BankNordik P/F: BankNordik sells domicile and plans to centralise activities in a new domicile

BankNordik has made an agreement with a buyer to sell the bank's current domicile building and other buildings in Tórshavn, Faroe Islands. The total sales price amounts to DKK 92 million. The agreement is part of the bank's plan to centralise all the activities in Tórshavn in a new domicile to be constructed in the next couple of years. Centralizing the activities in Tórshavn in one domicile building is expected to support the cooperation between departments and functions in order to further improve operational efficiency.

The management does not expect the transaction to have a material effect on the Group's financial position in 2013. The sale of the buildings implies that the Group realizes a positive value adjustment relative to the booked value. But the relevant accounting rules for banks stipulates that a binding agreement with a construction company on the construction of the new domicile implies an immediate large write-down of the construction costs. The Group expects to make such an agreement with a construction company later this year. The management expects these transactions to cancel each other out, therefore the total transaction is not expected to have a material effect on the Group's financial position.

For further information:

Janus Petersen, CEO, phone [phone]

Írni Ellefsen, CFO, phone [phone]

Johnny í Grótinum, Investor Relations, phone [phone]