DnB NOR achieved its best financial performance ever in 2006, with pre-tax operating profits before write-downs of NOK 14.1 billion. This is a 12.8 per cent increase from the previous year. Both domestic and international operations are generating higher income. Key figures - 2006 Pre-tax operating profits before write-downs were up 12.8 per cent to NOK 14 066 million Profits for the year rose 16.4 per cent to NOK 11 808 million Ordinary expenses represented 50.1 per cent of income (50.2 per cent in 2005) Return on equity was 19.5 per cent (18.8 per cent) Earnings per share were NOK 8.74 (7.59) Proposed dividend is NOK 4.00 per share (3.50) The core capital ratio at year-end 2006 was 6.7 per cent (7.4) Key figures - fourth quarter 2006: Pre-tax operating profits before write-downs were up 7.0 per cent to NOK 3 602 million Profits were up 13.3 per cent to NOK 3 394 million Ordinary expenses represented 50.4 per cent of income (47.5) Return on equity was 21.5 per cent (21.5) All of the Group's business areas experienced sound growth during the year. Despite intense competition and pressure on spreads, the Group's income rose by 12.5 per cent from 2005. "DnB NOR's employees have good reason to be proud of the financial results they have contributed towards through their excellent teamwork and great enthusiasm. As new group chief executive, I have met an organisation possessing all qualifications necessary to deliver what customers require of us and to confront the ever more frequent changes in our industry in the years ahead," says Rune Bjerke, group chief executive. High lending growth Growth in lending was 18.7 per cent in 2006. Corporate lending growth averaged 26.2 per cent and household lending increased by 11.3 per cent. The bank reduced lending spreads in the retail market by 0.33 percentage points in the course of 2006, whereas there was an increase in deposit spreads. Narrowing spreads in the corporate market were counteracted by strong growth in volumes. Non-performing commitments and write-downs on loans are historically low. Sales of savings and insurance products also showed a significant rise. The number of monthly savings schemes in the Group's mutual funds has increased by ten per cent, totalling 302 000. Vital has maintained its position as market leader within life insurance and pensions, and became the largest participant in the mandatory occupational pensions market with 14 500 agreements encompassing 200 000 employees. Financial performance in DnB NOR Markets is characterised by a high level of activity in equity, foreign exchange and interest rate markets. Pre-tax operating profits increased by close to 50 per cent to NOK 777 million. International growth Growth in international operations was also buoyant, and DnB NOR was the global lead arranger of ship financing in 2006. Operations in DnB NORD will be strengthened through the acquisition of BISE Bank in Poland. "We will expand international operations within selected areas where our competitive ability provides us with an advantage, while ensuring that growth is targeted, satisfying high profitability demands," says Rune Bjerke. Operating expenses increased by 12.2 per cent, which is lower than income growth. The rise in costs reflects investments in new international operations, increased product development and investments in new IT systems. In addition, pension costs have increased considerably due to reversals in 2005 following a restructuring of the pension scheme. The cost/income ratio was 50.1 per cent for the year, as against 50.2 per cent in 2005. "We are approaching the target of a cost/income ratio below 50 per cent in 2008. This target remains unchanged. The integration phase following the merger in 2003 is behind us, and it is now important to focus attention on productivity development and cost-efficiency," says Rune Bjerke. The quarterly report including tables can be downloaded from www.dnbnor.com This press release was brought to you by Investor Relations in DnB NOR DnB NOR