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Sydbank’s Interim Report – First Half 2022

Sydbank A/S
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Sydbank A/S
Sydbank A/S

Company Announcement No 40/2022
24 August 2022

Sydbank’s Interim Report – First Half 2022

Significant growth in core earnings before impairment

H1 2022 – highlights

  • Profit for the period of DKK 748m equals a return on equity of 11.9% p.a. after tax

  • Core income of DKK 2,399m is 9% higher compared to the same period in 2021

  • Trading income constituted DKK 116m in H1 2022 – DKK 16m of which concerns Q2 2022

  • Costs (core earnings) of DKK 1,574m are 4% lower compared to the same period in 2021

  • Core earnings before impairment of DKK 941m are 37% higher compared to the same period in 2021

  • Impairment charges for loans and advances etc represent an income of DKK 84m – DKK 23m of which concerns Q2 2022

  • Bank loans and advances have risen by DKK 12.8bn, equal to an increase of 21% compared to end-June 2021

  • The CET1 ratio stands at 16.6%, equal to a decrease of 1.3pp compared to year-end 2021

  • A share buyback of DKK 425m was commenced on 7 March 2022

CEO Karen Frøsig comments on Sydbank’s H1 result:

  • It is highly satisfactory to note that profitability expressed by core earnings before impairment has risen by DKK 254m, equivalent to 37%. The reason is that we have succeeded in increasing income while at the same time reducing costs.

Board chairman Lars Mikkelgaard-Jensen comments on the result:

  • It is positive that the Bank has increased its earnings capacity in recent years and consequently delivers a very competitive performance – even at a time when financial markets are recording large price drops in bonds as well as shares.

Karen Frøsig elaborates:
-  We are following our current strategy “Growing our business”. We are attracting new customers and our existing customers are drawing more on their facilities. This means that lending continues to grow at a high pace. Loans and advances went up by DKK 7.2bn in H1 and rose by DKK 12.8bn – equivalent to 21% – over the past 12 months.

Outlook for 2022

  • Growth is projected in the Danish economy in 2022

  • Core income is expected to be higher than in 2021

  • Costs (core earnings) are projected to be lower than in 2021

  • Impairment charges for 2022 are forecast to be at a low level

  • Profit after tax is expected to be in the upper end of the range of DKK 1,350-1,550m

  • The outlook for 2022 is subject to uncertainty and depends on financial market developments and macroeconomic factors

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

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