Alm. Brand — Earnings Release 2016

Aug 25, 2016

Highlights

-- The bank posted a pre-tax profit of DKK 15 million in Q2 2016, against a
loss of DKK 86 million in Q2 2015. The performance was better than expected
and satisfactory.

-- Core earnings in the forward-looking activities amounted to DKK 13 million
(Q2 2015: DKK 14 million). The forward-looking activities reported a
pre-tax profit of DKK 15 million, which was in line with expectations. This
marked a DKK 23 million improvement on Q2 2015, which was driven primarily
by greater business volume, fewer costs and a better return on the
investment portfolio.

-- Impairment writedowns on private customers amounted to a reversal of DKK 3
million in Q2 2016, compared with DKK 0 million in Q2 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 13%, and the portfolio of Totalkredit loans for
which the bank acted as intermediary grew by 19%.

-- The winding-up activities produced a break-even result in Q2 2016, marking
a significant improvement of DKK 78 million on Q2 2015. The performance was
better than expected.

-- Impairment writedowns in the winding-up portfolio amounted to DKK 13
million in Q2 2016, compared with DKK 62 million in the year-earlier
period.

-- The bank expects to generate a pre-tax profit of about DKK 50 million in
the forward-looking activities, marking a downward adjustment of DKK 20
million. The guidance for the bank’s winding-up activities is lifted by DKK
25 million to a pre-tax loss of DKK 25-50 million.

Other highlights

-- Income from the forward-looking activities increased by 4% to DKK 140
million in Q2 2016, against DKK 135 million in Q2 2015. The improvement was
attributable to higher income from the bank’s leasing portfolio.

-- Costs related to the forward-looking activities amounted to DKK 91 million
in Q2 2016, which was 1% or DKK 1 million lower than the DKK 92 million
reported in Q2 2015.

-- Value adjustments produced a loss of DKK 1 million in Q2 2016, against a
loss of DKK 22 million in Q2 2015.

-- In Q2 2016, the bank reduced the winding-up portfolio by DKK 36 million
adjusted for losses and writedowns. The reduction of the winding-up
portfolio is generally progressing better than expected.

-- At 30 June 2016, the bank had excess liquidity of DKK 3.0 billion,
corresponding to an excess cover of 288% relative to the statutory
requirement. The excess cover increased by DKK 0.3 billion in Q2.

-- At 30 June 2016, the bank’s total capital stood at DKK 1.4 billion, and the
total capital ratio was 20.1. The bank’s individual solvency need was
calculated at 13.8%, and the bank thus had an excess cover of 6.3
percentage points. The banking group had a total capital ratio of 18.7, and
the individual solvency need was calculated at 13.5%. The banking group
thus had an excess cover of 5.2 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.