DnB NOR: sound growth in third quarter

DnB NOR achieved pre-tax operating profits before write-downs of 
NOK 3.7 billion in the third quarter, an increase of 9.5 per cent compared with
the corresponding period in 2006. Growth in lending and deposits remains high
and net interest income was up 19.2 per cent compared with the year-earlier
period. 
 
Financial highlights for the third quarter of 2007:
  Pre-tax operating profits before write-downs increased by 9.5 per cent to 
      NOK 3.7 billion (3.4)
  Profit after taxes rose by 35.3 per cent to NOK 3.7 billion (2.7)
  Return on equity was 21.8 per cent (18.0)
  Expenses represented 51.3 per cent of income (50.9)
  Earnings per share came to NOK 2.72 (2.00)
  The core capital ratio, including 50 per cent of interim profits, was 
      7.2 per cent (6.7)
 
(Figures for the corresponding period in 2006 in parentheses.)
 
Pre-tax operating profits before write-downs included unrealised losses of NOK
600 million on bonds and other interest rate instruments due to the financial
market turmoil. The losses will be reversed over the residual maturity of the
bonds, which averages less than three years. Property revaluations in Vital
resulted in profits for the DnB NOR Group of NOK 320 million. Profit for the
period after taxes includes gains of NOK 865 million from the sale of the
Group's premises at Aker Brygge in Oslo. 
 
"The Group's financial performance reflects strong growth in lending and
deposits and continued low write-downs on loans and guarantees, sustained by a
strong Norwegian economy combined with favourable market developments for the
Group. We also observe that the decline in interest spreads has levelled off
and that net interest income shows a sound trend," says Rune Bjerke. 
 
Average lending increased by NOK 113 billion or 14.5 per cent, while average
deposits rose by NOK 76 billion, the equivalent of 16.7 per cent. Costs
increased by 11.6 per cent, of which 6.6 percentage points stemmed from growth
in international operations. 
 
In October, DnB NOR presented new financial targets. The new targets are
pre-tax operating profits before write-downs of NOK 20 billion in 2010 based on
a 10 per cent average annual rise in profits, and minimum 16 per cent return on
equity from 2008. A new cost programme will reduce the Group's costs by NOK 1
billion annually with full effect from 2010. 
 
"We have set ambitious targets for growth and cost developments in the years to
come and have made good progress in preparing for a continued rise in profits
in the Group's Norwegian as well as international operations," says Rune
Bjerke. 
 
DnB NOR has decided to establish its own non-life insurance company. The
agreement to acquire Skandiabanken Bilfinans will give the Group a leading
position within car financing in Sweden and Norway. In Sweden, the agreement
represents the fourth acquisition during 2007. The Group will also establish
new offices in Greece, Chile and India. 
 
"We are gradually expanding our operations in Sweden, and the new offices in
Piraeus, Santiago and Mumbai will strengthen our international position within
industries such as shipping, energy and fisheries and aquaculture," says Rune
Bjerke. 
 
Contact person:
Eivind Grønstad, group executive vice president, Corporate Communications, 
tel. +47 920 31 505
 
 
 
The quarterly report including tables can be downloaded from www.dnbnor.com