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2009-10-22 08:15:00 CEST 2009-10-22 08:15:00 CEST REGULATED INFORMATION DnB NORD Bankas AB - Notification on material eventPreliminary result for the first nine months of 2009According to preliminary unaudited data AB DnB NORD Bankas, company code 112029270, VAT payer code LT120292716, registered office at J. Basanavičiaus St. 26, Vilnius, the data is collected and stored at the Register of Legal Entities, earned a pre-tax operating profit before provisions of LTL 192.6 million (EUR 55.8 million) in the first nine months of 2009, a 37.2 percent rise compared to the same period a year ago. With customer risks remaining high due to the country's deep and protracted economic contraction, AB DnB NORD Bankas set aside LTL 196 million (EUR 55.8 million) in special provisions in the third quarter of 2009, the amount commeasurable with the provisioning level the quarter before. As a result AB DnB NORD Bankas financial result was a net loss of LTL 237.2 million (EUR 68.7 million) in the first nine months of 2009. To ensure balanced performance of the bank in adverse economic environment the bank's authorized share capital was increased to LTL 656.7 million ( EUR 190,2 million) and the bank's largest shareholder Bank DnB NORD invested EUR 15 million (LTL 51.8 million) to the bank's reserve capital in the third quarter of the year. AB DnB NORD Bankas met all prudential requirements of the Bank of Lithuania. ”Our focus on operating efficiency through streamlining measures, strict cost control and the ability to exploit emerging business opportunities in the recession-stricken economy helped ease the impact of the increased risk costs on the bank's nine month result. In the third quarter of the year customer risks remained high due to Lithuania's deep and protracted economic contraction, however intense credit monitoring and restructuring efforts brought about some stabilization in the bank's mortgage credit and leasing portfolios. Our efforts to build long-term relationships and to respond quickly to changing customer needs resulted in sustained growth of total income and the number of the bank's customers, a fact we are particularly proud of,” said Werner Schilli, president and the chairman of the management board of AB DnB NORD Bankas. Lifted by particularly strong commission income from trade with securities and derivatives, AB DnB NORD Bankas total income rose 13.7 percent year-on-year to LTL 329.2 million (EUR 95.3 million) in the first nine months of 2009. Through streamlining measures the bank's operating expenses were reduced by 11.1 percent year-on-year to LTL 123.8 million (EUR 35.8 million). The constant focus on operating efficiency and productivity resulted in an improvement of the bank's cost/income ratio to 36.3 percent, its best ever so far. Due to declining credit demand and a smaller number of projects that met the credit risk criteria AB DnB NORD Bankas net loan portfolio decreased 5.3 percent year-on-year to stand at LTL 10.5 billion (EUR 3.0 billion) at the end of September. As at the end of September, savings and investments at AB DnB NORD Bankas stood at LTL 4.5 billion (EUR 1.3 billion), of which issued debt securities amounted to LTL 807 million (EUR 233.7 million and customers‘ deposits were LTL 3.7 billion (EUR 1.1 billion). The number of AB DnB NORD Bankas customers rose by 37.7 thousand in the first nine months of 2009 with bank providing comprehensive range of financial services as at the end of September to 662 thousand individual and corporate customers. Andrius Vilkancas Press Officer tel. +370 5 239 3413 |
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