Reclassification of liquidity portfolio in DnB NOR Bank ASA

On 16 October 2008, the Norwegian Ministry of Finance laid down regulations
resulting in changes in the accounting standards IAS 39 and IFRS 7 established
by the IASB and approved by the EU. The changes open for the reclassification
of portfolios previously classified as trading portfolios, to held-to-maturity
investments. DnB NOR has considered this change in relation to the so-called
liquidity portfolio in DnB NOR Markets. 
 
The Group has decided to reclassify the liquidity portfolio with effect from 1
July 2008, as provided by the new regulations. The reclassification implies
that the portfolio will be recorded at so-called amortised cost. The shift to a
new category will be based on the portfolio's book value as at 30 June this
year. Following the reclassification, the accounting treatment of the portfolio
will be in keeping with the portfolio's characteristics, as it is used for
collateral in central banks, inter alia in connection with securities
settlements. 
 
Previous accumulated write-downs for unrealised losses in the portfolio were
NOK 2 586 million as at 30 June 2008. After the reclassification, the
accumulated write-downs will be reversed over the residual maturity of the
portfolio, which averages 3.25 years, and will be recorded under net interest
income. 
 
If no reclassification had been made, the Group would alternatively have
charged NOK 1 199 million to the 2008 third quarter accounts due a further
widening in margins. There have been no actual losses or events of default in
the portfolio since the start of the financial crisis, and the portfolio is
still of superior quality. 
 
There will be no reclassification of other portfolios in the Group's balance
sheet. 
 
Contact persons:
Bjørn Erik Næss, chief financial officer, tel. (+47) 22 48 29 22
Per Sagbakken, executive vice president, IR/Long-term Funding, tel. (+47) 22 48
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