OSLO: Top Norwegian bank DNB is as comfortable now with its loans to companies in the oil industry as it was on Dec. 19, when it updated the market on its exposure, Chief Executive Rune Bjerke told Reuters on Monday.
"We believe the part of our portfolio that directly or indirectly relies on oil and gas is among the most solid we have in terms of exposure, so our opinion of losses for the current year hasn't changed, even with the low oil price we see now," Bjerke said.
"It's obvious that the longer the price stays low, the harder things will become for more and more, so this is something we track continuously. But we're feeling comfortable with that part of our exposure." North Sea crude, which traded at around $60 per barrel at the time of DNB's December update, has since dropped by a fifth to $48. DNB has been a major lender to the sector since oil was discovered off Norway in the 1960s.
The company has kept its dividend payout ratio at 25 percent of its net profit in recent years to build up capital and said it plans to raise its payout from next year with aim of returning to its previous 50 percent target.
"We've stated our ambition of returning as quickly as possible to a normal dividend policy of paying at least 50 percent of net profit, in 2016 at the latest.
That's what we've said and that's what we're aiming for," Bjerke said. He also rejected media speculation he could be a candidate to become the next chief executive of oil firm Statoil. "I'm not a candidate for that job," Bjerke told Reuters.
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