The description of the principal risks affecting Finansiel Stabilitet is based on three segments, as described below. For further information on risks and risk management, see note 18 to the financial statements.

The measurement of certain assets and liabilities is based on accounting estimates made by Management. Areas involving assumptions and estimates that are material to the financial statements include impairment losses on loans and advances and contingent assets, as described in more detail under accounting policies (note 1).

Risks under Activities handled on behalf of the government may be subdivided into Bank Package activities and Other areas.

Bank Package activities are to a considerable extent influenced by the special tasks involved in taking over and resolving failing banks. As the customer exposures and lawsuits have been significantly reduced, the risk of losses is considered to be relatively low.

Other areas handled on behalf of the government are operated for the account and risk of the government.

Significant risks under the Deposit Guarantee Fund relate to the risk of future losses as a result of the restructuring and resolution of failing banks resulting in losses on covered deposits.

Moreover, the investment of the Deposit Guarantee Fund’s investable funds will be subject to risk, depending on the chosen investment profile. The Act on a Depositor and Investor Guarantee Scheme stipulates that the investable funds of the Deposit Guarantee Fund must be invested in low-risk assets. Each year, Finansiel Stabilitet’s Board of Directors defines the investment strategy for the Resolution Fund. The investment strategy must be determined so as to ensure that the available financial means of the Deposit Guarantee Fund are from time to time proportionate with the Deposit Guarantee Fund’s potential liabilities.

Significant risks under the Resolution Fund relate to losses in connection with the restructuring or resolution of failing institutions in which the Resolution Fund has injected capital.

Currently, this risk is reflected in the ownership of FS Finans V A/S and FS Finans VI A/S, as any impairment of the remaining assets and lack of profitability will have an adverse effect on the Resolution Fund. Recent developments taken into account, the overall result is a small deficit.

Moreover, going forward, the investment of the Resolution Fund’s investable funds will be subject to the same risk factors as those of the Deposit Guarantee Fund, as the general investment strategies of the two funds are identical.

No events have occurred after the balance sheet date that have a significant effect on the Group’s financial position.

The outlook for 2025 is determined for each of the three funds of the Finansiel Stabilitet Group.

For the Deposit Guarantee Fund, a surplus of close to DKK 200 million is expected, mainly arising from returns on the securities portfolio.

For the Resolution Fund, a surplus of approximately DKK 150 million is expected, mainly arising from returns on the securities portfolio and interest on deposits with Danmarks Nationalbank. It should be noted that to build up the Resolution Fund in 2025, only a small contribution will be needed from the institutions that have an obligation to pay contributions.

For Activities handled on behalf of the government, a surplus of approximately 50 million is expected, mainly consisting of interest on deposits with Danmarks Nationalbank.

The outlook is subject to uncertainty.

Any change in interest rates could affect the results of all three funds. Despite an investment strategy based on low-risk assets, slightly higher interest rate risk implies a risk of fluctuations in the results of the Resolution Fund and the Deposit Guarantee Fund.

The results for 2025 of Activities handled on behalf of the government also remain subject to uncertainty as the Bank Package activities may have a potential impact on operations due to value adjustment of assets, if the resolution of these either exceeds or falls short of the carrying amounts.

Furthermore, the geopolitical uncertainty may impact economic developments and, consequently, the Company’s results for 2025.