DNB Bank ASA — Earnings Release 2018

Oct 25, 2018

DNB delivers solid results with no net loss

DNB delivers solid results with no net loss

DNB's profits in the third quarter of 2018 were NOK 5 673 million, an increase

of NOK 26 million from the same quarter the year before. Low losses and strict

cost control contributed positively to the result.

"We are seeing many of the same trends as Norges Bank; a strong momentum in the

Norwegian economy, a higher oil price, increasing investments and wage growth

and unemployment numbers pointing in the right direction. A healthy development

in the economy means lower losses in the banks. At the same time, the prospect

of higher interest rates has had a favourable and calming effect on housing

prices," says group chief executive of DNB Rune Bjerke.

Profit growth in the personal customer market

Net interest income in the third quarter amounted to NOK 9 152 million, up NOK

146 million from the corresponding quarter last year. However, other income

declined by NOK 579 million, from NOK 3 922 to NOK 3 343 million, mainly due to

classification changes related to the new IFRS 9 accounting rules, as well as a

significantly lower level of activity in the capital markets in the quarter.

DNB's profit for the third quarter is NOK 411 million lower than the second

quarter of this year.

After three quarters, DNB's return on equity for 2018 is 11.2 per cent, compared

with 10.2 per cent in the same period last year. Earnings per share so far this

year is NOK 10.42, compared with NOK 9.06 after the first three quarters of

Due to significant reversals of previous loan loss provisions in the oil and gas

sector amounting to NOK 500 million, the losses for the third quarter ended at a

modest NOK 11 million.

Higher speed and increased pace of innovation

DNB has in the quarter launched a number of new services, initiatives and

cooperation agreements with interesting players in the market:

· The new, automated accounting solution DNB Regnskap is in a pilot phase,

allowing the first corporate customers to test integrated banking and accounting

services (cooperation with entrepreneurial company Luca Labs).

· DNB has hired a robot called Aino to provide customer service via chat 24

hours a day.

· Google Assistant was launched in Norway in August, with DNB as one of the

first companies in Norway to develop their own customer services on the

platform.

· One of Europe's leading fintech groups, 11:FS in London, has chosen to

partner with DNB on its new initiative within cloud-based banking systems. DNB

is both a co-owner and the first customer of the new company "Foundry".

· DNB NXT was held in 19 towns and cities across the country during the third

quarter, resulting in more than 1 000 meetings between entrepreneurs and

investors.

· The savings app Spare, which was launched in 2017, now has 185 000 users and

has become one of Norway's most effective sales platforms for mutual funds and

shares. Our customers traded funds in the app worth more than NOK 340 million in

the quarter, tripling the number from the previous year.

"One year after we set up a new organisation and set new priorities, we are

beginning to see proof that we are developing faster and creating good, digital

customer experiences. We summed up the work so far with all employees in the

last week, and gathered over 630 examples of projects or initiatives as proof

that the new strategy is put into practice.

A few years ago, many people predicted that banks would become superfluous. It

has been a while since I have heard that," says CEO Rune Bjerke. "On the

contrary, we are seeing that new challengers and established players can

complement each other and create good solutions together."

Financial key figures for the third quarter of 2018

·  Pre-tax operating profit before impairment amounted to NOK 7.2 billion

(7.4)

·  Profit for the period was NOK 5.7 billion (5.6)

·  Earnings per share were NOK 3.41 (3.34)

·  Return on equity was NOK 10.9 per cent (11.2)

·  Cost/income ratio was 42.7 per cent (42.7)

·  CET1 capital ratio (transitional rules) was 16.5 per cent (16.3)

Comparable figures for the third quarter of 2017 in parentheses.

Contact persons:

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

Thomas Midteide, group executive vice president, Media & Marketing, tel.: + 47

962 32 017

This information is subject to the disclosure requirements according to Section

5-12 of the Norwegian Securities Trading Act.