Sydbank’s Interim Report – First Half 2024

AL Sydbank A/S

21/08/2024 07:26

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Company Announcement No 38/2024
21 August 2024

Sydbank’s Interim Report – First Half 2024

H1 2024 – highlights
* Profit for the period of DKK 1,624m equals a return on equity of 22.4% p.a.
after tax
* Core income of DKK 3,646m is 8% higher compared to the same period in 2023
* Trading income of DKK 153m compared to DKK 186m in the same period in 2023
* Costs (core earnings) of DKK 1,659m compared to DKK 1,600m in the same
period in 2023
* Core earnings before impairment of DKK 2,140m are 8% higher compared to the
same period in 2023
* Impairment charges for loans and advances etc represent an expense of DKK
24m
* Bank loans and advances have risen by DKK 4.7bn, equal to an increase of 6%
compared to year-end 2023
* The CET1 ratio stands at 17.7%, equal to a decrease of 1.2pp compared to
year-end 2023
CEO Mark Luscombe comments on the result:
* It is good news that our half-year performance is historically high. We were
able to lift core income and total income in the first 6 months of the year
from their all-time high levels last year. Costs have risen by 4% compared
with a year ago. The Bank has had a constant focus on becoming increasingly
efficient. As a result the increase in costs is smaller than the effects of
the agreed overall pay rises and the abolition of Great Prayer Day. Profit for
H1 2024 outperforms profit a year ago by 9% and equals a return on equity of
22.4%, which is highly satisfactory.
Mark Luscombe comments on developments in business volume: 
-  We are pleased to see that the continued effect of our strong focus on
providing value-creating advice to our customers has boosted our business
volume in terms of bank loans and advances, deposits and the investment area.
Bank loans and advances went up by DKK 4.7bn in H1 and deposits returned to
the record level of year-end 2023.

Board chairman Lars Mikkelgaard-Jensen comments:
* In times of significant macroeconomic uncertainty due to the challenging
geopolitical climate it is good news that the Bank remains highly capitalised
and resilient. At 30 June 2024 the Bank’s CET1 ratio stands at 17.7%, which
is 6.0pp above the capital requirements. This means that Sydbank is extremely
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 2,800-3,100m.
* The profit forecast assumes that Danmarks Nationalbank will lower the rate
of interest on certificates of deposit by a further 0.50pp 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 38 UK
(https://ml-eu.globenewswire.com/Resource/Download/af104308-743d-402c-aa64-eca95246ec81)
  
*     Interim Report - First Half 2024
(https://ml-eu.globenewswire.com/Resource/Download/4fdd5603-29ac-4677-b385-60a9f9b02f62)