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
Spar Nord Bank joins the new government-backed deposit guarantee scheme
| Source: Spar Nord Bank A/S