2 800	2 467	2 567	2 711	3 106	3 039	2 414	2 199	2 479
Tax expense	(672)	(592)	(590)	(624)	(714)	(699)	(676)	(616)	(694)
Profit from operations held for sale, after taxes	0	2	1	(11)			(0)		(0)
Profit for the period	2 128	1 877	1 978	2 076	2 392	2 340	1 738	1 583	1 785
Average balance sheet items in NOK billion:
Loans to customers 2)	441.8	431.1	415.8	413.7	403.8	402.6	422.7	485.8	508.4
Deposits from customers 2)	306.1	302.3	308.2	316.4	321.3	317.9	337.8	377.2	391.9
Assets under management	221.2	209.6	206.1	210.6	209.4	213.6	213.7	207.8	202.9
Allocated capital 3)	65.7	64.1	63.3	65.2	68.3	70.0	73.7	82.4	86.1
Key figures in per cent:
Cost/income ratio	37.2	40.5	40.7	39.5	35.9	41.1	40.8	40.0	41.8
Ratio of deposits to loans	69.3	70.1	74.1	76.5	79.5	79.0	79.9	77.6	77.1
Return on allocated capital, annualised 3)	13.0	11.9	12.4	12.6	14.0	13.6	9.4	7.6	8.3

1) Profits from repossessed operations which are fully consolidated in the DNB Group are presented net under "Profit from repossessed operations" under the various segments.

2) Loans to customers include accrued interest, impairment and value adjustments. Correspondingly, deposits from customers include accrued interest.

3) Allocated capital corresponds to the external capital adequacy requirement (Basel III) which must be met by the Group.

2.5.2 LCI - Risk classification of portfolio

Based on DNB's risk classification system. The volumes represent the expected outstanding amount in the event of default. PD = probability of default.

2.5.3 LCI - Exposure at default by industry segment as at 30 June 2019

2.6.1 Other operations - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	398	350	531	409	340	449	22	226	274
Net other operating income	1 739	1 364	1 406	1 047	637	692	2 489	1 465	1 470
Total income	2 137	1 714	1 938	1 455	977	1 141	2 512	1 691	1 744
Operating expenses	(1 476)	(1 138)	(1 764)	(1 349)	(1 139)	(1 254)	(2 144)	(1 461)	(1 341)
Pre-tax operating profit before impairment	660	576	173	107	(162)	(113)	367	230	403
Net gains on fixed and intangible assets	(2)	1 740	0	(5)	464	17	(35)	754	(0)
Impairment of financial instruments	(3)	(1)	(0)	0	(0)	0	(16)	1	(7)
Profit from repossessed operations 1)	47	82	147	99	18	(7)	2	(28)	21
Pre-tax operating profit	702	2 397	320	201	320	(103)	319	956	416
Tax expense	182	261	1 529	253	239	318	1 252	(27)	107
Profit from operations held for sale, after taxes	(30)	(53)	(142)	(30)	(21)		(3)	33	(14)
Profit for the period	854	2 605	1 707	423	538	215	1 568	962	509
Average balance sheet items in NOK billion:
Loans to customers	123.9	123.4	113.8	113.3	108.0	108.9	116.8	69.4	63.9
Deposits from customers	25.5	49.3	39.7	69.0	56.8	81.6	112.8	67.1	59.8

1) Profits from repossessed operations which are fully consolidated in the DNB Group are presented net under "Profit from repossessed operations" under the relevant segments, with an opposing entry in Other operations. The repossessed operations are fully consolidated in Other operations.

DNB's share of profit in associated companies (most importantly Luminor, Vipps and Fremtind) is included in this segment.

2.7.1 Total DNB Markets activity - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	244	236	262	235	217	266	(34)	22	54
Net fees and commissions	633	465	719	327	641	390	570	458	550
Net financial items	512	717	384	621	608	1 148	1 200	1 264	1 035
Total income	1 390	1 418	1 365	1 182	1 466	1 804	1 735	1 744	1 639
Operating expenses	(761)	(775)	(746)	(728)	(756)	(758)	(789)	(660)	(745)
Pre-tax operating profit	628	643	619	454	710	1 045	946	1 084	894
Tax expense	(157)	(161)	(149)	(109)	(170)	(251)	(218)	(249)	(206)
Profit for the period	471	482	470	345	540	795	728	835	689
Average balance sheet items in NOK billion: Allocated capital 1)	9.4	9.7	9.0	9.7	10.9	12.3	12.2	13.0	14.0
Key figures in per cent:
Cost/income ratio	54.8	54.7	54.6	61.6	51.6	42.0	45.5	37.9	45.4
Return on allocated capital, annualised 1)	20.1	20.2	20.8	14.1	19.8	26.2	23.6	25.5	19.8

1) Allocated capital corresponds to the external capital adequacy requirement (Basel III) which must be met by the Group.

2.7.2 Total DNB Markets activity - Break down of revenues

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Fixed income, currencies and commodities	653	511	584	468	519	495	584	558	558
Equities	207	227	197	179	244	186	204	148	210
IBD	356	247	507	157	390	288	416	289	338
Securities services	61	53	57	49	58	51	43	52	71
Interest income on allocated capital	19	17	15	10	9	6	5	7	8
Total customer revenues	1 296	1 055	1 360	864	1 220	1 027	1 252	1 053	1 186
Fixed income, currencies and commodities	77	335	(25)	309	247	751	461	659	434
Equities	3	14	17	1	(9)	19	16	26	11
Interest income on allocated capital	14	14	13	8	9	7	5	6	9
Total risk management revenues	94	363	5	318	246	777	483	691	454
Total income	1 390	1 418	1 365	1 182	1 466	1 804	1 735	1 744	1 639

2.7.3 Total DNB Markets activity - Value-at-Risk

	30 June 2019	Second quarter 2019
Amounts in NOK thousand	Actual		Average Maximum	Minimum
Currency risk	2 030	2 241	5 920	938
Interest rate risk	20 950	22 309	26 320	18 670
Equities	2 186	4 043	6 562	2 060
Diversification effects 1)	(1 460)	(1 793)
Total	23 706	26 801

1) Diversification effects refer to currency and interest rate risk only.

Value-at-Risk is the maximum loss that could be incurred on trading positions from one day to the next at a 99 per cent confidence level.

