The Danish Financial Supervisory Authority (“FSA”) conducted an ordinary inspection of BankNordik in August and September. All material risk areas were reviewed with the greatest emphasis being on areas involving the most risk. The FSA's report on the inspection (in Danish) is posted on BankNordik's website, and is also attatched as an annex.
In the credit area, the inspection covered a total of 359 exposures, including 36 exposures each representing more than two percent of the bank's total capital. The Danish FSA found that the Bank's largest exposures are of a better quality than those of comparable banks and also found the total loan impairment charges on major exposures to be sufficient.
For smaller exposures, the FSA found that there was a need to increase impairments by DKK 7.9 million, corresponding to less than 0.1% of the Bank’s loan portfolio. The loan impairment charges are recognised in the Bank's interim report for the third quarter of 2014 released yesterday.
The FSA's review also gave rise to various orders relating to the Bank's policies, business procedures and in-house credit management. BankNordik has duly taken note of these orders and has already begun to implement requisite improvements. None of these are believed to involve material difficulties for the Bank.
For additional information, please contact:
Janus Petersen, CEO, tel. (+298) 330 340
Árni Ellefsen, CFO, tel. (+298) 330 348
Johnny í Grótinum, Investor Relations, tel. (+298) 230 380, ir@banknordik.fo
BankNordik has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands and Iceland. Founded in the Faroe Islands more than a century ago, the Group has 170,000 customers, total assets of DKK 17bn and 500 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on NASDAQ OMX. www.banknordik.dk.
