NYKREDIT BANK - ANNUAL REPORT 2016 NYKREDIT BANK

NYKREDIT BANK A/S – A SUBSIDIARY OF NYKREDIT REALKREDIT A/S CONSOLIDATED IN THE NYKREDIT GROUP FINANCIAL STATEMENTS

Announcement of Financial Statements 2016 • Profit from core business was DKK 1,517m compared with DKK 1,755m in 2015, equivalent to a return on equity of 9.2% in 2016. • Core income from business operations totalled DKK 3,428m, which represented a 3.2% decline on 2015. • Operating costs and depreciation of equipment totalled DKK 2,060m against DKK 1,915m in 2015. The rise should partly be seen in light of the Bank's investment in its Wealth Management area. • Impairment losses on loans and advances equalled a gain of DKK 141m. Impairment losses were negative 0.1% of loans and advances – the same as in 2015. • Legacy derivatives produced a charge of DKK 763m against a gain of DKK 229m in 2015. This category consists of derivatives that are no longer offered to Nykredit customers. • Profit after tax for the year came to DKK 627m against DKK 1,542m in 2015. • Profit before tax generated a return on equity of 4.8% in 2016. • Bank lending and deposits grew by DKK 8.3bn and DKK 3.5bn compared with 2015. LIQUIDITY • The Bank's liquidity coverage ratio (LCR), determined according to the LCR rules, came to 153% against 120% at end-2015. Deposits exceeded lending by DKK 11.3bn compared with DKK 16.0bn at end-2015. CAPITAL • Equity stood at DKK 16.7bn, which was an increase on end-2015. • The Common Equity Tier 1 (CET1) capital ratio was 14.8% against 20.6% at end-2015. The change should be seen, in part, in the context of the implementation of the Nykredit Group's advanced IRB models, which are described in further detail in "Capital and capital adequacy" in the Annual Report 2016. The total capital ratio was 16.6% against 21.1% at end-2015, and the internal capital adequacy requirement came to 10.7% compared with 12.0% at end-2015. ABOUT NYKREDIT BANK GROUP • The Annual Reports 2016 of the Nykredit Bank Group and the Nykredit Group and further information about Nykredit are available at nykredit.com. Contact For further comments, please contact Nykredit Press Relations at tel +45 44 55 14 50.