Sydbank — Report Publication Announcement 2014

Feb 18, 2015

News Details

UK Regulatory | 18 February 2015 08:27

Sydbank’s 2014 Annual Report

Sydbank A/S / Annual Financial Report

18.02.2015 08:27

Dissemination of a Regulatory Announcement, transmitted by
DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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Aabenraa, Denmark, 2015-02-18 08:27 CET (GLOBE NEWSWIRE) --
A good performance enabling Sydbank to pay a historically high dividend

CEO Karen Froesig comments on the financial statements:

• Sydbank has delivered its best results since 2007 and it is gratifying to see
  that Sydbank's plan to improve profitability is working.

• The sound and stable development continues; Sydbank's loans and advances have
  increased by almost 3% in a highly competitive market.

2014 highlights

-- -- Core income has risen by 6% to DKK 4,319m compared with 2013 due
in part
to the acquisition of DiBa Bank.
-- Sydbank continues to see an influx of new clients - both retail clients,
private banking clients and corporate clients.
-- Loans and advances have gone up by 2.9% in a declining and highly
competitive market.
-- Impairment charges for loans and advances constitute DKK 707m. This is
at the positive end of expectations.
-- Costs (core earnings) have increased by 4% as a result of the
integration of DiBa Bank.
-- Return on shareholders' equity represents 9.8% after tax.
-- Profit for the period amounts to DKK 1,052m - the best annual result
since 2007.

Possibility of historically high dividend

Anders Thoustrup, Chairman of Sydbank's Board of Directors, says:

• In 2014 Sydbank determined new capital targets that are sufficiently prudent
  and that enable a satisfactory return on shareholders' equity. In other words
  Sydbank is well-positioned to face the competition in the banking market in the
  future.

• I am very pleased that we are able to pay half of the year's profit as
  dividend to Sydbank's shareholders.

Q4 2014

Developments in Q4 were characterised by stable core income and a continued
rise in loans and advances. At the same time financial market jitters resulted
in a loss in trading income of DKK 9m. The profit for Q4 2014 amounted to DKK
224m compared to minus DKK 282m in Q4 2013.

Outlook for 2015

Very limited positive economic growth is projected in 2015. Based on the level
of interest rates at the beginning of 2015, core income is expected to rise
slightly due in part to a slight increase in bank loans and advances resulting
from the measures implemented and despite continued fierce competition. The
longer the current upward pressure on DKK and by extension the negative
interest rate environment last, the greater the uncertainty of the projection.

Trading income is projected to remain unchanged or rise slightly relative to
income for 2014 but is very dependent on developments in the financial markets.
In spite of the general pay rises agreed for the financial sector of 1.75% and
a payroll tax increase of 0.80%, costs (core earnings) are expected to remain
unchanged. Lower impairment charges are forecast for 2015. The uncertainty
surrounding price developments in the agricultural sector may however affect
impairment charges.

Additional information

Joern Adam Moeller, Chief Investor Relations Officer, tel +45 74 37 24 56

Mikkel Friis-Thomsen, Head of Communications, tel +45 29 12 36 64

Karen Froesig, CEO, Bjarne Larsen, Deputy Group Chief Executive, and Joern Adam
Moeller, Chief Investor Relations Officer, will present the 2014 Annual Report
today at 10.00 (CET) at a teleconferece. The teleconference will be held in
Danish and may be attended via

www.sydbank.dk/audiocast.

Attendees, please call by 09.55 (CET). Danish attendees are invited to call 70
25 23 00 or 70 25 67 00. International attendees are invited to call +44 208
817 93 11. Please quote the following code: 9460 3040#

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Language: English
Company: Sydbank A/S

                Dänemark

Phone:
Fax:
E-mail:
Internet:
ISIN: DK0010311471
Category Code: ACS
TIDM: 0G6U
Sequence Number: 2529
Time of Receipt: Feb 18, 2015 08:27:02

End of Announcement DGAP News-Service

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