TIME FOR CUSTOMERSHow Spar Nord will approach the Years of Transition

30.03.2011

side 2

KEY MESSAGES

1. We have made it through the turmoil in good condition –thanks to focus on core business and a conservative credit approach

2. Our new strategy TIME FOR CUSTOMERS sets focus on organic growth in the business units we have established in recent years

3. Spar Nord’s key differentiators: Unique business model and stronger local involvement

4. In terms of products and services to the household segment, we’re focusing on houses (e.g. energy renovation)

5. We’re investing in further strengthening our brand – in household as well as corporate segment

6. Following the collapse of Amagerbanken, our main challenge is funding

7. However, we expect to deliver strong financial performance in 2011 and the years to come

side 3

SPAR NORD AT A GLANCE

5th largest full-service retail bank in Denmark

– Firm focus on household segment and SME– Franchise philosophy – local management in charge– Since 2002, 27 new branches outside North Jutland

Among market-leaders in financial and operational leasing (Finans Nord)

– Focus on transportation, agriculture and industry– Strong growth Swedish subsidiary– Easyfleet: Market-leader in private leasing

Strong market-position as wholesale provider to smaller banks and savings banks

– Trading and markets– International payments– Clearing

Market leader in North Jutland30 percent market-share on personal customers25 percent market-share on corporate customers

spar nord

Herningspa r nord

Århus

spar nord

Horsensspar nord

Vejlespar nord

Fredericiaspar nord

Kolding spar nord

Odense spar nord

Næstved

spar nord

Silkeborg

spar nord

København

spar nord

Skive

spar nord

Middelfart

spar nord

Slagelsespar nord

Køge

spar nord

Ikast

spar nord

Jebjergspar nord

Randers

spar nord

Esbjerg

spar nord

Århusspar nord

Helsingør

spar nord

Roskilde

spar nord

Holbæk

spar nord

Nyborgspar nord

Svendborg

Challenger outside North Jutland3 percent nationwide market-shareon personal customers4 percent nationwide market-share on corporate customers

spa r nord

Hillerød

side 4

THREE YEARS OF TURMOIL AND MODEST ROE- AND BLACK NUMBERS ON THE BOTTOM LINE

Growth in core earnings driven by higher lending margins

Hard times for agriculture and SME visible in impairment charges

DKK700 million contribution to sector bail-outs

But all in all, we have made it through the rough times in good shape

577

1.003 933

236

584454

291 324811331451240

250

500

750

1.000

1.250

2008 2009 2010

Core earnings before impairment ImpairmentsSector Fund Profit before tax

DKKmPeriod of Bank package I - results

3,6 3,23,1

0

5

2008 2009 2010

Pct.

Return on equity

side 5

HOW CREDIT QUALITY BECAME ONE OF OUR STRENGTHS

Firm focus on household customers and local SMEs

Cautious approach to commercial real-estate

No customer commitments exceeding 10 percent of equity – unsecured portion never exceeding 5 percent

Central monitoring of all new commitments larger than DKK300,000 (corporate) and DKK100,000 (household)

1,3 1,00,7

1,91,21,2 1,5

0,5

-0,2

0,1

-0,6

0,5

-1

0

1

2

3

2007 2008 2009 2010

Pct

.

Spar Nord Bank Jyske Bank Sydbank

Impairment ratio (p.a.)

side 6

OUR HOUSEHOLD AND AGRICULTURE LOANBOOKS LOOK STRONGER THAN SECTOR AVERAGE

0

0,1

0,2

0,3

0,4

0,5

0,6

Sep. 2009 Dec. 2009 Mar. 2010 Jun. 2010 Sep. 2010

Totalkredit Spar Nord Bank

Arrears rates mortgage in Totalkredit more than 75 days

Pct

.

Registered in RKI debt collection (pct) Denmark Spar NordAge18 - 22 2,74 0,320 - 30 7,49 2,430 - 40 6,97 2,630 - 50 6,52 2,750 - 60 3,66 1,5>=60 1,2 0,3Total 4,92 1,7

Owner occupied housing incl. agricultural dwelling 2,4 0,3Privately owend rental properties incl. cooperative housing 4,7 0Industial and craft properties 0,6 0Office and business buildings 2,7 0,7Total 3,1 0,7

1.7 percent of Spar Nord customers registered in RKI – average of 4.9

Almost no arrears on large portfolio of Totalkredit loans

Agriculture customers are servicing their debts

Arrears rates DLR (2½ month Dec 2010 in %) DLR total Spar NordAgriculture 3,1 0,8

side 7

THROUGH THE DIFFICULT YEARS, WE HAVE CONTINUED TO INVEST IN NEW BUSINESS

7 branches acquired from Roskilde Bank (2008)

3 new branches in Funenand Zealand

New business in Sweden -branches in Stockholm, Gothenburg and Malmo

Impressive growth in Easyfleat (operational car leasing)

50 percent growth in banks and saving banks using Spar Nord

100 percent growth in institutional customers.

side 8

ZERO COST-GROWTH FOR TWO YEARS

PHASE ONE (2010)– Approx 100 positions cut– General cost-consciousness– Management focus

PHASE TWO (2011-)– Revision of work-flows and processes– Assessment of product portfolio– Management focus

GOAL OF ZERO-GROWTH IN 2011 RE-ITERATED

STRATEGIC GOAL TO IMPROVE COST/INCOME RATIO TO 0.55 BY 2013

1.140 1.261 1.350 1.581 1.583

0,630,71

0,62 0,640,65

0

2.500

2006 2007 2008 2009 2010

0,0

0,8

Costs and Cost/Income ratioDKKm

side 9

NEW STRATEGY: TIME FOR CUSTOMERS

After 8 years of expansion, our geographical presence has reached desired level – close to nationwide

Time to capitalise on the investment in distribution power

Time to make more people aware of our existence and qualities

Time to intensify proactive customer acquisition

TIME FOR CUSTOMERS

side 10

TIME FOR CUSTOMERS

side 11

HOW DO WE DIFFERENTIATE IN A SATURATED MARKET?

