22.6.2021 16:00:06 CEST | BankNordik | Company Announcement

Announcement no. 13/2021

In a review of BankNordik’s asset management agreements, the Bank has become aware of an error resulting in certain clients receiving too low a return during a certain period. The clients affected will now be compensated for the shortfall.

The agreements with BankNordik of the clients affected specify that a certain percentage of their investment must be placed in Danish equities. During a certain period, however, the Bank invested only in global equities. During that period, Danish equities provided a better return than global equities, from which the clients affected did not benefit. As a result, BankNordik will now compensate the clients involved for the shortfall in return.

“We apologise for the deviation from the terms of certain clients’ asset management agreements. We rectified the error as soon as we realised the situation, and it goes without saying that the clients will be compensated for the return shortfall. We’ve also taken the necessary steps to ensure that something like this won’t happen again,” said BankNordik CEO Árni Ellefsen.

The amount of compensation to be paid to the clients has been calculated following a comparison of the return on global equities and Danish equities during the period in question. The difference in the returns of the OMXC20 index and the MSCI World index will be paid for the proportion of the clients’ assets that rightfully should have been invested in Danish equities during the period.

The clients affected will receive a letter within the next few days informing them of the amount of compensation. The money will be available in the clients’ accounts by 9 July at the latest.

The total compensation amounts to DKK 14.5m and involves 1,607 clients. BankNordik’s management does not expect the compensation amount will lead to a change in the previously announced guidance of net profit for 2021 in the DKK 150-200m range.

For additional information, please contact:

Árni Ellefsen, CEO, tel. +298 230 348

BankNordik has banking activities in Greenland and the Faroe Islands and insurance activities in the Faroe Islands. Founded in the Faroe Islands more than a century ago, the Group has total assets of DKK 12bn and 218 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.