Sound growth for DnB NOR in 2007

DnB NOR achieved pre-tax operating profits before write-downs of NOK 3.6
billion in the fourth quarter, an improvement from the corresponding period in
2006 in spite of the financial market turmoil. Profit for the period was NOK
5.1 billion (3.4). Lending and deposits increased by 17.2 and 13.4 per cent
respectively in 2007. More than 15 per cent of income is now generated outside
Norway. 
 
Fourth quarter 2007
Pre-tax operating profits before write-downs were up 0.9 per cent to
NOK 3.6 billion (3.6) 
Profit for the period increased by 49.6 per cent to NOK 5.1 billion (3.4) 
Return on equity was 28.4 per cent (21.5)
Expenses, excluding allocations to employees, represented 51.9 per
cent of income (50.4) 
The core capital ratio was 7.2 per cent (6.7) at end-December
(Figures for the fourth quarter of 2006 in parentheses)
 
"We can conclude that the fundamental economic conditions in Norway are still
sound and healthy, and that DnB NOR is performing well. Solid companies and
strong household finances combined with low unemployment and high wage
inflation justify a cautious optimism about the future in spite of the current
turmoil in financial markets," says Rune Bjerke, group chief executive in DnB
NOR. 
 
Due to financial market turmoil, DnB NOR recorded unrealised losses on bonds
and other interest rate instruments of NOK 658 million in the fourth quarter.
The losses are expected to be reversed over a period of just under three years. 
 
Operating expenses in the Group, excluding allocations to employees, increased
by 15.7 per cent, reflecting high levels of activity, international expansion
and non-recurring costs. The cost/income ratio was 51.9 per cent adjusted for
allocations to employees and the dissolution of the employee investment funds. 
 
The Group continued to record low write-downs on loans and guarantees. Fourth
quarter profits for 2007 includes a gain of NOK 1 470 million from the sale of
bank buildings. 
 
Full year 2007
Pre-tax operating profits before write-downs were up 7.7 per cent to NOK 15.1
billion (14.1) 
Profit for the year increased by 27.2 per cent to NOK 15.0 billion (11.8)
Return on equity was 22.0 per cent (19.5)
Expenses, excluding allocations to employees, represented 50.6 per cent of
income (50.1) 
Earnings per share were NOK 11.08 (8.74)
The proposed divided per share is NOK 4.50, a 12.5 per cent increase from 2006 
(Figures for the full year 2006 in parentheses)
 
"The Group delivered a sound financial performance in 2007 and we have made
good progress towards achieving our target of pre-tax operating profits before
write-downs of NOK 20 billion in 2010. Extensive efforts have been made by the
whole organisation, and in spite of the financial market turmoil, I am pleased
to observe that DnB NOR has a strong position in a robust economy," says Rune
Bjerke. 
 
The healthy economy led to brisk growth in lending and sales of other banking
products. Income increased by 10.9 per cent. Rising interest rate levels
combined with a strong rise in volumes resulted in steady growth in net
interest income throughout the year, with an overall rise of 16.9 per cent. 
 
Net unrealised losses stemming from an increase in credit spreads on
investments in bonds and other interest rate instruments totalled NOK 1 258
million for the year. The losses are expected to be reversed over the residual
maturity of the bonds, which averages less than three years. 
 
The turmoil in financial markets in 2007 also resulted in a tight liquidity
market. However, DnB NOR was not materially affected and enjoyed a sound
liquidity situation throughout 2007. 
 
Strong international growth
"Internationally, we continue to develop our operations based on profitable
growth. Today, we have the largest real estate brokerage operation in the
Nordic region and in 2007 we strengthened our international presence and
competitive power in several areas," says Rune Bjerke. 
 
At year-end 2007, 15.5 per cent of income was generated from international
operations. 
 
In 2007, DnB NOR established a branch in Houston in the United States, where
the prime focus will be the energy market. It was also decided to open a branch
in Santiago, Chile, where operations will mainly target the seafood sector. In
addition, it has been decided to establish representative offices in Athens in
Greece and Mumbai in India. 
 
Through the acquisition of the Swedish property brokerage chain Svensk
Fastighetsförmedling AB, DnB NOR became the Nordic region's largest property
brokerage firm. Housing loans have been launched for Swedish bank customers in
order to build a Swedish customer base and establish a long-term source of
income for the Group. The acquisition of SalusAnsvar, a distributor of
financial products to members of professional organisations in Sweden, is part
of this expansion. 
 
Contact person:
Trond Bentestuen, group executive vice president, Corporate Communications, 
tel. +47 22 48 16 91, mobile +47 95 02 84 48
 
 
 
The quarterly report, presentation and Supplementary Information for Investors
and Analysts can be downloaded from www.dnbnor.com