AB DNB Bankas, a member of Norway's largest financial services group, earned a net profit of LTL 75.98 million in the first nine months of 2012 according to the preliminary unaudited data calculated in accordance to the International Financial Reporting Standards. The bank's net profit was LTL 64.26 million in the first nine months 2011.
“The result reflects consistent increase of sales volumes in all major business areas in the first nine months of the year despite the ongoing economic uncertainty in Lithuania’s key export markets. In the third quarter of the year that cooled the increasing optimism in business sentiment somewhat also affecting investment credit demand. The main driving factors behind the solid financial result were the further growth of number of active individual and business customers who choose DNB as their home bank and use its different services more often, further improving quality of our loan portfolio and markedly higher demand for derivative financial services as the customers aimed to fix the existing low level of interest rates for a longer period. Looking forward we feel confident that our goals set for the year will be implemented even taking into account higher operating expenses related to investments into new IT systems and their support," says Bjornar Lund, CEO of AB DNB Bankas.
In the first nine months of 2012, AB DNB Bankas signed new loan agreements worth LTL 1.55 billion and as of the end of September its net loan portfolio made LTL 8.96 billion. Compared to the same period a year ago the bank’s net loan portfolio was still 1.7 percent lower, however in the first nine months of the year the bank’s loan portfolio grew 0.9 percent. The growth largely stemmed from new credit growth to legal entities.
Due to growing volumes of savings on individual and corporate deposit accounts thanks to the increasing number of customers that rose by 48 thousand in the first nine months of the year, AB DNB Bankas’ deposit portfolio grew 5.7 percent in the first nine months of the year to LTL 5.44 billion. The bank’s deposit portfolio rose by 17.1 percent compared to the same period a year ago.
AB DNB Bankas’ assets made LTL 11.26 billion as at the end of September increasing 2,8 percent compared to the same period a year ago.
Pursuing further a conservative risk management policy, the bank set aside LTL 35.2 million for impaired loans in the first nine months of the year as the customer risk stabilized. In the same period a year before the bank’s special provisions stood at LTL 45.01 million.
Due to proper risk management the bank met all prudential requirements of the Bank of Lithuania.
Please find the results of DNB financial group' for the first nine months of 2012 on www.dnb.no.
Information about preliminary AB DNB Bankas' 2012 results will be released on 7 February, 2013.
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