On the results of DNB banka and DNB group during the Q1 of 2014

DNB group has completed the first quarter of 2014 with a profit before provisions and taxes amounting to EUR 4.5 million. Despite the already forecasted adverse effect of euro introduction upon commission and trade income positions, DNB group has even increased its profitability due to stable interest income and thorough cost control. The profit after provisions and taxes reached EUR 3.6 million at the end of the first quarter of 2014. The total operational income of DNB group in Latvia amounted to EUR 15.5 million.

 

DNB group’s deposit portfolio at the end of Q1 was EUR 1.06 billion. The quality of the loan portfolio of DNB continued to strengthen – the proportion of loans with delayed payments over 90 days and the amount and proportion of insecure loans continued to decrease, comparing to the previous year. Due to well-weighed risk policy established and implemented in the recent years there was practically no necessity to make additional provisions in the current economic situation, therefore the amount of provisions made in the first quarter of 2014 was significantly lower than in the respective period of 2013.The local funding ratio was at 63% which achieved the expected funding composition.

 

The net loan portfolio of DNB group in Latvia composed EUR 1.6 billion at the end of March. The newly signed loans in the first three months of 2014 have amounted to EUR 41 million. 76% of the newly signed loans were issued to private entities and 24% - to corporate customers.

 

The financial stability ratios of DNB banka exceeded the requirements – the liquidity of the bank reached the level of 49.6% and the capital adequacy - 13.8%.

 

The stability and performance of the bank and its shareholders was evaluated highly by the inhabitants of Latvia as well as Latvian and international companies – small, middle-sized and large enterprises. The number of customers of DNB banka increased by 4 thousand private entities during the first quarter of 2014.

 

In order to increase the availability of the bank to its customers, in the first quarter of 2014 the bank was in the process of increasing the network of cash-in ATMs from 24 to 44. The bank continued also to develop new possibilities of customers to receive everyday banking services via internet or phone.

 

The shareholder of DNB banka, the largest financial institution in Norway, recorded profits of EUR 671 million in the first quarter of 2014, up EUR 284 million from the first quarter of 2013 due to rise in value of DNB’s shareholding in Nets, very low impairment losses and an increase in net interest income.