DnB NORD Bankas AB - Notification on material event

Preliminary result for the first nine months of 2009

According 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