Sydbank Group Annual Report 2024

Preface

Highly satisfactory profit thanks to all-time high core income

Core income has risen to a new all-time high level of DKK 7,227m from the record-level of DKK 7,071m in 2023. The increase is mainly attributable to a rise in income from asset management due to a significant increase in capital under management.

The Sydbank Group's 2024 financial statements show a profit before tax of DKK 3,645m compared to DKK 4,281m in 2023. The decrease of DKK 636m is primarily attributable to impairment charges, which are DKK 622m higher in 2024 than in 2023. Profit before tax equals a return on equity of 24.6%.

Profit for the year is DKK 2,762m against DKK 3,342m in 2023, equal to a return on average equity after tax of 18.6%. At the beginning of 2024 profit after tax was projected to be in the range of DKK 2,500-2,900m.

CEO Mark Luscombe comments on the profit: - It is positive that in 2024, due to a rise in core income, we succeeded in maintaining a profit before impairment charges at the record-high level that we achieved in 2023. Impairment charges represent an expense of DKK 595m, of which DKK 446m can be attributed to the restructuring of Better Energy. Profit after tax is in the upper end of the expectations for profit for the year announced in January 2024.

Mark Luscombe comments on developments in core income: - Since June 2024 the Danish central bank has cut its key rates by 1pp and the effect is visible in net interest income, which is reduced by DKK 79m from the record-high level in 2023. The drop has occurred despite an increase in bank lending of DKK 8bn, equal to 11%. Other core income has gone up by DKK 235m, lifting total core income to a new all-time high. This is supported by strong business momentum and a high level of customer activity within savings and investments. I would like to thank all our employees for their hard work and contribution to this strong result and express my gratitude to our customers and shareholders for their continued support.

Board chairman Lars Mikkelgaard-Jensen comments: - It is gratifying to note that, following the resignation of Karen Frøsig in mid-2024, the Bank under the management of Mark Luscombe has succeeded in continuing the very positive development under Karen Frøsig's management. This has also been made possible by a well-planned handover focusing completely on the change of CEO not

having any impact on Sydbank's activities. We saw a very satisfactory trend in the Bank's business in 2024 and the very high earnings and the Bank's strong capital base allow us to distribute DKK 2,727m, equal to 99% of profit for 2024. 50% of profit will be distributed as dividend and the remaining share will be distributed via a new share buyback programme of DKK 1,350m. Following the dividend payout the Bank will continue to be well capitalised.

Outlook 2025

Moderate growth is projected for the Danish economy. Profit after tax is expected to be in the range of DKK 2,200- 2,600m.

The profit forecast assumes that the Danish central bank will lower the interest rate by 1pp in 2025.

The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.

2024 highlights

A 2% increase in core income
A rise in costs (core earnings) of 6%
Impairment charges for loans and advances: an expense of DKK 595m
A drop in profit for the year of DKK 580m to DKK 2,762m
An 11% rise in bank loans and advances to DKK 82.5bn
Deposits of DKK 116.7bn
A capital ratio of 21.4%, including a CET1 ratio of 17.8%
A proposed dividend of DKK 26.88 per share
New share buyback programme of DKK 1,350m

Financial Review

Highlights	5
Group Financial Highlights	10
Summary	11
Performance in 2024	14
Capital Management	24
Risk Management and Internal Controls – Financial Reporting	27
Investor Relations	28
Mission Statement and Business Goals	29
Organisation and Corporate Governance	37

Sustainability Reporting

Sustainability Reporting – contents	43
General Information	44
E – Environmental Information	52
S – Social Information	63
G – Business Conduct	70
Appendices – Sustainability Reporting	74

Financial Statements

81
82
82
83
84
86
87

Reporting under Article 8 of the Taxonomy Regulation	160

Statements and Reports
Management Statement	191
Auditors' Report	192
Sustainability Statement	196

Management, Organisation etc

Board of Directors	200
Group Executive Management	206
Organisation	208

The 2024 Annual Report is available in Danish at sydbank.dk and in English at sydbank.com.

In case of doubt the Danish version applies.

2,762 Profit for the year DKKm

ROE	18.6%
Core income	DKK 7,227m
Costs (core earnings)	DKK 3,312m
Impairment of loans and advances	DKK 595m
Dividend	50% of profit for the year (DKK 26.88 per share)
Bank loans and advances	DKK 82.5bn
Total credit intermediation	DKK 189.0bn

Group Financial Highlights

	Index
	2024	2023	24/23	2022	2021	2020
Income statement (DKKm)
Core income	7,227	7,071	102	5,194	4,436	3,670
Trading income	268	275	97	284	291	278
Total income	7,495	7,346	102	5,478	4,727	3,948
Costs, core earnings	3,312	3,136	106	3,040	3,177	2,774
Core earnings before impairment	4,183	4,210	99	2,438	1,550	1,174
Impairment of loans and advances etc	595	(27)	-	(99)	(415)	47
Core earnings	3,588	4,237	85	2,537	1,965	1,127
Investment portfolio earnings	73	88	83	(141)	(21)	(31)
Profit before non-recurring items	3,661	4,325	85	2,396	1,944	1,096
Non-recurring items, net	(16)	(44)	-	9	(180)	(75)
Profit before tax	3,645	4,281	85	2,405	1,764	1,021
Tax	883	939	94	504	353	222
Profit for the year	2,762	3,342	83	1,901	1,411	799

