BankNordik P/F - Company Announcement

BankNordik lowers FY2016 guidance due to extraordinary insurance claims in December

Due to extraordinary high insurance claims, which at present are estimated to
be in the range of DKK 15–20m and mainly relate to extraordinary harsh weather
conditions in the Faroe Islands in the month of December 2016, BankNordik has
decided to lower the Group’s FY2016 guidance on profit before impairment
charges net of reinsurance, non-recurring items, value adjustments, and tax,
from earlier announced DKK 175–200m to DKK 165–180m. 

Net impairment charges on loans for 2016 are still expected to be less than in
2015 (DKK 20m). For the first nine months of 2016, net impairment charges were
a reversal of DKK 8m. 

This guidance is subject to uncertainty and the Group’s FY2016 results will
depend on the final settling of insurance claims, net of reinsurance, as well
as economic conditions in general, including possible central bank monetary
policy measures. 



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. Founded in the Faroe Islands
more than a century ago, the Group total assets of DKK 16.4bn and 416
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