Investor Presentation 15th June 2011, Handelsbanken

acquiring Amagerbanken

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International Expansion in recent years

The Group has existed as a bank for 105 years on the Faroe Islands, where it also runs an insurance business

In October 2009, BankNordik acquired the insurance company Vørður on Iceland. Turned it around to return a profit in 2010.

In February 2010, BankNordik acquired 3 bank branches in Greenland and 9 branches in Denmark. In a recessionary economy with focus on security among depositors BankNordik has managed to retain staff and customers.

5,000 customers

25,000 customers+ AB 92,000 customers

26,000 customersNB: Only Insurance customers in Iceland!

25,000 customers

Oct. 2009

Feb 2010

Feb 2010

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Business Case: Cost efficient retail banking

• Faroese branch network reduced to five branches in 2011

• Rationalizations in current Danish activities

• AB Branch network too large Several branches are too small to be cost effective and attractive

work places BankNordik has identified several clusters of branches to be

merged Number of branches lowered to appr. half the current number Number of employees taken over is appr. 160 (Out of 242) Plan for integration andadjustment of branch network is in place

• BankNordik has proven experience with rationalizations

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Integrating Danish management

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The acquired activities

A loan portfolio totaling DKK 4.6 bn (guarantees of DKK 300m)

A few selected corporate/public customers with credit exposures larger than DKK 5m totaling DKK 148m

Cooperative Housing portfolio totaling DKK 50m (after impairments)

The estimated RWA amounts to DKK 3.8 bn. Deposit surplus amounts to DKK 1.1 bn. Securities on custody accounts amount to DKK 10 bn.

12 of the 25 banking branches (number to be reduced before closing)

Approximately 160 employees

Expected profit from day one, excl. acquiring and conversion costs

Although normalized profit will not be expected to be reached until 2012

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Budget of acquired activity. Important assumptions in the budget.

Estimate 25% loss of volume in closed branches, and 10% loss of volume in the rest of the branches

Risk Weighted Assets amount to DKK 3.8 bn including operational and market risk

In calculation of capital requirement we estimate no loss of volume, and the capital requirement is met with a mix of hybrid core capital and subordinated debt.

Normalized impairments are fixed at 50bp based on historic mean

Interest rate margin remains 5 percentage points

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Balance Sheet BankNordik group pr. Q1 2011, incl. ABBalance sheet, BankNordik Group Realized 2011 Realized 2011

Kr. 1.000

BankNordik Koncern, excl AB

BankNordik Koncern, incl AB

Cash in Hand 1.061.831 2.578.246Loans 8.376.167 12.616.791Bonds 2.524.378 2.524.378Shares 301.800 301.800Tangible Assets 156.696 191.696Intangible assets 485.132 485.132Other assets 608.682 708.682Total assets 13.514.685 19.406.725

Due to credit institutions 316.445 316.445Deposits 8.943.328 14.258.731Issued debt 1.199.843 1.199.843Other liabilities and provisions 848.679 875.316Hybrid Core capital 203.240 753.240Equity 2.003.151 2.003.151Total liabilities 13.514.685 19.406.726

0 0Off Balance sheetGuarantees 1.513.616 1.784.116

835.132

2.228.246

Pro forma adjusted budget

Budget from forecasted range in Q1

Value adj=0

Impairments=50bp

Cost reductions of DKK 30m to be effective from year-end 2011

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Adjustments to budget for current activity:

Adjusted 2011

Budget AB, normalised Total

Interest income 627.424 264.968 892.392Interest expenses 176.799 105.182 281.981Net interest income 450.625 159.786 610.411

Net fee income 105.228 99.629 204.858Premium income from insurance 55.319 0 55.319Net interest, fee and insurance income 611.172 259.415 870.587

Other income 6.842 0 6.842Value adjustments 0 5.295 5.295Staff costs administrative expenses 381.035 156.427 537.462Depreciation 24.847 6.052 30.899Other costs 5.216 0 5.216Impairments 50.000 18.333 68.333Pre-tax profit 156.916 83.898 240.813