Balance sheet highlights (DKKbn)
Loans and advances at amortised cost	82.5	74.5	111	73.9	67.0	60.2
Loans and advances at fair value	23.8	16.7	143	10.4	16.9	18.0
Deposits and other debt	116.7	111.7	104	107.5	93.9	95.9
Bonds issued at amortised cost	11.2	11.2	100	13.2	13.3	9.6
Subordinated capital	2.1	1.1	191	1.1	1.9	1.9
AT1 capital	0.8	0.8	100	0.8	0.8	0.8
Shareholders' equity	15.0	14.9	101	13.2	12.4	11.7
Total assets	193.7	185.1	105	179.3	168.2	165.8

Financial ratios per share (DKK per share of DKK 10)
EPS	50.9	58.8		32.2	23.0	12.8
Share price at year-end	380.0	293.6		292.6	206.8	134.5
Book value	291.4	273.9		233.4	212.6	197.6
Share price/book value	1.30	1.07		1.25	0.97	0.68
Average number of shares outstanding (in millions)	53.3	56.0		57.5	59.2	59.0
Proposed dividend	26.88	30.56		16.77	12.00	4.00
Dividend for 2019 (paid out)	-	-		-	5.70	-

Other financial ratios and key figures
CET1 ratio	17.8	18.9		17.3	17.9	18.8
T1 capital ratio	19.0	20.1		18.6	19.3	20.4
Capital ratio	21.4	21.1		19.6	22.8	24.0
Pre-tax profit as % of average equity	24.6	30.3		18.9	14.1	8.6
Post-tax profit as % of average equity	18.6	23.6		14.8	11.2	6.6
Costs (core earnings) as % of total income	44.2	42.7		55.5	67.2	70.3
Return on assets (%)	1.46	1.83		1.09	0.84	0.51
Interest rate risk	1.2	0.5		1.3	1.6	1.6
Foreign exchange position	1.2	0.7		1.8	1.1	1.2
Foreign exchange risk	0.0	0.0		0.0	0.0	0.0
Liquidity, LCR (%)	230	223		200	200	210
Loans and advances relative to deposits	0.6	0.6		0.6	0.6	0.5
Loans and advances relative to equity	5.5	5.0		5.6	5.4	5.1
Growth in loans and advances for the year	10.7	0.8		10.3	11.3	(0.5)
Total large exposures	110	137		147	140	149
Accumulated impairment ratio	2.2	2.1		2.1	2.2	2.7
Impairment ratio for the year	0.6	0.0		(0.1)	(0.5)	0.1
Number of full-time staff at year-end	2,094	2,029	103	2,034	2,077	2,286

When calculating financial ratios AT1 capital is considered a liability regardless of the fact that it is accounted for as equity, Reference is made to financial ratio definitions on page 144. The correlation between the Group's performance measures and the income statement according to IFRS appears from note 6 and accounting policies (note 1).

Summary

Highly satisfactory profit thanks to all-time high core income

Sydbank's financial statements for 2024 show a profit before tax of DKK 3,645m compared with DKK 4,281m in 2023. Profit before tax equals a return of 24.6% p.a. on average equity.

Profit before tax shows a decrease of DKK 636m, which is attributable to a rise in impairment charges of DKK 622m.

Profit for the year represents DKK 2,762m compared to DKK 3,342m in 2023, equal to a return on average equity of 18.6% after tax.

In connection with the release of the 2023 Annual Report, profit after tax for 2024 was expected to be in the range of DKK 2,500-2,900m. The Group raised its profit expectations once in June 2024 – from the range of DKK 2,500- 2,900m expected in January 2024 – to the range of DKK 2,800-3,100m.

In connection with the restructuring of a major customer the Sydbank Group adjusted its expectations in December 2024 to DKK 2,700-2,900m.

Acquisition of Coop Bank A/S

Sydbank has acquired 100% of the share capital of Coop Bank A/S. The acquisition took effect on 1 July 2024. The acquisition cost represented DKK 347m.

The acquisition of Coop Bank includes a partnership that will create attractive value propositions for the customers of Coop Bank and Coop Danmark as well as for other members. It is expected that the partnership will generate increased business volume at Coop Bank.

The bank differs from Sydbank and other traditional banks by having created a seamless digital bank with efficient processes. It is a unique offer to customers that value few and cost-efficient choices.

Bigger Sydbank – new 3-year strategy plan

On the back of the highly satisfactory results achieved during the strategy period, which expired at the end of 2024, Sydbank has announced 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".

Bigger Sydbank centres on 5 themes:

Customer-focused
Bigger and efficient
Attractive and cooperating
Data, digitization, AI and security
ESG integrated in core business

Customer-focused – more customers and more satisfied customers

We view Sydbank from a customer's perspective and incorporate customer needs and requirements.
Our customers receive proactive and relevant advice built on a foundation of close customer relationships and excellence.
Sydbank must be more visible and known by more as a driver to attract and retain satisfied customers.
We do business with confidence and courage and we are clear in our recommendations to our customers.
We strengthen Sydbank's position as a decent bank by continuously contributing to society at large.
We make it easier to be a customer at Sydbank via our high accessibility and flexible solutions.

Bigger and efficient – profitable growth

We strengthen our position and grow organically by attracting and retaining customers in our priority segments and locations.
We ensure that our efforts create value by means of shared priorities, execution and full implementation.
We cover over time customers' total needs and requirements by means of our customer insight and relevant advice.
We continue to focus on managing Sydbank's operating costs by optimising our engine room.
We run a healthy business based on the principle quid pro quo – creating value for our customers and Sydbank.
We actively seek collaborations that enhance our customer service, contribute to our growth or optimise our engine room.

