Alm. Brand — Earnings Release 2016

May 11, 2016

Highlights

-- The bank posted a pre-tax profit of DKK 14 million in Q1 2016, against a
loss of DKK 68 million in Q1 2015. The performance was satisfactory.

-- Core earnings in the forward-looking activities amounted to DKK 21 million
(Q1 2015: DKK 18 million). The forward-looking activities reported a
pre-tax profit of DKK 8 million, which was below the expected level. The
DKK 2 million increase relative to Q1 2015 was driven primarily by greater
business volume and fewer costs.

-- Impairment writedowns on private customers amounted a reversal of DKK 1
million in Q1 2016, compared with an expense of DKK 6 million in Q1 2015.

-- The bank’s underlying activities continue to develop favourably with an
increase in the level of activity. Year on year, the number of full-service
customers increased by 8%, and the portfolio of Totalkredit loans for which
the bank acted as intermediary grew by 19%.

-- The winding-up activities reported a profit of DKK 6 million in Q1 2016,
marking a significant improvement of DKK 80 million from a loss of DKK 74
million in Q1 2015. The performance was better than expected.

-- Impairment writedowns on the winding-up portfolio amounted to a reversal of
DKK 1 million in Q1 2016. The favourable trend was driven by reversals on
commercial customers and mortgage deeds and a lower level of impairment on
agricultural customers.

-- The forward-looking activities are expected to generate pre-tax profit of
about DKK 70 million in 2016. The winding-up activities are expected to
report a pre-tax loss of DKK 50-75 million.

Other highlights

-- Income from the forward-looking activities increased by 4% to DKK 144
million in Q1 2016 (Q1 2015: DKK 138 million). The improvement was
attributable to higher income from the bank’s leasing portfolio.

-- Costs related to the forward-looking activities amounted to DKK 88 million
in Q1 2016, which was 4% or DKK 4 million lower than the DKK 92 million
reported in Q1 2015.

-- Value adjustments produced a loss of DKK 14 million in Q1 2016, against a
loss of DKK 6 million in Q1 2015, being strongly impacted by a negative
return on the own portfolio due to a widening of the credit spread between
mortgage bonds and swap rates.

-- In Q1 2016, the bank reduced the winding-up portfolio by DKK 145 million
adjusted for losses and writedowns. The reduction of the winding-up
portfolio is generally progressing better than expected.

-- At 31 March 2016, the bank had excess liquidity of DKK 3.7 billion,
corresponding to an excess cover of 260% relative to the statutory
requirement. The excess cover was reduced by DKK 0.4 billion in the first
quarter, and efforts will be made to reduce it further in 2016.

-- At 31 March 2016, the bank’s total capital stood at DKK 1.4 billion, and
the total capital ratio was 19.3. The bank’s individual solvency need was
calculated at 14.3%, and the bank thus had an excess cover of 5.0
percentage points. The banking group had a total capital ratio of 17.9, and
the individual solvency need was calculated at 14.3%. The banking group
thus had an excess cover of 3.6 percentage points.

Contact

Please direct any questions regarding this announcement to:

Kim Bai Wadstrøm, Managing Director, tel. +45 35 47 70 14, or Susanne Biltoft,
Head of Information and Investor Relations, tel. +45 35 47 76 61.