Background. Macroeconomic situation and future outlook. Growth

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2 Background Macroeconomic situation and future outlook Growth 2

3 From joint venture to 100 per cent ownership DnB NOR enters into JV with NORD/LB Establishing DnB NORD is strategically important to participate in the expected growth in this region, as well as being present for our Nordic customers. DnB NOR acquires 100 % The Baltics...higher growth potential than Western Europe, and DnB NOR wishes to grow within the retail banking segment Evaluation period starts The Baltics...an area with good future earnings potential Real GDP growth in per cent Estonia Latvia Lithuania 3

4 Governance model aligned with DnB NOR One Group in the Baltics New legal structure New operational governance structure implemented Strong central control of risk Centralised funding 4

5 Background Macroeconomic situation and future outlook Growth 5

6 Recession over strong recovery c 6 Source: Eurostat, European Commission, DnB NORD forecasts

7 Positive credit demand expected Growth in loans granted to private sector in per cent 7 Source: Eurostat, ECB Data Warehouse

8 Lending Deposits Lending Deposits Lending Deposits Lending Deposits Lending Deposits Customers have been safeguarding their financial position meur Lending and deposit volumes DnB NORD, Q Non-performing portfolio Baltic States 1Q Q 2011 meur Q1 1Q 2011 Lithuania Latvia Estonia Private individuals Legal entities 8

9 Growth potential in a sizeable market DnB NOR lending per country Q Country Population Market position No of customers Lithuania 1.8 % Latvia 1.4 % Estonia 0.2 % Lithuania 3.3 mill mill Latvia 2.3 mill mill Estonia 1.3 mill mill Rest of the Group 96.5 % Total Baltics 6.9 mill 0.9 mill Norway 4.9 mill mill 9

10 A well diversified retail portfolio Lending per country - Q EUR million Lending per segment - Q EUR million Estonia 7 % Large corporate 8 % Latvia 41 % Lithuania 52 % Private individuals 46% SME 46 % 10 Definintion large corporate > EUR 50 mill turnover

11 Background Macroeconomic situation and future outlook Growth 11

12 Good market coverage in Latvia and Lithuania DnB NORD branches in the Baltics Estonia: Mainly a corporate and leasing bank with efficient operations Latvia: A universal bank ranked number 2 within lending to private individuals Lithuania: A universal bank with an extensive branch network and a top position in rural areas and the public sector 12

13 Lithuania: Expecting pick-up in retail market Lending volumes in Lithuania by segment Q EUR million Market share in Lithuania Large corporate 11 % 25 % 20 % Private individuals 41 % 15 % SME 48 % 10 % 5 % 0 % Retail loans Corporate loans Total loans 13 Definintion large corporate > EUR 50 mill turnover

14 Lithuania: Customer feedback supports the potential for growth Customer survey index for banking sector in Lithuania Mystery shopping ranking Lithuania 2 (Top 5 banks ) DnB NORD Bank 2 Bank Bank Bank B2B DnB NORD B2C Industry average 0 % 50 % 100 % ) EPSI research ) Survey conducted by Spect-Dive ( Mystery shopping ), December 2010

15 Lithuania: Further develop an already strong position Strengthen the position in the five main cities Protect the existing strong position in rural areas Cross-selling to existing customers Target to be number 1 or 2 in selected market segments 15

16 Latvia: Second largest financial institution for private individuals Lending volumes in Latvia by segment 1Q 2011 EUR million Market share in Latvia DnB NORD Large corporate 5 % Private individuals 57 % SME 38 % 16 Definintion large corporate > EUR 50 mill turnover

17 Latvia: Customer satisfaction increased Customer survey index for Latvian banking sector Mystery shopping ranking in Latvia 2 (Top 5 banks, ) DnB NORD Bank Bank Bank 3 Bank 4 B2B DnB NORD B2C Industry average ) EPSI research ) Mystery shopping, Dorus Ltd,

18 Latvia: Increase quality of income Capitalise on position as the second largest bank for private individuals Focus on cost-efficient operations More emphasis on non-lending income Competence programme to enhance sales skills 18

19 Estonia: A strong platform for leasing Lending volumes in Estonia by segment Q EUR 372 million Market share DnB NORD 2010 Large corporate 10 % Leasing 32 % SME 43 % Private individuals 15 % 19 Definintion large corporate > EUR 50 mill turnover

20 Estonia: Set to grow Niche player challenging a consolidated market Utilisation of the Group's industry competence Increase income from cross-border banking primarily from the Nordic client base Re-entry into retail banking to be evaluated 20

21 Raising the bar in the Baltics Lower write-downs Pick-up in GDP growth Increased cross-sales and quality of income Evaluate organic and structural growth 21

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