DNB Bank ASA — Earnings Release 2015

Jul 10, 2015

Strong quarter for DNB

Strong quarter for DNB

DNB recorded profits of NOK 5 062 million in the second quarter of 2015, up NOK

508 million from 2014. Higher volumes, wider deposit spreads and an increase in

net commissions and fees contributed to the sound performance.

"We are very satisfied with the Group's second quarter results. We have a robust

portfolio and low impairment losses on loans, and doubtful loans and guarantees

show a downward trend. In addition, we are succeeding in increasing non-lending

income, for example from real estate brokerage and interest rate and currency

hedging. We observe that our customers appreciate that DNB can provide a total

range of financial services," says Rune Bjerke, group chief executive.

Easier money transfers with DNB

At the beginning of June, DNB launched Vipps, a mobile app that conveniently and

simply transfers money between people. Initial reactions show that this is

something customers have been waiting for. After just five weeks, the app has

been downloaded more than 390 000 times, and more than 285 000 people have

started using it.

"Vipps is a success. The response from customers has been overwhelming, and we

believe that this will further reinforce our position within payment transfers.

DNB is at the forefront of digital development, but we find that our customers

are actually one step ahead of us. Such an exciting situation challenges us to

deliver continuous innovation," says Bjerke.

Sound portfolio, with reduction in non-performing loans

There was an average increase in DNB's loan portfolio of 9.6 per cent parallel

to a 7.3 per cent increase in deposit volumes from the second quarter of 2014.

The strong rise in volumes was partly due to exchange rate movements. Lending

spreads narrowed slightly during the quarter, while deposit spreads widened. The

cost/income ratio for the quarter was 42.8 per cent. Impairment losses on loans

and guarantees totalled NOK 667 million, increasing by NOK 113 million from the

second quarter of 2014.

"We have previously estimated that impairment losses on loans will be in the

range of NOK 3-4 billion in 2015. This is probably a bit too high. Based on the

Group's performance in the first half of the year and what we know today, we

expect impairment losses to total just under NOK 3 billion," says Bjerke.

Non-performing and doubtful loans and guarantees were reduced by NOK 3.0 billion

from end-June 2014, totalling NOK 13.1 billion at end-June 2015. DNB Markets

performed very well during the quarter and was a strong contributor, along with

DNB Eiendom, to the 14.5 per cent* increase in commissions and fees. During the

quarter, DNB Eiendom consolidated its position as Norway's largest real estate

broker. DNB Livsforsikring also reported strong profits.

"Buffers" in the Norwegian economy

There is still moderate growth in the global economy, and the Norwegian economy

looks set to enter a period with considerably lower growth than in the past 6-7

years.

"The Norwegian economy has important buffers which nevertheless ensure a soft

landing. Interest rate cuts are helping to sustain households' purchasing power

and to keep the Norwegian krone weak. A weak krone means higher profitability

and improved competitiveness for exporters, who are also experiencing an

increase in demand from other countries," says Bjerke.

Key figures for the second quarter of 2015

·

Pre-tax operating profits before impairment were NOK 7.4 billion (6.7)

·

Profit for the period was NOK 5.1 billion (4.6)

·

Earnings per share were NOK 3.04 (2.80)

·

Return on equity was 12.1 per cent (12.4)

·

The ordinary cost/income ratio was 42.8 per cent (43.8)

·

The common equity Tier 1 capital ratio (transitional rules) was 13.0 per cent

(12.1)

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.

*The figure has been adjusted for income from public sector activities within

life insurance that are in the process of being wound up.

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