On the results of DNB banka and DNB group during 2012

DNB Latvia Group’s operating income reached LVL 52.5 at the end of December 2012, which is 19% higher than a year before. The group’s operating profit before provisions and taxes was at a level of LVL 19.6 million at the end of 2012 which is 28% higher than on December 31, 2011. During 2012 the Group earned a total profit of LVL 9.1 million.

Åsmund Skår, CEO of DNB banka, says: “In 2012 DNB banka continued its sustainable growth paying special attention to its customer service, cost effectiveness and offering beneficial financial products and services basing on the current and future needs of our customers.

During 2012 more than 4000 companies and 27 000 new private persons chose DNB as their bank, and I’m pleased both with growth of the total number of our customers and the fact that, as annual survey on banking sector carried out by international survey company “EPSI Rating” shows, DNB is number 1 in banking sector of Latvia both in satisfaction and loyalty scores and both within the corporate and retail segment, and we’ll work hard to maintain the highest position this year as well”.

DNB group’s lending portfolio before provisions in Latvia amounted to LVL 1.5 billion at the end of December. DNB group’s deposit portfolio, 96% of which consists of resident deposits, at the end of 2012 was 17% higher than at the beginning of the year amounting to LVL 657 million. In 2012 DNB banka has succeeded in improving the loan to deposit ratio – at the end of 2012 it was 190% which is significantly better than 229% at the end of 2011.

DNB Markets in 2012 continued its development in three primary business areas – corporate financial risk hedge solutions, electronic trading systems and fixed income. By applying knowledge and experience from DNB Markets in Oslo it successfully expanded services in financial risk management for large corporate customers including hedging of commodity and interest rate risk exposures.

The mother bank of DNB in Latvia, the largest financial group in Norway, recorded profits of LVL 1.3 billion in 2012, which is 5.2% more than in 2011. The Tier 1 capital ratio increased to 10.7 per cent, from 9.4 per cent at year-end 2011.

“In addition to our strong profit performance, we are pleased to note that DNB continues to strengthen its corporate reputation. DNB was best bank in Norway on Ipsos MMI’s Norwegian corporate reputation list. A strong reputation and satisfied customers are both prerequisites for profitable growth in DNB,” says Rune Bjerke, CEO of DNB Group.