Best bank:
Den norske Bank
Best debt house:
ABN AMRO
Best equity house:
Den norske Bank
Best M&A house:
Goldman Sachs
| Svein Aaser | ||||||
Den norske Bank consolidated its position as front runner among financial institutions and it is for another year of increased profits, growth and innovation that it receives the best bank award for Norway. Pre-tax operating profits for the DnB group in 2000 leapt by an impressive 44% to NKr5,248 million ($596 million) and at the year-end the group had combined assets of NKr445 billion, rising by NKr37 billion through the year, fuelled in part by an 11.8% rise in customer lending. DnB took advantage of this improvement by investing significant amounts in its strategy for the future.
The bank has invested heavily in new internet offerings for its retail customers and e-business solutions for its commercial clients.
According to the president and chief executive officer of the DnB group, Svein Aaser: “DnB believes in a combination of personal service and advanced technology – two dimensions complementing each other.” The past year has seen the establishment of the online marketplace, Doorstep (a joint venture with Telenor), and the bank’s internet penetration has grown substantially with 180,000 new customers logging on in 2000.
The focus of DnB’s strategy remains on its core domestic market. The bank seeks to maximize its presence there by gaining strong support from local clients while using its strong local knowledge to attract business from foreign companies looking to transact in Norway.
Overseas activities are limited. While Scandinavia’s biggest players, such as Nordea, are looking to conquer the region as a whole, DnB is more cautious. It has the most powerful brand image at home and an extensive distribution network that leaves its competitors in the shade. Its specialist units, such as DnB Finans and DnB Kort, have solid reputations in their fields.
DnB’s corporate banking arm is organized around 11 financial centres and 125 regional offices. The bank deals with the whole range of companies in the market, from small and medium-size enterprises to large corporations. There is also a specialist shipping division that works out of four locations: Oslo and Bergen in Norway, and international offices in Singapore and New York. DnB claims to be one of the world’s leading shipping banks. The corporate division has performed well with increased lending and reduced exposure to problem loans.
Den norske Bank is looking to further its investment in new technology and to give greater weight to its corporate, life insurance and asset management activities.
The debt market in Norway was extremely healthy in the past year, with 84 new issues worth a total equivalent to e10.2 billion ($8.8 billion). In terms of market share, Goldman Sachs led the way with just one deal, a e2 billion issue for Telenor. In second place, with four issues worth a combined e1 billion was ABN AMRO and it is for the number of deals and the quality of its service that the Dutch bank receives the award.
The biggest deal managed by ABN was a five-year floating rate note of e500 million for Union Bank of Norway announced at the end of October 2000.
So successful was the deal that UBN and ABN returned to the market with a deal worth e100 million the following month.
Goldman Sachs did enough to secure the best M&A house award. Although the firm was only involved in two deals, the size and importance to Norway’s economy of the larger one was enough to catapult Goldman’s to the top of the league table for advisers in Norway. The deal was Statoil’s acquisition of new oil and gas licences from the state. Berent Wallendahl, managing director of Nordic investment banking at Goldman Sachs, recalls how all involved came away satisfied. “The asset portfolio was optimally structured both from the buyer’s and seller’s perspective, he says. “The transaction represented a win-win situation for all parties.”
Den norske Bank wins the best equity house award. The equity department prides itself on its research capabilities, which provide analysis of companies making up more than 90% of the Oslo stock exchange’s market capitalization. Along with Enskilda Securities, DnB consistently enjoys a very healthy market share in equity trading in Norway. It also holds a leading position in the primary market.
DnB’s key deal of the past year was an issue of ordinary shares for Norwegian telecommuncations company Telenor. This realized almost NKr7.4 billion, at NKr42 per share. DnB Markets acted as global co-ordinator on the deal, alongside Goldman Sachs.