2.7.4 DNB Livsforsikring Group - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Value-adjusted financial result 1)	2 435	3 730	(757)	2 224	2 283	1 074	1 944	2 215	2 429
Guaranteed return on policyholders' funds	(1 473)	(1 473)	(1 489)	(1 485)	(1 498)	(1 487)	(1 513)	(1 496)	(1 512)
Financial result after guaranteed returns	962	2 257	(2 247)	738	786	(413)	430	719	917
+ From market value adjustment reserve	(566)	(1 865)	2 327	(812)	(892)	991	(492)	630	(298)
Recorded interest result before the application of/(transfers to) additional allocations	395	392	81	(74)	(106)	578	(62)	1 349	619
Application of/(transfers to) additional allocations	(20)	20	(14)	28	7	6	(1 010)		(38)
Recorded interest result	376	412	67	(46)	(100)	584	(1 072)	1 349	581
Risk result	80	69	72	58	35	100	117	79	34
Administration result	66	64	37	79	86	67	70	67	77
Upfront pricing of risk and guaranteed rate of return	26	28	31	35	30	36	25	33	34
Provisions for higher life expectancy, group pension 2)							(239)	(111)	(242)
Allocations to policyholders, products with guaranteed rates of return	(365)	(464)	(74)	31	53	(650)	1 263	(1 205)	(386)
Return on corporate portfolio	97	235	289	15	106	82	204	65	349
I Pre-tax operating profit - pensions with guarantees	280	343	423	172	211	219	368	277	447
Recorded interest result	80	19	114	1	1	87	(36)	328	75
Risk result	23	12	(39)	82	61	19	(24)	88	33
Administration result	86	82	75	76	68	66	71	50	50
Upfront pricing of risk and guaranteed rate of return	25	24	25	25	26	25	27	26	27
Allocations to policyholders, products with guaranteed rates of return	(63)	(6)	(97)	16	14	(70)	14	(308)	(54)
Interest on allocated capital	8	16	20	1	7	6	16	8	29
II Pre-tax operating profit - new pension products	159	148	97	200	178	133	69	193	161
Recorded interest result	5	(1)	4	5	4	5	5	4	5
Risk result	(1)	19	(7)	28	(36)	23	4	20	16
Administration result	8	2	5	3	2	0	4	(1)	1
Interest on allocated capital	1	1	1	0	0	0	1	0	2
III Pre-tax operating profit - risk products	12	22	4	36	(30)	28	13	24	23
Pre-tax operating profit (I + II + III)	451	513	525	408	359	381	450	494	631
Tax expense	(88)	(118)	692	(83)	(65)	(67)	96	(97)	(51)
Profit	363	395	1 216	325	294	314	546	397	580

1) Excluding unrealised gains on long-term securities.

2) At year-end 2017, the required increase in reserves due to new life expectancy assumptions were fully financed.

2.7.4 DNB Livsforsikring Group - Financial performance (continued)

Full year figures

Amounts in NOK million	YTD 2019	2018	2017	2016	2015	2014
Value-adjusted financial result 1)	6 165	4 824	9 055	7 973	8 749	10 826
Guaranteed return on policyholders' funds	(2 946)	(5 960)	(6 002)	(6 044)	(6 268)	(6 710)
Financial result after guaranteed returns	3 219	(1 136)	3 053	1 929	2 481	4 116
+ From market value adjustment reserve	(2 432)	1 614	(705)	8	537	(235)
Recorded interest result before the application of/(transfers to) additional allocations	787	478	2 348	1 937	3 018	3 882
Application of/(transfers to) additional allocations		28	(1 010)	(753)	(855)	(844)
Recorded interest result	787	506	1 338	1 185	2 163	3 038
Risk result	149	266	308	448	599	468
Administration result	130	269	295	327	291	228
Upfront pricing of risk and guaranteed rate of return	54	132	130	288	535	647
Provisions for higher life expectancy, group pension			(621)	(1 452)	(3 141)	(2 909)
Allocations to policyholders, products with guaranteed rates of return	(829)	(640)	(834)	(455)	(802)	(913)
Return on corporate portfolio	332	492	736	439	500	652
I Pre-tax operating profit - pensions with guarantees	623	1 025	1 351	779	145	1 212
Recorded interest result	100	204	478	110	303	568
Risk result	36	122	120	165	148	186
Administration result	168	285	214	141	167	123
Upfront pricing of risk and guaranteed rate of return	49	101	108	126	123	104
Transferred from/(to) security reserve						(16)
Allocations to policyholders, products with guaranteed rates of return	(70)	(137)	(438)	(38)	(207)	(442)
Interest on allocated capital	24	34	67	38	45	52
II Pre-tax operating profit - new pension products	307	609	548	543	579	575
Recorded interest result	4	19	18	16	26	31
Risk result	18	7	63	123	114	51
Administration result	9	11	3	(9)	(23)	(27)
Transferred from/(to) security reserve						(2)
Allocations to policyholders, products with guaranteed rates of return		(0)
Interest on allocated capital	2	2	4	2	3	4
III Pre-tax operating profit - risk products	34	39	88	133	119	57
Pre-tax operating profit (I + II + III)	964	1 672	1 987	1 455	843	1 844
Tax expense	(206)	477	(116)	(144)	692	(252)
Profit	758	2 150	1 870	1 311	1 535	1 592

1) Excluding unrealised gains on long-term securities.

2.7.5 Reconciliation of the DNB Livsforsikring Group's and the DNB Group's financial statements

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
DNB Group:
Net financial result, DNB Livsforsikring	144	218	331	27	92	51	156	133	361
Net risk result, DNB Livsforsikring	103	100	26	167	60	142	98	187	83
Net financial and risk result in DNB Livsforsikring Group	247	318	357	195	152	192	254	320	444
Eliminations in the group accounts	38	38	30	20	11	13	12	14	10
Net financial and risk result from DNB Livsforsikring Group	285	356	387	215	162	205	266	306	454
DNB Livsforsikring Group:
Recorded interest result	461	430	185	(40)	(94)	677	(1 103)	1 681	660
Return on corporate portfolio	105	252	310	16	114	88	221	73	380
- Administration result - corporate portfolio	(6)	(6)	(6)	(5)	(5)	(5)	(1)	(2)	(3)
Provisions for higher life expectancy, group pension							(239)	(111)	(242)
Allocations to policyholders, products with guaranteed rates of
return	(428)	(470)	(171)	47	67	(719)	1 277	(1 512)	(440)
Risk result	103	100	26	167	60	142	98	187	83
Net financial and risk result in DNB Livsforsikring Group	247	318	357	195	152	192	254	320	444
Eliminations in the group accounts	38	38	30	20	11	13	12	14	10
Net financial and risk result from DNB Livsforsikring Group	285	356	387	215	162	205	266	335	454
DNB Group:
Commission and fee income etc. *)	532	505	522	515	519	508	496	491	502
Commission and fee expenses etc. **)	(103)	(89)	(95)	(92)	(95)	(91)	(94)	(89)	(92)
Other income	3	3	5	4	2	4	8	3	6
Operating expenses	(228)	(225)	(264)	(214)	(219)	(232)	(215)	(233)	(229)
Administration result including upfront pricing of risk and
guaranteed rate of return	204	195	168	213	207	188	196	173	187
DNB Livsforsikring Group:
Upfront pricing of risk and guaranteed rate of return	51	52	56	60	56	61	52	59	61
Administration result	159	148	118	158	156	132	145	117	128
+ Administration result - corporate portfolio	(6)	(6)	(6)	(5)	(5)	(5)	(1)	(2)	(3)
Administration result including upfront pricing of risk and guaranteed rate of return	204	195	168	213	207	189	196	173	187

