According to the preliminary unaudited data AB DNB Bankas, a member of Norway's largest financial services group, earned an un-audited net profit of LTL 88.4 million in full year 2012 ( LTL 80.95 million in FY 2011). Net profit of AB DNB Bankas group within the period was LTL 80.4 million compared to LTL 74.26 million in the same period a year ago. The figures are calculated according to International Financial Reporting Standards.
“The key driving factors behind the positive financial result were the income growth in all major business lines and further improvement of quality of the loan portfolio. This comes as a direct consequence of the continuous growth of number of customers who choose DNB as their home bank and more stable business environment. We see that better economic sentiment of both private individuals and businesses stimulates the demand for financial services, mortgages and investment credits. That makes us feel confident going forward and encourages to continue investments into further development of the bank’s technological base and our customer oriented business model” Bjornar Lund, the president and the chairman of the management board of AB DNB Bankas, said.
Due to consisted implementation of customer centric business model and concerted efforts aimed to increase the number of customers who use the group’s services more actively, the number of individual and corporate customers rose by more 60 thousand to 777 thousand in the full year 2012. That contributed positively to the income growth from the bank’s core business.
AB DNB Bankas’ group net income rose 11.1 percent year-on-year to LTL 378.8 million. Net interest income made the largest relative weight of 63.8 percent of operating income in 2012. Non - interest income made 36.2 percent of the operating income and was 4.1 percentage points higher compared to the same period the year before.
The group's operating and other expenses made LTL 255.1 million in 2012. In 2011 they stood at LTL 182.8 million. The rise of operating expenses reflects the investments into the new core banking systems that provide strong technological foothold for sustainable long-term growth. This year the bank plans to continue the investments.
In 2012 AB DNB Bankas signed new credit contracts worth LTL 2.1 billion so the group’s net loan portfolio rose 0.4 percent to LTL 8.6 billion year-on-year. The major factor behind the growth was increased credit demand from corporate customers.
AB DNB Bankas group deposit portfolio rose 14.3 percent year-on-year to LTL 5.9 billion as at the end 2012. The group’s assets rose 3.0 percent year-on-year to LTL 11.5 billion within the same period.
With economy growing and customer risks declining AB DNB Bankas group set aside LTL 43.1 million for special provisions. That is almost half less compared to LTL 82.8 million set aside for the purpose the year before. Due to proper risk management the bank met all prudential requirements of the Bank of Lithuania.
As at the end of 2012 AB DNB Bankas’ group served its private and corporate customers through the country’s second largest nationwide customer service network. It consisted of 78 banking outlets across Lithuania with self-service terminals installed in each of them.
The group’s customers were also conveniently served through the country’s largest ATM network. It connects 543 DNB (182) and SEB (361) ATMs thanks to the outstanding common ATM network agreement.
In 2012 the bank issued 97 thousand new payment cards to its customers so its outstanding payment cards’ portfolio rose to 505 thousand as of the end of the year.
The number of customers using AB DNB Bankas internet banking services rose 17 percent year-on-year to 526 thousand as at the end of 2012.
AB DNB Bankas group that cherishes long-term relationships, met all of its obligations to its social partners, including sponsorship of the national men‘s basketball team for the tenth year running, clearly demonstrating - DNB is a reliable partner both in business and in the community life.
Please check the Norway’s DNB bank operating results for 2012 on www.dnb.no.
AB DNB Bankas' operating results for the first quarter of 2013 will be released on 26t April.
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