Investor Presentation 15th June 2011, Handelsbanken acquiring Amagerbanken

1. Investor Presentation 15th June 2011, Handelsbanken acquiring Amagerbanken

2. Oct. 2009 25,000 customers 5,000 customers 26,000 customers NB: Only Insurance customers in Iceland! Feb 2010 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. Feb 2010 25,000 customers + AB 92,000 customers

3. 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

4. Integrating Danish management 4

5. 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

6. 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

7. Balance Sheet BankNordik group pr. Q1 2011, incl. AB 2.228.246 835.132

8. Pro forma adjusted budget Adjustments to budget for current activity: • Budget from forecasted range in Q1 • Value adj=0 • Impairments=50bp • Cost reductions of DKK 30m to be effective from year-end 2011

9. 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

10. Industry overview of the group loan portfolio prior to AB acquisition NB. The definition of “private” is not comparable to definition of “retail” as retail also includes corporate below DKK 7.5m

11. 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% By Customer size By Customer type

12. 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

13. 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. 3 3

14. 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

15. 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% 15

16. 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

17. 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

18. 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

19. 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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