DNB earned LTL 55.3 million net profit in H1

VILNIUS. AB DNB Bankas, a member of Norway's largest financial services group, earned a net profit of LTL 55.3 million in the first six 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 36.2 million in the first six months 2011.

 “The main driving factors behind positive financial result in the first half of the year were the growth of income along all major business lines and further improvement of quality of our loan portfolio. This comes as a direct reflection of the continuous growth of number of customers who choose DNB as their home bank and more stable business environment. It makes us feel particularly positive to see the markedly better economic sentiment of both private individuals and businesses in the second quarter of the year that stimulated the demand for financial services, mortgages, and especially investment credits for business expansion,“ Bjornar Lund,  CEO of AB DNB Bankas says.

In the first six months of 2012, AB DNB Bankas signed new loan agreements worth LTL 948 million and as of the end of June its net loan portfolio stood at LTL 8.86 billion. Although the amount of new loans granted in the second quarter started to outweigh the credits repaid, the bank’s net loan portfolio as at the end of June was 1.7 percent lower compared to the same period a year ago.

As the bank’s loan portfolio has stabilized, DNB Bankas’ assets made LTL 11.12 billion as at the end of June and remained unchanged compared to the same period a year ago.

In line with a continuously increasing number of customers and growing funds on the bank’s accounts, the deposit portfolio of AB DNB Bankas rose 17.6 percent year-on-year to LTL 5.23 billion.

As the customer risk continued to decline in the first six months of the year, AB DNB Bankas set aside LTL 23.7 million for impaired loans compared to LTL 37.6 million in the same period a year before.

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

The Norwegian DNB financial group's operating results for the first six months of 2012 are available at www.dnb.no.

Information about preliminary AB DNB Bankas' nine months results will be released on 25 October.