BankNordik P/F - Company Announcement

BankNordik will wind-up corporate banking activities in Denmark and executes a change in management

After having considered the indicative bids received, BankNordik chooses to
carry out a controlled winding-up of the corporate banking activities in
Den-mark, enabling an extraordinary dividend of up to DKK 200 million in the
course of 2016. 

On the 23rd of September this year BankNordik announced that the Bank has
initiated a sales process for its corporate banking activities in Denmark.
Based on the indications of interests received, the Bank has, however, decided
to carry out a controlled winding-up of these activities instead, as this is
assessed more economic attractive than a sale. 



BankNordik retains its full-year guidance for 2015 and expects to generate
profit before impairment charges, non-recurring items, value adjustments and
tax of DKK 200-220 million with net impairment charges for the year expected
not to exceed DKK 20 million. The Bank recognised impairment charges of DKK 9
million in the nine months to 30 September 2015. 



BankNordik expects to wind-up most of its corporate banking activities in
Denmark during the remainder of 2015 and in the first six months of 2016, which
would enable the Bank to pay an extraordinary dividend of up to DKK 200
million. 



In addition to the extraordinary dividend, the Bank also expects, as previously
announced, to pay a further dividend of not less than DKK 100 million when the
conditional sale of Vørður has been completed. 



BankNordik maintains the strategic focus on its personal banking activities in
Denmark announced earlier this year. Due to the Bank’s cross-border IT platform
and BankNordik’s position as the largest player in the Faroe Islands, its 20%
market share in Greenland and its rapidly growing market share in Denmark,
BankNordik aims to be a highly attractive player in these markets. 



With regards to the corporate banking activities the Bank, as previously
announced, intends to further specialise and tailor its skill sets to the North
Atlantic region, particularly to the Faroe Islands and Greenland, where its
specialist knowledge about corporate structures and socio-economic conditions
offer a significant synergy potential. 



In connection with adaptation of the terms of employment of the group
management team a disagreement between the board of directors and the deputy
CEO John Rajani has caused that the board of directors has decided to terminate
the cooperation. A new deputy CEO will not be appointed. 

Until further is announced CEO Árni Ellefsen will take over the deputy CEO’s
responsibilities in respect of the Faroese and Greenlandic corporate banking
activities, while Chief Credit Officer Rune Nørregaard will take over the
responsibilities in respect of the group’s life and non-life insurance
activities. 






Contact:



Árni Ellefsen, CEO, tel. (+298) 330 348



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 170,000 customers, total assets
of DKK 16bn and about 480 employees. The Bank is subject to the supervision of
the Danish Financial Supervisory Authority and is listed on NASDAQ OMX.
www.banknordik.dk. 



Disclaimer. This company announcement contains certain forward-looking
statements. Any statements other than statements of historical fact, including
without limitation those regarding BankNordik’s financial condition, future
operating performance, business strategy, management plans and objectives for
future operational prospects for the group are forward-looking statements. Such
statements are based on current expectations and are subject to a number of
risks and uncertainties that could cause actual results and performance to
differ materially from any expected future results or performance, express or
implied, by the forward-looking statements. Factors that could cause
forward-looking statements to differ materially from actual results include,
among other things, general economic and business factors, competition, and
interest rate and currency fluctuations. These statements should not be
considered as a representation that anticipated events will occur or that
expected objectives will be achieved. The information presented herein speaks
only as of today’s date and BankNordik assumes no responsibility to update any
of the forward-looking statements contained herein.