DnB NOR Funding update Presentation for Arctic Securities 12 - PowerPoint PPT Presentation

DnB NOR – Funding update Presentation for Arctic Securities 12 October 2011 Øyvind Birkeland – CEO DnB NOR Boligkreditt Per Sagbakken – Head of IR/ LT Funding DnB NOR 1

- Increased share of long-term funding and lengthened maturity Share of stable long-term funding* Average life of long term funding ( Senior debt and covered bonds) * Deposits from customers, subordinated debt, covered bonds and senior debt > 12 months residual maturity 2 2 * * Internal target for stable long-term funding increased from 88% to 90% in 2009

Outstanding USCP - DnB NOR – Stable access to short term funding - 3 USD mio 10.000 12.000 14.000 16.000 18.000 20.000 2.000 4.000 6.000 8.000 0 jan.07 apr.07 jul.07 YCD - okt.07 jan.08 apr.08 ECP/ CD jul.08 okt.08 jan.09 apr.09 jul.09 okt.09 jan.10 apr.10 jul.10 okt.10 jan.11 apr.11 jul.11 YCD ECP/CD USCP

High uncertainty in current funding markets • Senior Unsecured: • Only a few new transactions after the summer: - Deutsche Bank: EUR 1.5mrd 2y FRN 3mE+ 98 (29 Sep) - ABN: EUR 500m 2y FRN 3mE+ 130 (30 Sep) - Rabobank: EUR 1.5mrd ms+ 125 (10 Okt) • Significant spread widening in general • Significant new issue premium • Covered Bonds • There have been several new issues in the CB market after the summer • Spreads have so far increased with 20 – 30 bps for DnB NOR Boligkreditt • DnB NOR issued 5y EUR 2bn yesterday 4

DnB NOR outstanding 4 and 10 year Senior Unsecured - Significant spread widening Performance of the DnB NOR 4.5% May 2014s and 4.375% Feb 2021s 1 5

Spread widening also for Spread for Covered Bonds – but (so far) much less widening than for Senior Unsecured DnB NOR Boligkreditt 1 0 år DnB NOR Boligkreditt 5 år Performance of the DnB NOR 2.625% Jan 2016s and 3.875% Jun 2021s 2 6

DnB NOR Boligkreditt issued EUR 2bn 5 year maturity 11 Oct 2011 • DnB NOR showed strength and good access to long term funding in a very challenging market • Raised EUR 2 bn at a Re-offer spread of m s+ 5 8 ( equivalent to 3 m Nibor + 9 5 ) • 26 bps above what DnB NOR paid in January for a similar transaction in January • 133 investors • Most important markets were Germany&Austria (35% ), Nordics (23% ) and UK&Ireland (17% ) • Sold to banks (41% ), asset managers (34% ), Central Bank/ Supra/ Official 9% ), in addition Pension & Insurance, Corporate and other. 2 7

DnB NOR is in an excellent position in relation to our funding needs • Planned long term funding for 2011 is NOK 130bn • So far NOK 118bn • We are funding more than what is redeeming • Adjusting to future NSFR requirements • DnB NOR has de latest years increased the average maturity on outsanding long term bonds significantly • The large funding needs going forward according to NSFR means that new long term funding must have tenors of 5 years or longer 8

DnB NOR - Issuance of Long Term Funding 2011 2011 NOK bn Tenor Euribor spread EURO bn OMF 90,8 6,4 52 11,5 Vanlig senior obligasjonslån 26,9 8,8 105 3,4 Sum OMF + senior 117,7 6,9 64 14,9 2010 2010 NOK bn Tenor Euribor spread EURO bn OMF 84,4 7,5 49 10,6 Vanlig senior obligasjonslån 32,3 7,3 84 4,0 Sum OMF + senior 116,6 7,5 59 14,6 2009 2009 NOK bn Tenor Euribor spread EURO bn OMF 10,7 12,1 1,3 OMF (NORGES BANK) 90,3 4,2 10,7 Vanlig senior obligasjonslån 38,0 4,6 4,5 Sum OMF + senior 139,1 4,9 50 16,5 2008 2008 NOK bn Tenor Euribor spread EURO bn OMF 57,5 5,9 5,9 OMF (NORGES BANK) 29,1 2,8 3,0 Vanlig senior obligasjonslån 100,5 3,7 10,2 Sum OMF + senior 187,2 4,3 46 19,1 9

DnB NOR is a well established international borrower - but with strong focus on further diversification of funding sources • DnB NOR Bank is a well established international borrower: • EMTN program of EUR 4 5 billion • JPY Sam urai program under establishm ent • 1 4 4 A USD Senior program to be established spring 2 0 1 2 • USCP program of USD 18 billion • Yankee CD program of USD 12 billion • ECP/ CD program of EUR 10 billion • Covered Bonds form an important part of the funding profile: Covered Bond program of EUR 5 5 billion Established 2 0 0 7 • • Covered Bond program of USD 1 2 billion Established 2 0 1 0 • Covered Bond program of AUD 4 billion Established 2 0 1 1 10

Basel III – capital structure • 0 – 2.5 % counter- cyclical buffer • 2.5 % • conservation buffer • 1.0 – 2.5% buffer for SIFIs • 11.5 – 15.5 % • Minimum total • 2.0 % Tier 2 capital = 8 % • Minimum Tier 1 • 1.5 % Tier 1 capital = 6 % • Minimum • 4.5 % Common Equity Common Tier 1 capital = 4,5 Equity Tier 1 % • 1 • 19.10.2011 11 1

DnB NOR Boligkreditt AS – Portfolio characteristics Rating AAA / Aaa / AAA Cover pool size 436.097 MNOK Outstanding Covered Bonds 329.535 MNOK Nominal O/ C 32,3 % WA LTV Indexed 57,2 % Floating rate loans 94,4 % Fixed rate loans 5,6 % Pool statistics as of 31 August 2011 12

100 % Norwegian residential mortgages Property types 13

Geographical distribution Finnm ark 6,701,180,965 1.5 % Nordland 11,487,532,275 2.6 % Trom s 11,223,796,418 2.6 % 29,412,509,657 6.7 % Nord-Trøndelag 6,048,134,380 1.4 % Sør-Trøndelag 15,075,529,425 3.5 % 21,123,663,805 4.8 % Akershus 82,503,743,700 18.9 % Hordaland 33,762,117,026 7.7 % Buskerud 28,375,641,322 6.5 % Møre og Rom sdal 7,161,216,277 1.6 % Hedm ark 9,861,413,476 2.3 % Rogaland 27,819,628,622 6.4 % Oppland 16,097,575,642 3.7 % Sogn og Fjordane 1,656,408,707 0.4 % Oslo 90,735,324,112 20.8 % 70,399,370,633 16.1 % Østfold 28,732,259,875 6.6 % Vestfold 33,539,567,410 7.7 % 289,845,525,537 66.5 % Aust-Agder 7,660,404,563 1.8 % Telem ark 10,244,847,012 2.3 % Vest-Agder 7,410,703,757 1.7 % 25,315,955,331 5.8 % 14