Interim Report Q1 2017 for Spar Nord Bank A/S

• Compared with last year’s Q1, core income advanced by DKK 140 million (19%) to DKK 874
million. Net interest income was 1% down on last year, while net income from fees,
charges and commissions improved DKK 44 million (18%), and market-value adjustments
grew DKK 92 million (127%).

• Expenses totalled DKK 475 million – which is in line with last year – after an increase in
payroll costs of DKK 5 million (2%) and a corresponding decline in other expenses.

• Core earnings before impairment amounted to DKK 399 million, which is DKK 140 million
(54%) up on the same period last year.

• Impairment of loans and advances, etc. ended at DKK 2 million, which is somewhat
lower than expected at the beginning of the year and should be viewed in relation to
loan impairment losses of DKK 55 million in last year’s Q1 and DKK 55 million in the
previous quarter – the realized impact on profts comprises a DKK 94 million increase in
groups of impairment losses.

• The total business volume amounted to DKK 223 billion at end-Q1, up 1% since January 1.
Bank and leasing lending grew 2%, bank deposits dropped by the same fgure, and the
volume of mortgage-credit loans arranged increased 1%.

• The capital position remains robust with a Common Equity Tier 1 (CET 1) ratio of 13.8%
and a total capital ratio of 17.6%, equal to an excess capital coverage of DKK 3.3 billion
(6.9 percentage points) compared with the calculated capital requirement.

• The implementation of the Bank’s new strategy is generally proceeding satisfactorily – in
the frst stage the primary focus was on prerequisite activities in the IT and process
areas, and from the beginning of Q2 the implementation of customer-centric initiatives
will begin.

• In light of the performance reflected in the interim fnancial statements for Q1 and the
outlook for the rest of 2017, the forecast for full-year core earnings before impairment of
DKK 1.1-1.2 billion is maintained, and loan impairment losses are still expected to be lower
than in 2016.

Lasse Nyby, Chief Executive Ofcer of Spar Nord, has the following comment on the
fnancial statements:

We would be hard put not to be deeply satisfed with the interim fnancial statements
we have now published. The post-tax proft of DKK 317 million constitutes one of our
best performances and is an excellent head start on our new strategy period.
There are three key reasons why things have developed so favourably. First, our net
income from fees, charges and commissions is developing excellently, especially in the
housing and wealth management areas. Second, the development in market interest
rates has impacted favourably on earnings on our bond portfolio. Third – and this is
in fact the point I fnd most gratifying – our retail and business customers are actually
in fnancial situations so good that we have essentially lost no money on our lending
activities. The competition to win customers, and thus the pressure on our interest
margin, has certainly not abated, but in Q1 the positive trends in other areas were
more than ample to offset this factor