*) Details on commisions and fee income etc. for product groups

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
New pension products
- administration income	245	236	240	227	229	226	219	207	210
- upfront pricing	25	24	25	25	26	25	27	26	27
Risk products
- administration income	38	34	38	32	32	32	32	30	30
Pensions with guarantees
Defined benefit:
- administration income	41	46	41	43	43	45	49	47	49
- upfront pricing	26	28	31	35	30	36	25	33	34
Paid-up policies:
- administration income	93	82	89	89	92	81	85	82	84
Previously established individual products:
- administration income	65	56	59	63	66	61	59	65	67
Commisions and fee income etc. excl. DNB Pensjonstjenester	532	505	522	515	519	508	496	491	502

**) Details on commissions and fee expenses etc. for product groups

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
New pension products	(50)	(44)	(43)	(47)	(48)	(44)	(46)	(43)	(45)
Risk products	(9)	(10)	(9)	(8)	(9)	(9)	(10)	(8)	(9)
Pensions with guarantees
Defined benefit	(5)	(4)	(4)	(6)	(5)	(5)	(5)	(5)	(4)
Paid-up policies	(26)	(19)	(24)	(18)	(20)	(20)	(20)	(19)	(20)
Previously established individual products	(9)	(8)	(10)	(9)	(9)	(9)	(9)	(9)	(9)
Corporate portfolio	(4)	(4)	(5)	(4)	(4)	(4)	(4)	(5)	(4)
Total commission and fee expenses etc.	(103)	(89)	(95)	(92)	(95)	(91)	(94)	(89)	(92)

2.7.6 DNB Livsforsikring Group - Value-adjusted return on assets

Per cent	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Return - common portfolio 1)
Financial assets
Norwegian equities	0.12	8.39	(16.76)	4.52	10.86	(1.42)	3.30	10.88	0.92
International equities 2)	3.62	12.11	(12.32)	2.68	2.90	(1.27)	5.80	4.24	3.02
Norwegian bonds	0.88	1.13	0.61	0.04	0.88	(0.30)	0.32	0.75	0.67
International bonds	2.24	3.53	(0.33)	0.44	(0.22)	(0.86)	1.02	0.97	1.44
Money market instruments	0.42	0.54	0.24	0.29	0.38	0.28	0.26	0.35	0.39
Bonds	1.06	1.04	1.14	1.12	1.12	1.11	1.34	0.74	1.24
Investment properties	2.25	1.21	2.23	1.18	1.45	1.99	1.74	1.89	2.47
Value-adjusted return on assets I 3)	1.29	2.01	(0.45)	1.18	1.21	0.54	1.04	1.18	1.29
Recorded return on assets 4) *)	1.01	0.96	0.87	0.73	0.72	1.09	0.76	1.59	1.12
Value-adjusted return on assets I, annualised 3)	5.29	8.39	(1.77)	4.81	4.96	2.19	4.24	4.84	5.29
Return - corporate portfolio
Value-adjusted return on assets I 3)	0.58	1.02	1.17	0.21	0.52	0.42	0.73	0.39	1.42

*) Recorded return broken down on sub-portfolios in the common portfolio:

Previously established individual products	1.04	1.41	0.95	0.84	0.79	0.99	0.70	2.05	1.01
Paid-up policies LG	1.04	0.97	0.88	0.74	0.74	1.35	0.60	1.45	0.82
Paid-up policies HG	1.05	0.87	0.88	0.74	0.74	0.99	1.27	1.22	2.07
Paid-up policies PS	1.01	0.96
Common portfolio	0.90	0.97	0.57	0.77	0.75	0.60	0.69	1.69	0.94
Guaranteed products for retail customers	0.97	0.48	1.20	0.37	0.39	0.95	0.48	2.46	0.77
Risk products - defined contribution	0.67	0.47	0.78	0.53	0.49	0.76	0.46	1.04	0.70
Risk products	0.69	0.12	0.71	0.71	0.71	0.71	0.70	0.73	0.74
Recorded return on assets	1.01	0.96	0.87	0.73	0.72	1.09	0.76	1.59	1.12

1) Returns are calculated on a quarterly basis.

2) International equities include DNB Livsforsikring Group's exposure in hedge funds, private equities and real estate funds.

3) Excluding changes in value of commercial paper and bonds held to maturity.

4) Excluding unrealised gains on financial instruments.

Based on IAS 39 classification. IFRS 9 has not been implemented for insurance companies.

2.7.7 DNB Livsforsikring Group - Financial exposure per sub-portfolio as at 30 June 2019

		Equities,		Bonds,	Money	Bonds	Loans
	Equities,	inter-	Bonds,	inter-	market	held to	and	Real
Amounts in NOK million	Norwegian		national Norwegian		national instruments		maturity receivables	estate	Other	Total
Common portfolio	315	2 307	2 307	613	3 839	6 549	3 429	2 289	202	21 850
Guaranteed products for retail customers	313	1 944	1 628	604	1 252	3 635	1 698	1 806	101	12 982
Paid-up policies low guarantee	535	4 250	4 376	1 163	3 689	15 578	6 454	5 021	383	41 449
Paid-up policies high guarantee	595	5 572	6 510	1 731	6 441	23 175	9 602	7 470	570	61 665
Paid-up policies profit sharing	423	3 392	3 521	936	3 004	12 536	5 194	4 041	308	33 356
Risk products - defined contribution	15	236	262	115	1 154	715	369	210	12	3 088
Risk products	21	180	66	27	791	669	249	62	3	2 068
Previously established individual products	448	3 234	2 529	1 866	3 743	9 975	3 415	4 760	266	30 235
Total common portfolio	2 666	21 114	21 199	7 055	23 914	72 831	30 409	25 660	1 846	206 693
Corporate portfolio	112	45			25 715	2 919	2 420	7	966	32 186
Total	2 778	21 159	21 199	7 055	49 629	75 750	32 830	25 667	2 812	238 879

2.7.8 DNB Livsforsikring Group - Financial exposure - common portfolio

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Equities, Norwegian 1)	2 666	3 062	2 640	3 174	3 028	2 543	2 197	2 133	2 263
Equities, international 1) 2)	21 114	21 925	22 193	22 147	20 913	19 625	15 855	16 992	18 076
Bonds, Norwegian	21 199	20 195	20 824	21 581	21 965	22 421	22 211	22 302	22 217
Bonds, international	7 055	6 853	6 601	6 629	6 607	6 628	6 983	6 919	7 309
Money market instruments	23 914	25 092	20 842	24 550	26 408	27 247	29 688	29 483	25 246
Bonds held to maturity	72 831	74 340	69 548	73 487	71 242	71 479	73 921	75 812	77 173
Loans and receivables	30 409	32 648	39 996	34 420	35 888	36 319	36 730	33 828	35 298
Real estate	25 660	20 840	20 868	20 439	20 352	20 285	20 244	19 943	19 923
Other	1 846	1 626	867	1 486	1 091	1 520	1 171	2 030	2 017
Total	206 693	206 581	204 380	207 913	207 493	208 067	208 998	209 442	209 522
Per cent
Equities, Norwegian 1)	1.3	1.5	1.3	1.5	1.5	1.2	1.1	1.0	1.1
Equities, international 1) 2)	10.2	10.6	10.9	10.7	10.1	9.4	7.6	8.1	8.6
Bonds, Norwegian	10.3	9.8	10.2	10.4	10.6	10.8	10.6	10.6	10.6
Bonds, international	3.4	3.3	3.2	3.2	3.2	3.2	3.3	3.3	3.5
Money market instruments	11.6	12.1	10.2	11.8	12.7	13.1	14.2	14.1	12.0
Bonds held to maturity	35.2	36.0	34.0	35.3	34.3	34.4	35.4	36.2	36.8
Loans and receivables	14.7	15.8	19.6	16.6	17.3	17.5	17.6	16.2	16.8
Real estate	12.4	10.1	10.2	9.8	9.8	9.7	9.7	9.5	9.5
Other	0.9	0.8	0.4	0.7	0.5	0.7	0.6	1.0	1.0
Total	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

1) Equity exposure per sub-portfolio in the common portfolio, see table above.

