dnb group at goldman sach · goldman sach rome 16 june 2015 rune bjerke ceo dnb . pre-tax operating...
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DNB GROUP AT
GOLDMAN SACH
ROME 16 JUNE 2015
Rune Bjerke CEO DNB
Pre-tax operating profit before impairment in NOK billion
9.3 (7.4)
Cost/income ratio in per cent
37.0 (41.3)
Return on equity in per cent
16.1 (15.4)
Common equity Tier 1 capital ratio in per cent (transitional rules)
12.7 (11.9)
Figures in parentheses refer to 1Q14
2
First quarter 2015
Earnings per share
4.01 (3.37)
Profit figures
Pre-tax operating profit before impairment NOK million
Pre-tax operating profit before impairment
excl. basis swaps NOK million
Profit for the period NOK million
Profit for the period
excl. basis swaps NOK million
3
5 478
4 553
5 6204 965
6 533
1Q14 2Q14 3Q14 4Q14 1Q15
5 913
4 5295 292
4 5945 211
1Q14 2Q14 3Q14 4Q14 1Q15
7 3776 722
7 6266 964
9 273
1Q14 2Q14 3Q14 4Q14 1Q15
7 973
6 6897 177
6 456
7 462
1Q14 2Q14 3Q14 4Q14 1Q15
Return on equity and cost/income ratio
Return on equity excl. basis swaps 1) Per cent
Return on equity 1)
Per cent
Cost/income ratio Per cent
Cost/income ratio excl. basis swaps Per cent
39.443.9
41.844.1 42.2
1Q14 2Q14 3Q14 4Q14 1Q15
41.343.8
40.4 42.2
37.0
1Q14 2Q14 3Q14 4Q14 1Q15
15.4
12.4
14.8
12.6
16.1
1Q14 2Q14 3Q14 4Q14 1Q15
16.6
12.314.0
11.712.9
1Q14 2Q14 3Q14 4Q14 1Q15
1) Return on equity is calculated on the assumption that additional Tier 1 capital is classified as liability .
4
Ratio of deposits to net loans and earnings per share
Earnings per share NOK
Ratio of deposits to net loans Per cent
The ratio of deposits to net loans excl. short-term
money market investments
5
3.37
2.80
3.45
3.05
4.01
1Q14 2Q14 3Q14 4Q14 1Q15
67.0
64.4 64.065.4 65.2
65.0 64.3 63.9 63.5 64.1
31 March2014
30 June2014
30 Sept.2014
31 Dec.2014
31 March2015
Customer segments
6
Pre-tax operating profit after impairment NOK million
2,393
869
2,865
2,514
854
2,909
2,135
845
2,870
1Q15
4Q14
1Q14
Personal customers Large corporates and
international customers Small and medium-
sized enterprises
Development in loans
NOK billion
1 315
1 344
1 476
1 315
1 327
1 389
31 March 13 30 June 13 30 Sept. 13 31 Dec.13 31 March 14 30 June 14 30 Sept. 14 31 Dec.14 31 March 15
Loans at end of period Loans adjusted for exchange rate movements
7
Development in deposits – adjusted for short-term money market investments
NOK billion
8
810
874
946
810
861877
31 March 13 30 June 13 30 Sept. 13 31 Dec.13 31 March 14 30 June 14 30 Sept. 14 31 Dec.14 31 March 15
Deposits adjusted for short-term money market investments
Deposits adjusted for short-term money market investments and exchange rate movements
Development in average interest rate spreads
Per cent
2.212.32
2.42 2.42 2.42 2.392.31 2.32 2.32
(0.30)(0.24) (0.29) (0.30) (0.29) (0.27)
(0.17) (0.15) (0.11)
1.201.28 1.29 1.30 1.25 1.27 1.25 1.27 1.28
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15
Lending spread
Deposit spread
Combined spread- weighted average
9
NOK million
10
Development in commissions and fees
1) The first quarter figures in 2014 and 2015 are adjusted for income from public sector activities within life insurance
that are in the process of being wound up.
