Positive developments in H1 2021

Positive developments in H1 2021

- Sale of Danish business executed as planned

Investor presentation 4 August 2021 ?rni Ellefsen, CEO

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Disclaimer

? This presentation contains statements regarding future results, which are subject to risks and uncertainties. Consequently, actual results may differ significantly from the results indicated or implied in these statements.

? No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness, accuracy or completeness of the information contained herein. Accordingly, none of BankNordik, or any of its principal shareholders or subsidiary undertakings or any of such person's officers or employees or advisers accept any liability whatsoever arising directly or indirectly from the use of this document.

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Overview

? Overview ? Highlights ? Financials

? Operating income ? Insurance ? Expenditures ? Impairment charges ? Capital ratios ? Increased profitability going forward ? Appendices

Retail banking Corporate banking Insurance

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Highlights in Q2 2021

Capital structure adjusted for dividend payout

Operational highlights

? Sale of Danish business finalised and executed as planned ? Capital structure optimised as Tier 2 capital reduced from DKK

225m to DKK 100m and DKK 150m MREL capital issued ? Changes in customer concepts and prices expected to increase

interest and fee income from mid-August

Financial highlights

? Profit before impairment charges up 31% ? Profit before tax from continuing operations of DKK 74m ? Non-recurring items before tax of DKK 4m:

? Net profit from sale of Danish business (DKK 19m) ? Clients compensated for return shortfall (DKK 15m) ? CET1 capital ratio of 25.7% and total capital ratio (MREL) of 31.3%

Profit & Loss

DKKm Net interest income Net fee and commission income Net insurance income Other operating income Operating income Operating costs Profit before impairment charges Net impairment charges on loans Operating profit Non-recurring items Investment portfolio earnings Profit before tax, continuing operations Profit before tax, discontinued operations Profit before tax

H1 2021 129 38 21 18 206 -121 85 23 109 81 -7 182 9 192

Q2 2021 66 20 14 9

109 -62 47 27 74

4 -4 74 0 74

Q2 2020 65 13 12 5 95 -59 36 16 52 0 15 66 37

103

Index 101 152 119 169 114 104 131 171 143

-28 111

72

DKKbn Loans and advances Deposits and other debt Mortgage credit

Key Metrics

H1 2021 7.6 7.7 2.5

Q2 2021 7.6 7.7 2.5

Q2 2020 7.5 7.6 2.1

Operating cost / income, % CET1 capital ratio, % Total capital ratio (MREL), % RoE, % (annualised) RoE, excl. one-offs, % (annualised)

58.5

56.3

62.1

25.7

25.7

20.3

31.3

31.3

24.0

10.1

9.7

11.4

7.0

9.5

10.0

Index 101 101 118

Target 55.0 23.0 33.0 8.0 8.0

Divested activities eliminated from the figures above

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Net interest income

- Slight improvement, will continue in coming quarters

Comments

? Net interest income up DKK 1.8m QoQ and up DKK 1.5m YoY mainly due to negative interest rates on deposits

? Changes in negative interest rate brackets expected to increase net interest income from mid-August

? Optimisation of capital funding in June with an annual reduction in interest expenses of approx. DKK 5m

? Lending volumes up by DKK 136m QoQ (DKK 107m YoY)

QoQ changes in net interest income

DKKm

66

65

64 63.7

0.1

0.1

0.1

0.4

0.3

0.8

63

62

61

60 Q1 2021 Lending Lending Deposit Deposit Sub. debt Other volume interest volume interest

65.5 Q2 2021

Loans and deposits

DKKbn

9

8 7.4 7.5 7

7.5 7.6

6

5

4

3 Q1 2020

Q2 2020

7.5 7.5 Q3 2020

7.6 7.8 Q4 2020

Loans 7.4 7.5

Q1 2021

Deposits 7.6 7.7

Q2 2021

YoY changes in net interest income

DKKm

135

2.9

130 127.8

1.1

0.9

0.1

125

120

115

110 H1 2020 Lending volume

Lending interest

Deposit volume

Deposit interest

1.5 Other

129.3 H1 2021

Divested activities eliminated from the figures above

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