OREANDA-NEWS. February 12, 2009. According to preliminary data AB DnB NORD Bankas Group earned an un-audited net profit of LTL 69.4 in 2008, as its assets under management reached LTL 14 billion, reported the press-centre of AB DnB NORD Bankas.

In the environment of changing economic cycle the net financial result was 35.1 percent lower compared to 2007 result when the group’s audited net profit was LTL 106.9 million. The 2008 unaudited net profit of AB DnB NORD Bankas was LTL 70.7 million, the result 34.4 percent lower compared to the bank’s 2007 audited net profit of LTL 107.9 million.

According to the president and the chairman of the management board of AB DnB NORD Bankas Werner Schilli, in 2008 the bank achieved most of the goals set at the start of the year as constant efforts to increase operating efficiency helped to scale down the group‘s cost income ratio to 50.9 percent.

“Pursuing conservative risk management policy the bank strengthened its position both in retail and corporate, maintained strong position in the country’s structured investment products’ market and enjoyed a high long-term creditworthiness rating despite adverse situation on global financial markets and sharp downturn of Lithuania’s economic growth seen in the second half of the year.

AB DnB NORD Bankas group faced no direct impact of global financial markets, however, with clear evidence of slowing economy, lending became more conservative. Enhanced attention to risk management, the constant focus on further improvement of operating efficiency and efforts to keep costs in check, helped us to offset somewhat the impact of challenging operating environment on the full year financial result that in the fourth quarter of 2008 was negatively affected by higher impairment and other provision expenses - mostly in real estate development and transport sectors.

We are particularly pleased that the number of our customers rose by more than 11 percent in 2008 with increasing number of customers choosing DnB NORD as their home bank. We strongly believe that namely during periods of economic change, customers more than ever need financial advice and professional service and we must offer them the best possible guidance to ensure their further success and the success of the bank‘s business,” said Werner Schilli, the president and the chairman of the management board of AB DnB NORD Bankas.

In 2008 AB DnB NORD Bankas group’s asset growth outpaced the market as the assets under its management rose by LTL 2.5 billion or 22.3 percent to LTL 14.0 billion as at the end of 2008.

After few years of high credit demand in Lithuania, the credit growth showed clear signs of cooling down in the second half of 2008. In response to changing economic cycle AB DnB NORD Bankas adjusted its credit policies accordingly. With credit growth rates stabilizing the group’s net loans to customers portfolio increased by LTL 2.4. billion or 26.9 percent year-on-year to LTL 11.2 billion as at the end of 2008.

Net loan portfolio to individual customers increased by LTL 1.0 billion or 23.0 percent to LTL 5.2 billion while its corporate net loan portfolio rose by LTL 1.4 billion or 30.4 percent year-on-year to LTL 6.0 billion.

Customers’ savings and investments at AB DnB NORD Bankas Group stood at LTL 5.0 billion as at the end of 2008, of which issued debt securities amounted to LTL 1.2 billion and customers‘deposits made LTL 3.8 billion. The deposit portfolio of individual customers in AB DnB NORD Bankas rose 9.3 percent year-on-year to 2.1 LTL billion as at the end of 2008.
Due to proper risk management AB DnB NORD Bankas met all prudential requirements of the Bank of Lithuania.

On October 7 the international ratings agency Fitch Rating affirmed the bank’s long-term borrowing rating A with stable Outlook. Fitch Ratings also affirmed AB DnB NORD Bankas' short-term IDR ‘F1', individual rating at C/D and the support rating '1'.

AB DnB NORD Bankas is part of DnB NORD financial group that was established by the Norway’s largest bank DnB NOR and North Germany’s largest bank NORD/LB. DnB NORD Bankas owns three subsidiaries in Lithuania: asset management firm UAB DnB NORD Investiciju Valdymas, leasing arm UAB DnB NORD Lizingas and real estate brokerage UAB DnB NORD Bustas.