Attractive and cooperating – strong Sydbank culture

We attract and retain talent by continuously focusing on professional and personal development.
We cooperate across the organisation to enhance the overall customer experience and increase internal efficiency.
Sydbank is driven by clear leadership that facilitates our day-to-day operations and promotes our strategic ambition.
We develop and strengthen Sydbank's culture for the benefit of everyone at Sydbank and our customers.
Greater diversity creates value and contributes to Sydbank's growth as an attractive workplace.
We attract, nurture and retain talent to support Sydbank's development and ensure natural succession planning.

Summary

Data, digitization, AI and security – customer value, lower costs and digital mindset

We will strengthen our influence and collaboration with Bankdata to optimise the effect of our development and operating costs.
We use the digital tools and solutions available to increase productivity.
Overall technological proficiency must be enhanced and therefore we broaden our digital mindset and skills where it creates value.
We increasingly use data in our interaction with customers as well as in internal decision-making processes.
We use AI where it contributes favourably to the development of the customer experience or enhances our efficiency.
We enhance our operational robustness by strengthening our cyber defence and the organisation's ability to deal with IT breakdowns.

ESG integrated in core business – long-term value creation and strong reputation

As a solid financial partner, we integrate ESG in the customer dialogue.
We are expanding our ESG data and we address ESG risks in our credit evaluation of the Bank's customers on an ongoing basis.
We invest responsibly on our own behalf and on behalf of our customers, thus contributing to sustainable developments in society.
We support the financing of the green transition by offering green products.
We actively work on the transition of our own operations to reduce the Bank's footprint.
We make a positive contribution to developments in society and are actively involved in the local communities where we operate.

Strategic goals represent the values from the Bank's core story with promises to its customers, to its employees and to its shareholders.

The strategic goals cover these areas:

Customer satisfaction
Return on equity

• Employee engagement

Customer satisfaction

Sydbank builds on long-term customer relationships. Our ambition is to see a positive trend in customer satisfaction. We monitor this closely through internal and external customer surveys at touch points with the Bank. Our goal is to maintain and further strengthen our position as Denmark's Corporate Bank and have a top 3 ranking among the 6 largest banks in Denmark in terms of customer satisfaction in the retail (EPSI) and Private Banking (EPSI) segments.

Return on equity

We will continue to deliver competitive returns to the Bank's shareholders and our goal is a return on equity among the top 2 of the 6 largest banks in Denmark. Return on equity is expected to exceed 15% during the strategy period. The expectation is based on normalised interest rates with a CD rate of around 2%.

Employee engagement

Sydbank considers excellent and committed employees to be its most important asset and aims to retain the present high level. This is monitored closely through internal employee engagement surveys. The target is to have an employee engagement in the top quartile of the Ennova survey.

Results for 2024

Total core income has risen by DKK 156m to DKK 7,227m. The increase is primarily a result of higher income from asset management.

Net interest income has gone down by DKK 79m or 2% to DKK 4,391m.

Trading income represents DKK 268m compared to DKK 275m in 2023.

Total income has increased by DKK 149m to DKK 7,495m.

Costs (core earnings) have gone up by DKK 176m to DKK 3,312m.

Impairment charges for loans and advances represent an expense of DKK 595m. In 2023 impairment charges constituted an income of DKK 27m.

Core earnings for 2024 represent DKK 3,588m – a decrease of DKK 649m compared with 2023.

Together the Group's position-taking and liquidity handling generated earnings of DKK 73m in 2024 compared to DKK 88m in 2023.

Profit before tax constitutes DKK 3,645m compared to DKK 4,281m in 2023. Tax has been calculated at DKK 883m. Profit for the year amounts to DKK 2,762m compared to DKK 3,342m in 2023.

Bank loans and advances represented DKK 82.5bn at yearend 2024, equal to a rise of DKK 8.0bn in 2024 or 10.7%.

Total credit intermediation represented DKK 189.0bn at year-end 2024 and rose by DKK 11bn in 2024, equal to 6.2%.

Return on equity before and after tax constitutes 24.6% and 18.6% respectively against 30.3% and 23.6% respectively in 2023.

Earnings per share stands at DKK 50.9 compared to DKK 58.8 in 2023.

During the year shareholders' equity went up by DKK 32m to DKK 14,982m. The change comprises an addition from comprehensive income for the year of DKK 2,828m, net purchases of own shares of DKK 1,115m, dividend paid of DKK 1,686m as well as other equity adjustments of DKK 5m.

Less the proposed dividend, the CET1 ratio and the capital ratio stood at 17.8% and 21.4% respectively at year-end 2024 compared to 18.9% and 21.1% respectively at yearend 2023.

At 31 December 2024 the individual solvency need represented 9.8% (2023: 10.2%).

SIFI

Sydbank has been designated as a SIFI (systemically important financial institution) in Denmark and for Sydbank there is an additional buffer requirement of 1.0% as regards CET1 capital. The intention is to bring Danish SIFI capital requirements on a par with the requirements in other comparable European countries.

Capital targets

The Group's capital targets are a CET1 ratio of 14.5%, a T1 capital ratio of 16.0% and a capital ratio of around 18.5%.

Proposed dividend for 2024

In line with the Bank's dividend policy, the Board of Directors proposes a dividend of DKK 26.88 per share, equal to 50% of the Group's profit after tax, and that DKK 18m be donated to the Sydbank Foundation.

No dividend will be distributed as regards the shares acquired in connection with the share buyback programme of DKK 1,200m announced in 2024. At 31 December 2024 shares totalling DKK 1,126m had been repurchased. The share buyback programme was completed on 23 January 2025.

The Group will continue to be well capitalised after the proposed dividend distribution.

Share buyback in 2025

Following distribution of the proposed dividend, the capital ratios will remain above the capital targets and as a result the Board of Directors has decided to initiate a buyback of shares representing DKK 1,350m in 2025.