1)
1,807
1,981 1,935 1,956
2 113 2 200
1Q10 1Q11 1Q12 1Q13 1Q14 1Q15
Sale of insurance products Money transfer and banking services
Asset management and custodial services Investment banking services
Real estate broking Net commissions and fees
+ 4.1% growth
1) 1)
Income statement
11
Full year
Amounts in NOK million 1Q15 4Q14 3Q14 2Q14 1Q14 2014
Net interest income 8 587 8 700 8 228 7 867 7 691 32 487
Net commissions and fees 2 212 2 313 2 229 2 242 2 185 8 969
Net gains on financial instruments at fair value 3 400 279 1 817 1 132 2 089 5 317
Net financial and risk result, DNB Livsforsikring 52 185 136 183 105 609
Net insurance result, DNB Skadeforsikring 99 129 121 139 102 491
Other operating income 361 446 256 391 397 1 490
Net other operating income, total 6 124 3 352 4 560 4 087 4 877 16 877
Total income 14 711 12 052 12 788 11 954 12 569 49 363
Operating expenses 5 215 5 045 5 088 5 150 5 168 20 452
Restructuring costs and non-recurring effects 223 42 74 83 24 223
Pre-tax operating profit before impairment 9 273 6 964 7 626 6 722 7 377 28 689
Net gains on fixed and intangible assets 12 42 13 (3) 0 52
Impairment of loans and guarantees 575 821 183 554 80 1 639
Pre-tax operating profit 8 710 6 184 7 456 6 165 7 297 27 102
Tax expense 2 130 1 236 1 828 1 600 1 799 6 463
Profit from operations held for sale, after taxes (47) 16 (8) (11) (19) (22)
Profit for the period 6 533 4 965 5 620 4 553 5 478 20 617
Profit attributable to shareholders 6 519 4 965 5 620 4 553 5 478 20 617
Net gains on financial instruments
4Q14 - 1Q14 -
Amounts in NOK million 1Q15 4Q14 1Q14 1Q15 1Q15
Customer revenues in DNB Markets 622 549 459 73 163
Trading in foreign exchange/fixed income/equities in
DNB Markets468 94 590 374 (123)
Changes in credit spreads on bonds in DNB Markets 140 (196) 148 336 (8)
Adjustments in valuation models with effects on the
balance sheet and income statement- (242) 291 242 (291)
The bank's own equity investments (193) (146) 1 (47) (195)
Exchange rate effects, additional Tier 1 capital 170 - - 170 170
Other mark-to-market adjustments (incl. CVA/DVA) 384 (287) 282 671 102
1 590 (229) 1 772 1 819 (182)
Basis swaps 1 810 508 (596) 1 302 2 406
Valuation of the investment in Nets - - 913 - (913)
Net gains on financial instruments at fair value 3 400 279 2 089 3 121 1 311
Change
Net gains on financial instruments at fair value, excl.
basis swaps
12
Changes in net interest income
NOK million From 1st quarter 2014 to 1st quarter 2015
7 691
8 587
366
264 116
112 90 (54)
1Q14 Exchangerate
effects
Lendingand
depositvolumes
Long-term
funding
Lendingand
depositspreads
Interestrate
instruments
Othernet
interestincome
1Q15
13
Changes in net interest income
NOK million From 4th quarter 2014 to 1st quarter 2015
14
8 7008 587
228 89 21 (26) (46) (90)
(122) (169)
4Q14 Exchangerate
effects
Lendingand
depositspreads
Long-term
funding
Lendingand
depositvolumes
Equity andnon-interest
bearingitems
Interestrate
instruments
Othernet
interestincome
Interestdays
1Q15
Changes in net other operating income
NOK million From 1st quarter 2014 to 1st quarter 2015
4 877
6 124
2 406 39 27 (54) (77) (182) (913)
1Q14 Basisswaps
Otheroperating
income
Netcommissions
and fees
Net financialand risk result
from DNBLivsforsikring
Profitfrom
associatedcompanies
Net gains onother financial
instruments
Investmentin Nets
1Q15
15
Changes in net other operating income
NOK million From 4th quarter 2014 to 1st quarter 2015
16
3 352
6 124
1 819
1 302 (27) (87) (102)
(133)
4Q14 Netgains on other
financialinstruments
Basisswaps
Otheroperating
income
Net gains oninvestment
property
Netcommissions
and fees
Netfinancial and
risk result fromDNB Livsforsikring
1Q15
Changes in operating expenses
17
Change in
Amounts in NOK million 1Q15 Change 1Q14 per cent
Total adjusted operating expenses 5 215 47 5 168 0.9
Of which :
Exchange rate effects for units outside Norway 83
Currency-adjusted operating expenses 5 132 (36) 5 168 (0.7)
