DNB Bank ASA — Earnings Release 2014

Oct 23, 2014

DNB continues to build up capital after a strong quarterly performance

DNB continues to build up capital after a strong quarterly performance

DNB recorded profits of NOK 5 686 million in the third quarter of 2014,

up NOK 805 million from the third quarter of 2013. Very low impairment

losses and rising lending volumes ensure that DNB is on schedule in

building up own funds in spite of tough competition in the banking

market.

"We are very pleased with these figures. Financially, our first priority

is to meet the capital requirements imposed by the authorities. Based on

our current earnings, we continue to build up capital and see that we

will reach the targets by the set deadline. Since 2008, we have

increased our equity by more than NOK 70 billion, and we will continue

to build up additional capital," says Rune Bjerke, group chief

executive.

DNB's common equity Tier 1 capital ratio was 12.6 per cent at end

-September 2014, including 50 per cent of interim profits. If DNB had

been able to report based on the Swedish authorities' regulations, the

Group could have reported a common equity Tier 1 capital ratio of as

much as 18.0 per cent.

Rising interest income in spite of narrower spreads

As a result of the interest rate adjustments implemented in the second

quarter of 2014, lending spreads narrowed by 0.12 percentage points from

the third quarter of 2013. Nevertheless, net interest income increased

by NOK 313 million from the year-earlier period, reflecting rising

lending volumes. There was a low level of impairment losses on loans and

guarantees, totalling NOK 183 million for the quarter, which was a

significant reduction from NOK 475 million in the third quarter of 2013.

"The low impairment losses show that we have a solid and robust

portfolio which performs well, also in a period with economic turbulence

and a falling oil price. In addition, this is a confirmation of our

sound banking skills," says Bjerke.

There was a certain reduction in total expenses, while operating

expenses, adjusted for non-recurring costs, increased by NOK 101

mil­lion from the third quarter of 2013 to the third quarter of 2014.

During the same period, the cost/income ratio declined from 43.4 to 40.4

per cent.

Strong competition in the banking market

There are more than 120 banks in Norway, and consumers can easily

compare conditions and prices between the banks. Customers look at

several factors when they choose a bank, and in DNB customers are

offered both competitive prices and the best availability in the market.

"We are experiencing tough competition for every single home mortgage,

and this competition makes both the bank and our customers more aware.

This quarter, we approved 36 000 new home mortgages. This shows that we

have attractive products and prices, something which was reinforced

after we again cut our interest rates a few weeks ago," says Bjerke.

Key figures for the third quarter of 2014:

· Pre-tax operating profit before impairment was NOK 7.6 billion (6.8)

· Profit for the period was NOK 5.7 billion (4.9)

· Earnings per share were NOK 3.49 (3.00)

· Return on equity was 15 per cent (14.4)

· The ordinary cost/income ratio was 40.4 per cent (43.4)

Comparable figures for the third quarter of 2013 in parentheses.

This information is subject to the disclosure requirements pursuant to

section 5-12 of the

Norwegian Securities Trading Act.

Contact person:

Thomas Midteide, group executive vice president, Corporate

Communications, tel.: + 47 962 32 017

T

he quarterly report, presentation and Fact Book can be downloaded from

www.dnb.no/investor-relations