BankNordik P/F - Company Announcement

Update on the sale of Vørður

BankNordik and Arion Bank hereby announce that the condition in respect of
approval by the Icelandic Competition Authorities to complete the sale of
Vørður, along with other regulatory approvals, have now been fulfilled. The
parties will therefore now proceed to finalize the other outstanding issues,
whereby the transaction is expected to be completed within two or three weeks’
time. 



As previously announced, the Group’s total capital is expected to improve by
not less than DKK 100m from the sale of Vørður, while a capital relief of
approximately DKK 200m is expected from the winding up of the corporate banking
activities in Denmark. Accordingly, the upcoming extraordinary dividends are
expected to amount to approximately DKK 300m. The greater part of this amount
is expected to be proposed paid-out to the shareholders at BankNordik’s 2017
Annual General Meeting, while the remaining part is expected to be paid-out
when the winding up of the Danish corporate activities is completed. 



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





Further information:

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 total assets of DKK 16.4bn and
464 employees. The Bank is subject to the supervision of the Danish Financial
Supervisory Authority and is listed on Nasdaq Iceland and Nasdaq Copenhagen.
www.banknordik.com