Total adjusted operating expenses 5 215 47 5 168
Income-related costs
Ordinary depreciation on operational leasing 17
Expenses directly related to operations
Fees 33
Pension expenses 21
Properties and premises (61)
Other costs 37
Non-recurring effects 223 199 24
Restructuring costs, employees 50 5 46
Other restructuring costs and non-recurring effects 64 87 (22)
IT restructuring 108 108 0
Operating expenses 5 438 246 5 192 4.7
Changes in operating expenses
Change in
Amounts in NOK million 1Q15 Change 4Q14 per cent
Total adjusted operating expenses 5 215 170 5 045 3.4
Of which :
Exchange rate effects for units outside Norway 43
Currency-adjusted operating expenses 5 172 127 5 045 2.5
Total adjusted operating expenses 5 215 170 5 045
Income-related costs
Customer paid marketing, DNB Eiendom 31
Expenses directly related to operations
Pension expenses 72
IT expenses 39
Performance-based pay 36
Other costs (8)
Non-recurring effects 223 181 42
Restructuring costs, employees 50 (36) 86
Other restructuring costs and non-recurring effects 64 104 (40)
Reversal of provisions 0 73 (73)
IT restructuring 108 39 70
Operating expenses 5 438 350 5 088 6.9
18
Impairment of loans and guarantees
19
Full year
Amounts in NOK million 1Q15 4Q14 3Q14 2Q14 1Q14 2014
Personal customers (34) (67) 84 53 48 118
- Mortgage loans (81) (141) 33 (5) (16) (129)
- Consumer finance 46 74 51 58 64 247
Small and medium-sized enterprises 308 450 165 157 65 838
Large corporates and international customers 256 496 18 292 219 1 024
- Nordic Corporates Division (15) 333 (3) 97 (56) 370
- International Corporates Divison (39) 166 86 (17) 56 291
- Shipping, Offshore and Logistics Division 242 (21) (116) 152 152 166
- Energy Division 12 5 5 (2) 24 31
- Baltics and Poland 50 1 39 53 31 124
- Other units 7 13 8 9 13 42
Total individual impairment 530 879 267 502 332 1 980
Total collective impairment of loans 44 (58) (84) 52 (252) (341)
Impairment of loans and guarantees 575 821 183 554 80 1 639
Total impairment in relation to average volumes
(annualised) 0.16 0.23 0.05 0.16 0.02 0.12
Net non-performing and net doubtful loans and guarantees 1)
18.419.5 19.7
20.7
16.4 16.114.9
17.3
13.9
1.55 1.50 1.501.38
1.191.05 1.01 0.96
0.83
31 Dec. 31 Dec. 31 Dec. 31 Dec. 31 March 30 June 30 Sept. 31 Dec. 31 March
2010 2011 2012 2013 2014 2015
DNB Group As a percentage of net loans
Per cent
NOK billion
1) Includes non-performing commitments and commitments subject to individual impairment. Accumulated individual impairment is deducted.
20
Balance sheets
21
31 March 31 Dec. 31 March 31 Dec.
Amounts in NOK billion 2015 2014 2015 2014
Deposits with central banks 305 59 302 54
Due from credit institutions 203 373 457 608
Loans to customers 1 476 1 439 743 723
Other assets 806 779 639 613
Total assets 2 790 2 649 2 141 1 998
Due to credit institutions 263 214 333 269
Deposits from customers 963 942 918 903
Short-term debt securities issued 233 207 233 207
Long-term debt securities issued 620 605 168 160
Other liabilities and provisions 536 523 349 332
Additional Tier 1 capital 8 8
Other equity 166 159 131 128
Total liabilities and equity 2 790 2 649 2 141 1 998
Ratio of deposits to net loans (%) 65.2 65.4 123.6 124.8
Adjusted ratio of deposits to net loans (%) 1) 64.1 63.5 121.3 121.0
Total combined assets 3 089 2 936 2 141 1 998
Currency-adjusted loans to customers 1 459 731
Currency-adjusted deposits from customers 950 904
1) Excluding short-term money market deposits
DNB Group DNB Bank ASA
Common equity Tier 1 capital ratio 1)
Leverage ratio Per cent
Estimate applying average weights
used by Swedish banks 2) Per cent
Transitional rules Per cent
Future Basel III estimate Per cent
22
1) Common equity Tier 1 capital includes 50 per cent of interim profits in all quarters, apart from the Leverage ratio figures.
Annual figures are exclusive of dividend payments.
2) Average weights used by Swedish banks on corporate loans and loans secured by real estate.