Tax 31.383 20.974 52.358Net profit 125.532 62.923 188.456

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Outlook for 2011 as announced in Q1 report

• Bank retains outlook for the full year, although we now expect to end in the lower end of the range for pre tax profit before value adjustments of DKK 100-140m

• We expect loan growth to pick up in the rest of the year• Retain expectation that cost reductions amount to 0-5%• Branch structure on the Faroes and in Denmark has been

adjusted closing 5 branches and reducing 22 FTE by year-end• Excluding effects from acquisitions of Lív and AB• AB not expected to contribute in 2011 as a result of extraordinary

acquisition and conversion costs

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Industry overview of the group loan portfolio prior to AB acquisition

Credit Exposure in %

Other

Construction

Real Estate

Fishing

Manufacturing

Trade, hotel & restaurants

Public

Private

Service

Transport, logistics &TelecomUoplyst

(Tom)NB. The definition of “private” is not comparable to definition of “retail” as retail also includes corporate below DKK 7.5m

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A strengthened credit risk profile:A larger share of retail banking

• Primarily retail customers acquired

• Implies stronger credit risk profile

• Retail defined as exposure less than DKK 7.5m(1m euro)

• Retail exposure represents more than 2/3 of total exposure in the group after acquisition

• The share of Corporate exposure has fallen by 13 % to 27,6%

Currently Including ABRetail 55,8% 68,1%Corporate 38,0% 27,6%Public 6,1% 4,2%

Currently Incl. ABPrivate 50% 59%Corporate 44% 37%Public 6% 4%

By Customer size By Customer type

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Overview of the 10 largest customers in current BN group

Although we do acquire some larger customers, none of the acquired customers from AB will enter this top 10 customer list

Customer Industry Group risk Classification Country1 Real Estate -220.201 0b Faroe Islands2 Farming -168.750 3A Faroe Islands3 Supply / Fishing -161.183 2A Faroe Islands4 Real Estate -160.000 3A Greenland5 Service -159.930 3A Faroe Islands6 Transport, Logistics & telecom -140.337 3A Faroe Islands7 Transport, Logistics & telecom -116.135 2A Faroe Islands8 Retail -115.000 3A Greenland9 Retail -110.152 3A Faroe Islands10 Fishing -109.601 3A Faroe Islands

Total -1.461.288

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Acquired a small number of larger corporate customers and a co-operative housing portfolio

• The acquisition of AB included 6 larger corporate customers with exposures above 5 mio. DKK

• Additionally acquired a loan portfolio of 16 organizations with shared residences for private customers with total exposure of DKK 172 million. Impairments amounted to DKK 58m, acquired for DKK 50m.

Customer Industry Group risk Classification Country1 Public -51.000 2a Denmark2 Public -18.000 2a Denmark3 Trade -16.000 2a Denmark4 Trade -13.000 2a Denmark5 Transport, Logistics & telecom -27.000 2a Denmark6 Real Estate -23.000 2a Denmark

Total -148.000

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Stronger liquidity situation with large deposit surplus

BankNordik’s current liquidity policy is to be 100 % above statutory requirement

Deposit base increased by DKK 5.3 bn, deposit surplus increased by DKK 1,1 bn.

Excess cover relative to statutory liquidity requirements is 163 % in Q1. Will increase with approx. 0,5 bn. due to AB

A “stress tested” deposit base with large hair cuts taken on deposits larger than DKK 750.000 in February

DKK 3.3 bn of deposits are from customers with Nemkonto (AB is primary banking relation). Client accounts from Law firms is a niche business fully covered by Depository Insurance Fund.

DKK 850m are time deposits. A low level reflecting AB’s lack of competitive advantage to attract deposits in recent years.

Less than DKK 0.5 bn are from customers with deposits not covered by Depository Insurance Fund

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Solvency Target maintained

• BankNordik will still aim at a level of solvency dependent on the macroeconomic situation being bad or good of respectively between 14–16% in the years to come

• Following completion of the Amagerbanken transaction BankNordik still expects a capital requirement below or just above the statutory minimum requirement of 8%

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Required extra capital of DKK 550 million

Targeted solvency level of at least 14% long term implies required extra capital of appr. DKK 550m to be raised by issuing hybrid core and/or subordinated loan capital

Seller provides DKK 300m in subordinated debt facility. Limits payment of dividends by requiring repayment of subordinated debt of twice the amount paid in dividends.

Raise additional hybrid core capital and/or subordinated loan capital totaling appr. DKK 250m

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Reassessment of the Dividend Policy• As a consequence of the AB acquisition and the borrowing it enforces,

BankNordik on 19 May 2011 announced that it will issue hybrid core capital and subordinated loan capital to strengthen its capital base and as consequence of such issue that it will not pay dividends for a period

• Following this announcement BankNordik has been in contact with several potential debt investors and it seems that BankNordik may be able to pay out a minor dividend and still attract the required subordinated loan and hybrid core capital

• Following the completion of the subscription of subordinated loan and hybrid core capital, which is expected to take place on or about the 16 June 2011, BankNordik will be able to announce the final level of allowed dividend

• The most likely out come is that as long core capital percentage, excluding hybrid core capital, is lower than 10 % Dividend payout will be maximized to 10 % of net profit, however not more than DKK

10m p.a.

• It is further a condition from the seller (Finansiel Stabilitet) that repayment of the subordinated loan shall be twice of any dividend pay out

• It is expected that the dividend policy will be taken up to reconsideration, when the core capital percentage, excluding hybrid core capital, is 10 % or higher

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Capitalization and repayment of acquisition finance (hybrid capital 100m and subordinated debt)

Assuming no growth this projection

Acquisition debt will according to plan be repaid by 2017

Core capital, excl. hybrid core capital, expected to be above 10% in 2013

Acquisition financing, Primo (mio. dkk) Q1 2011 2011 2012 2013 2014 2015 2016 2017 2018New hybrid core capital 100.000 100.000 100.000 100.000 50.000 0 0 0 0Repayment of New hybrid core capital 0 0 50.000 50.000 0Subordinated debt from Financiel Stabilitet 300.000 300.000 200.000 0 0 0 0 0 0Subordinated debt from Insitutional investors 150.000 150.000 150.000 150.000 0 0 0 0 0Total subordianed debt 450.000 450.000 350.000 150.000 0 0 0 0 0Repayment, subordinated debt from FS 0 0 100.000 200.000 0Repayment, subordinated debt from Other investors 0 0 0 0 150.000 0Acquisition financing, ultimo 550.000 550.000 450.000 250.000 50.000 0 0 0 0

2011, Q1 2011 2012 2013 2014 2015 2016 2017 2018100.000 100.000 100.000 100.000 100.000 100.000 50.000 50.000 0

0 0 0 0 50.000 50.000300.000 300.000 200.000 100.000 0 0 0 0 0150.000 150.000 150.000 150.000 150.000 25.000 0 0 0450.000 450.000 350.000 250.000 150.000 25.000 0 0 0

0 0 100.000 100.000 100.0000 0 0 0 0 125.000 25.000

550.000 550.000 450.000 350.000 250.000 125.000 0 0 0

Base Capital per cent 13,8% 14,0% 13,9% 14,0% 14,1% 14,0% 13,9% 14,0% 14,2%Core Capital per cent, incl Hybrid core capital 10,8% 11,1% 11,7% 12,5% 13,3% 14,0% 14,1% 14,2% 14,4%Core Capital per cent, excl Hybrid core capital 8,6% 9,0% 9,6% 10,5% 11,3% 12,1% 12,8% 13,5% 14,2%

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Conclusions

Acquisition strengthens the credit risk profile, as it increases the share of retail customers

Deposit surplus of DKK 1.1 bn. Solves funding issue to be solved by 2013.

A high return on the invested capital is estimated

Acquisition debt planned repaid by 2016

Dividend policy reassessed to accommodate subordinated debt

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Appendix

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