The Danish Government has issued a two-year guarantee for all loans and
unsecured claims against Danish financial institutions. According to an
agreement with the banking sector, it will be managed and financed by Det
Private Beredskab (the Banking Sector Emergency Fund).
Today, SPARBANK decided to confirm its membership of the Banking Sector
Emergency Fund. Accordingly, the Bank will contribute to and be covered by the
new government-backed deposit guarantee scheme, which will be operative for two
years as from 6 October 2008.
SPARBANKs share of the annual guarantee commission of DKK 7.5 billion is
expected to amount to approximately DKK 65 million. To this should be added a
share of the total guarantee limit, plus any increased guarantee commission
(cf. the terms of the agreement), of approximately DKK 175 million out of a
total limit of DKK 20 Billion. In 2008, SPARBANKs participation in the
guarantee scheme is expected to have a negative impact on the Bank's pre-tax
profit of DKK 15-20 million.
At the same time as SPARBANK has confirmed its membership of the Banking Sector
Emergency Fund, and in accord with the intentions of the new agreement, the
decision has been made not to distribute dividend for the next two years.
This stock exchange announcement is an English translation of the Danish
announcement. In case of doubt, the Danish announcement is applicable.
Further information:
Henning Hürdum
Managing director
T +45 96 16 16 16