11.8 11.9 12.1 12.6 12.7 12.7
31 Dec.2013
31 March2014
30 June2014
30 Sept.2014
31 Dec.2014
31 March2015
5.3 5.1 5.35.7
6.0 5.7
31 Dec.2013
31 March2014
30 June2014
30 Sept.2014
31 Dec.2014
31 March2015
13.6 14.2 14.4 15.0 15.1 14.6
31 Dec.2013
31 March2014
30 June2014
30 Sept.2014
31 Dec.2014
31 March2015
16.317.5 17.3 18.0 18.3 18.8
31 Dec.2013
31 March2014
30 June2014
30 Sept.2014
31 Dec.2014
31 March2015
Changes in the common equity Tier 1 capital ratio
From 31 March 2014 to 31 March 2015
Per cent
11.9
12.7
1.3
0.40.2 0.1
0.1 (0.2)(0.4)
(0.7)
31 March2014
Profit for theperiod after
dividends
Exchange rateeffect on
equity
Capital efficiency
measures
Regulatorychanges
Risk-weightedvolume DNB
Livsforsikring
Increase inpension
commitments
Lendinggrowth
Exchange rateeffect on
existingportfolio
31 March2015
23
Changes in the common equity Tier 1 capital ratio
From 31 December 2014 to 31 March 2015
Per cent
12.7 12.7
0.30.1 (0.2)
(0.2)
31 Dec. 2014 50% of profit for the period
Exchange rate effect onequity
Lending growth Exchange rate effect on existing portfolio
31 March 2015
24
The minimum 14% common equity Tier 1 capital target by year-end 2016 remains firm
25
Financial restructuring Realisation of capital gains
IRB approvals
(does not apply
under transitional
rules)
Capital-efficient
products Asset disposal
CET 1 ratio CET 1
RWA
Active portfolio
management
The Group’s financial ambitions stay firm
Build up of adequate common equity Tier 1 capital through
dynamic management of balance sheet items
Stable volume-weighted spreads
Commissions and fees – underlying growth of 5 per cent
Flat nominal costs throughout 2015 (excluding restructuring costs
and exchange rate effects)
1) Normalised levels are around 28 bps of net loans to customers, which corresponds to losses of approx. NOK 4 billion.
Impairment expected to stay below normalised levels 1) in 2015
– no noticeable effects from oil and gas thus far
26
Financial ambitions 2016 and 2017
> 12 per cent
Min. 14% CET1 ratio 1)
as capital level
> 50% dividend
when capital level is reached
Return on equity
27
1) Based on transitional rules
4 MOST ASKED QUESTIONS
Four most frequently
asked questions by investors
29
I
Are you on track to meeting your
current and future capital
requirements?
30
31 * Fully-loaded Basel III estimate ** As at 31 June 2012
Strong capital accumulation driven by gross earnings
8.6 9.2 9.3
10.6
11.9 12.7
2010 2011 2012 2013 2014 2015
10.6
12.1
14.2 14.6
2012** 2013 2014 2015
4.1 4.3
5.1
5.7
2012** 2013 2014 2015
CET 1 capital ratio, transitional rules
as at 31 March, per cent CET 1 capital ratio, Basel III*
as at 31 March, per cent
Leverage ratio, Basel III as at 31 March, per cent
5.50
6.00
6.50
7.00
7.50
8.00
8.50
9.00
1/4
/2014
1/7
/201
4
1/1
0/2
01
4
1/1
/2015
1/4
/201
5
USD/NOK*
32 *Updated as of 5 June 2015
Capital ratios are sensitive to currency fluctuations
Currency
effects
USD/NOK
EUR/NOK +15%
- 45 bps
Factors affecting the CET1 ratio 2016 effect, bps
+31%
USD/NOK
EUR/NOK - 15%
45 bps +
33
The minimum 14% CET1 capital target remains firm - identified capital efficiency measures in the range of 80-100 bps*
Financial restructuring Realisation of capital gains
IRB approvals
(Do not apply under
transitional rules)
Capital-efficient
products Asset disposal
CET1 ratio CET1
RWA
Active portfolio
management
*up to 2016 under transitional rules
34
DNB – the relative winner?
0%
20%
40%
60%
80%
100%
DNB Nordea SHB SEB Swedbank Danske
Corporate risk weights
RW PD/LGD Floors
0%
10%
20%
30%
40%
50%
DNB Nordea SHB SEB Swedbank Danske
Mortgage risk weights
RW LGD Floor 20% PD Floor 0.2% Pillar 2 requirement
DNB risk
weights –
transitional
rules
???