By combining the qualities of a local bank with the strengths of a strong nationwide chain

– Franchise philosophy – local decision making and “ownership”– Centralized credit granting and monitoring– Strong central support organisation– A nationwide local bank

By being genuinely involved in our customers’ lives and the life of the local area

– We let our local people front the bank in local area (PR, marketing, networking etc.)

– All local managers and key staff live in the local area (a strong local network is a key parameter in our recruiting)

– Strong support from the Spar Nord Foundation – money is put to work locally

side 12

CUSTOMERS LIKE OUR DIFFERENT APROACH TO RETAIL BANKING

Among large banks, our customer satisfaction and loyalty among household customers is best-in-class

– Many Danes tend to prefer small and local enterprises – and retail banking is all about personal relations

– We have had very little bad publicity – and as a result our image has been relatively strengthened during the rough years

Corporate customers (SME segment) rate Spar Nord top – overall and in several specific categories

– Level of professional competence– Quality of personal relation– Decision speed

Great potential for growing – if we make more potential customers aware of our existence and qualities

Sources: Ritzau Economy, CEM institute - Aalund Research

side 13

CLOSER – OUR NEW COMMUNICATION PLATFORM

side 14

ENERGY RENOVATION – OWNING THE AGENDA

Since 2009, one of our key focuses in the housing area has been energy renovation

– Energy reports– Solar energy– Termography

A great way to start the conversation – and stimulate demand

First-mover advantage – potential of owning a promising agenda, at least for some time

Training of own staff – alliances with relevant professionals

Last two months more than 2,000 customers and potential customers have booked a termography – and a follow-up meeting in the local Spar Nord

side 15

FIRM FOCUS ON HOUSING PRODUCTS IS PAYING OFF

side 16

PRIVATE LEASING – A GREAT GROWTH STORY

Tax regulations make way for attractive pricing

Operational leasing is a seasoned business area in the corporate market – growing into the household segment– Today, 10-12 percent of private cars are leased– In corporate market, operational leasing account for 60 percent of all

cars

Development in other countries suggest market potential of up to 50 percent

After two years of steady growth, Spar Nord’s market-share on new leasing contracts now excedes 25 percent (Q1 2011)

Spar Nord is first-mover– IT solutions– Insurance schemes– Many distribution channels

side 17

BUILDING A STRONGER BRAND IN CORPORATE BANKING

side 18

AMAGERBANKEN – DENMARK’S LEHMAN BROTHERS

On 6th February, Amagerbanken collapses– Chock for the long-term funding-market– Huge challenge for the entire Danish banking-sector

On 9th February, Spar Nord discloses an Annual Report with positive expectations for 2011 and the years to come– However, the Amager-disaster makes an immediate bonds-issue impossible

On 10th February, Danske Bank announces plans of doing a rights-issue and intentions of repaying state-funded capital– Market-talk: Will Spar Nord be next?– Share price trading down– But as we hear it, Danske will not repay until 2012

On 16th February, Moody’s re-evaluates view on systemic support in Denmark – and downgrades Spar Nord and 4 other banks– Spar Nord’s rating drops from A2 to Baa – Further pressure on funding– Customer deposits at unchanged level – but one or two of our institutional customers have

asked questions

side 19

OUR IMMEDIATE ANWERS TO THE FUNDING CHALLENGE

Stronger focus on time-deposits

Domestic unsecured bonds-issue following Q1

Thoughts about securitization of leasing portfolio

831.4911.000

3.727

2.519

2022

992

0

6.000

2011 2012 2013 2014 2015

Senior loans Step-up notes Issued bonds

DK

Km

Senior funding maturity

-4

0

4

8

12

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2008 2009 2010

Strategic targetDKKb

side 20

OUR THOUGHTS ABOUT CAPITAL

No decision to do a rights-issue!– The “easy” solution– Attractive at the current price level?

Acceleration of application process re Basel IRB– As “standard” bank, our RWA is too high in comparison – negative effect on capital ratios

M&A on stand-by– We’re interested in participating in the inevitable consolidation– After we have dealt with our challenges

Total assets / equity

0

5

10

15

20

25

1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

2007 2008 2009 2010

Geain

g

Jyske Bank Jyske Bank Sydbank

Leve

rage

2007 2008

Spar Nord Bank

side 21

OUTLOOK FOR 2011

Low socio-economic growth – modest demand for financing

Growth in volume and earnings to come from increased market-share

Increased competition to attract good customers – moderate pressure on margins

Growth in NII driven by growing market-share

Growth in net fee income driven by volume growth and higher activity

Market-value adjustments under pressure from marginally increasing interest level

Zero cost-growth

Core earnings before impairments: DKK850–1,050 m

Impairment percentage: 1.0

Q1 report due on March 27

side 22

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