DNB Bankas earns LTL 21.7 million net profit in Q1 2012

VILNIUS. AB DNB Bankas, a member of Norway's largest financial services group, earned a net profit of LTL 21.7 million in the first quarter of 2012 according to the preliminary unaudited data calculated according to International Financial Reporting Standards. In the first three months of 2011 the bank earned a net profit of LTL 22.3 million while its net profit in the fourth quarter of 2011 was LTL 16.7 million.

„Stable financial results make us feel positive, especially given still limited credit demand in individual and corporate lending market and the existing level of base interest rates. It clearly indicates that our efforts to pursue customer-centric business model pays off helping us offset somewhat the impact of credit demand swings on our financial results. That also gives us ground to believe that improving business environment coupled with further rising number of our individual and corporate customers will allow us to sustain growth trend of income from core banking operations and maintain the volume of write downs at relatively low level due to continuous focus on adequate management of the credit portfolio quality,” says Bjornar Lund, CEO of AB DNB Bankas.

As a result of consistent focus on service quality and due to efforts to increase the number of customers who choose DNB as their home bank, the number of individual and corporate customers in DNB grew by more than 15 thousand in the first three months of the year. This was an important factor contributing to the growth of income from core banking business. As of the end of March, the bank was providing comprehensive range of financial services to 731 thousand individual and corporate customers.

With an increasing number of customers and growing funds on bank accounts, the deposit portfolio of AB DNB Bankas rose 3.8 percent in the first three months of the year to LTL 5.34 billion. The bank's deposit portfolio increased 13.9 percent compared to the same period a year ago.

In the first quarter of 2012, AB DNB Bankas signed new loan agreements worth of LTL 372 million and its net loan portfolio stood at LTL 8.66 billion as ot the end of March. It was down 2.5 percent compared to the year start and was down 5.6 percent compared to the corresponding period a year ago..

In the first quarter of the year the AB DNB Bankas put aside LTL 16.8 million for the impaired loans, the amount nearly twice lower compared to the fourth quarter of 2011 when the specific provisions made LTL 30.2 million.

Due to proper risk management the bank met all prudential requirements of the Bank of Lithuania.

Please find information on Q1 2012 results of DNB, Norway’s largest financial services group, on www.dnb.no

Information on AB DNB Bankas' six months results will be released on 12 July, 2012.