BankNordik lowers FY2016 guidance due to extraordi

Due to extraordinary high insurance claims, which at present are estimated to be in the range of DKK 15–20m and mainly relate to extraordinary harsh weather conditions in the Faroe Islands in the month of December 2016, BankNordik has decided to lower the Group’s FY2016 guidance on profit before impairment charges net of reinsurance, non-recurring items, value adjustments, and tax, from earlier announced DKK 175–200m to DKK 165–180m.

Net impairment charges on loans for 2016 are still expected to be less than in 2015 (DKK 20m). For the first nine months of 2016, net impairment charges were a reversal of DKK 8m.

This guidance is subject to uncertainty and the Group’s FY2016 results will depend on the final settling of insurance claims, net of reinsurance, as well as economic conditions in general, including possible central bank monetary policy measures.

Further information:

Árni Ellefsen, CEO, tel .  (+298) 230 348

BankNordik has banking activities in Denmark, Greenland and the Faroe Islands and insurance activities in the Faroe Islands. Founded in the Faroe Islands more than a century ago, the Group total assets of DKK 16.4bn and 416 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Iceland and Nasdaq Copenhagen. www.banknordik.com