BankNordik P/F - Fyrirtækjafréttir

Sale of Vørður and winding up of corporate banking activities in Denmark - current status

The Icelandic central bank and the Icelandic FSA have now approved the sale of
all shares in the Vørður group to Arion banki of Iceland. As a result, the only
regulatory approval still pending is the one from the Icelandic competition
authorities. BankNordik does not expect to receive final approval from the
competition authorities by the end of June, which means the transaction is
expected to close in the second half of 2016. 

The winding up of the corporate banking activities in Denmark is progressing to
plan. The Bank expects to settle corporate loans at a book value of
approximately DKK 1 billion in the first six months of 2016. 

As previously announced, BankNordik’s Board of Directors intends to propose
that the Bank distribute dividend in an amount to be based on the relative
increase in the Group’s total capital from the sale of the Vørður group and the
winding up of the corporate banking activities in Denmark. 

As previously announced, the Group’s total capital is expected to improve by
not less than DKK 100 million from the sale of the Vørður group and by DKK 200
million from the winding up of the corporate banking activities in Denmark.
Accordingly, the expected overall dividend distribution is expected to amount
to approximately DKK 300 million. 

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

As the sale of the Vørður group is now expected to be completed in the second
half of 2016, the Board of Directors expects to propose the distribution of
dividend at BankNordik’s 2017 Annual General Meeting. 

For further 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 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.