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DEN NORSKE BANK ANNOUNCES PRELIMINARY ACCOUNTING FIGURES FOR 1992

 OSLO, Feb. 16 /PRNewswire/ -- Den Norske Bank Group recorded a loss of NOK 3,072 million in 1992, as against NOK 6,009 million the year before. Operating profits before loan losses showed an improvement on 1991, up from NOK 1,569 million to NOK 2,601 million in 1992. Costs have been reduced by more than 10 percent.
 "Performance has been greatly influenced by the difficulties facing the Norwegian business sector. In particular, the turmoil in the financial markets in the third quarter had a negative impact. The bank still records unacceptably high levels of losses on commercial loans. The costs involved in financing and managing the large portfolio of non- performing loans and repossessed properties weigh heavily," said Group Managing Director Finn A. Hvistendahl.
 Ordinary Operations Show Improvement
 "Operating profits before loan losses reveal a number of favorable elements: activities in the private customer market now make a positive contribution at group level, foreign exchange activities have generated substantial earnings and there has been a growth in deposits," says Mr. Hvistendahl. He adds that the bank's shipping operations also made a positive contribution to group figures, despite an increase in loan-loss provisions. A clear improvement in the bank's net interest income and foreign exchange activities was recorded in the fourth quarter, and cost developments were satisfactory.
 Costs down
 "We are satisfied to ascertain that the bank reduced costs by 10.6 percent last year, in spite of increased expenses represented by the portfolio of non-performing loans," said Mr. Hvistendahl. Adjusting for inflation, since 1988 the bank, including Realkreditt, has reduced costs by 33 percent.
 Non-Performing Loans and Properties Weigh Heavily
 The portfolio of non-performing loans grew from a net NOK 10,165 million to NOK 11,353 million last year. At the end of 1992, the bank had repossessed properties for a total of NOK 2,740 million. Close to NOK 2 billion in financing and operational costs has been recorded on non-performing loans and repossessed properties in the accounts for 1992.
 Weak developments in the real estate and securities markets last year resulted in total write-downs of NOK 596 million on the value of securities, the bank's own property holdings and repossessed properties.
 Losses On Commercial Loans
 "Although loan-loss provisions are on the way down, the road to recovery is still long for the Norwegian corporate customer sector," says Finn A. Hvistendahl.
 NOK 617 million of the losses stems from Realkreditt, which was acquired at the end of 1991. Operations outside Norway have been trimmed further. DNB London, on which the drop in the real estate market in Great Britain had a strong impact, recorded a net loss of NOK 785 million in 1992.
 Capital Adequacy
 At the end of last year Den Norske Bank's total assets were NOK 188 billion. Capital adequacy at year-end was approximately 8.8 percent, based on risk-weighted assets of NOK 168.4 billion. This figure includes NOK 1.5 billion in new preference capital from the government bank insurance fund, which ensures that the bank fulfills the minimum legal requirement with a comfortable margin.
 -0- 2/16/93
 /CONTACT: Glenda Tefre, corporate communications department of Den Norske Bank, 47-22-48-15-98/


CO: Den Norske Bank ST: IN: FIN SU:

TS -- NY042 -- 6826 02/16/93 10:52 EST
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Date:Feb 16, 1993
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