This year DNB is benefiting from last year’s restructuring

Last year’s period of intensive restructuring for DNB Lithuania, the part of the biggest Norwegian financial services group, brought the positive changes – in the first financial quarter of 2017 net profit grew nearly three times. It was mainly a result of clarified business model, optimized banks’ division chain and improved quality of the leasing portfolio.

Bank’s assets, in comparison with the same quarter in 2016, almost didn’t change and was 4 billion EUR, the loan portfolio increased by 2.8 per cent up to 2.8 billion EUR and the deposit portfolio grew by 9.8 per cent, to 2.5 billion EUR. Net profit of the first quarter reached 9.2 million EUR. The value of the groups’ leasing department portfolio in the end of the first quarter was amounted to 163,6 million EUR. In comparison with the same quarter last year, it grew by 12,1 per cent.

“After pretty intense last year, we are harvesting our results. I can state that bank’s new adopted service pricing model really paid off – our customers welcomed the opportunity to choose price basket, which includes the services they use the most. Digitalizing our services and optimizing our banks’ division chain lead us to more efficient management and reduce our expenditures. We have also started this year with positive interest rate for the deposits, which have influenced the growth of its’ portfolio”, - said Bjørnar Lund, AB DNB bank president.

During the first quarter of this year sum of banks’ provisions to loans and guarantees dropped to 67.2 per cent, 1.6 million EUR. Expenditures during the same period of time reduced to 8 per cent, up to 16.3 million EUR.

All-in-all during these three months DNB Lithuania group gained 28.4 million EUR of income – 4.6 per cent more than during the same period of time in 2016.

In accordance with the proper risk management policy, bank follows all of the prudential requirements issued by the Bank of Lithuania (the central bank).