BankNordik P/F - Company Announcement

Report from the Danish FSA

Report from the Danish FSA published

In connection with an ordinary inspection of BankNordik last year the Danish
FSA chose to make a separate inspection of the recently acquired bank
activities from Amagerbanken. This inspection was performed in March 2012 and
the report has now been published on the Bank's website as well as on the
website of the Danish FSA, www.ft-net.dk 

The inspection was a credit inspection focusing on the exposures the bank
acquired on 1 July 2011 from Amagerbanken in order to test whether the bank had
reserved the necessary individual solvency requirement to cover the credit
risks in the acquired loan portfolio. 

The FSA concludes that in general the impairments and the solvency requirement
are sufficient to cover the risks on the portfolio. The inspection did however
lead to extra impairments of DKK 5.8 million on one single exposure. This
impairment was already booked in the banks interim report for Q1 2012. 

The banks individual solvency requirement at year end 2011 was 9.5 per cent.
The Danish FSA concludes on the background of the inspection that the bank has
reserved the necessary solvency requirement on the examined portfolio. The
bank's solvency at year-end 2011 was 15.5 per cent. 

“In connection with the acquisition of the healthy parts of Amagerbanken the
Bank performed a thorough credit due diligence. The Danish FSA has now
performed an examination of the acquired portfolio, and they conclude, that our
impairments and solvency requirement are sufficient. This pleases me”, comments
Janus Petersen, CEO of BankNordik. “The Bank has a comfortable solvency buffer
of six percentage points, which we consider sufficient. Not least when
considering that we have a well spread loan portfolio and an insignificant
exposure to risky segments such as Danish property finance.” 

Additional information

Janus Petersen, CEO, phone (+298) 230 340

Árni Ellefsen, CFO, phone (+298) 230 348

Investor Relations: ir@banknordik.fo

Attachments:

Redegrelse om inspektion i BankNordik.pdf