Printer Friendly

DEN NORSKE REPORTS FIRST QUARTER LOSS OF OVER 600 MILLION KRONER

 DEN NORSKE REPORTS FIRST QUARTER LOSS OF OVER 600 MILLION KRONER
 OSLO, Norway, May 5 /PRNewswire/ -- In the first quarter of 1992 Den Norske Bank Group recorded a net loss of Norwegian Kroner (NOK) 601 million, an improvement of NOK 197 million on the corresponding period a year earlier. Lower loan losses, growth in net interest income and a reduction in operating expenses lie behind the improvement.
 "It is worth noting that costs have shown a positive trend and interest margins have been maintained," commented group Managing Director Finn A. Hvistendahl. These are the factors which can most easily be influenced by the bank. Hvistendahl stated that the bank's restructuring measures will bring costs down further throughout the year.
 Operating profit before loan losses and write-downs was NOK 496 million for the first three months of the year, on a level with the year-earlier period. The quarterly accounts have been charged with NOK 1,020 million in losses on loans and guarantees. Unspecified loan-loss provisions have been reduced by NOK 94 million relative to Dec. 31, 1991. In the same period last year losses on loans and guarantees came to NOK 1,192 million. Net non-performing loans amounted to NOK 10,270 million, compared with NOK 10,165 million at the end of 1991.
 Increased Interest Income
 Net interest income for the first quarter of 1992 was NOK 1,136 million, which represents a rise of NOK 113 million on the first quarter of 1991 but a decline of NOK 30 million compared with the final quarter of 1991. The subsidiary Realkreditt is included in the group accounts for the first time in the first quarter results for 1992. Realkreditt's interest income represents NOK 58 million of the net interest income of NOK 1,136 million. Relative to average total assets, net interest income came to 2.28 percent in the first quarter of the year, while the corresponding figures for the first and fourth quarters of 1991 were 2.04 percent and 2.56 percent, respectively.
 Foreign Exchange, Securities and Payment Services
 Other operating income decreased by NOK 117 million in the first quarter compared with the first quarter of last year. The decline is primarily due to a reduction in income on payment services and securities trading, along with lower profits on trading in foreign exchange and financial instruments.
 Lower Costs
 Operating expenses were NOK 1,213 million in the first quarter of the year, of which operating expenses in Realkreditt accounted for NOK 58 million. Excluding Realkreditt, operating expenses show a reduction from NOK 1,229 million in the first quarter of 1991 to NOK 1,155 million in the first quarter this year. As at March 31, 1992, the number of full-time positions in Den Norske Bank Group was 6,859. Excluding Realkreditt, there was a reduction of 758 full-time positions from the corresponding 1991 figure.
 Preference Share Issue to be Launched
 At the end of the first quarter Den Norske Bank Group's total assets were NOK 192.6 billion, down NOK 3.2 billion relative to the figure at the end of last year. The capital ratio as at March 31, 1992, was 7.6 percent, on a level with the capital ratio at the end of 1991. The minimum requirement up to the end of 1992 is 5.6 percent, rising thereafter to 8 percent.
 In the opinion of the bank a further write-down of the share capital is no longer relevant, due to the share capital increase of NOK 244.5 million which has already been completed and the issue of preference shares for NOK 2,375 million to be floated in late May and early June. within a short time shareholders will receive a subscription offer and prospectus for the forthcoming share issue.
 "Although the issue is fully underwritten we hope that a large number of current shareholders will exercise their option to subscribe for preference shares," added Hvistendahl. "Subscription rights will be quoted on the Oslo Stock Exchange from May 6, 1992."
 -0- 5/5/92
 /CONTACT: Jarl Veggan of Den Norske Bank Corporate Communications department, 47-248-1691, or 47-248-1050/ CO: Den Norske Bank ST: IN: FIN SU: ERN


PS -- NY053 -- 6522 05/05/92 11:40 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 5, 1992
Words:706
Previous Article:LINCOLN-MERCURY REPORTS SALES
Next Article:GEORGIA-PACIFIC ANNOUNCES EXECUTIVE ASSIGNMENTS; BOARD DECLARES DIVIDEND; SHAREHOLDERS ELECT DIRECTORS


Related Articles
NORWEGIAN GOVERNMENT AND REALKREDITT GIVE DEN NORSKE BANK 5.9 BILLION KRONER IN NEW CORE CAPITAL
DEN NORSKE'S APPROVED CAPITAL INCREASES TOTAL NOK 5.9 BILLION
IMPROVED RESULTS, BUT DEN NORSKE LOAN LOSSES REMAIN HIGH
TURMOIL IN MONEY AND SECURITIES MARKETS IMPAIRS DEN NORSKE BANK THIRD QUARTER RESULTS
PROFITS OF 720 MILLION KRONER FOR DEN NORSKE BANK SO FAR THIS YEAR
DEN NORSKE BANK REPORTS NET PROFITS OF NOK 1.7 BILLION
GOOD FIRST QUARTER FOR DEN NORSKE BANK GROUP

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters