Sydbank’s Interim Report – Q1-Q3 2024

AL Sydbank A/S

30/10/2024 07:26

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Company Announcement No 51/2024
30 October 2024

Sydbank’s Interim Report – Q1-Q3 2024

Bigger Sydbank – new 3-year strategy plan
On the back of the highly satisfactory results achieved during the present
strategy period, which will expire at the end of 2024, Sydbank is announcing
today a new 3-year strategy plan to ensure that the Bank will continue the
positive momentum demonstrated since 2014. The strategy is called: “Bigger
Sydbank – value for all through advice and relationships”.

Q1-Q3 2024 – highlights
* Profit for the period of DKK 2,396m equals a return on equity of 21.7% p.a.
after tax
* Core income of DKK 5,447m is 4% higher compared to the same period in 2023
* Trading income of DKK 223m compared to DKK 240m in the same period in 2023
* Costs (core earnings) of DKK 2,453m compared to DKK 2,335m in the same
period in 2023
* Core earnings before impairment of DKK 3,217m are 3% higher compared to the
same period in 2023
* Impairment charges for loans and advances etc represent an expense of DKK
87m
* Bank loans and advances have risen by DKK 8.0bn, equal to an increase of 11%
compared to year-end 2023
* The CET1 ratio stands at 18.0%, equal to a decrease of 0.9pp compared to
year-end 2023
CEO Mark Luscombe comments on the result:
* It is positive that we were able to lift core income and total income in the
first 9 months of the year from their all-time high levels last year. Costs
have risen by 3% – excl Coop Bank – compared with a year ago. Thanks to
the Bank’s constant focus on becoming increasingly efficient, the increase
in costs is smaller than the effects of the agreed overall pay rises and the
abolition of Great Prayer Day. Profit for the first 9 months of the year is on
the same level as that of the record year 2023 and equals a return on equity
of 21.7%, which is highly satisfactory.
Mark Luscombe comments on developments in business volume:
* We are pleased 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 constitute DKK 82.5bn – an increase of DKK 8.0bn during the
period. Deposits make up DKK 114.8bn – – and are thus at a historically
all-time high.
Board chairman Lars Mikkelgaard-Jensen comments on Sydbank’s new 3-year
strategy plan: 
As a natural next step for the current strategy “Growing our business” we
will be raising the bar and we will create a Bigger Sydbank in the next
strategy period. This means that we will maintain our starting point as
Denmark’s Corporate Bank and increase our market share in the corporate
segment. Our ambition is to have more satisfied retail clients and
significantly more retail clients and Private Banking clients. Assets under
management will increase as a result of our customer focus within Wealth
Management.

Mark Luscombe elaborates: 
Our strategy “Bigger Sydbank” centres on 5 themes: “Customer-focused”,
“Bigger and efficient”, “Attractive and cooperating”, “Data,
digitization, AI and security”, and “ESG integrated in core business”.
The themes must go hand in hand with a level of profitability at the very top
of the Danish banking industry. We will continue to focus on the customer and
be the workplace for some of the industry’s brightest and most dedicated
employees.

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 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
Lars Grubak Lohff, Press Manager Tel +45 20 31 54 65

Attachments
*     SM 51 UK
(https://ml-eu.globenewswire.com/Resource/Download/5ba28839-de90-4ea3-b4b4-5b7946525948)
  
*     Interim Report Q1-Q3 2024
(https://ml-eu.globenewswire.com/Resource/Download/04488ec4-a87a-4dd8-be76-7c23b99cea9d)