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Published: 2016-06-21 08:14:39 CEST
BankNordik P/F
Company Announcement

Sale of Vørður and winding up of corporate banking activities in Denmark - current status

The Icelandic central bank and the Icelandic FSA have now approved the sale of all shares in the Vørður group to Arion banki of Iceland. As a result, the only regulatory approval still pending is the one from the Icelandic competition authorities. BankNordik does not expect to receive final approval from the competition authorities by the end of June, which means the transaction is expected to close in the second half of 2016.

The winding up of the corporate banking activities in Denmark is progressing to plan. The Bank expects to settle corporate loans at a book value of approximately DKK 1 billion in the first six months of 2016.

As previously announced, BankNordik’s Board of Directors intends to propose that the Bank distribute dividend in an amount to be based on the relative increase in the Group’s total capital from the sale of the Vørður group and the winding up of the corporate banking activities in Denmark.

As previously announced, the Group’s total capital is expected to improve by not less than DKK 100 million from the sale of the Vørður group and by DKK 200 million from the winding up of the corporate banking activities in Denmark. Accordingly, the expected overall dividend distribution is expected to amount to approximately DKK 300 million.

Any proposal regarding the distribution of dividend will be made with due consideration for the announced target of a CET1 capital ratio of not less than 13%.

As the sale of the Vørður group is now expected to be completed in the second half of 2016, the Board of Directors expects to propose the distribution of dividend at BankNordik’s 2017 Annual General Meeting.

For further information, please contact:

Árni Ellefsen, CEO, tel. (+298) 230 348

BankNordik has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. Founded in the Faroe Islands more than a century ago, the Group has 170,000 customers, total assets of DKK 16bn and about 480 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on NASDAQ OMX. www.banknordik.dk.

Disclaimer. This company announcement contains certain forward-looking statements. Any statements other than statements of historical fact, including without limitation those regarding BankNordiks financial condition, future operating performance, business strategy, management plans and objectives for future operational prospects for the group are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results and performance to differ materially from any expected future results or performance, express or implied, by the forward-looking statements. Factors that could cause forward-looking statements to differ materially from actual results include, among other things, general economic and business factors, competition, and interest rate and currency fluctuations. These statements should not be considered as a representation that anticipated events will occur or that expected objectives will be achieved. The information presented herein speaks only as of todays date and BankNordik assumes no responsibility to update any of the forward-looking statements contained herein.