Spar Nord Bank

Earnings Release • Aug 13, 2014

Pre-tax profits of DKK 512 million, equal to a 15.3% p.a. return on equity

• Core income for the first six months amounted to DKK 1,597 million, up 12% on
H1 2013 - the growth being driven by market-value adjustments regarding the
sale of the Nets sharehold-ing and sustained growth in net income from fees,
charges and commissions, while there was pressure on net interest income in Q1,
in particular.

• Costs & expenses ended at DKK 890 million, which is 4% up on H1 2013 and in
line with expect-ations - thus, the cost/income ratio improved to 0.56.

• Core earnings before impairment amounted to DKK 707 million - 24% up on H1
2013.

• Impairment of loans and advances, etc. shrank by 17% (YOY), amounting to DKK
169 million, equal to an impairment ratio, excl. mortgage credit lending, of
0.78% p.a.

• The negative lending trend was reversed, with bank lending at end-H1 bouncing
back to its end-2013 level - before consolidation of the portfolio acquired
from FIH Erhvervsbank.

• The Group is in a comfortable capital and liquidity situation, with a Common
Equity (Tier 1) ratio of 14.2%, an excess coverage relative to the solvency
need ratio of 7.2 percentage points (DKK 3.2 billion), and strategic liquidity
of DKK 17.6 billion.

• In light of developments in H1, Spar Nord Bank maintains its full-year
forecast for core earnings before impairment of about DKK 1.1 billion, to which
should be added DKK 175 million regarding the divestment of the Bank’s Nets
shareholding.

Q2: Healthy growth in lending and net interest income

• Net interest income increased 5% on Q1, amounting to DKK 416 million - driven
by growth in bank lending of DKK 700 million and redemption of hybrid core
capital at the end of May.

• Net income from fees, charges and commissions in the amount of DKK 195
million was retained at a highly satisfactory level - for one thing because of
a sustained high activity level in the asset and investment management area.

• A quarter characterized by strategic initiatives: the redemption of
governmental hybrid core capital, divestment of Swedish leasing activities and
acquisition of customer portfolios from Basisbank and FIH Erhvervsbank.