Copenhagen, Danske Markets 19 June 2012 Per Sagbakken, Head IR/Long - PowerPoint PPT Presentation

Absolute or relative strength? Copenhagen, Danske Markets 19 June 2012 Per Sagbakken, Head IR/Long term Funding

Strength 1: A strong home market Annual budget deficit/surplus for General government net financial liabilities (As a percentage of nominal GDP 2011) 2012 (forecast ) Budget deficit Budget surplus Source: OECD Economic Outlook No. 90, November 2011 Note: Budget surplus/deficit calculated as a percentage share of country GDP; forecasts for 2012 2

Strength 2 : Dominant market shares Retail Assets managed in funds Very Strong franc in very str econ Lending Deposits Assurance fund Åtte sirkler m markedsandel - bilde Corporate Assets managed in funds Lending Deposits Assurance fund 3

Strength 3: A business model shaped for the future 50% 50% Private SME + individuals Corporate 4

Strength 4: Sustainable achievements, DNB has delivered as promised Development in pre-tax operating profit before write-downs (NOK billion) 5

Profit per quarter Pre-tax operating profit Pre-tax operating profit before Profit for the period before write-downs write-downs excl. basis swaps (NOK million) (NOK million) (NOK million) 6 806 5 588 5 276 4 952 5 101 5 235 4 737 4 089 4 692 3 546 3 837 2 851 3 156 2 493 1 760 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 6

Development in average interest rate spreads - DNB Group Per cent 1.83 Lending spread 1.67 1.64 1.61 1.60 1.58 1.57 1.55 1.55 1.17 1.16 1.16 1.15 Combined spread 1.14 1.13 1.12 1.11 1.10 - weighted average 0.41 0.32 0.33 0.31 0.29 0.29 0.28 0.27 0.04 Deposit spread 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2) 7

Net interest income - trailing 12 months NOK million + 8.3 per cent from 1 st quarter 2011 25 887 Trailing 12 months 25 252 Net interest income 2011 23 893 31 March 30 June 30 Sept. 31 Dec. 31 March 2011 2012 8

Business areas Pre-tax operating profit after write-downs in the first quarter First quarter 2012 (NOK million) First quarter 2011 1 882 1 843 1 828 1 816 1 415 1 115 666 414 97 21 Retail Large Corporates and DNB Markets Insurance and DNB Baltics Banking International Asset Management and Poland 9

Strength 5: A strategy based on growth industries Energy Shipping Seafood 10

Strength 6: Strong credit quality - Write-downs in per cent of lending Full year Full year Per cent 4Q11 3Q11 2Q11 2011 2010 1Q12 1Q11 Total write-downs in relation to average volumes (annual basis) 0.29 0.38 0.15 0.28 0.26 0.25 0.31 - DNB excl. DNB Baltics and Poland 0.23 0.16 0.10 0.19 0.15 0.24 0.25 - DNB Baltics and Poland 1.56 5.30 1.31 2.39 2.48 0.47 1.44 11

Strength 7: Sufficient solidity - DNB is among the most solid banks Equity Tier 1/total assets (“leverage ratio”) 4.9 % 4.2 % 3.9 % 3.2 % 3.1 % 2.6 % Bank 1 Bank 2 Bank 3 Bank 4 Bank 5 DNB Source: Fourth quarter report 2011 from the financial institutions 12

Improved capitalisation with “Nordic” risk weights Equity Tier 1 capital ratio – Q1 2012 Per cent 14.5 Adjusted for Nordic risk weights 11.0 9.3 Adjusted for full IRB DNB risk weights Reported capital adequacy Pro forma full IRB IRB with Nordic risk weights 13

Strength 8: Favourable funding position Spread 3month Spread 3month NOK billion Maturity Euribor Nibor Covered Bonds 47,1 7,4 67 96 Senior Bonds 42,8 6,8 172 194 Total 89,9 7,1 117 143 2012 Subordinated debt 5,7 Total 95,5 in addition: LTRO Funding 9,0 3,0 Spread 3month Spread 3month NOK billion Maturity Euribor Nibor Covered Bonds 98,3 6,5 53 68 2011 Senior Bonds 27,8 8,8 108 123 Total 126,1 7,0 65 80 in addition: LTRO Funding 15,7 3,0 Spread 3month NOK billion Maturity Euribor 2010 Covered Bonds 84,4 7,5 49 Senior Bonds 32,3 7,3 84 Total 116,6 7,5 59 14

Redemption profile 2012 - 2015 15

Strength 9: Competitive on cost efficiency Cost/income ratio* – Nordic banks 2011 Source: Company reports *All figures are before adjustments for goodwill i.a. 16

Strength 10: Regulatory firmness The lessons from the previous bank crisis still influence the behaviour of the Norwegian FSA 17

The Norwegian FSA is thus quite conservative Transition floor still in • place • Guiding of maximum 85 % LTV and 5 % stress test on mortgage interest rates Highest risk-weights on • mortgages in the Nordic region 18

Strength 11: Competent staff and an attractive employer Norway’s largest financial institution, high degree of specialists • DNB #2 in Universum’s Ideal Employers ranking 2012 Source: http://www.universumglobal.com/IDEAL-Employer-Rankings 19

100 105 110 115 120 125 130 135 90 95 31.12.11 Strength 12: Market trust - DNB vs. Nordic peers 2012 05.01.12 10.01.12 15.01.12 20.01.12 25.01.12 30.01.12 04.02.12 09.02.12 14.02.12 19.02.12 20 24.02.12 29.02.12 05.03.12 10.03.12 15.03.12 20.03.12 25.03.12 30.03.12 04.04.12 09.04.12 14.04.12 19.04.12 24.04.12 29.04.12 04.05.12 09.05.12 14.05.12 19.05.12 NORDEA SEB DNB 24.05.12 29.05.12 03.06.12 08.06.12 Swedbank Handelsb Danske Nordea 105 Handelsb 116 DNB 98 SEB 104 Swedbank 119 Danske 111

Market trust - Debt ratings from Moody’s Aa1 Aa2 Aa3 A1 A2 A3 Baa1 Baa2 Baa3 21

Conclusions and actions Conclusions • A strong home market will continue to support healthy financial results • Stable and favourable access to capital markets • Prudent and intelligent growth Actions • Continue to strengthen solidity • Achieve higher profitability through increased effort in the Norwegian retail market • Active positioning to better meet new regulations, both in life insurance and banking 22