BankNordik P/F - Fyrirtækjafréttir

BankNordik acquires healthy parts of Amagerbanken

In line with its focused growth strategy BankNordik is taking over all retail
customers, all business clients with a credit exposure below DKK 5 million as
well as a few selected larger and healthy business clients from Amagerbanken 

As announced Monday 16 May 2011 BankNordik submitted a binding offer for the
healthy parts of Amagerbanken, which were put up for sale by Finansiel
Stabilitet. Today, BankNordik and Finansiel Stabilitet have entered into an
agreement according to which the bank acquires all retail customers and most of
the commercial clients from Amagerbanken. The agreement is conditional upon the
approval from the relevant authorities with effective date following these
approvals. "With the acquisition we achieve our strategic ambition to grow in the Danish
market. We have kept an eye on opportunities to acquire attractive activities
that match our way of banking. Like Amagerbanken we put emphasis on close
dialogue with customers and close relationships with the local market. In
BankNordik we emphasize tight credit control. Therefore, we are pleased that
the majority of the customers are retail customers and a few healthy small
companies,” says Janus Petersen, CEO of BankNordik. 

The acquisition will add 82,000 retail customers and 10,000 commercial clients,
deposits of DKK 5.3 billions, loans and guarantees of DKK 4.9 billion as well
as custody accounts of DKK 10 billion to BankNordik. The acquired activities
will be handled by approx. 160 employees in a number of branches in the
Copenhagen area and the branches in Odense and Aarhus. The parties agree that
they will use the time until the effective takeover date to decide which
branches and which employees are needed to manage the activities going forward. 

The acquisition will be financed partly through the bank's own resources,
partly through a strengthening of the bank's already solid capital base.
BankNordik has already had a positive dialogue with selected institutional
investors about the investment. BankNordik has mandated Nykredit Markets to
conduct an offering to institutional investors of subordinated bonds  in the
form of hybrid capital and/or subordinated loan capital. In addition, Finansiel
Stabilitet has made ​​a binding commitment to offer BankNordik DKK 300 million
as subordinated debt, conditioned that BankNordik will not pay dividends for a
period. 

With a solvency ratio of 17 at the end of first quarter 2011 BankNordik is
among the best consolidated banks in the Nordic region and the bank has for
many years shown a high profitability. Following the transaction and admission
of new capital, the bank's capital ratio is expected to exceed 13%. 

BankNordik's acquisition of parts of Amagerbanken is consistent with the bank's
strategy of controlled growth, which has guided its rapid development in recent
years. The strategy is based on a close relationship with customers, tight
control of credit lines and the emphasis on profitability in all activities.
Last year BankNordik acquired nine of Spar Bank's branches in Jutland and on
Funen and three in Greenland. 

The acquisition leads to a significant increase in the bank's business volume.
The deposits increase by 59% from DKK 8.9 billion to DKK 14.2 billion. Lending
and guarantees increase by 54% from DKK 8.4 billion to DKK 12.9 billion. The
purchased activities represent a deposit surplus of DKK 1 billion which
contributes positively to the already strong liquidity of BankNordik. In the
investments area the bank's business volume will multiply as the value of the
custody accounts increases by DKK 10 billion from 2.5 billion to DKK 12.5
billion. 

The 92,000 customers will all transfer to BankNordik on existing conditions,
with the intention to gradually adapt to the bank's broad product portfolio and
competitive conditions. Customers in BankNordik's new market areas will
experience continuity, along with positive improvements. "We will continue to be a local bank close to the customers and with a rapid
decision process. At the same time we have the capital strength to make a
difference. We want to develop long term relationships and solid partnerships
and be responsive to our customers' needs, both in good and in bad times. This
model has earned BankNordik good results - even during the financial crisis -
and has also secured a good profitability, high customer satisfaction and a
very high solvency," says Janus Petersen. 

BankNordik acquires the assets and liabilities associated with the acquired
customers and pays in addition DKK 350 million in goodwill, including
impairments on the loan portfolio. The payment takes place simultaneously with
the takeover, which is conditional on the approval from the Danish Financial
Supervisory Authority. 

Prior to the acquisition BankNordik had the opportunity to assess the acquired
branches' profitability and have assessed the larger exposures of the bank
through an extensive due diligence and sampling among the other credits of the
branches. Generally, the Bank has found a satisfactory credit quality and
profitability, consistent with BankNordik's strategy and policy. Shortly,
BankNordik will publish details of the operational, organizational and
financial implications of the acquisition. 

The customers in Amagerbanken will experience no immediate difference in the
period up to the effective takeover. 

BankNordik was founded more than 100 years ago on the Faroe Islands. The Group
has banking activities in Denmark, Greenland and on the Faroe Islands, as well
as insurance activities in Iceland and on the Faroe Islands. Year-end 2010, the
BankNordik Group had total assets of DKK 14 billion and 430 employees.
BankNordik is listed on NASDAQ OMX in Copenhagen, where it is among the 10
largest banks measured on market value. www.banknordik.fo 


         Additional Information:
         Janus Petersen, CEO, phone +298 230 340