AB DNB Bankas, a member of Norway's largest financial group, earned a net profit of LTL 25.5 million in the first six months of 2013 according to the preliminary unaudited data calculated based on the International Financial Reporting Standards. The bank's net profit earned in the first six months 2013 amounted to LTL 55.3 million.
"In the first six months of the year we consolidated our stand in the key business areas and are pleased to see we hold strong position in the mortgage loans market, our corporate loan portfolio has grown and even a third of the country’s start-up businesses this year chose us to be their home bank. The number of individual and corporate customers topped 800 thousand for the first time in the bank's history and our deposit portfolio rose by almost twenty per cent year-on-year. Our profit level was largely affected by the expenses relating to the ongoing upgrade of the banking systems and investments into IT, the process scheduled to be completed by the end of the year. We are also pleased to note, that the loan losses incurred by the bank continue to be lower compared to the economic cycle average," - says Bjornar Lund, CEO of AB DNB Bankas.
By the end of June AB DNB Bankas' credits granted to individual and corporate customers stood at LTL 9.14 billion, i.e. the net loan portfolio of the bank rose 3.1 percent year-on-year. This mainly resulted from the growing financing to business entities and from a significantly increased demand for mortgage credits that in April and May peaked to the highest levels over the past several years. On the back of popularity of the DNB First home buyers’ program, DNB Bankas’ market share in the new mortgage loans market varied between 25-30 per cent every single month of the year.
AB DNB bank's deposit portfolio increased by 19.2 percent to LTL 6.23 million year-on-year. This resulted from the growth in the number of individual and corporate customers which rose by 64 thousand compared to the same period a year ago. As of the end of June AB DNB Bankas provided comprehensive range of financial services to 810 thousand customers.
In the first half of this year the net income of AB DNB Bankas amounted to LTL 174.5 million. The largest relative weight – 58 percent – of the operating income fell on the net interest income. As the market interest rates remained at record lows, the bank’s interest income eased by 14.8 percent year-on-year. The commission income for the services rendered to customers rose by 12.3 percent compared to the same period a year ago.
The bank's operating and other expenses made LTL 152.4 million in the first six months 2013. They rose by LTL 41.2 million compared to the same period a year ago, LTL 39.6 million of it were related to investments into modern banking information systems.
The bank's assets increased 6.9 percent year-on-year and as of the end of June amounted to LTL 11.89 billion.
Due to proper risk management the bank met all prudential requirements of the Bank of Lithuania.
The Norwegian DNB financial group's operating results of the first half of 2013 are available at www.dnb.no.
Information about AB DNB Bankas' nine months results will be released on 25 October.
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