April 26, 2018 / 5:38 AM / 3 months ago

BRIEF-DNB Q1 net profit beats forecast as loan losses reversed

April 26 (Reuters) - DNB ASA:

* RIPPLE EFFECTS STRENGTHEN DNB’S PERFORMANCE

* DNB Q1 NET PROFIT NOK 5,653 MILLION (REUTERS POLL NOK 5.1 BILLION)

* DNB Q1 PRETAX PROFIT BEFORE IMPAIRMENTS NOK 6.7 BILLION (REUTERS POLL NOK 7.23 BILLION)

* DNB Q1 LOAN LOSS REVERSALS NOK 330 MILLION (REUTERS POLL LOSS NOK -604 MILLION)

* Q1 COST/INCOME RATIO WAS 43.4 PER CENT (45.6)

* THE GROUP’S OVERRIDING FINANCIAL TARGET IS A RETURN ON EQUITY ABOVE 12 PER CENT TOWARDS THE END OF 2019

* SAYS DNB’S DIVIDEND POLICY REMAINS UNCHANGED

* DNB Q1 NET INTEREST INCOME NOK 9.0 BILLION (REUTERS POLL NOK 8.74 BILLION)

* SAYS THE GENERAL MEETING HAS GIVEN THE BOARD OF DIRECTORS AN AUTHORISATION TO REPURCHASE UP TO 3.5 PER CENT OF THE COMPANY’S SHARE CAPITAL AS WELL AS AN AUTHORISATION TO DNB MARKETS OF 0.5 PER CENT FOR HEDGING PURPOSES

* OPTIMISM IS BACK IN OIL SECTOR, AND LOSSES HAVE BEEN STRONGLY REDUCED. CONSEQUENTLY, LARGE CORPORATES AND INTERNATIONAL SHOWS HIGHEST INCREASE IN PROFITS AMONG OUR BUSINESS AREAS

* DNB KEEPS VIEW LENDING VOLUMES IS ANTICIPATED TO INCREASE 3 TO 4 PER CENT IN 2018 AND 2019

* SOME OF IMPAIRMENT LOSSES RECORDED PREVIOUSLY WERE REVERSED. THESE STEMMED PRIMARILY FROM OIL-RELATED OPERATIONS, WHERE A NUMBER OF COMPANIES HAVE BEEN THROUGH SUCCESSFUL RESTRUCTURINGS

* SAYS WILL NO LONGER PROVIDE A GUIDING ON LOAN LOSSES Source text for Eikon: Further company coverage: (Reporting By Terje Solsvik)

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