DNB Bank ASA — Earnings Release 2015

Oct 22, 2015

DNB 3. quarter 2015: Strong profits and improved capital adequacy

DNB 3. quarter 2015: Strong profits and improved capital adequacy

DNB recorded profits of NOK 6 363 million in the third quarter of 2015, up NOK

743 million from the third quarter of 2014. Higher volumes and wider deposit

spreads helped raise profits.

"This is one of DNB's best quarterly performances ever, which gives us reason to

be satisfied. The figures show that the Norwegian economy is still growing, even

though the situation is challenging for many companies in oil-related

industries. I am also very pleased that our customer satisfaction scores are

continuing to improve," says Rune Bjerke, group chief executive.

There was an average increase in the healthy loan portfolio of 10.0 per cent

parallel to a 12.6 per cent increase in average deposit volumes from the third

quarter of 2014. The growth in volumes reflected the weaker Norwegian krone

rate. Lending spreads narrowed slightly during the quarter, while deposit

spreads widened. Volume-weighted interest rate spreads were unchanged compared

with the third quarter of 2014.

Increase in Tier 1 capital

Including 50 per cent of interim profits, the common equity Tier 1 capital ratio

increased from 12.6 per cent at end-September 2014, to 13.1 per cent. Based on

an unchanged dividend payout ratio from 2014 (30 per cent), the common equity

Tier 1 capital ratio was 13.4 per cent.

"DNB is one of the world's best capitalised banks, and we are continuing to

build more Tier 1 capital in line with the regulatory requirements. We are

following our plan to reach the targets set to be able

to normalise our dividend payments as soon as possible," says Bjerke.

Focus on digital products

DNB is continuing its modernisation process by developing new digital products.

"Vipps is our most important product launch in a very long time. It is hard to

believe that more than 900 000 Norwegians have downloaded the app four months

after it was introduced. We will work contiuously to build more functions into

Vipps in cooperation with our customers," says Bjerke.

DNB's customers are continuing to increase their use of the bank's digital

services, and the mobile phone will represent the largest growth. In the third

quarter, 86 per cent of savings products were sold online, which is a

significant rise from last year.

"This is the first quarter we have registered more than 40 million visits to our

mobile bank. The launch of FingerID enables even faster log-on, and some 40 000

customers already use their finger to identify themselves in the mobile bank. It

cannot be done faster than this," says Bjerke.

Increase in impairment losses

Ordinary operating expenses were on a level with the year-earlier period.

There were net reversals on impairment losses of NOK 392 million in the third

quarter.

In late September, DNB signed an agreement with Lindorff Capital AS to sell

portfolios of non-performing loans. Adjusted for this transaction, impairment

losses totalled NOK 675 million for the quarter, compared with NOK 183 million

in the third quarter of 2014.

The largest impairment losses on individual loans stemmed from the mining

industry and the shipping sector. The total level of impairment was nevertheless

below the normalised long-term level.

Key figures for the third quarter of 2015

·

Pre-tax operating profits before impairment were NOK 8.1 billion (7.6)

·

Profit for the period was NOK 6.4 billion (5.6)

·

Earnings per share were NOK 3.83 (3.45)

·

Return on equity was 14.7 per cent (14.8)

·

The ordinary cost/income ratio was 39.6 per cent (40.4)

·

The common equity Tier 1 capital ratio (transitional rules) was 13.1 per cent

(12.6)

Comparable figures for 2014 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

Rune Helland, head of Investor Relations, tel: +47 977 13 250

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

www.dnb.no/investor-relations