The Group will continue to be well capitalised after the proposed dividend distribution and the share buyback.

Outlook for 2025

Moderate growth is projected for the Danish economy.

Profit after tax is expected to be in the range of DKK 2,200- 2,600m.

The profit forecast assumes that the Danish central bank will lower the rate of interest on certificates of deposit by 1pp in 2025.

The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.

Performance in 2024

The Sydbank Group has recorded a profit before tax of DKK 3,645m compared to DKK 4,281m in 2023. Profit before tax equals a return of 24.6% p.a. on average equity.

Profit for the year after tax represents DKK 2,762m compared to DKK 3,342m in 2023, equal to a return on average equity of 18.6% p.a.

On 24 January 2024 the Group published its expectations for 2024 of a profit after tax in the range of DKK 2,500- 2,900m.

On 12 June 2024 the Group raised its expectations for 2024 to a profit after tax in the range of DKK 2,800- 3,100m.

On 19 December 2024 the Group adjusted its expectations to a profit after tax in the range of DKK 2,700-2,900m.

Profit for the year of DKK 2,762m lies within the first expectations of a profit of DKK 2,500-2,900m.

The financial statements are characterised by the following:

2024

A rise in core income of DKK 156m, equal to 2%, to DKK 7,227m
A drop in trading income of DKK 7m
A rise in costs (core earnings) of DKK 176m, equal to 6%, to DKK 3,312m
Impairment charges for loans and advances represent an expense of DKK 595m
A decrease in core earnings of DKK 649m to DKK 3,588m
Investment portfolio earnings of DKK 73m
Non-recurring items etc represent an expense of DKK 16m
Bank loans and advances of DKK 82.5bn (2023: DKK 74.5bn)
Deposits of DKK 116.7bn (2023: DKK 111.7bn)
A capital ratio of 21.4%, including a CET1 ratio of 17.8%
An individual solvency need of 9.8%
A proposed dividend of DKK 26.88 per share

Q4

Core income amounts to DKK 1,780m
Impairment charges for loans and advances represent an expense of DKK 508m
Profit for the period after tax constitutes DKK 366m

Income statement

Group (DKKm)	2024	2023
Core income	7,227	7,071
Trading income	268	275
Total income	7,495	7,346
Costs, core earnings	3,312	3,136
Core earnings before impairment	4,183	4,210
Impairment of loans and advances etc	595	(27)
Core earnings	3,588	4,237
Investment portfolio earnings	73	88
Profit before non-recurring items	3,661	4,325
Non-recurring items, net	(16)	(44)
Profit before tax	3,645	4,281
Tax	883	939
Profit for the year	2,762	3,342

Core income

Total core income has risen by DKK 156m or 2% to DKK 7,227m. The increase is primarily a result of higher income from asset management.

Net interest income has gone down by DKK 79m or 2% to DKK 4,391m. The drop is mainly attributable to the effects of declining interest rates.

Net income from the cooperation with Totalkredit represents DKK 442m (2023: DKK 416m) after a set-off of loss of DKK 8m (2023: DKK 8m). The cooperation with DLR Kredit has generated an income of DKK 127m (2023: DKK 128m). Total mortgage credit income amounts to DKK 570m – an increase of DKK 25m or 5% compared to 2023. The rise is primarily attributable to funded mortgage-like loans.

Income from remortgaging and loan fees has gone down by DKK 15m to DKK 169m – a decrease of 8% compared with 2023. The decline is attributable to a lower level of activity in the housing market.

Income from asset management has gone up by DKK 109m or 32% to DKK 454m. The increase is attributable to a positive net flow of assets under management and positive market developments.

The remaining income components have risen by DKK 116m – an increase of 8% compared to 2023.

Core income

Group (DKKm)	2024	2023
Net interest etc	4,391	4,470
Mortgage credit	570	545
Payment services	293	268
Remortgaging and loan fees	169	184
Commission and brokerage	484	467
Commission etc investment funds and
pooled pension plans	315	310
Asset management	454	345
Custody account fees	103	96
Other operating income	448	386
Total	7,227	7,071

Trading income

Trading income constitutes DKK 268m compared with DKK 275m in 2023. The satisfactory income is attributable to high activity in particular in the bond market in 2024.

Costs and depreciation

The Group's total costs and depreciation have gone up by DKK 173m to DKK 3,360m compared with 2023.

Costs and depreciation

Group (DKKm)	2024	2023
Staff costs	1,920	1,863
Other administrative expenses	1,261	1,162
Amortisation/depreciation and impair
ment of intangible assets and property,
plant and equipment	145	139
Other operating expenses	34	23
Total	3,360	3,187
Distributed as follows:
Costs, core earnings	3,312	3,136
Costs, investment portfolio earnings	7	7
Non-recurring costs	41	44

Costs (core earnings) represent DKK 3,312m against DKK 3,136m in 2023 – an increase of DKK 176m. DKK 61m concerns the acquisition of Coop Bank on 1 July 2024.

For additional information on non-recurring costs, reference is made to the paragraph on page 17.

At year-end 2024 the Group's staff numbered 2,094 (fulltime equivalent) compared to 2,029 at year-end 2023. The increase during the year of 65 employees is attributable to the acquisition of Coop Bank.

The number of branches is unchanged at year-end 2024, ie 54 branches in Denmark and 3 in Germany.

Core earnings before impairment of loans and advances

Core earnings before impairment charges for loans and advances represent DKK 4,183m – a drop of DKK 27m compared to 2023.

Impairment of loans and advances etc

Impairment charges for loans and advances represent an expense of DKK 595m. Impairment charges constituted an income of DKK 27m in 2023.

