Bank Industry Risk Analysis: Norwegian Banks' Profitability And Asset Quality Supported By Strong Tail Winds Feb 07

Standard & Poors, February 2007

Abstract
Wealthy, strong, well diversified economy. Stable profitability, good asset quality, and strong overall capitalization. Conservative risk culture, supervision, and legislation. Limited geographic diversification, except for DnB NOR, the largest player in the market. Systemic liquidity threat posed by high concentration on interbank market. Highly leveraged household sector. Small, open economy subject to commodity price fluctuation. In a global context, Standard & Poor's Rating Services considers the Norwegian banking system to be of low risk. This is reflected by our group 2 Bank Industry Country Risk Assessment (BICRA) ranking for Norway (out of 10, 1 is the strongest). The financial strength of the Norwegian banking system is solid. Most financial institutions in Norway reported yet another year of excellent asset quality...

Companies mentioned in this report are:
- Norway (Kingdom of)
- Nordea Bank Norge ASA
- Danske Bank A/S
- Eksportfinans ASA
- DNB Bank ASA
- Storebrand Livsforsikring AS
- KBN Kommunalbanken Norway
- Storebrand Bank ASA

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.

- Norway (Kingdom of)
- Nordea Bank Norge ASA
- Danske Bank A/S
- Eksportfinans ASA
- DNB Bank ASA
- Storebrand Livsforsikring AS
- KBN Kommunalbanken Norway
- Storebrand Bank ASA

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