2) International equities include DNB Livsforsikring Group's exposure in hedge funds, private equities and real estate funds.

The figures represent net exposure after derivative contracts.

2.7.9 DNB Livsforsikring Group - Balance sheets

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Due from credit institutions	4 413	2 273	3 704	2 807	3 455	2 863	4 238	3 383	4 112
Loans to customers	26 628	26 104	27 156	28 390	29 940	30 668	39 902	37 128	38 646
Commercial paper and bonds	153 227	157 637	153 481	154 796	157 164	159 913	155 624	160 211	156 952
Shareholdings	27 993	30 443	31 573	32 085	27 962	26 003	20 304	19 332	20 154
Financial assets, customers bearing the risk	89 715	85 192	77 241	82 380	78 277	74 630	75 206	70 690	67 680
Financial derivatives	218	114	29	391	127	250	53	204	212
Investment properties	21 647	16 750	16 844	16 249	16 131	16 098	16 106	15 816	15 923
Investments in associated companies	4 432	4 581	4 554	4 511	4 461	4 483	4 433	4 312	4 242
Intangible assets	7	9	10	19	23	27	31	36	43
Deferred tax assets
Fixed assets	85	87	3	3	3	3	2	3	3
Other assets	1 412	1 574	1 221	1 037	1 139	1 222	980	923	923
Total assets	329 778	324 764	315 815	322 669	318 684	316 161	316 880	312 035	308 890
Financial derivatives	64	114	743	69	164	86	322	206	294
Insurance liabilities, customers bearing the risk	89 715	85 192	77 241	82 380	78 277	74 630	75 206	70 690	67 680
Liabilities to life insurance policyholders	206 918	206 848	204 280	207 527	207 685	207 753	208 500	208 844	209 230
Payable taxes	452	449	457	23	21	3	9	11	9
Deferred taxes	1 001	893	767	1 899	1 805	1 612	1 527	1 592	1 502
Other liabilities	1 993	2 001	2 056	1 712	1 999	2 144	1 696	1 624	1 503
Pension commitments	192	188	187	191	187	183	184	183	180
Subordinated loan capital	7 010	7 010	7 010	5 505	5 505	5 505	5 505	5 504	5 504
Total liabilities	307 345	302 694	292 740	299 305	295 645	291 916	292 949	288 654	285 905
Share capital	1 750	1 750	1 750	1 750	1 750	1 750	1 750	1 750	1 750
Share premium reserve	6 016	6 016	6 016	6 016	6 016	6 016	6 016	6 016	6 016
Other equity	14 667	14 304	15 309	15 598	15 273	16 479	16 165	15 615	15 219
Total equity	22 433	22 070	23 075	23 364	23 039	24 245	23 931	23 381	22 985
Total liabilities and equity	329 778	324 764	315 815	322 669	318 684	316 161	316 880	312 035	308 890
Insurance liablities sub-portfolio:
New pension products	107 076	102 795	94 305	99 912	96 134	92 785	93 348	90 958	88 358
Risk products	1 052	1 006	950	967	953	904	856	875	872
Pensions with guarantees	188 510	188 246	186 273	189 034	188 881	188 712	189 502	187 701	187 681
Total insurance liablilities	296 639	292 047	281 528	289 913	285 967	282 402	283 706	279 534	276 910

The figures encompass DNB Livsforsikring AS including subsidiaries as included in the DNB Group accounts before eliminations of intra-group transactions and balances.

2.7.10 DNB Livsforsikring Group - Solvency II margin

	30 June	31 March	31 Dec.	30 Sept.	30 June	31 March	31 Dec.	30 Sept.	30 June
Amounts in NOK million	2019	2019	2018	2018	2018	2018	2017	2017	2017
Share capital	1 750	1 750	1 750	1 750	1 750	1 750	1 750	1 750	1 750
Share premium	6 016	6 016	6 016	6 016	6 016	6 016	6 016	6 016	6 016
Reconciliation reserve 1)	17 496	17 478	17 431	19 064	19 659	19 284	20 520	21 446	21 312
Including effect of transitional rules 2)	6 069	5 578	5 200	2 083	4 069	3 685	7 162	8 066	8 298
Subordinated loans (Tier 1 restricted)	1 500	1 500	1 500
Total Tier 1 capital	26 762	26 744	26 697	26 829	27 425	27 050	28 286	29 212	29 078
Subordinated loans	5 500	5 500	5 500	5 500	5 500	5 500	5 500	5 500	5 500
Risk equalisation fund	601	601	601	516	516	516	516	407	407
Total Tier 2 capital	6 101	6 101	6 101	6 016	6 016	6 016	6 016	5 907	5 907
Total Tier 3 capital 5)	0	0	0	0	0	0	0	0	0
Total capital	32 863	32 844	32 797	32 846	33 441	33 066	34 302	35 119	34 985
Total capital without transitional rules	26 793	27 266	27 598	30 763	29 371	29 381	27 140	27 105	26 775
Market and counterparty risk	30 721	30 809	30 613	30 457	31 085	30 583	29 554	29 674	29 757
Life, health and non-life risk	11 755	11 556	10 973	11 274	11 155	11 294	11 328	11 179	11 516
Operational risk	1 149	1 145	1 123	1 112	1 129	1 123	1 123	1 106	1 113
Diversification 3)	(7 653)	(7 454)	(7 322)	(7 479)	(7 377)	(7 455)	(7 423)	(7 327)	(7 505)
Risk absorbing deferred tax	(4 756)	(5 017)	(5 007)	(4 856)	(5 011)	(5 068)	(5 126)	(4 813)	(4 849)
Risk-absorbing technical provisions 4)						(13 569) (13 282) (12 603) (13 981) (13 323) (12 588) (11 376) (11 978) (12 094)
Solvency capital requirement (SCR)	17 647	17 757	17 777	17 196	17 657	17 889	18 079	17 841	17 937
Minimum capital requirement (MCR)	7 483	7 470	7 332	7 312	7 681	7 590	7 908	7 468	7 469
Solvency margin with transitional rules (%)	186	185	184	191	189	185	190	197	195
Solvency margin without transitional rules (%)	150	150	152	174	164	160	146	147	144

1) Profit earned that is included as equity in the financial statements must be replaced by the reconciliation reserve in the solvency balance. The reconciliation reserve includes profit earned, but is based on the valuation of assets and liabilities in the solvency balance. The reconciliation reserve includes the present value of future profits. The value of future profits is implicitly included as a consequence of the valuation of insurance liabilities.