The single largest impairment charge represents DKK 445m (of which DKK 200m has been recognised as a loss); the customer is under restructuring with a view to either selling the company or raising capital.

Management estimates

At 31 December 2024 the Group maintained a management estimate of DKK 500m to hedge macroeconomic uncertainty where DKK 400m concerns corporate clients and DKK 100m concerns retail clients.

The management estimate to hedge macroeconomic risks covers potential losses related to high interest rates, the geopolitical situation as well as the risk of a trade war centred on tariff barriers.

For further information reference is made to the separate publication "Credit Risk 2024", which is available at sydbank.com.

Impairment charges for the year by industry

Group (DKKm)	2024	2023
Agriculture etc	(42)	(85)
Trade	133	130
Real estate	19	(36)
Other industries	587	48
Total corporate	697	57
Retail	(102)	(84)
Total	595	(27)

At 31 December 2024 accumulated impairment and provisions amounted to DKK 2,188m (2023: DKK 1,899m).

In 2024 reported losses amounted to DKK 406m (2023: DKK 78m). Of the reported losses DKK 187m has previously been written down (2023: DKK 49m).

Impairment charges are made for expected credit losses as regards all financial assets measured at amortised cost and similar provisions are made for expected credit losses as regards undrawn facilities and financial guarantees.

Performance in 2024

Impairment charges for expected credit losses depend on whether the credit risk of a financial asset has increased significantly since initial recognition and follows a 3-stage model. The portfolio in stage 3 acquired from Alm. Brand Bank is recognised under "credit impaired at initial recognition":

Stage 1 – facilities with no significant increase in credit risk. The asset is written down by an amount equal to the expected credit loss as a result of the probability of default over the coming 12 months.

Stage 2 – facilities with a significant increase in credit risk. The asset is transferred to stage 2 and is written down by an amount equal to the expected credit loss over the life of the asset.

Stage 3 – facilities where the financial asset is in default or is otherwise credit impaired.

Credit impaired at initial recognition – facilities which were credit impaired at the time of acquisition of Alm. Brand Bank. They are recognised on acquisition at the fair value of the debt acquired.

The Group's bank loans and advances and impairment charges at 31 December 2024 allocated to these stages are shown below.

Credit impaired bank loans and advances – stage 3 – represent 1.9% (2023: 1.5%) of total bank loans and advances before impairment charges and 0.6% (2023: 0.6%) of total bank loans and advances after impairment charges.

Credit impaired bank loans and advances acquired from Alm. Brand Bank – credit impaired at initial recognition – amount to 0.1% (2023: 0.1%) of total bank loans and advances before impairment charges and 0.1% (2023: 0.1%) of total bank loans and advances after impairment charges.

Impairment charges concerning credit impaired bank loans and advances as a percentage of credit impaired bank loans and advances at 31 December 2024 stand at 66.3% (2023: 61.1%).

			Credit impaired
(DKKm)	Stage 1	Stage 2	Stage 3	at initial recognition	Total
2024
Bank loans/advances before impairment charges	74,031	8,855	1,566	99	84,551
Impairment charges	380	599	1,038		2,017
Bank loans/advances after impairment charges	73,651	8,256	528	99	82,534
2024 (%)
Impairment charges as % of bank loans/advances	0.5	6.8	66.3		2.4
Share of bank loans/advances before impairment charges	87.5	10.5	1.9	0.1	100.0
Share of bank loans/advances after impairment charges	89.3	10.0	0.6	0.1	100.0
2023
Bank loans/advances before impairment charges	66,698	8,325	1,138	112	76,273
Impairment charges	368	675	695		1,738
Bank loans/advances after impairment charges	66,330	7,650	443	112	74,535
2023 (%)
Impairment charges as % of bank loans/advances	0.6	8.1	61.1		2.3
Share of bank loans/advances before impairment charges	87.5	10.9	1.5	0.1	100.0
Share of bank loans/advances after impairment charges	89.0	10.3	0.6	0.1	100.0

Bank loans and advances and impairment charges

Core earnings

Core earnings for 2024 represent DKK 3,588m – a drop of DKK 649m compared with 2023.

Investment portfolio earnings

Together the Group's position-taking and liquidity handling generated earnings of DKK 73m in 2024 compared to earnings of DKK 88m in 2023.

Investment portfolio earnings

2024	2023
10	20
84	86
(14)	(11)
(7)	(7)
73	88

The Group's interest rate risk is positive and the Group would suffer a loss in the event of interest rate increases. In terms of the Group's bond portfolios – including cash resources – the interest rate risk is considered to be modest.

Non-recurring items, net

Non-recurring items represent an expense of DKK 16m compared with an expense of DKK 44m in 2023.

In 2024 the item comprised costs of DKK 35m related to the development of the home loan processes and DKK 6m related to the development of the bank/insurance partnership. In addition a value adjustment of DKK 25m was recognised as income in connection with Fynske Bank becoming an associate at end-Q1 2024. Thus far the shareholding was recognised at the share price. At 31 March 2024 the shares were recognised at book value.

In 2023 the item comprised costs of DKK 35m related to the development of the home loan processes and DKK 9m related to the development of the bank/insurance partnership.

Profit for the year

Profit before tax amounts to DKK 3,645m (2023: DKK 4,281m). Tax represents DKK 883m (2023: DKK 939m), equivalent to an effective tax rate of 24.2%. Profit for the year amounts to DKK 2,762m (2023: DKK 3,342m).

Other comprehensive income

In accordance with IFRS 9 certain strategic shares are classified with value adjustment through other comprehensive income in the consolidated financial statements. In 2024 the value adjustment represented DKK 85m (2023: DKK 39m).

