NEWS

DNB continued to target pretax profit before loan losses of 22-25 billion
crowns ($3.7 billion – $4.2 billion) for this year but the turbulence on global
and particularly European markets is impacting the entire banking sector, Bjerke
told Reuters on the sideline of a conference.

“The funding market in Norway will look pretty much like it did in the second
half of 2011,” he said. “It will be a liquid market but costs are
higher.”

DNB, one of the healthiest lenders in the Nordics, issued 2 billion euros
worth of debt on Wednesday at what Bjerke said were “pretty good funding
terms.”

Norway’s banks are well capitalised and their loan book is among the
healthiest in Europe as Norway sits on a budget surplus, no debt and healthy
growth.

Although its households are among the most indebted in the world with a debt
to income ratio at around 200 percent, solid income and house price growth has
insulated the banking sector.

Bjerke said he did not expect a repeat of 2008 when credit markets froze up
worldwide as market players have learned their lesson and are better
prepared.

“I am much more optimistic about the outlook of the global economic than I
was during the autumn,” he added to TV 2, citing the positive signs seen in the
U.S. economy.

Bjerke added DNB does not plan to cut back lending to improve its capital
position.