Alm. Brand — Earnings Release 2015

Mar 2, 2016

Highlights

-- The bank incurred a pre-tax loss of DKK 331 million in 2015 (2014: DKK 275
million loss). Although in line with the most recent guidance, the
performance was not satisfactory.

-- Core earnings in the forward-looking activities amounted to DKK 98 million
(2014: DKK 96 million). The forward-looking activities reported a pre-tax
profit of DKK 18 million, which was in line with expectations. The
performance was DKK 43 million lower than in 2014, mainly due to the
turbulence in the fixed income markets, which drove down trading activity
and resulted in significant capital losses on the bank’s bond portfolio.

-- Impairment writedowns on private customers amounted to DKK 21 million in
2015 (2014: DKK 17 million).

-- The bank continues to experience an increase in the number of Pluskunder,
which contributed to growth in lending to private customers of close to DKK
200 million in 2015 and to an increase of DKK 1.1 billion in the portfolio
of Totalkredit loans for which the bank acted as intermediary.
-- The bank incurred a loss on its winding-up activities of DKK 349 million in
2015 (2014: DKK 336 million loss), which was in line with expectations.

-- Impairment writedowns on the winding-up portfolio amounted to DKK 306
million in 2015, most of which were attributable to agricultural exposures,
reflecting the extremely difficult conditions for the Danish agricultural
sector.

-- 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 8% to DKK 571
million in 2015 (2014: DKK 531 million). The increase was driven by higher
net interest and fee income and higher other income, primarily comprising
the bank’s leasing activities.

-- Costs related to the forward-looking activities amounted to DKK 352 million
in 2015, which was 2% or DKK 8 million higher than in 2014 when costs
amounted to DKK 344 million.

-- Value adjustments produced a loss of DKK 59 million in 2015, against a loss
of DKK 31 million in 2014, being strongly impacted by a negative return on
the own portfolio due to the wider credit spread between mortgage bonds and
government bonds.

-- In 2015, the bank reduced the credit exposure of the winding-up portfolio
by DKK 490 million adjusted for losses and writedowns. The reduction of the
winding-up portfolio is generally progressing better than expected.

-- At 31 December 2015, the bank had excess liquidity of DKK 3.1 billion,
corresponding to an excess liquidity coverage of 272%. The excess coverage
was reduced by DKK 1.8 billion in 2015 and will be reduced further in 2016.

-- At 31 December 2015, the bank’s total capital amounted to DKK 1.4 billion,
and the total capital ratio was 18.6. The bank’s individual solvency need
was calculated at 14.0%, and the bank thus had an excess coverage of 4.6
percentage points. The banking group had a total capital ratio of 17.2, and
the individual solvency need was calculated at 13.7%. The banking group
thus had an excess coverage of 3.5 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.