Return

Return on equity before and after tax constitutes 24.6% and 18.6% respectively against 30.3% and 23.6% respectively in 2023. Earnings per share stands at DKK 50.9 compared to DKK 58.8 in 2023.

Sydbank – the parent

The Bank's total income before costs and impairment charges for loans and advances represents DKK 7,542m (2023: DKK 7,417m). The income includes the consolidated profit on holdings in associates and subsidiaries of DKK 86m (2023: DKK 185m).

Total costs, including non-recurring costs of DKK 16m (2023: DKK 44m), constitute DKK 3,219m (2023: DKK 3,128m).

Impairment charges for loans and advances etc represent DKK 595m (2023: income of DKK 27m).

Pre-tax profit amounts to DKK 3,728m (2023: DKK 4,316m).

Post-tax profit amounts to DKK 2,838m (2023: DKK 3,375m).

Subsidiaries

Profit after tax of the subsidiaries represents DKK 47m (2023: DKK 181m).

Group – Q4 2024

The Group's profit before tax for the quarter stands at DKK 450m (Q4 2023: DKK 1,107m). Tax represents DKK 84m and profit for the period amounts to DKK 366m (Q4 2023: DKK 933m).

Compared to Q3 2024 profit before tax shows:

A core income of DKK 1,780m (Q3: DKK 1,801m)
A trading income of DKK 45m (Q3: DKK 70m)
Costs (core earnings) of DKK 859m (Q3: DKK 794m)
Impairment charges for loans and advances: an expense of DKK 508m (Q3: expense of DKK 63m)
Investment portfolio earnings of DKK 4m (Q3: DKK 33m)

Performance in 2024

Quarterly results

Group (DKKm)	Q4 2024	Q3 2024	Q2 2024	Q1 2024	Q4 2023
Core income	1,780	1,801	1,797	1,849	1,844
Trading income	45	70	64	89	35
Total income	1,825	1,871	1,861	1,938	1,879
Costs, core earnings	859	794	828	831	801
Core earnings before impairment	966	1,077	1,033	1,107	1,078
Impairment of loans and advances etc	508	63	16	8	(6)
Core earnings	458	1,014	1,017	1,099	1,084
Investment portfolio earnings	4	33	12	24	30
Profit before non-recurring items	462	1,047	1,029	1,123	1,114
Non-recurring items, net	(12)	(8)	(11)	15	(7)
Profit before tax	450	1,039	1,018	1,138	1,107
Tax	84	267	255	277	174
Profit for the period	366	772	763	861	933

Total assets

The Group's total assets made up DKK 193.7bn at year-end 2024 against DKK 185.1bn at year-end 2023.

Assets

Group – year-end (DKKbn)	2024	2023
Amounts owed by credit institutions etc	17.2	24.8
Loans and advances at fair value
(reverse transactions)	23.8	16.7
Loans and advances at amortised cost
(bank loans and advances)	82.5	74.5
Securities and holdings etc	35.2	37.8
Assets related to pooled plans	27.0	22.9
Other assets etc	8.0	8.4
Total	193.7	185.1

The Group's bank loans and advances totalled DKK 82.5bn at 31 December 2024, equal to an increase of DKK 8.0bn compared to 2023.

Bank loans and advances

Group – year-end (DKKbn)	2024	2023
Corporate clients	68.3	61.8
Retail clients	14.2	12.7
Public authorities	0.0	0.0
Total	82.5	74.5

Bank loans and advances to corporate clients have gone up by DKK 6.5bn, equal to 10.5% compared to 2023.

Bank loans and advances to retail clients have increased by DKK 1.5bn, equal to 11.8% compared to 2023. DKK 1.2bn can be ascribed to the acquisition of Coop Bank.

Credit facilities to corporate clients

Group – year-end (DKKbn)	2024	2023
Drawn facilities
= loans/advances before impairment charges	70.0	63.2
Undrawn facilities	43.8	47.9
Total	113.8	111.1

The Group's total credit facilities to corporate clients have risen by DKK 2.7bn compared to 2023.

During 2024 corporate clients drew a further DKK 6.8bn under their credit facilities.

Equity and liabilities

Group – year-end (DKKbn)	2024	2023
Amounts owed to credit institutions etc	6.1	6.4
Deposits and other debt	116.7	111.7
Deposits in pooled plans	27.0	22.9
Bonds issued	11.2	11.2
Other liabilities etc	14.4	15.9
Provisions	0.4	0.2
Subordinated capital	2.1	1.1
Equity	15.8	15.7
Total	193.7	185.1

The Group's deposits make up DKK 116.7bn. This is an increase of DKK 5.0bn compared to 2023.

Credit intermediation

In addition to traditional bank loans and advances the Group distributes mortgage loans from Totalkredit and DLR Kredit. The Group's total credit intermediation comprises bank loans and advances, mortgage-like loans funded by Totalkredit as well as mortgage loans arranged through Totalkredit and DLR Kredit.

Total credit intermediation

Group – year-end (DKKbn)	2024	2023
Bank loans and advances	82.5	74.5
Funded mortgage-like loans	3.5	4.2
Arranged mortgage loans – Totalkredit	87.3	84.6
Arranged mortgage loans – DLR	15.7	14.7
Total	189.0	178.0

The Group's total credit intermediation represents DKK 189.0bn – an increase of DKK 11.0bn, equal to 6.2% compared to year-end 2023. DKK 2.3bn concerns Coop Bank. The change is attributable to a rise in bank loans and advances of DKK 8.0bn, a decline in funded mortgage-like loans of DKK 0.7bn and a rise in arranged mortgage loans of DKK 3.7bn.

