With the acquisition of the healthy parts of Amagerbanken in 2011 and the activities from Sparbank in 2010, BankNordik obtained a deposit surplus of DKK 2 billion, 30 September 2011. Therefore, the Bank has gradually redeemed all its bond loans, totalling DKK 2.7 billion, before maturity. Against this background, BankNordik has decided to save the direct and indirect costs associated with the credit rating.
The Bank has cooperated with the international rating agency Moody's Investors Service since 2007, at which time the banking sector in general – including BankNordik – issued international transferable bonds as part of its long-term funding. BankNordik increased its funding during the years 2008-10 to strengthen the Bank during the period of liquidity shortage.
"During the past years’ strategic steps, we have achieved a large deposit surplus. Our deposits are broadly based and may be considered very stable, partly due to the deposit guarantee scheme. Thus, BankNordik’s liquidity has become more robust. Additionally, money markets have become more well-functioning, and the authorities have introduced various liquidity schemes at the banks’ disposal if need be,” says Janus Petersen, CEO of BankNordik.
”It is therefore on a healthy background that we have decided to terminate the rating from Moody’s. During the past four years we have had a fine cooperation for which we express our thanks,” says Janus Petersen.
Additional information
Janus Petersen, CEO, phone +298 330 340
Árni Ellefsen, CFO, phone +298 230 348
Investor Relations: ir@banknordik.fo
BankNordik was founded over 100 years ago in the Faroe Islands. The Group has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. The Group has 180,000 customers, 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. www.banknordik.fo