2) The transitional rules imply that technical insurance reserves in solvency capital calculations are carried at book value, whereby insurance liabilities are calculated based on the contracts' guaranteed rate of return. There will be a 16-year linear phase-in period for technical insurance reserves measured at fair value up to 2032. In addition, the transitional rules imply that the stress factor for equities acquired prior to 1 January 2016 will be increased from 22 to 39 per cent over a seven-year period. No spread risk charge is calculated for Government bonds issued in their domestic currency. During a transitional period, this also applies to issues in other EEA (European Economic Area) currencies. The exemption applied up to and including 2018, and there is now an escalation period up to year-end 2019.

3) Diversification between market and counterparty risk and Insurance risk.

4) Future discretionary bonus (FDB) is included in technical provisions and is risk absorbing when calculating the solvency capital requirement.

5) Deferred tax assets.

2.7.11 DNB Asset Management - Financial performance

Amounts in NOK million	2Q19	1Q19	4Q18	3Q18	2Q18	1Q18	4Q17	3Q17	2Q17
Net interest income	3	3	2	1	1	2	0	1	1
Net commission income
- from retail customers	168	155	102	105	102	92	91	90	89
- from institutional clients	158	143	279	152	142	139	228	170	153
Other income	2	4	0	3	1	1	1	2	8
Total income	330	304	383	261	246	234	320	263	251
Operating expenses 1)	(336)	(141)	(179)	(129)	(125)	(114)	(148)	(121)	(116)
Pre-tax operating profit	(6)	163	204	132	120	120	173	142	134
Tax expense	(17)	(41)	(32)	(39)	(40)	(31)	(33)	(35)	(34)
Profit for the period	(23)	122	172	93	80	89	139	106	101
Assets under management (NOK billion) 2)
Institutional	528	529	499	517	508	504	512	497	488
- of which DNB Livsforsikring Group 3)	275	278	266	273	269	265	265	264	259
Retail	95	93	86	92	88	82	84	79	76
Total	623	623	584	609	596	586	596	576	564
Key figures
Cost/income ratio (%)	101.8	46.4	46.8	49.3	51.0	48.8	46.1	46.1	46.4
Assets under management - net inflow *) Changes from previous quarters (NOK million)
Retail market	(48)	822	(184)	1 592	1 511	1 130	4 878	1 535	1 136
Institutional clients	(11 143)	7 038	267	1 120	(7 652)	2 149	2 971	1 937	(777)
Total	(11 191)	7 861	82	2 711	(6 141)	3 280	7 848	3 472	359
*) Excluding dividends:
Retail market		344	-	-	-	245	-	-	-
Institutional clients		3 838	-	-	-	2 657	-	-	-
Total	-	4 182	-	-	-	2 902	-	-	-
Performance fee	12	(0)	112	11	13	(1)	70	41	27

1) A provision for a legal claim of NOK 200 million related to the DNB Norge case was recorded in the second quarter of 2019.

2) Assets under management and assets under operation at end of period.

Chapter 3 - The Norwegian economy

3.1.1 Basic information about Norway

Area	385 199 square kilometres
Population	5.3 million
Fertility rate	1.6
Life expectancy	M: 81.0 F: 84.4
Work participation rate, per cent 15-74 years	69.9 (M: 72.6 F:67.1)
Gross domestic product 2018	USD 399.9 billion
GDP per capita 2018	USD 75 784
Rating	AAA, Aaa
Currency exchange rate used	8.13 USD/NOK (Average 2018)
Current balance 2018	USD 35 billion or 8.1 per cent of GDP

Source: Statistics Norway

3.1.2 Government net financial liabilities 2018

Source: OECD Economic Outlook No. 105 database, May 2019 (Norway: EO 104/November 2018)

3.1.3 GDP growth mainland Norway and unemployment rate

Source: Thomson Datastream, Statistics Norway

3.1.4 Contribution to volume growth in GDP, mainland Norway

Per cent	2016	2017	2018	F 2019	F 2020	F 2021	F 2022
Household demand	1.1	1.6	0.6	0.9	1.2	1.2	1.2
Gross fixed capital formation, mainland companies	1.4	0.9	0.2	0.3	0.2	0.2	0.2
Gross fixed capital formation, petroleum activity	0.7	(0.3)	0.2	1.3	0.1	(0.3)	(0.2)
Public sector demand	1.0	0.9	0.8	0.4	0.6	0.6	0.6
Exports, mainland Norway	(1.5)	(0.0)	0.4	0.6	0.7	0.7	0.7
Imports, mainland Norway	1.1	1.2	0.7	0.9	0.9	0.6	0.8
Changes in stocks and statistical discrepancies	(0.5)	0.1	0.5	(0.2)
GDP, mainland Norway	1.1	2.0	2.2	2.4	2.1	1.9	1.8

Source: Statistics Norway and DNB Markets

3.1.5 Composition of GDP in 2018 3.1.6 Composition of exports in 2018

Source: Statistics Norway, annual national accounts 13 May 2019

3.1.7 Key macro-economic indicators, Norway

Per cent	2016	2017	2018	F 2019	F 2020	F 2021	F 2022
GDP growth
- mainland Norway	1.1	2.0	2.2	2.4	2.1	1.9	1.8
- Norway, total	1.2	2.0	1.4	1.8	1.9	1.7	1.5
Private consumption	1.3	2.2	2.0	1.8	2.2	2.2	2.2
Gross fixed investment	5.2	3.6	0.9	4.0	2.1	0.4	0.9
Inflation (CPI)	3.6	1.8	2.7	2.3	1.9	1.8	1.9
Savings ratio 1)	7.5	6.9	6.7	6.8	7.0	7.3	7.6
Unemployment rate	4.8	4.2	3.9	3.8	3.7	3.7	3.8

1) Per cent of household disposable income.

Source: Statistics Norway and DNB Markets

3.1.8 Credit market, 12 month percentage growth

Source: Thomson Datastream, Statistics Norway

3.1.9 Deposit market, 12 month percentage growth

Source: Thomson Datastream, Statistics Norway

3.1.10 House prices

Indices: 1985 = 100

Source: Real Estate Norway, Finn.no, Eiendomsverdi AS, NEF, Statistics Norway and DNB Markets

3.1.11 Household interest burden 1) and debt burden 2)

1) Interest expenses after tax as a percentage of disposable income.

2) Loan debt as a percentage of disposable income.

