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UPDATE 1-Norway's DNB to cut costs by up to $240 mln, maintains targets
November 21, 2017 / 11:36 AM / a month ago

UPDATE 1-Norway's DNB to cut costs by up to $240 mln, maintains targets

(Adds cost cuts)

Nov 21 (Reuters) - Dnb ASA

* Says financial ambitions remain firm

* Aggregated gross cost saving initiatives of NOK 1.5 billion to 2.0 billion 2018-2020 ($181 million-$242 million)

* Aiming to increase dividend per share combined with share buybacks

* DNB Livsforsikring in dividend position – will strengthen DNB’s payout capacity​

* ROE target above 12 percent towards end 2019‍​

* Maintains cost/income ratio target below 40 percent towards end 2019‍​

* On track for accumulated impairment losses 2016-2018 up to NOK 18 billion

* Says rebalancing in the large corporate segment results in a less cyclical portfolio. Only 2.2 per cent of DNB’s portfolio is exposed to the offshore industry

* Says IFRS 9 EU transitional rules will be reflected in similar Norwegian regulations and thus have very limited effects on the CET1 ratio. An estimate of full implementation of IFRS 9 from Jan 1 would give a reduction in equity of NOK 3.0-4.0 billion, corresponding to a 20-30 bps reduction in the CET1 ratio

* The shares traded unchanged for the day at 1134 CET Source text for Eikon: Further company coverage: ($1 = 8.2668 Norwegian crowns) (Reporting By Oslo newsroom)

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