Spar Nord Bank

Regulatory Filings • May 21, 2014

Spar Nord Bank A/S (“Spar Nord”) and of FIH Erhvervsbank A/S (“FIH”) have
concluded a conditional agreement regarding Spar Nord's acquisition of credit
and guarantee facilities from FIH, totalling about DKK 4.0 billion, broken down
on approx. 900 corporate customers. The facilities are all in the SME segment
(< DKK 50 million) and consist primarily of loans and guarantees and associated
financial instruments

Spar Nord Bank A/S acquires customer portfolio from FIH Erhvervsbank A/S

Spar Nord Bank A/S (“Spar Nord”) and of FIH Erhvervsbank A/S (“FIH”) have
concluded a conditional agreement regarding Spar Nord’s acquisition of credit
and guarantee facilities from FIH, totalling about DKK 4.0 billion, broken down
on approx. 900 corporate customers. The facilities are all in the SME segment
(< DKK 50 million) and consist primarily of loans and guarantees and associated
financial instruments.

For Spar Nord, the strategic rationale behind the conclusion of the agreement
was its plans to strengthen its position on the market for serving small and
medium-sized businesses nationwide. To this should be added the wish to exploit
the potential for the improved efficiency and earning power derived from
serving a larger number of customers on the same production and support
platform.

In connection with the takeover of facilities, FIH’s branches in Aarhus and
Fredericia as well as a part of the Copenhagen branch (with a total of 30
employees) will be taken over by Spar Nord. The point of departure is a
continuation of relations between advisers and customers on a business-as-usual
basis, so that customers will not generally experience major changes in daily
service operations.

The acquired portfolio

According to the transfer agreement, Spar Nord will take over business customer
facilities totalling about DKK 4.0 billion, broken down on approx. 900
customers. The facilities are in the SME segment (< DKK 50 million), and the
portfolio is highly diversified in terms of geography and lines of business.
The total business volume can be broken down on DKK 2.4 billion of loans and
advances, DKK 1.3 billion of guarantees and DKK 0.3 billion in market value of
derivatives.

Before the conclusion of the agreement, the usual thorough due diligence
process has been carried out, and against this background Spar Nord expects the
credit quality of the acquired portfolio to be in line with the Bank’s existing
customer portfolio but with better security coverage.

Financial expectations

Spar Nord anticipates that in 2014 the facilities taken over will contribute
about DKK 35 million to the Bank’s core earnings before impairment, and that
non-recurring costs in connection with the transaction will amount to about DKK
25 million, of which the majority is expected to be defrayed in 2014.

As from 2015 onwards, the portfolio is expected to contribute with core
earnings before impairment of around DKK 70 million. As a consequence of the
better security coverage, the portfolio taken over is assessed to have a risk
level that is slightly lower than Spar Nord’s existing business customer
portfolio.

Capital and liquidity issues

In terms of capital, Spar Nord had a Common Equity (Tier 1) ratio of 14.0%, a
total capital ratio of 19.4% and a solvency need ratio of 9.7% at end-Q1 2014.

After the takeover of risk-weighted assets in the amount of about DKK 2.7
billion and the scheduled redemption of a state-funded hybrid loan of about DKK
1,265 million in May 2014, the Bank’s Common Equity (Tier 1) ratio is expected
to amount to about 13.2%, and the total capital ratio to about 15.6%.

With respect to cash resources, at end-Q1 2014 Spar Nord had long-term funding
that exceeded the Bank’s lending by about DKK 18.0 billion. Hence, Spar Nord
has no plans to issue new capital or to raise new senior funding in connection
with the transaction.

Implementation of the transaction

The final implementation of the transaction is subject to a number of
conditions, e.g. that the transfer will be approved by the Danish Financial
Supervisory Authority and the Danish Competition and Consumer Authority.

Questions regarding this announcement

Please direct any questions regarding this announcement to the undersigned, who
can be reached on tel. +45 9634 4010.

Carnegie Investment Bank is the financial adviser, and Accura is the legal
adviser to Spar Nord.

Sincerely yours,

Spar Nord Bank A/S

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