Sydbank’s Interim Report – Q1 2024

Company Announcement No 14/2024
1 May 2024

Sydbank’s Interim Report – Q1 2024

Q1 2024 – highlights

• Profit for the period of DKK 861m equals a return on equity of 23.4% p.a. after tax
• Core income of DKK 1,849m is 13% higher compared to the same period in 2023
• Trading income of DKK 89m against DKK 117m in the same period in 2023
• Costs (core earnings) of DKK 831m against DKK 797m in the same period in 2023
• Core earnings before impairment of DKK 1,107m are 16% higher compared to the same period in 2023
• Impairment charges for loans and advances etc represent an expense of DKK 8m
• Bank loans and advances have risen by DKK 3.4bn, equal to an increase of 5% compared to year-end 2023
• The CET1 ratio stands at 17.4%, equal to a decline of 1.5pp compared to year-end 2023

CEO Karen Frøsig comments on the profit:

• We have achieved a very strong start to the year. It is positive that we were able to lift core income and total income in the first quarter from their all-time high levels in Q3 and Q4 last year. Earnings have risen despite a small decline in net interest income because the decline is more than offset by a rise in other core income elements. The profit for Q1 2024 is 17% higher than the profit for the same period a year ago and equals a return of 23.4% on shareholders’ equity, which is a highly satisfactory level.
  
  

Karen Frøsig comments on the developments in bank loans and advances:
-  We are pleased to see the continued effects of our strong value propositions to existing as well as new customers, which have resulted in an increase in bank loans and advances of DKK 3.4bn in Q1 – the highest level in recent times.

Board chairman Lars Mikkelgaard-Jensen comments:

• It is good news that after initiating the share buyback of DKK 1,200m the Bank remains highly capitalised and resilient. It is particularly important in times of geopolitical uncertainty, war in Ukraine and unrest in the Middle East that Sydbank is well prepared to navigate this uncertainty and support our customers.
  
  

Outlook for 2024

• Moderate growth is projected for the Danish economy.
• Profit after tax is expected to be in the range of DKK 2,500-2,900m.
• The profit forecast assumes that Danmarks Nationalbank will lower the rate of interest on certificates of deposit by 0.75pp in 2024.
• The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.

Additional information
Jørn Adam Møller, Deputy Group Chief Executive, tel +45 74 37 20 30
Susanne Ingemann Faber, Press Manager, tel +45 26 29 11 29

Attachments

• SM 14 UK
• Interim Report Q1 2024