Comments by Lasse Nyby, CEO, on the financial statements: 

”For Spar Nord, 2012 was one of the most eventful years in a long time. We have successfully completed a capital increase, we merged with Sparbank, and recently we launched a number of strategic initiatives intend- ed to contribute to ensuring our future profitability and competitive clout. Thus, we have taken some of the important steps required in the Danish market with its sustained low activity and sluggish demand for financial products.

The most satisfactory thing about the financial statements is that in 2012 we recorded growth in all income areas, thus generating record-high core earnings before impairment of DKK 931 million. In addition, we ex- perienced the largest inflow of new customers ever with 12,000 new retail and business customers net, while at the same time holding down our costs.

What is less positive is that parts of the business sector are still challenged by the unfavourable market con- ditions, and that this - together with the more specific guidelines issued by the Danish Financial Supervisory Authority during the year - has ramifications for the financial statements by way of an increased impairment level.

We expect that 2013 will be yet another year with low economic growth – and thus a year with our focus again being on winning market shares and particularly on running tight cost management.”

Highlights from the financial statements: 

•  Pre-tax profits of DKK 290 million (after extraordinary items) (2011: DKK 345 million).

•  Core income ended at DKK 2,432 million, up 13% on 2011.

•  5% growth in net interest income, 17% growth in net income from fees, charges and commissions and 86% growth in market-value adjustments.

•  Core earnings before impairment of DKK 931 million - 33% up on 2011.

•  Impairment of loans & advances of DKK 594 million (2011: DKK 404 million).

•  12,000 new customers (net) (2011: 7,000).

•  Growth in market share: Total credit arranged grew 2%, excl. merger effect, against the sector’s 0%, and deposits were up 7% compared to the sector’s 4%.

•  The Common Equity (Tier 1) ratio stood at 12.1% (2011: 10.4%), and excess coverage relative to the strategic liquidity target stood at DKK 14.8 billion (2011: DKK 3.9 billion).

•  Merger with Sparbank is progressing according to plan - both as concerns synergies and non- recurring costs.

•  Outlook for 2013: Core earnings before impairment of DKK 1,000-1,100 million - impairment of around 1% of total loans, advances and guarantees.

Sincerely yours,
Spar Nord Bank A/S 

Ole Madsen
Senior Vice President, Corporate Communication
Direct tel.: +45 9634 4010
oma@sparnord.dk