The Sydbank share

Number	2024	2023
Average number of shares
outstanding	53,288,904	56,032,491
Number of shares outstanding
at year-end	51,425,137	54,582,651
Number of shares issued
at year-end	54,588,420	56,500,320

Share capital

Share capital constituted DKK 545,884,200 at year-end 2024 – a drop of DKK 19,119,000 compared with year-end 2023.

The number of shares outstanding has fallen from 54,582,651 (96.6%) at the end of 2023 to 51,425,137 (94.2%) at the end of 2024. The book value of the Sydbank share is 291.4 (2023: 273.9). At year-end 2024 the closing price of the Sydbank share stood at 380.0 and the share price/book value at 1.30.

Equity

At year-end 2024 shareholders' equity constituted DKK 14,982m – an increase of DKK 32m since the beginning of the year. The change comprises the addition of comprehensive income for the year of DKK 2,828m, net purchases of own shares of DKK 1,115m, dividend paid of DKK 1,686m as well as other equity adjustments of DKK 5m.

Capital

On 28 February 2024 the Bank announced a new share buyback programme of DKK 1,200m, with a maximum of 8 million shares. The share buyback is made in line with the Bank's aim to optimise the capital structure in accordance with the Bank's capital targets and capital policy.

The share buyback programme was initiated on 4 March 2024 and was terminated on 23 January 2025. At 31 December 2024, 3,188,000 had been repurchased at a transaction value of DKK 1,126m.

The Group issued T2 capital of NOK 650m and SEK 550m on 25 January 2024. On 6 September 2024 the Group issued a further EUR 100m and at the same time redeemed T2 capital of EUR 75m.

On 31 May 2024 the Group issued SNP loans – as Green Bonds – in the amount of EUR 500m. The Group has undertaken to allocate the proceeds from the bonds to finance loans that contribute to mitigating climate change. The issue replaces the SNP loans redeemed in September 2024.

Risk exposure amount

The risk exposure amount (REA) constitutes DKK 65.2bn (2023: DKK 61.9bn) – an increase of DKK 3.3bn. Credit risk has gone up by DKK 1.5bn. Operational risk has gone up by DKK 1.6bn, which is attributable to the annual recalculation involving income of the past 3 years. Market risk is unchanged compared with year-end 2023 and other exposures show a small increase.

Risk exposure amount

Group – year-end (DKKbn)	2024	2023
Credit risk	40.7	39.2
Market risk	6.0	6.0
Operational risk	11.9	10.3
Other exposures incl CVA	6.6	6.4
Total	65.2	61.9

The increase in credit risk is primarily attributable to a rise in loans and advances to corporate clients.

The gross exposure by rating category as regards retail exposures and corporate exposures is shown below.

Performance in 2024

Retail

The gross exposure by rating category is illustrated below:

The gross exposure consists of loans and advances, undrawn credit commitments, interest receivable, guarantees and counterparty risk on derivatives. The graph comprises exposures treated according to A-IRB. Exposures relating to customers in default are not included in the breakdown of rating categories. Impairment charges for exposures have not been deducted from the exposure.

The gross exposure by rating category shows a rising share in the 4 best rating categories.

Corporate

The gross exposure by rating category is illustrated below:

Gross exposure by rating category

The gross exposure by rating category shows an unchanged high share in the 4 best rating categories.

Reference is made to the note on credit risk on page 150 and the separate publication "Credit Risk 2024".

Solvency

Group – year-end (DKKm)	2024	2023
REA	65,214	61,896
CET1 capital	11,635	11,671
T1 capital	12,381	12,416
Total capital	13,936	13,056
CET1 ratio	17.8	18.9
T1 capital ratio	19.0	20.1
Capital ratio	21.4	21.1

At year-end 2024 the CET1 ratio and the capital ratio stood at 17.8% and 21.4% respectively compared to 18.9% and 21.1% respectively at year-end 2023.

At 31 December 2024 the individual solvency need represented 9.8% (2023: 10.2%). The solvency need consists of a minimum capital requirement of 8% under Pillar I and a capital add-on under Pillar II. Approximately 56% of the solvency need must be covered by CET1 capital, equal to 5.5% of the risk exposure amount.

Solvency of the parent

At year-end 2024 the CET1 ratio and the capital ratio stood at 17.8% and 21.2% respectively (2023: 18.3% and 20.4%).

Capital policy

The Group's capital policy consistently supports the Group's strategy and at the same time takes into account Sydbank's status as a SIFI as well as full implementation of capital regulations. The Group's capital targets are a CET1 ratio of around 14.5%, a T1 capital ratio of around 16.0% and a capital ratio of around 18.5%. The capital targets have been set to ensure that the Group complies with all capital requirements, including buffer requirements.

Furthermore reference is made to "Capital Management" on pp 24-26.

Dividend policy

The Group's dividend policy must contribute to creating long-term shareholder value. The objective is to distribute 30-50% of profit for the year after tax as dividend while taking into account growth plans and capital policy.

Subordinated debt and MREL requirements

Once a year the Danish FSA sets requirements as to subordinated debt and own funds and eligible liabilities (MREL) for Danish institutions, including Sydbank. At 31 December 2024 the subordinated debt requirement and the MREL represented 26.4% and 24.1% respectively of the risk exposure amount and can be calculated as follows:

Requirements and excess cover

31 Dec 2024	Subordinated debt		MREL
Group	%	DKKm	%	DKKm
REA		65,214		65,214
Capital requirement	26.4	17,216	24.1	15,717

Total capital		13,936		13,936
SNP loans with maturities
> 1 year		11,175		11,175
Cover of combined buffer
requirement				(3,925)
Total cover	38.5	25,111	32.5	21,186
Excess cover	12.1	7,895	8.4	5,469

At 31 December 2024 the Sydbank Group met the requirements with an excess cover of DKK 7,895m and DKK 5,469m respectively.

