The newly merged Den norske Bank and NOR had a good year in 2004. Profits were up 37 per cent to NOK 7,388 million, against NOK 5,378 million in 2003. Costs were also cut in the wake of the merger, helping profits.
“Our staff generated record-high profits parallel to the implementation of the largest merger in the Norwegian financial services industry in 2004, which makes me proud and happy,” says group chief executive Svein Aaser. “I have noted that the strong competition in the financial market has provided the organisation with the incentive to step up market activity. Growth in volume and determined effort to cut costs have helped achieve healthy profits in the merged group’s first full year of operation. Decision-making has been moved closer to customers, and we now have more customers than at the time of the merger. I am pleased that the demanding merger process is going well, reflecting the open cooperation with employee representatives to meet the many challenges that follow in the wake of such a merger. As at 31 December 2004 we had realised cost synergies of NOK 705 million, while the year-end target was NOK 528 million. 60 per cent of the staff cuts scheduled over three years had already been implemented at year-end 2004. In recognition of the effort put forth in all parts of the organisation, the Group will increase allocations to DnB NOR Ansattefond (investment fund for employees) for 2004 by NOK 30 million to NOK 153 million.”