Source: Statistics Norway, DNB Markets

Appendix

Disclosure for main features of regulatory capital instruments

Disclosure of main features of regulatory

capital instruments as at 30 June 2019
	Ordinary shares			Additional Tier 1 capital
		NOK Notes	NOK Notes	USD Notes	USD Notes	NOK Notes
1. Issuer	DNB Group	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA
2. Unique identifier (e.g. CUSIP, ISIN, or Bloomberg identifier for private placement)	NO0010031479	NO0010730708	NO0010767957	XS1207306652	XS1506066676	NO0010858749
3. Governing law for the instrument	Norway	English 9)	English 9)	English 9)	English 9)	English 9)
Regulatory treatment: 4. Transitional rules	Common Equity Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1
5. Post-transitional rules	Common Equity Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1	Additional Tier 1
6. Eligible at ind. company/group/group & ind. company level	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group
7. Instrument type	Common shares	Other additional Tier 1	Other additional Tier 1	Other additional Tier 1	Other additional Tier 1	Other additional Tier 1
8. Amount recognised in regulatory capital (in NOK million as at 30 June 2019)	38 151	2 150	1 400	5 903	6 120	2 700
9. Par value of instrument (amounts in millon in the relevant currency and in
NOK million)	N/A	NOK 2 150	NOK 1 400	USD 750, NOK 5 903	USD 750, NOK 6120	NOK 2 700
9b. Redemption price 9a. Issue price	Various N/A	100 100	100 100	100 100	100 100	100 100
10. Accounting classification	Shareholder's equity	Equity	Equity	Equity	Equity	Equity
11. Original date of issuance 12. Perpetual or dated	N/A N/A	26 February 2015 Perpetual	27 June 2016 Perpetual	26 March 2015 Perpetual	18 October 2016 Perpetual	27 June 2019 Perpetual
13. Original maturity date	N/A	NA	NA	NA	NA	NA
14. Issuer call subject to prior supervisory approval	No	Yes	Yes	Yes	Yes	Yes
15. Optional call date, contingent call dates and redemption amount	N/A	26 February 2020 at par	27 June 2021 at par	26 March 2020 at par	26 March 2022 at par	27 June 2024 at par
		The issuer has the right to call at every interest payment date	The issuer has the right to call at every interest payment date	The issuer has the right to call at every interest payment date	The issuer has the right to call at every interest payment date	The issuer has the right to call at every interest payment date
16. Subsequent call dates, if applicable	N/A	thereafter 8)	thereafter 8)	thereafter 8)	thereafter 8)	thereafter 8)
Coupons/dividends:
17. Fixed or floating dividend/coupon	Floating	Floating	Floating	Fixed	Fixed	Floating
				every 5 years at 5y USD MS + 5.75%. Fixed interest reset	every 5 years at 5y USD MS + 6.50%. Fixed interest reset
18. Coupon rate and any related index 19. Existence of a dividend stopper	N/A Yes	3m Nibor +325 No	3m Nibor +525 No	407.5 No	508,0 No	3m Nibor +350 No
20a. Fully discretionary, partially discretionary or mandatory (in terms of timing)	Fully discretionary	Fully discretionary	Fully discretionary	Fully discretionary	Fully discretionary	Fully discretionary
20b. Fully discretionary, partially discretionary or mandatory (in terms of amount)	Fully discretionary	Fully discretionary	Fully discretionary	Fully discretionary	Fully discretionary	Fully discretionary
21. Existence of a step-up or other incentive to redeem	N/A	No	No	No	No	No
22. Non-cumulative or cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative	Non-cumulative
Convertible or non-convertible:
23. Convertible or non-convertible 4)	N/A	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible
24. If convertible, conversion trigger(s)	N/A	N/A	N/A	N/A	N/A	N/A
25. If convertible, fully or partially	N/A	N/A	N/A	N/A	N/A	N/A
26. If convertible, conversion rate	N/A	N/A	N/A	N/A	N/A	N/A
27. If convertible, mandatory or optional conversion	N/A	N/A	N/A	N/A	N/A	N/A
28. If convertible, specify instrument type convertible into	N/A	N/A	N/A	N/A	N/A	N/A
29. If convertible, specify issuer of instrument it converts into 30. Write-down features	N/A No	N/A Yes	N/A Yes	Yes N/A	N/A Yes	N/A Yes
31. If write-down, write-down trigger (s)	N/A	Yes	Yes	Yes	Yes	Yes
32. If write-down, full or partial	N/A	Either full or partial	Either full or partial	Either full or partial	Either full or partial	Either full or partial
33. If write-down, permanent or temporary	NA	Temporary	Temporary	Temporary	Temporary	Temporary

See footnotes on separate page.

1. Position in subordination hierarchy in liquidation (specify

2. If temporary write-down, description of revaluation mechanism N/A See footnote 10 See footnote 10 See footnote 10 See footnote 10 See footnote 10

instrument type immediately senior to instrument) Additional Tier 1 Subordinated loans Subordinated loans Subordinated loans Subordinated loans Subordinated loans 36. Non-compliant transitioned features No No No No No No 37. If yes, specify non-compliant features N/A N/A N/A N/A N/A N/A

Disclosure of main features of regulatory capital instruments as at 30 June 2019

			1000	Subordinated loans (part 1 of 3)
	EUR loan	NOK loan	NOK loan	SEK loan	SEK loan	SEK loan
1. Issuer	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA
2. Unique identifier (e.g. CUSIP, ISIN, or Bloomberg identifier for private placement)	XS1571331955	NO0010782386	NO0010782394	XS1239410043	XS1239410712	XS1551373985
3. Governing law for the instrument	English 2)	English 2)	English 2)	English 2)	English 2)	English 2)
Regulatory treatment:
4. Transitional rules	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2
5. Post-transitional rules	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2
6. Eligible at ind. company/group/group & ind. company level	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group
7. Instrument type	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt
8. Amount recognised in regulatory capital (in NOK million as at 30 June 2019)	6 316	1 400	170	2 759	920	690
9. Par value of instrument (amounts in millon in the relevant currency and in NOK million)	EUR 650, NOK 5 751	NOK 1 400	NOK 170	SEK 3000, NOK 2766	SEK 1000, NOK 922	SEK 750, NOK 708
9a. Issue price	99.841	100	100	100	100	100
9b. Redemption price	Redemption at par	Redemption at par	Redemption at par	Redemption at par		Redemption at par
10. Accounting classification	Subordinated loan capital - amortised cost	Subordinated loan capital - amortised cost	Subordinated loan capital - amortised cost	Subordinated loan capital - amortised cost	Subordinated loan capital - amortised cost	Subordinated loan capital - amortised cost
11. Original date of issuance	1 March 2017	19 January 2017	19 January 2017	28 May 2015	28 May 2015	19 January 2017
12. Perpetual or dated	Dated	Dated	Dated	Dated	Dated	Dated
13. Original maturity date	1 March 2027	19 January 2027	19 January 2027	28 May 2025	Interest date falling in or nearest to May 2025	19 January 2027
14. Issuer call subject to prior supervisory approval	Yes	Yes	Yes	Yes	Yes	Yes
15. Optional call date, contingent call dates and redemption amount	1 March 2022	The interest payment date falling in January 2022	19 January 2022	28 May 2020. Call at par.	28 May 2020. Call at par.	The interest payment date falling
16. Subsequent call dates, if applicable	Any interest payment date thereafter	Any interest payment date thereafter	Any interest payment date thereafter	N/A	N/A	Any interest payment date thereafter
Coupons/dividends:
17. Fixed or floating dividend/coupon	Fixed	Floating	Fixed to floating	Floating	Fixed	Floating
18. Coupon rate and any related index	period: 5Y EURO MS+ 115 1.25%. Thereafter/ Reset	3-month NIBOR + 175	3-month NIBOR + 1.75 per Reset/ after first call date: Fixed 3.08%. cent	3-month STIBOR + 140	1.97 %	3-month STIBOR + 170
19. Existence of a dividend stopper	No	No	No	No	No	No
20a. Fully discretionary, partially discretionary or mandatory (in terms of timing)	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory
20b. Fully discretionary, partially discretionary or mandatory (in terms of amount)	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory
21. Existence of a step-up or other incentive to redeem	No	No	No	No	No	No
22. Non-cumulative or cumulative	Cumulative	Cumulative	Cumulative	Cumulative	Cumulative	Cumulative
Convertible or non-convertible:
23. Convertible or non-convertible 4)	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible
24. If convertible, conversion trigger(s)	N/A	N/A	N/A	N/A	N/A	N/A
25. If convertible, fully or partially	N/A	N/A	N/A	N/A	N/A	N/A
26. If convertible, conversion rate	N/A	N/A	N/A	N/A	N/A	N/A
27. If convertible, mandatory or optional conversion	N/A	N/A	N/A	N/A	N/A	N/A
29. If convertible, specify issuer of instrument it converts into 28. If convertible, specify instrument type convertible into	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A	N/A N/A
30. Write-down features	No	No	No	No	No	No
31. If write-down, write-down trigger (s)	N/A	N/A	N/A	N/A	N/A	N/A
32. If write-down, full or partial	N/A	N/A	N/A	N/A	N/A	N/A
33. If write-down, permanent or temporary	N/A	N/A	N/A	N/A	N/A	N/A
34. If temporary write-down, description of revaluation mechanism	N/A	N/A	N/A	N/A	N/A	N/A

