Spar Nord - Q1 2013

PRE-TAX PROFIT OF DKK 193 MILLION AND ROE OF 12.7% – BEST PERFORMANCE FOR 6 YEARS

KEY MESSAGES

Page 2

Core income up 17% (y/y): NII up 17% and net fees and commissions up 29%1

Core earnings of DKK 321 million – 21% from Q1 20123

Costs a fraction lower than expected – Cost/Income Ratio improved to 0.572

Loan impairments in line with Q1 2012 – and in line with guidance4

Very solid capital and liquidity position: CET1 of 12.8 and liquidity surplus of DKK 16.8 billion5

Merger progressing according to plans – credit quality, synergies and costs in line with the expected6

side 3

HIGHLIGHTS FROM THE INCOME STATEMENT

SPAR NORD BANK Realized Realized Realized

DKKm Q1 2013 Q4 2012 Q1 2012

Net interest income 451 414 9 386 17Net fees, charges and commissions 196 138 42 152 29Market-value adjustments 77 48 58 79 -3Other income 24 29 -17 21 16Core income 748 630 19 638 17Staff costs 254 270 -6 215 18Operating expenses etc. 173 157 10 158 9Costs 427 427 0 373 14Core earnings before impairment 321 203 58 265 21Impairments of loans and advances, etc. 109 156 -30 106 3Core earnings 213 48 - 159 34Investment income 17 16 6 6 -Profit/loss on ordinary activities 229 63 - 165 39Sector Fund -31 -14 - -19 -64Cost related to merger -16 -58 72 0 -Profit from continuing operations 182 -9 - 146 25Profit from discontinued operations 10 14 -26 -2 -Profit before tax 193 5 - 144 34

Changein pct.

Changein pct.

side 4

HIGHER VOLUMES DRIVE GROWTH IN NII

Net interest income and volume trend

Interest margin

Net interest income of DKK 451 million – up 17 % on Q1 2012

Positive trends– Full quarter contribution from volume taken over

in connection with merger– Lower funding costs due to solid liquidity position– Continued expansion of lending margin

Negative trends– Demand remains modest – bank lending down

DKK 0.5 billion YTD– Low market interest level – deposit margin

remains negative

Outlook– Lending margin could come under pressure from

increasing competition– Deposit margins expected to improve slightly as

long-term fixed-rate deposits are re-priced

Interest marginContinuing operations

-0.11-0.26

4.00 4.14 4.13 4.11 3.91 3.624.19

4.714.99 5.08 5.32 5.60 5.83

-0.68-0.68-0.66

0.500.360.33 0.450.110.090.010.02

4.02 4.15 4.224.44

4.274.12

4.644.82 4.88

4.664.93

5.16

4.83

-1.00

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113

Pct.

Interest margin (Deposits) Interest margin (Loans) Interest margin

34.434.930.028.929.9

0

200

400

600

800

Q12012

Q22012

Q32012

Q42012

Q12013

0

10

20

30

40

50

Net interest income Loans, banking activities

Net interest income and loans volumeDKKm DKKb

side 5

STRONG GROWTH IN ACTIVITY-DRIVEN INCOME

0

100

200

300

400

YTD 12 YTD 13

NettogebyrindtægterMio. kr. YTD 12/YTD 13: 29 pct.

Securities trading etc. Asset management

Loan transaction fees Other feesNet fee and commission income

Net fee and commission income of DKK 196 million –29 % up on Q1 2012

Significant portion of the growth is attributable to increase in business volume post-merger

But organic growth is also strong– Strong trend in asset management driven by customers’

move from bank deposits to investment products– Activity level in the mortgage-credit area remains high

0

5

0

5

0

5

Q112

Q212

Q312

Q412

Q113

YTD12

YTD13

KapitalforvaltningY/Y: 62 pct.

0

10

20

30

40

50

Q112

Q212

Q312

Q412

Q113

YTD12

YTD13

Mio. kr.Værdipapirhandel

Y/Y: 31 pct.

