DNB Bank ASA — Earnings Release 2014

May 8, 2014

Low impairment losses and rise in profits

Low impairment losses and rise in profits

DNB recorded profits of NOK 5 519 million in the first quarter of 2014,

up NOK 2 338 million from the first quarter of 2013. Key factors behind

the improved profit performance were a rise in value of DNB's

shareholding in Nets, very low impairment losses and an increase in net

interest income.

"The strong profits contribute significantly to enabling the Group to

satisfy the regulatory capital requirements. We are thus one step closer

to reaching our capital adequacy target for 2016," says Rune Bjerke,

group chief executive.

The common equity Tier 1 capital ratio, calculated according to the

transitional rules, rose from 10.6 per cent at end-March 2013 to 11.9

per cent. DNB's target is to achieve a common equity Tier 1 capital

ratio of 13.5-14.0 per cent by year-end 2016.

During the first quarter of 2014, an agreement to sell the Group's

shareholding in Nets was signed. The transaction is expected to be

completed in the second quarter of 2014. The increase in the value of

the shareholding in Nets gave a NOK 913 million rise in income and

helped raise the Group's Tier 1 capital ratio.

Strong competition in the home mortgage market

"There is fierce competition in the Norwegian home mortgage market. In

order to increase our competitive power in this market, we reduced

interest rates on both home mortgages and deposits in April. We are now

experiencing a slight rise in demand for home mortgages in Norway," says

Bjerke.

At end-February, the twelve-month growth rate for credit to Norwegian

households was 6.7 per cent, while DNB recorded an increase of 1.9 per

cent. Government-backed banks, in particular the Norwegian Public

Service Pension Fund, accounted for the main part of the market growth.

Compared to other private financial institutions, DNB's market share was

stable during the last few months of the twelve-month period.

Lower impairment losses

At NOK 80 million, impairment losses on loans and guarantees were low

during the first quarter. Adjusted for reversals, individual impairment

was considerably lower than in all four quarters of 2013.

"The low impairment losses in the January through March period reflect

the positive economic trend in Norway and internationally and prove that

our strong banking skills produce results. Other important factors are a

positive trend in the shipping market and very low losses in the

personal customer market," says Bjerke.

Lending spreads increased, while deposit spreads were virtually

unchanged during the quarter. Volume-weighted spreads widened by 0.05

percentage points from the first quarter of 2013, but contracted

compared with the fourth quarter of 2013. There was an average increase

of NOK 40.5 billion or 3.2 per cent in the healthy loan portfolio from

the first quarter of 2013. During the same period, deposits were up NOK

134.1 billion or 15.4 per cent.

Increased focus on small enterprises

According to current economic forecasts, a cautious recovery is expected

in both the Norwegian and the international economy during the remainder

of 2014. DNB anticipates credit growth of 3-4 per cent over the coming

year.

"A cautious recovery is good news for Norwegian companies. We need

people with good ideas and a nose for business in Norway who are willing

to take the risk of starting their own business. We will do our share to

help start-up companies in the time ahead, and we will be there for

people who are willing to take the chance," says Bjerke.

Key figures for the first quarter of 2014:

· Pre-tax operating profits before impairment were NOK 7.4 billion

(5.1)

· Profit for the period was NOK 5.5 billion (3.2)

· Earnings per share were NOK 3.39 (1.96)

· Return on equity was 15.5 per cent (10.0)

· The ordinary cost/income ratio was 41.3 per cent (52.0)

Comparable figures for the first 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

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

www.dnb.no/investor-relations