Spar Nord Bank joins the new government-backed deposit guarantee scheme

The Danish Government has issued a two-year guarantee for all loans and
unsecured claims against Danish financial institutions. According to an
agreement with the banking sector, it will be managed and financed by Det
Private Beredskab (the Banking Sector Emergency Fund). 

Today, Spar Nord Bank decided to confirm its membership of the Banking Sector
Emergency Fund. Accordingly, the Bank will contribute to and be covered by the
new government-backed deposit guarantee scheme, which will be operative for two
years as from 6 October 2008. 

Spar Nord Bank's share of the annual guarantee commission of DKK 7.5 billion is
expected to amount to DKK 150-200 million. To this should be added a share of
the total guarantee limit, plus any increased guarantee commission (cf. the
terms of the agreement), of DKK 400-550 million out of a total limit of DKK 20
billion. In 2008, Spar Nord's participation in the guarantee scheme is expected
to have a negative impact on the Bank's pre-tax profit of DKK 40-50 million. 

At the same time as Spar Nord Bank has confirmed its membership of the Banking
Sector Emergency Fund, and in accord with the intentions of the new agreement,
the decision has been made not to distribute dividend for the next two years,
and the Bank's share-option-based management incentive schemes for 2008-10 have
been cancelled. 


Contacts:
Lasse Nyby, Chief Executive Officer, tel. +45 96 34 40 11
Ole Madsen, Senior Vice President, Corporate Communication, tel. +45 9634 4010

 

Sincerely yours,
The Management Secretariat


 
Ole Madsen 
Senior Vice President, 
Corporate Communication

Direct tel.: +45 96344010
oma@sparnord.dk