Q112

Q212

Q312

Q412

Q113

YTD12

YTD13

Andre gebyrerY/Y: 11 pct.

0

25

50

75

100

125

Q112

Q212

Q312

Q412

Q113

YTD12

YTD13

LånesagsgebyrerY/Y: 34 pct.

Mio. kr.

Y/Y: 62%

DKKm Y/Y: 34% Y/Y: 11%

DKKm Y/Y: 31%

side 6

MARKET-VALUE ADJUSTMENTS AT HIGHLY SATISFACOTRY LEVEL

Markets-value adjustments of DKK 76 million – on par with Q1 2012 and up 58% on Q4 2012

Bond portfolio continues to perform – spread between Danish mortgage-bonds and interest swaps remains favourable

Customers’ interest and FX related activity is reappearing

Market-value adjustments and dividends on portfolio of shares in financial-sector companies at a level equivalent to Q1 2012

Market-value adjustments

Breakdown on types

0

25

50

75

100

Q12012

Q22012

Q32012

Q42012

Q12013

Market-value adjustmentsDKKm

DKKmYTD

2013YTD

2012 ChangeMarket-valued adjustments in Trading, Financial Markets & The International Division 51 60 -10Tangible assets 10 9 1Currency trade and -agio 15 8 7Total 76 78 -2

side 7

LOWER COST GROWTH THAN EXPECTED

Total costs and Cost/Income Ratio

Total costs of DKK 427 million – 14% up on Q1 2012- Growth is entirely attributable to merger- Growth is slightly lower than expected

Payroll costs 18% up on Q1 last year- Total headcount (FTE) 241 higher than 12 months ago

Operating expenses 9% up- Driven by merger, especially higher IT-costs

Improvement of Cost/Income Ratio to 0.57

Improved efficiency: Since 2009, the number of customers per staff member in the retail banking division has grown by 22%

0.58 0.57

0

250

500

750

1,000

YTD2012

YTD2013

0.0

0.8Costs and Cost/Income ratioDKKm

Costs(DKKm)

YTD2013

YTD2012

Change in pct.

Staff costs 254 215 18Operating expenses 156 143 9Depreciation 17 15 12Costs 427 373 14

Operating expenses(DKKm)

YTD2013

YTD2012 Change

Staff-related expenses 12 13 -1Travel expenses 4 3 1Marketing costs 24 24 -1IT expenses 78 67 11Cost of premises 24 18 6Other administrative expenses 14 18 -4Operating expenses 156 143 13

side 8

LOAN IMPAIRMENTS REDUCED – BUT STILL ON A RELATIVELY HIGH LEVEL

Note: Based on average lending volume

Impairment percentage – recent years’ trend

Impairments and impairment ratio

2011 Guidance ’132009 20122010

Outlook for 2013 – Impairments still expected in the 1% range– Improved outlook for agriculture – especially pork

producers– Impairments on household customers could increase

slightly – but nothing alarming– Due to merger, uncertainty is somewhat higher than

usual

Sparbank-portfolio performs satisfactorily– New impairments of DKK 84 million (booked as

impairments in official P/L)– Reversal of value adjustments of DKK 79 million (booked

as NII in official P/L)

Total impairments of DKK 109 million – DKK 47 million lower than Q4 2012

– DKK 86 million attributable to corporate customers (impairment percentage of 1.3)

– DKK 23 million attributable to household customers (impairment percentage: 0.5)

1.01.2

0

50

100

150

200

YTD2012

YTD2013

-1.5

1.5

Impairment and impairment in pct.DKKm Pct.

1,40%

1,10%1,20%

1,50%

~1.00%

CAPITAL POSITION FURTHER STRENGTHENED

page 9

Capital base

Strategic targets– Core equity tier 1 ratio (CET1): 12 %– Solvency ratio:15 % (at least 3 pp above ICAAP ratio)

End of Q1 2013 CET1 stands at 12.8 % - up from 12.1 % at YE 2012

Solvency ratio stands at 16.2 % – up from 15.5 % at YE 2012

Individual solvency need (ICAAP ratio) of 10.1 %– Capital surplus of DKK 2.7 billion (6.1 pp)

Solvency and subordinated debt

0

5

10

15

20

2009 2010 2011 2012 YTD2013

Core tier 1 ratio Solvency ratio

Solvency ratioPct.

