DNB recorded profits of NOK 1 760 million in the first quarter of 2012, down from NOK 2 851 million in the year-earlier period. The bank is experiencing brisk growth in both the personal and corporate markets.
The bank’s ordinary operations were strong and showed a positive trend compared with previous quarters. The decline in profits is mainly a consequence of significant changes in the market value of so-called basis swaps from quarter to quarter. Basis swaps had an overall negative effect on income of NOK 2 432 million in the first quarter of 2012, an increase from NOK 584 million in the first quarter of 2011. Over time, the effect of such hedging instruments on recorded income will be nil.

“We are experiencing strong growth in lending to Norwegian small and medium-sized enterprises and are continuing to gain market share within savings and lending to Norwegian consumers. Lending to our largest customers increased by close to 14 per cent in the first quarter compared with the...