BankNordik P/F - Other information disclosed according to the rules of the Exchange

The Danish FSA’s ordinary inspection of BankNordik

Company announcement no. 10/2017

 

BankNordik has received the Danish FSA’s ordinary inspection report on the Group’s business activities in the Faroe Islands, Denmark and Greenland. The inspection took place during August and September 2017 and the summary is attached to this announcement.

Those of the Danish FSA’s commands, which had a direct effect on the Group’s earnings and capital, have already been recognised in the Group’s Q3-2017 interim financial statements. In this regard, BankNordik would like to highlight the following:

 

• The Danish FSA did not call for additional impairments on loans or advances, but required that the Group recognised an impairment loss of DKK 16.7m on its head office. As such, the head office was written down to DKK 62m in the Q3 interim report.

 

• An increase of the Group’s individual solvency requirement by 0.1 percentage point to 9% was also recognised in the third quarter of 2017

 

• Additional matters mentioned in the report are duly noted and will be accounted for in the near future.

 

BankNordik has been designated as a SIFI-institute in the Faroe Islands, and as mentioned in the FSA’s report, additional capital requirements are currently being phased-in. Moreover, the Group’s MREL-requirements are expected to be decided and announced in the coming year. As previously stated, BankNordik will re-evaluate its capital ratio targets once the requirements related to the MREL will become known.

”We generally agree with the observations of the Danish FSA. Our sound portfolio risk profile still indicates a low solvency requirement, and we are pleased with our healthy credit quality development in all three markets,” commented BankNordik CEO Árni Ellefsen.

 

For additional 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. Founded in the Faroe Islands more than a century ago, the Group has total assets of DKK 16.1bn and 407 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.

 

Liitteet:

Redegrelse_BankNordik.pdf