DNB Bank ASA — Earnings Release 2018

Apr 26, 2018

Ripple effects strengthen DNB's performance

Ripple effects strengthen DNB's performance

DNB recorded profits of NOK 5 653 million in the first quarter of 2018, up NOK 1

109 million from the first quarter of 2017. The bank's strong performance can be

ascribed to the bright prospects for Norwegian companies and private

individuals.

The Norwegian welfare state is dependent on an increasing number of startups,

which is why

DNB is cheering on Norwegian entrepreneurs. The ripple effects of Norwegian

companies' operations are boosting DNB's financial performance. Many companies

in Norway are currently on the offensive.

"We aspire to be a good adviser for those who want to start their own business

and thus contribute to creating new jobs. Over the past year, loans to small and

medium-sized enterprises have grown by more than 8 per cent. This demonstrates

strong optimism and a willingness to invest in the Norwegian business

community," says Rune Bjerke, group chief executive in DNB.

In comparison, home mortgages and other loans to private individuals increased

by 5.4 per cent during the past year. There is fierce competition in this

market, but the rate of growth is in line with DNB's ambitions.

Reduction in losses

A lower level of impairment is another positive consequence of the healthy state

of the Norwegian economy. During the first quarter of 2017, impairment losses on

loans came to NOK 562 million, while impairment totalled NOK 2.4 billion for the

full year 2017.

The level of impairment was low in the first quarter. In addition, some of the

impairment losses recorded previously were reversed. These stemmed primarily

from oil-related operations, where a number of companies have been through

successful restructurings. Net reversals of NOK 330 million were thus recorded

in the first quarter.

"Optimism is back in the oil sector, and losses have been strongly reduced.

Consequently, Large Corporates and International shows the highest increase in

profits among our business areas," says Bjerke.

Income

Net interest income was up NOK 486 million from the first quarter of 2017. As in

the previous quarters, this reflected higher lending volumes. In addition, lower

funding costs had a positive effect on the lending spread. Other income was down

NOK 532 million, mainly due to exchange rate effects from the bank's additional

Tier 1 capital. There was a small increase in commissions and fees compared with

the first quarter of 2017.

Operating expenses were NOK 285 million lower than in the first quarter of 2017.

Compared with the fourth quarter of 2017, operating expenses were down NOK 863

million, though this was mainly due to certain non-recurring effects towards the

end of the year.

"We are very pleased with the results and especially with the fact that we are

approaching our return on equity target. We will continue to develop the best

customer experiences for Norwegian consumers. To be able to deliver on this, it

is also important that DNB is an attractive option for investors," concludes

group chief executive Rune Bjerke.

Financial key figures for the first quarter of 2018

· Pre-tax operating profit before impairment was NOK 6.7 billion (6.5)

· Profit for the period was NOK 5.7 billion (4.5)

· The common equity Tier 1 capital ratio (transitional rules) was 16.6 per

cent (15.8)

· Earnings per share were NOK 3.36 (2.64)

· Return on equity was 11.0 per cent (9.1)

· The cost/income ratio was 43.4 per cent (45.6)

Comparable figures for the first quarter of 2017 in parentheses.

For further information, please contact:

Investor contacts:

Rune Helland, head of Investor Relations, tel. ( 47) 23 26 84 00 / ( 47) 977 13

250

Amra Koluder, SVP Investor Relations, tel. ( 47) 23 26 84 08 / ( 47) 977 35 378

Thor Tellefsen, head of Long-term Funding, tel. ( 47) 24 16 91 22 / ( 47) 915 44

385

Media contacts:

Thomas Midteide, head of 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.