BankNordik P/F - Company Announcement

BankNordik borrows DKK 800m from Central Bank

The Bank strengthens its already strong liquidity

In order to secure financing on attractive terms, BankNordik has decided to
avail itself of the new liquidity scheme which Danmarks Nationalbank, the
Danish central bank, offers Danish banks, starting at the end of March. Under
the new scheme, banks can take out three-year long loans on the basis of their
most secure credits to their customers. 

BankNordik's liquidity is significantly higher than required. At the end of
2011, excess liquidity amounted to 115% compared to the required level, thus
liquidity was more than twice the required level. 

“We do not need the new borrowing facility. But by taking up the loan of DKK
800 million from Danmarks Nationalbank, our buffer will be stronger in the
coming years. Consequently, we do not have to bid up the interest rates on term
deposits. It makes good financial sense for us as well as for others banks who
make use of the scheme, and at the same time it makes good sense in a
macro-economic perspective,” says Janus Petersen, CEO of BankNordik. 

BankNordik intends to place the increased liquidity on terms that matches the
interest rate on the loan. Hence the financial impact is expected to be close
to neutral. 

At this time, BankNordik has not decided whether to use an additional share of
its considerable borrowing potential in Danmarks Nationalbank when the window
is open next time at the end of September 2012. 

BankNordik was founded over 100 years ago in the Faroe Islands. The Group has
banking activities in Denmark, Greenland and the Faroe Islands and insurance
activities in the Faroe Islands and Iceland. The Group has 180,000 customers,
total assets of DKK 17 billion and 600 employees. The Bank is subject to the
Danish Financial Services Authority and is listed on NASDAQ OMX.
www.banknordik.fo 


         Additional information:
         Janus Petersen, CEO, phone (+298) 330 340
         Árni Ellefsen, CFO, phone (+298) 330 348
         Investor Relations: ir@banknordik.fo