BankNordik P/F - Company Announcement

Acquisition of the Faroese life insurance company Lív cancelled

BankNordik cancels the planned acquisition of the Faroese life insurance
company Føroya Lívstrygging (“Lív”). The move follows the Bank's announcement
early January of a postponement of the acquisition, pending continued
adjustments of the company structure. 

In May 2011 BankNordik announced an agreement with the seller, the Faroese
government, of acquiring 50% of the share capital in Lív for DKK 35 million.
The transaction was conditioned upon the approval from the Faroese insurance
and competition authorities, various changes to the company structure and the
company's compliance with all regulatory requirements. 

The agreement with the seller stipulated a finalization of the acquisition by
year-end 2011. But in the period since the agreement in May 2011 the conditions
for life insurance and pension savings have changed drastically. This led to a
postponement of the transaction to 1 July 2012. In the mean time all the
relevant parties were to agree upon the requirements to be fulfilled for the
transaction to be finalized. It has not been possible for the parties to agree
upon the relevant requirements. 

BankNordik has therefore made an agreement with the seller to cancel the
transaction. The Faroese government therefore continues as the only shareholder
in Føroya Lívstrygging. 

BankNordik continues to strengthen and develop the bank's current pension
savings solutions to meet customers' demands. 



Additional information

Janus Petersen, CEO, phone (+298) 230 340

Árni Ellefsen, CFO, phone (+298) 230 348

Investor Relations: ir@banknordik.fo



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