See footnotes on separate page.

1. Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) 36. Non-compliant transitioned features 37. If yes, specify non-compliant features

Senior bonds Senior bonds Senior bonds Senior bonds Senior bonds Senior bonds No No No No No No N/A N/A N/A N/A N/A N/A

Disclosure of main features of regulatory capital instruments as at 30 June 2019

				Subordinated loans (part 2 of 3)
	SEK loan	JPY loan	JPY loan	JPY loan	NOK loan	SEK loan
1. Issuer	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA
2. Unique identifier (e.g. CUSIP, ISIN, or Bloomberg identifier for private placement)	XS1551373639	NA	XS1551344705	XS1755125868	NO0010818446	NO0010818453
3. Governing law for the instrument	English 2)	English 2)	English 2)	English 2)	English 2)	English 2)
Regulatory treatment:
4. Transitional rules	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2
5. Post-transitional rules	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2
6. Eligible at ind. company/group/group & ind. company level	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group
8. Amount recognised in regulatory capital (in NOK million as at 30 June 7. Instrument type	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt
2019)	920	792	911	1 981	900	644
9. Par value of instrument (amounts in millon in the relevant currency and in NOK million)	SEK 1000, NOK 944	JPY 10 000, NOK 793	JPY 11 500, NOK 847	JPY 25 000, NOK 1776	NOK 900	SEK 700, NOK 661
9a. Issue price	100	100	100	100	100	100
9b. Redemption price	Redemption at par	Redemption at par	Redemption at par	Redemption at par	Redemption at par	Redemption at par
	Subordinated loan capital -	Subordinated loan capital -	Subordinated loan capital -	Subordinated loan capital -	Subordinated loan capital -	Subordinated loan capital -
10. Accounting classification	amortised cost	amortised cost	amortised cost	amortised cost	amortised cost	amortised cost
11. Original date of issuance 12. Perpetual or dated	19 January 2017 Dated	4 November 2016 Dated	19 January 2017 Dated	24 January 2018 Dated	13 March 2018 Dated	13 March 2018 Dated
13. Original maturity date	19 January 2027	4 November 2026	19 January 2027	24 January 2028	13 March 2028	13 March 2028
14. Issuer call subject to prior supervisory approval	Yes	Yes	Yes	Yes	Yes	Yes
15. Optional call date, contingent call dates and redemption amount	19 January 2022	4 November 2021	19 January 2022	24 January 2023	falling in (or nearest to) March The interest payment date 2023.	falling in (or nearest to) March The interest payment date 2023.
16. Subsequent call dates, if applicable	Any interest payment date thereafter	Annual call thereafter	Semiannual call thereafter	Semiannual call thereafter	Any interest payment date thereafter	Any interest payment date thereafter
Coupons/dividends:
17. Fixed or floating dividend/coupon	Fixed to floating	Fixed to floating	Fixed to floating	Fixed	Floating	Floating
	3-month STIBOR + 1.70 per Reset/ after first call date: Fixed 1.98%.	6-month JPY LIBOR + 0.97 Reset/ after first call date: Fixed 1.00%.	6-month JPY LIBOR + 0.97 Reset/ after first call date: Fixed 1.04%.	Fixed 0.75%. Reset after first call date to 5-year JPY Mid
18. Coupon rate and any related index	cent	per cent	per cent	Swap + 63.8 bps	3-month NIBOR + 110 bps	3-month STIBOR + 106 bps
19. Existence of a dividend stopper	No	No	No	No	No	No
20a. Fully discretionary, partially discretionary or mandatory (in terms of timing)	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory
20b. Fully discretionary, partially discretionary or mandatory (in terms of amount)	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory	Mandatory
21. Existence of a step-up or other incentive to redeem	No	No	No	No	No	No
22. Non-cumulative or cumulative	Cumulative	Cumulative	Cumulative	Cumulative	Cumulative	Cumulative
Convertible or non-convertible:
23. Convertible or non-convertible 4)	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible
24. If convertible, conversion trigger(s)	N/A	N/A	N/A	N/A	N/A	N/A
25. If convertible, fully or partially	N/A	N/A	N/A	N/A	N/A	N/A
26. If convertible, conversion rate	N/A	N/A	N/A	N/A	N/A	N/A
27. If convertible, mandatory or optional conversion	N/A	N/A	N/A	N/A	N/A	N/A
28. If convertible, specify instrument type convertible into	N/A	N/A	N/A	N/A	N/A	N/A
29. If convertible, specify issuer of instrument it converts into	N/A	N/A	N/A	N/A	N/A	N/A
31. If write-down, write-down trigger (s) 30. Write-down features	N/A No	N/A No	N/A No	N/A No	N/A No	N/A No
32. If write-down, full or partial	N/A	N/A	N/A	N/A	N/A	N/A
33. If write-down, permanent or temporary	N/A	N/A	N/A	N/A	N/A	N/A
34. If temporary write-down, description of revaluation mechanism	N/A	N/A	N/A	N/A	N/A	N/A

See footnotes on separate page.

1. Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) 36. Non-compliant transitioned features 37. If yes, specify non-compliant features

Senior bonds Senior bonds Senior bonds Senior bonds Senior bonds Senior bonds No No No No No No N/A N/A N/A N/A N/A N/A

Disclosure of main features of regulatory capital instruments as at 30 June 2019

		Subordinated loans (part 3 of 3)			Perpetual loans
	SEK loan	EUR loan	USD loan	USD loan	USD loan	YEN loan
1. Issuer	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA	DNB Bank ASA
2. Unique identifier (e.g. CUSIP, ISIN, or Bloomberg identifier for private placement)	NO0010818479	XS1794344827	LU0001344653	GB0040940875	GB0042636166	NA
3. Governing law for the instrument	English 2)	English 2)	English 2)	English 2)	English 2)	English 1)
Regulatory treatment:
4. Transitional rules	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2
5. Post-transitional rules	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2	Tier 2
6. Eligible at ind. company/group/group & ind. company level	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group	Ind. company and group
7. Instrument type	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt	Tier 2 subordinated debt
8. Amount recognised in regulatory capital (in NOK million as at 30 June 2019)	276	5 830	1 835	1 707	1 281	792
9. Par value of instrument (amounts in millon in the relevant currency and in
9a. Issue price NOK million)	SEK 300, NOK 283 100	EUR 600, NOK 5692 99.604	USD 215, NOK 1 692 99.15	USD 200, NOK 1 331 100	USD 150, NOK 1 769 100	JPY 10 000, NOK 655
9b. Redemption price	Redemption at par	Redemption at par	100	100	100	100
	Subordinated loan capital -	Subordinated loan capital -	Perpetual subordinated loan	Perpetual subordinated loan	Perpetual subordinated loan
10. Accounting classification	amortised cost	amortised cost	capital - amortised cost	capital - amortised cost	capital - amortised cost
11. Original date of issuance 12. Perpetual or dated	13 March 2018 Dated	20 March 2018 Dated	18 November 1985 Perpetual	28 August 1986 Perpetual	21 August 1986 Perpetual	25 February 1999 Perpetual
13. Original maturity date	13 March 2028	20 March 2028
14. Issuer call subject to prior supervisory approval	Yes	Yes	Yes	Yes	Yes	Yes
15. Optional call date, contingent call dates and redemption amount	13 March 2023	20 March 2023	November 1990	August 1991	5 years after issue	February 2029
16. Subsequent call dates, if applicable	Any interest payment date thereafter	None	Any interest payment date thereafter	Any interest payment date thereafter	Any interest payment date thereafter	Every 5 years thereafter
Coupons/dividends:
17. Fixed or floating dividend/coupon	Fixed to floating	Fixed	Floating	Floating	Floating	Fixed
	Fixed 1.61%. Reset after first call date: 3-month STIBOR +	5-year EUR Mid Swap + 0.77 Reset/ after call date: Fixed 1.125%.				4.51%. From Feb. 2029 6m
18. Coupon rate and any related index 19. Existence of a dividend stopper	106 bps No	per cent No	3m USD Libor + 25 No	6m USD Libor + 13 No	6m USD Libor + 15 No	YEN Libor + 1.65% p.a. Yes
20a. Fully discretionary, partially discretionary or mandatory (in terms of timing)	Mandatory	Mandatory	Partially discretionary	Partially discretionary	Partially discretionary	Partially discretionary
20b. Fully discretionary, partially discretionary or mandatory (in terms of amount)	Mandatory	Mandatory	Partially discretionary	Partially discretionary	Partially discretionary	Partially discretionary
21. Existence of a step-up or other incentive to redeem	No	No	No	No	No	Yes 7)
22. Non-cumulative or cumulative	Cumulative	Cumulative	Non-cumulative 6)	Non-cumulative 6)	Non-cumulative 6)	Non-cumulative 6)
Convertible or non-convertible:
23. Convertible or non-convertible 4)	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible	Non-convertible
24. If convertible, conversion trigger(s)	N/A	N/A	N/A	N/A	N/A	N/A
25. If convertible, fully or partially	N/A	N/A	N/A	N/A	N/A	N/A
26. If convertible, conversion rate	N/A	N/A	N/A	N/A	N/A	N/A
27. If convertible, mandatory or optional conversion	N/A	N/A	N/A	N/A	N/A	N/A
28. If convertible, specify instrument type convertible into	N/A	N/A	N/A	N/A	N/A	N/A
29. If convertible, specify issuer of instrument it converts into	N/A	N/A	N/A	N/A	N/A	N/A
30. Write-down features	No	No	No	No	No	No
31. If write-down, write-down trigger (s)	N/A	N/A	N/A	N/A	N/A	N/A
32. If write-down, full or partial	N/A	N/A	N/A	N/A	N/A	N/A
33. If write-down, permanent or temporary	N/A	N/A	N/A	N/A	N/A	N/A

See footnotes on separate page.

1. If temporary write-down, description of revaluation mechanism 35. Position in subordination hierarchy in liquidation (specify instrument type immediately senior to instrument) 36. Non-compliant transitioned features 37. If yes, specify non-compliant features

N/A N/A N/A N/A N/A N/A Senior bonds Senior bonds Senior bonds Senior bonds Senior bonds Senior bonds No No No No No Yes

N/A N/A N/A N/A N/A

Disclosure of main features of regulatory capital instruments - footnotes

1) Except for the subordination provisions and certain provisions relating to the payment of interest and principal, which will be governed by the laws of Norway.

2) Except for status and subordination which will be governed by the laws of Norway.

3) Under certain circumstances there will be no coupon payment if capital requirements.are breached.

4) All subordinated debt might be written down or converted according to the Guarantee Schemes Act.

5) Subject to the availability of Available Distributable Funds, the Issuer undertakes to reinstate all Converted Amounts as Notes upon the occurrence of any of the following events: (i) the Issuer or DNB ASA declares or makes a dividend (in the form of cash, stock or another instrument), an interest payment or any other payment on any share capital or any obligations of the Issuer ranking or expressed to rank junior to the Notes; or (ii) the Issuer or DNB ASA (as applicable) redeems, repurchases or otherwise acquires any of its respective share capital, or any Parity Tier 1 Securities or any obligations of the Issuer ranking or expressed to rank junior to the Notes or paysor makes available any moneys to a sinking fund or for redemption of any such share capital, Parity Tier 1 Securities or obligations other than as set out in Condition 3 of the "Terms and Conditions of the Notes".

6) Non-cumulative but cumulative under certain circumstances, e.g. dividend payment.

7) The borrower undertakes not to make any distribution to Holders of Primary Capital certificates of the Borrower or to other creditors ranking junior to the Lender while any arrears of interest (including any corresponding additional interest amount) remains outstanding in respect of the loan.

8) Subject to the outstanding principal amount of the notes being equal to their original principal amount.

9) The Notes and any non-contractual obligations arising out of or in connection with the Notes will be governed by, and construed in accordance with, English law except that (i) the provisions relating to subordination, Write-Down and Discretionary Reinstatement and any non-contractual obligations arising out of or in connection with such provisions and (ii) any other write-down or conversion of the Notes in accordance with Norwegian law and regulation applicable to the Bank from time to time, will in each case be governed by, and construed in accordance with, Norwegian law.

10) Fully discretionary reinstatement pro rata with any written-down AT1 instruments that are to be reinstated out of the same profits. Subject to the maximum write-up amount and to the MDA.

We are here. So you can stay ahead.

DNB

Mailing address: P.O.Box 1600 Sentrum N-0021 Oslo

Visiting address: Dronning Eufemias gate 30 Bjørvika, Oslo

dnb.no