Interim Report Q1-Q3-2021

Q1-Q3 2021 highlights

Contents

PROFIT BEFORE TAX

Up 132%

Pre-tax profit amounts to DKK 420.9m, up DKK 239.8m, providing a 17% return on opening equity.

NET INTEREST INCOME

Up 7%

Net interest income is up by DKK 27.2m and totals DKK 439.0m.

LEVEL OF COSTS

Down 2%

Staff costs and administrative expenses and amortisation, depreciation and impairment losses on assets have gone down by a total of DKK 10.6m to DKK 563.0m.

TOTAL CREDITS ARRANGED

Up 7%

Total credits arranged in the form of loans and advances and mortgage loans arranged for private and corporate customers have increased to DKK 59.3bn.

FEE AND COMMISSION INCOME

Up 9%

Fee and commission income is up by DKK 41.2m to stand at DKK 478.4m.

NET PROFIT

Provides a 14% return on opening equity

Net profit stands at DKK 351.6m.

IMPAIRMENT LOSSES ON LOANS AND ADVANCES ETC

Reversal of DKK 24.0m

The stable development in the credit quality of Sparekassen's customers continues. Total management add-ons have been increased by DKK 17.9m compared to the amount at 30 June 2021 to stand at DKK 215.2m at 30 September 2021.

CORE EARNINGS

Up 23%

Recent years' satisfactory developments continued in the first three quarters of 2021.

SPECIFICATION OF EARNINGS EXPECTATIONS TO RANGE BETWEEN

DKK 485m and DKK 525m before tax

In view of a continuously strong development in earnings in Q3 2021, the pre-tax earnings expectations range for the year has been narrowed.

LAUNCHING OF A NEW STRATEGY

Before the end of April 2022

Sparekassen expects to present a strategy and financial targets before the end of April 2022 for the next strategy period in replacement of its New Ways strategy.

Sparekassen Sjælland-Fyn

Contents

Cover photo: The Sparekassen Sjælland-Fyn Group's head office in Holbæk.

Contents

24 Interim financial statements

This Interim Report has been prepared in Danish and English, with the Danish version being valid in the event of any inconsistencies.

For more information, please visit spks.dk or contact:

Fine activity across private customers, corporate customers and asset management

Even though the pace of the housing market has abated, it is still high. This is mirrored in, for ex- ample, the amount of mortgage loans arranged by Sparekassen to Totalkredit and DLR Kredit, which has gone up by DKK 4.0bn - or 9% - over the last 12 months. This development continues to strengthen the income base in the short term as well as the long term because of increased commission income and also bears witness to Sparekassen winning market shares in both the private customer segment and the corporate customer segment.

Sparekassen is generally experiencing growing demand from both private customers and corporate customers across its geography. These are customers who see advantages in having a financial institution that has the power and the capabilities to handle both large and more complex customer accounts and that has also focus on local presence on Funen and Zealand. In addition, Sparekassen is regularly expanding the volume of business with existing customers.

Furthermore, Sparekassen's asset management activities continue to increase, including those related to managing customers' custody account funds, with focus being on creating value for the customers by making their investments grow.

Core earnings continue to increase Activities cross private customers, corporate customers and asset management have boosted Sparekassen's net interest and fee income to total DKK 922.7m at the end of Q3 2021, which is DKK 56.4m up on the same period in 2020.

Sparekassen's total staff costs and administrative expenses and amortisation, depreciation and impairment losses on assets have gone down by DKK 10.6m, or 2%. The reduction in costs is a result of, for example, determined cost control and a series of efficiency improvement measures.

Sparekassen's core earnings have improved further because of the sustained high level of activity and the continuous execution of the efficiency improvement and optimisation initiatives defined in the New Ways strategy. So, core

earnings have gone up by 23% compared to the same period in 2020.

Impairments

Sparekassen's impairment charges reflect a Y-T-D reversal of DKK 24.0m. The primary reason for the positive development is that the finances of businesses and private households are quite strong.

However, despite forecasts of increasing economic growth, Sparekassen's approach to the quarters ahead remains relatively cautious. The government aid packages that have helped support the Danish business sectfor during the COVID-19 pandemic are being phased out, and many business operators are now in

a situation where they must start repaying the government-provided loans. So, the economic consequences of the COVID-19 pandemic are still subject to uncertainty (although this uncertainty is deemed to be on the decline), including their effect on Sparekassen's customer base, which has so far been limited though.

At 30 September 2021, management add-ons total DKK 215.2m, based on a prudence con-

cept, which is DKK 17.9m up on the amount at 30 June 2021. The increase reflects a downward adjustment related to the uncertainty of the economic consequences of the COVID-19 pandemic and an increase in impairment charges related to poor-quality homeowners in growth areas and to pig producers. Management add-ons at 30 September 2021 correspond to approximately 1.8% of the balance of loans and advances.

Backing of the business sector continues The business sector and Sparekassen's corporate customers are indeed a key focus area for Sparekassen - and particularly in the light of the government loans that were provided as part of the COVID-19aid packages and that must now be repaid.

Like at the beginning of the COVID-19 pandem- ic, it is vital for Sparekassen to send a clear signal of undiminished backing of all viable businesses. Sparekassen not only has the will but also the financial foundation to back the corporate customers facing, for example, cash flow challenges or needing another kind of help.