Future risk
weights –
Basel 4 ? ???
Current
IRB
risk weights
35
II
Will growth in quality
earnings continue?
36
Continued growth in net interest income
15,000
20,000
25,000
30,000
35,000
2010 2011 2012 2013 2014
Net interest income
NOK million
Expected lending growth of 3-4
per cent
Stable development in volume-
weighted spreads
Net interest income expectations for 2015
CAGR
8.5%
37 * Personal customers and SMEs, ** Large Corporates and International
Deposit repricing potential across customer segments
Total = NOK 522 billion
Deposits in retail banking* LCI** maturing volumes and spreads public clients NOK billion, bps
62%
38%
Deposits with repricing potential
Low-yielding deposits / other
7
15
22
-99
-110
-136
2015 2016 2017
Volume Average spread
Total
NOK 536 billion
May March April Average
maturity
38
Sound growth in other quality earnings
Corporate finance
Revenues in NOK million
168
316
Expect underlying growth of 5% in net commissions and fees
35
46
10
27
2012 2013 2014 Q115
CAGR
55%
19
28
20
27
34 36
2012 2013 2014 Q115
Private banking
Assets under management, NOK billion
New pension products
Assets under management, NOK billion
Investments Deposits
39
III
Will DNB be able to compete in a
new digital banking reality?
Our customers prefer digital banking
Digital 86%
Manual 14%
Savings agreements
Digital, 64%
Manual, 36%
Consumer loans
Digital, 50%
Manual, 50%
Car loans
Digital 11%
Manual 89%
Insurance
Sales digital vs. traditional Share of customer traffic
40
Text message banking:
25 %
Online banking:
30%
Branch office: 1%
Call Center: 2%
Mobile banking:
42%
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2013 2014 2015
41
Key takeaways Number of manual transactions in branches
Modernising the way we do banking
• Fundamentally changing the way we
operate our branches:
o Eliminated manual cash handling
o Moving manual banking transactions to digital
channels
• Continued reduction in number of branches
Reduction so far:
67%
Goal:
75%
42
Keeping our best-in-class cost-efficiency position
40
45
50
55
60
65
70
75
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
European banks (top 50)* Nordic peer group DNB
Cost/income DNB vs peer groups Per cent
C/I ambition for 2017
~40%
Combination of
top-line growth and
cost focus
* Based on total assets Source: SNL Financial
43
IV
Lower oil price
- Is there any sign of secondary effects for
Norway and DNB ?
44 Source: Statistics Norway/DNB Markets forecasts
1.2 %
2.4 %
3.5 %
4.5 % 4.4 %
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
2010 2011 2012 2013 2014 2015e 2016e 2017e 2018e
Mainland GDP growth Unemployment rate
GDP growth and unemployment Year on year, per cent
Economic growth in Norway is slowing down - but the landing is soft and at a comfortable level
DNB Markets Oil Price Assumption: $65/bbl. (avg. price) - With an alternative downside scenario
Oil price development USD per barrel
Main assumptions and
a downside $50/bbl.-scenario by DNB Markets
Oil investments 2013 prices, NOK billion
Main assumptions and
a downside $50/bbl.-scenario by DNB Markets
112
47
65
80
90
50
1995 1999 2003 2007 2011 2015e 2019e
Oil price
DNB Markets' forecast
$50/bbl-scenario
Source: Statistics Norway/DNB Markets
98
205
155
123
1997 2000 2003 2006 2009 2012 2015e 2018e
Oil investments
DNB Markets' forecast
$50/bbl-scenario
45
46
Scenario: Lower oil price - What if oil price would stay at $50/bbl.?
1.2
2.4
0.6
4.5
4.1
5.2
-2%
-1%
0%
1%
2%
3%
4%
5%
6%
7%
2010 2011 2012 2013 2014 2015e 2016e 2017e 2018e
Mainland GDP GDP $50/bbl-scenario Unemployment Unempl. $50/bbl-scen.
GDP growth and unemployment Year-on-year, per cent
Consensus assumptions and a downside $50/bbl.-scenario by DNB Markets
Sources: Consensus Forecast, Norges Bank, Statistics Norway, forecast and scenario by DNB Markets as of May 2015
Fiscal policy
Large public wealth gives ample leeway to
smooth business cycles
47 Source: Thomson Datastream, DNB Markets
Two powerful tools to ensure a stable macroeconomic development
0
50
100
150
200
250
300
2001 2003 2005 2007 2009 2011 2013 2015e
Structural, non-oil deficit
4 per cent return on the fund
capital
88
National budget structural, non-oil deficit 2015 prices, NOK billion
Monetary policy
Higher interest rates in Norway
than in the rest of Europe
-1
0
1
2
3
4
5
6
7
2008 2010 2012 2014 2016 2018
ECB Sweden Norway
Central bank rates Per cent
DNB has a well diversified oil-related portfolio - 8% of total Group EaD to oil related portfolios
OSV: Offshore Service Vessels, F(P)SO: Floating (Production) Storage Offloading.
