BankNordik P/F - Company Announcement

BankNordik announces positive outlook for 2012 and financial goals for the next three years

The years 2011 and 2012 are impacted by the integration of significant new
activities. Not least the healthy parts of Amagerbanken from July 2011 and the
acquisition of 12 Sparbank branches in 2010 have increased the Danish
activities significantly. 

Thus, consolidation is the current focus point. Subsequently, the Bank sees
good opportunities for growth in both activities and profitability, based on
the obtained wider business base 

As announced in connection with the publication 14 November 2011 of the interim
report for the third quarter of 2011, BankNordik's Board of Directors has
discussed the budget for 2012 and the financial outlook for the following two
years. On this basis, the Bank's management wishes to announce its expectations
for 2012 and updated medium-term financial targets (three years horizon). 

Expectations for 2012

In the beginning of 2010, BankNordik acquired nine Danish and three Greenlandic
branches from Sparbank, and this year the Bank has acquired the healthy parts
of Amagerbanken with effect from 1 July 2011. 

The broader activities in Denmark are expected to contribute significantly to
the development of the profit in the coming years. So far BankNordik's results
have been dominated by costs of integrating the acquired activities and sector
related expenses.  As announced earlier, the integration of IT systems are
planned for the beginning of 2012. Subsequently, the optimization of operations
can be implemented and the financial benefits will accrue from the second half
of 2012 and provide full effect from fiscal 2013. 

The outlook for the results in 2012 can be summarized as follows:

  -- Core earnings DKK 150-200 million in 2012 against DKK 145-175 million in
     2011 and DKK 82 million in 2010 - exclusive value adjustments, taxes,
     sector costs and non-recurring costs.
  -- Profit before value adjustments, tax and sector costs in 2012 DKK 100-170
     million against DKK 50-80 million in 2011 and DKK 52 million in 2010.
  -- Non-recurring costs are expected to be DKK 30-50 million in 2012 against
     DKK 95 million in 2011.
  -- Impairment charges on loans etc. are expected to be amounting to DKK 80-120
     million in 2012 (at level with BankNordik's average impairments charges of
     approx. 0.8 per cent during the last fifteen years).
  -- Expected ROE 8 to 10 per cent before the aforementioned non-recurring costs
     and 5.5 to 8.5 per cent after these costs."Already in 2012, we expect to deliver growth in profit as a result of the
achieved larger business base. In the second half, we can begin to reap
economies of scale and synergies. Thus, profitability can be improved further
in the coming years," says Janus Petersen, CEO of BankNordik. 

According to the agreements made on hybrid loan capital the distribution of
dividends is limited to 10 per cent of net profit and a maximum of DKK 10
million provided that BankNordik's core capital excluding the hybrid loan
capital is less than 10 per cent. Earnings in the coming three years will
extensively be used to reduce hybrid and subordinated loan capital. 

Financial targets for the next three years

In addition to the outlook for the coming year BankNordik's management
reassessed the medium-term financial targets, covering the period of three
years up to and including 2014. The main points are: 

  -- Return on equity (ROE) is expected to be taken up to a level of 12 per cent
     before tax
  -- The target for the Cost/Income Ratio is a maximum of 60 per cent.
  -- The target for the solvency ratio is set for 13-16 per cent of which core
     capital (exclusive of hybrid loan capital) must be at least 12 per cent.
  -- The amount of the risk-weighted assets is expected to remain at the present
     level.
  -- The liquidity target is an excess cover of 100 per cent compared to the
     statutory requirement.

At the end of the third quarter of 2011, BankNordik's solvency ratio was
calculated to 15 per cent, while the solvency requirement was 9.0 per cent. The
Bank's policy is to maintain a high solvency - significantly above the required
level. 

The same applies for liquidity. Through the acquisition of the healthy parts of
Amagerbanken BankNordik increased its deposit surplus to approx. DKK 2 billion,
and the excess liquidity was 149 per cent at the end of third quarter. 


Disclaimer

The forward-looking statements in this announcement are associated with risks
and uncertainties that could entail that the actual developments will differ
materially from the forward-looking statements. Risks and uncertainties include
- but not exclusively - the development in the interest margin (as a change of
+/-0.1 percentage points would entail a change in earnings of approximately DKK
12 million), the size of the loan portfolio (as a change of +/- DKK 0.1 billion
all other things being equal would entail a change in earnings of approximately
DKK 5 million), the development in impairment charges, the yield on the bank's
own portfolio, fee income as well as the volume of claims in the insurance
activities. Significant risks and uncertainties are further described in the
Bank's latest annual report. 

BankNordik was founded over 100 years ago in the Faroe Islands. The Group has
banking activities in Denmark and Greenland and the Faroe Islands and insurance
activities on the Faroe Islands and Iceland. The Bank has total assets of DKK
19 billion and more than 600 employees. The Bank is subject to the Danish
Financial Services Authority and is listed on NASDAQ OMX Copenhagen. BankNordik
has five branches in the Faroe Islands, three in Greenland and 19 in Denmark,
hereof several in the growth centres: Copenhagen, Aarhus, Odense and the
Triangle area. www.banknordik.dk. 


         Further information
         Janus Petersen, CEO, phone (+298) 330 340
         Árni Ellefsen, CFO, phone (+298) 230 348
         Investor Relations: ir@banknordik.fo