DnB NOR recorded pre-tax operating profits before write-downs of
NOK 3.8 billion in the first quarter of 2007, which is the Group's best
quarterly performance ever. Lending volumes were up 16.6 per cent
from the first quarter of 2006, while deposits increased by 15 per cent.
Key figures - first quarter 2007:
Pre-tax operating profits before write-downs were NOK 3.8 billion (3.7)
Profits were NOK 2.9 billion (2.8)
Expenses represented 49.8 per cent of income (48.3)
Return on equity was 17.2 per cent (19.2)
Earnings per share came to NOK 2.11 (2.11)
The core capital ratio, including 50 per cent of interim profits, was
7.6 per cent (7.2)
(Figures for the corresponding period in 2006 in parentheses.)
"The year has started very well for us, with high growth levels in several
areas. When customers buy more products from us, it must mean that we offer a
competitive range
of products and highly competent financial advisers," says Rune Bjerke, group
chief executive.
First quarter profits amounted to NOK 2 866 million, on a level with last year
and
40 per cent higher than in 2005. Return on equity was 17.2 per cent and the
core capital ratio was 7.6 per cent. Earnings per share came to NOK 2.11.
During the past year, lending spreads have narrowed considerably, but high
volume growth has ensured higher net interest income. An increase in other
income has compensated for the introduction of no-fee services. Operating
expenses represented 49.8 per cent of income.
"Pension and wage expenses are on the rise, but the target of a cost/income
ratio below 50 per cent in 2008 onwards remains unchanged. This implies that we
must create more straightforward and efficient solutions across the Group which
will have a positive impact on both expenses and income. We will also invest in
new operations and solutions for our customers while ensuring high operational
quality," says Bjerke.
Growth at home and abroad
DnB NOR has launched new distribution solutions for non-life insurance and sold
22 521 new insurance policies in the first quarter. Sales of savings products
have developed favourably with an 11 per cent increase in the number of savings
schemes in mutual funds. Vital has experienced sound growth in group pensions
and recorded a net inflow
of transfers in the first quarter.
"This shows that growth opportunities also exist in Norway. At the same time,
one of our main future priorities will be to develop our international growth
platform," says Bjerke.
In Sweden, DnB NOR has presented an offer to acquire Svensk
Fastighetsförmedling AB, a Swedish chain of real estate brokers. The purchase
of Svensk Fastighetsförmedling would make the DnB NOR Group the largest real
estate broker in the Nordic region.
DnB NOR has also bought a car loan portfolio from SEB in Sweden and has
established
a separate corporate finance department at the bank's branch in Singapore.
DnB NOR is also expanding internationally through DnB NORD, which has been
granted
a concession to acquire BISE Bank in Poland. Last year, DnB NOR and
Norddeutsche Landesbank (NORD/LB) established DnB NORD with banking operations
in Denmark, Finland, the Baltic States and Poland.
"This has proven to be a fruitful cooperation, and we will now look into
further opportunities to cooperate in international markets," says Rune Bjerke.
The quarterly report including tables can be downloaded from www.dnbnor.com