LNG: Liquid Natural Gas. IG: Investment grade,, All figures as of 31 Mar 2015.
48
Inv. grade or similar
22.2 60%
Sub-IG or similar
5.4 15%
Seismic 1.5 4%
Leverage Buy Out
(LBO) 7.7
21%
Other 0.1 0%
Oilfield Services - NOK 37bn
(1.8% of total Group EaD)
NOK bn and per cent of NOK37bn
Exploration &
Production IG
24.0 32%
Exploration & Prod. Sub-IG
4.6 6%
Reserve Based
Lending (RBL) 10.1 13%
Exploration Financing
(EFF) 2.7 4%
Midstream incl LNG
22.4 29%
Refining & petchem
12.2 16%
Oil & Gas exposure - NOK76 bn
(3.7% of total Group EaD)
NOK bn and per cent of NOK 76bn
OSV 22.7
42.7%
Rig 17.6
33.0%
FPSO/FSO 5.2
9.8%
Subsea cons-
truction 4.2
7.9%
Other 3.5
6.6%
Offshore exposure - NOK57 bn.
(2.8% of total Group EaD)
NOK bn and per cent of NOK57bn
Some migration from low to medium risk - 60% of portfolio is low risk and 39% is medium risk
49
EaD: Exposure at Default, PD: Probability of default. Risk grade system, please see back up slide for details.
DNB's risk classification system, where 1 represents the lowest risk and 10 the highest risk.
DNB’s oil-related portfolio split by sub-segment in exposure (EaD) and by risk grade
NOK 169bn as of 31 Mar 2015 (and NOK 161bn as of 31 Dec 2014)
NOK billion
54
64 61
14 10
15 0.20
0.20 0.20
0.00 0.00 0.00
17
18 17
29 33
40
1.47 0.31 0.30 0.00 1.17 1.30
19
23 23
8 10
12
0.61 0.30 1.20 0.20 0.30 0.20
0
20
40
60
80
100
120
Sep-14 Dec-14 Mar-15 Sep-14 Dec-14 Mar-15 Sep-14 Dec-14 Mar-15 Sep-14 Dec-14 Mar-15
Grade 1-4 "Low risk" Grade 5-7 "Medium" Grade 8-10 "High" Grade 11-12 "Doubtful & NPL"
Oilfield Services
Offshore
Oil & Gas
19 25 26
6 6 10 0.14 0.20 0.20
0.00 0.00 0.00
6
9 8
19 21
25
1.45 0.31 0.00 0.00 1.17 1.30
4
4 4
6 7
8
0.47 0.20 0.80 0.19 0.20 0.20
90
105 101
51 53
67
2.28 0.81 1.70 0.20 1.47 1.50
0
20
40
60
80
100
120
0
20
40
60
80
100
120
Sep-14 Dec-14 Mar-15 Sep-14 Dec-14 Mar-15 Sep-14 Dec-14 Mar-15 Sep-14 Dec-14 Mar-15
Grade 1-4 "Low risk" Grade 5-7 "Medium" Grade 8-10 "High" Grade 11-12 "Doubtful & NPL"
Oilfield Services (34% drawn loans)
Offshore (59% drawn loans)
Oil & Gas (47% drawn loans)
Exposure (EaD)
Outstanding loans to oil, offshore and oil service are 49% of EaD - Large part of remaining exposure is guarantees and revolving facilities to IG
50
DNB’s oil-related portfolio: Drawn loans split by sub-segment and risk grade, total exposure by risk
grade (EaD) NOK 83bn and exposure (EaD) NOK 169bn as of 31 Mar 2015
NOK billion
EaD: Exposure at Default, PD: Probability of default. Risk grade system, please see back up slide for details.
DNB's risk classification system, where 1 represents the lowest risk and 10 the highest risk.
Doubtful & NPL = Non performing loans, IG = investment grade companies
HERE FOR YOU.
EVERY DAY.
WHEN IT MATTERS
THE MOST.