Banks, Estonia, Financial Services, Investments, Loan

DNB Estonia's net profit was slightly below the previous year's level mainly due to changes in its business model and additional regulatory requirements. The bank also made an additional investment in its IT systems and e-channels in the fourth quarter, DNB said.

The bank's total income reached 12.1 million euros. The overall quality of the loan portfolio has substantially improved due to rating upgrades, increased valuations for collaterals and the upsurge in low-risk lending, the bank said.

Net lending volumes increased by 3.6% or 19 million euros, amounting to 540.4 million euros by the end of the year. Deposits stood at 317.7 million euros at the end of December.

"Estonia's economic growth was slow in 2015. Although 2016 should show some improvements, it is clear that we are not operating in rapidly growing market conditions. Besides rising labor costs, Estonian companies are struggling with productivity. New investments are needed to bring businesses to the next level where they can operate more efficiently and with greater added value," CEO of DNB Pank Ivars Kapitovics said.

DNB's shares of which 34% belong to the Norwegian state are traded on the Oslo stock exchange.