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2011-05-18 18:57:13 CEST 2011-05-18 18:58:09 CEST REGULATED INFORMATION BankNordik P/F - Company AnnouncementBankNordik acquires healthy parts of AmagerbankenIn 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 |
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