20058

400

1,265

550

0

300

600

900

1,200

1,500

2013 2014 2015 2016->

Hybrid capitalSubordinated loan capital

Subordinated debt(Maturity)DKKm

Pct.Q1

2013 2012 2011 2010Core tier 1 ratio 12.8 12.1 10.4 9.5Hybrid capital 4.0 3.9 3.8 3.8Deductions in hybrid capital -1.0 -1.0 -0.9 -0.2Tier 1 ratio 15.9 15.1 13.3 13.2Subordinated debt 1.2 1.4 1.6 2.0Deductions in capitalbase -1.0 -1.0 -0.9 -1.8Solvency ratio 16.2 15.5 14.0 13.4

EXCESS COVERAGE RELATIVE TO STRATEGIC LIQUIDITY TARGET OF DKK 16.7 BILLION

Excess coverage of DKK 16.7 billion – up DKK 1.9 billion YTD

Deposit base continues to grow

Reduction in leasing and bank lending

Premature redemption of DKK 1.3 billion bonds issue in Q1 2013

Current liquidity buffer is sufficient to comfortably repay all senior funding maturing in 2013

5.8

Maturity profile

Strategic liquidity

page 10

Loan to deposit ratio

128120 123

89

126

148

93

0

40

80

120

160

2007 2008 2009 2010 2011 2012 Q1 '13

Pct.

DKKbYTD

2013 2012 2011Deposits, banking activities 42.7 41.9 31.1Seniorfunding 8.0 9.6 10.2Core capital and sub. capital 8.7 8.5 6.9Stable long term funding 59.4 60.0 48.2Loans, banking activities 34.4 34.9 31.2Loans, leasing activities 3.5 4.0 7.1Maturity < 1 year -4.8 -6.3 -6.0Strategic target (>0) 16.7 14.8 3.9

0.00.3

4.6

0.2

3.0

2013 2014 2015 2016 2017 ->

Issued bonds Senior loans

DKKb Senior loans maturity

INTEGRATION OF SPARBANK PROCEEDS ACCORDING TO PLANS

Page 11

Stronger platform in Copenhagen and Aarhus

New market-leading position

Stronger presence in Herning and Randers

New bank areas in Viborg and Holstebro

Staff Rent Other(IT etc.)

Capital Totalsynergies

57 (51)65 (55)

16 (16)15 (15)

38 (24)25 (15)

19 (19)25 (25)

130 (110)130 (110)

Synergies – original and revised guidance

IT conversion completed without any serious problems

4 of 5 branch mergers completed

Synergies materialise on the expected level

One-off costs in the low end of the indicated interval

No serious negative surprises on the credit side

page 12

Outlook for 2013 Share price

1Concensus estimateSource: Factset

10

15

20

25

30

35

40

45

50

55

Jan-11 Apr-11 Jul-11 Oct-11 Jan-12 Apr-12 Jul-12 Oct-12 Jan-13 Apr-13

DKK

Spar Nord MSCI European Banks (indexed to Spar Nord)

Share price 33,40 DKKMarket cap 4,184 DKKmEPS (2012) 1.7 DKKEPS (2013) 5.3 DKKP/B (2012) 0.70

OUTLOOK AND SHARE PRICE INFORMATION

Core earnings before impairments and non-recurring costs related to merger still expected in the DKK 1.000-1.100 million range

– Merger (added business plus synergies) still expected to contribute with approximately DKK 245 million

Impairments still expected to hover around 1% of total loans and guarantees

Non-recurring costs relating to merger: DKK 40-50 million

Contribution to sector-targeted solutions in the DKK 100 million range

Small positive contribution from discontinued business (leasing)