The Danish FSA set the requirements for Sydbank at 26.4% and 24.1% respectively of the risk exposure amount as of 1 January 2025, which is unchanged compared to 2024. As a result of the requirements the excess cover will continue to stand at DKK 7,895m and DKK 5,469m respectively.

The Group has issued Green Bonds totalling DKK 11.2bn, which is included in the above subordinated debt and MREL calculation.

Market risk

At 31 December 2024 the Group's interest rate risk represented DKK 150m (2023: DKK 65m). As a result the Group would suffer a loss if interest rates rose.

The Group's exchange rate risk continues to be very low and its equity exposure modest.

Funding and liquidity

The guidelines for calculating the Liquidity Coverage Ratio (LCR) specify a run-off of exposures while taking into account counterparties, funding size, hedging and maturity. Consequently the most stable deposits are favoured relative to large deposits, in particular large deposits from corporates and financial counterparties.

The Group's LCR constituted 230% at 31 December 2024 (2023: 223%).

LCR

Group – year-end (DKKbn)	2024	2023
Total liquidity buffer	61.9	57.7
Net cash outflows	27.0	25.9
LCR (%)	230	223

The Group has met the LCR requirement of 100% throughout the year and, as can be seen, its excess cover was significant at 31 December 2024.

NSFR

The guidelines for calculating the Net Stable Funding Ratio (NSFR) require that the available stable funding exceeds the required stable funding. The required stable funding is calculated on the basis of the balance sheet values and degree of stability of assets where the strictest requirements in terms of degree of stability are imposed on long-term illiquid assets. The available stable funding is calculated on the basis of the balance sheet values and degree of stability of the funding where the highest degrees of stability apply to equity and long-term funding.

The Group's NSFR constituted 138% at 31 December 2024 (2023: 140%).

NSFR

Group – year-end (DKKbn)	2024	2023
Required stable funding	100.1	90.8
Available stable funding	137.6	126.9
NSFR (%)	138	140

The Group has met the NSFR requirement of 100% throughout the year and its excess cover was significant at 31 December 2024.

Performance in 2024

Funding ratio

Group – year-end (DKKbn)	2024	2023
Equity and subordinated capital	17.9	16.9
SNP loans with maturities > 1 year	11.2	11.2
Stable deposits	110.8	104.5
Total stable funding	139.9	132.6
Bank loans and advances	82.5	74.5
Funding ratio (%)	170	178

The Group's stable funding exceeded the Group's loans and advances by DKK 57.4bn at 31 December 2024 (2023: DKK 58.1bn).

Accounting estimates

Estimates in relation to uncertainty as regards the recognition and measurement of assets and liabilities are based on assumptions considered reasonable by management but which by their nature are uncertain. They may prove to be incomplete or inaccurate as a result of developments differing from projections in the external environment in which the Group operates or in other respects relating to customers or business relations. For further details reference is made to note 2.

Rating

Moody's most recent rating of Sydbank:
Outlook:	Positive
Long-term deposit:	A1
Baseline Credit Assessment	Baa1
Senior unsecured:	A1
Short-term deposit:	P-1

Supervisory Diamond

The Supervisory Diamond sets up a number of benchmarks to indicate banking activities that initially should be regarded as involving a higher risk.

Any breach of the Supervisory Diamond will result in reactions by the Danish FSA.

The calculation of the sum of the 20 largest exposures has changed and corresponds now to the CRR definitions. The change in the method of calculation is the main reason why the benchmark has dropped from 137 at year-end 2023 to 110 at 31 December 2024.

At 31 December 2024 the Group as well as the parent complied with all the benchmarks of the Supervisory Diamond.

Supervisory Diamond benchmarks

Group	2024	2023
Sum of 20 largest exposures
< 175%	110	137
Lending growth < 20% annually	11	1
Commercial property exposure < 25%	12	10
Excess liquidity coverage > 100%	228	241

Leverage ratio

The CRR2 Regulation includes a leverage ratio requirement of a minimum of 3% – defined as T1 capital as a percentage of total exposures.

The Group's leverage ratio constituted 6.4% at 31 December 2024 (2023: 6.5%) taking into account the transitional rules.

SIFI

Sydbank has been designated as a SIFI in Denmark and there is an additional buffer requirement of 1.0% as regards CET1 capital. The intention is to bring Danish SIFI capital requirements on a par with the requirements in other comparable European countries.

Bank Recovery and Resolution Directive

According to legislation each credit institution must meet a minimum requirement for own funds and eligible liabilities (MREL). As of 1 January 2025 the Danish FSA has set the MREL for Sydbank at 24.1% of the risk exposure amount, which is unchanged compared to 2024.

The general resolution principle for SIFIs is that it should be possible to restructure them and send them back to the market with adequate capitalisation to ensure market confidence. The Group's MREL is based on the risk exposure amount using a factor which has been set at the sum of twice the solvency need plus the combined capital buffer requirement, excluding the countercyclical buffer.

The establishment of a resolution fund was completed as of 31 December 2024. Credit institutions have made contributions to the fund according to their relative size and risk in Denmark. As of 31 December 2024 the size of the resolution fund equals at least 1% of the covered deposits of all Danish credit institutions.

The Group's contribution to the resolution fund for 2024 represents DKK 34m.

Basel IV

Since the Basel Committee on Banking Supervision published its recommendations regarding changes to the calculation of capital requirements – Basel IV – in 2017, the EU has worked on implementing these changes into CRR (regulation) or CRD (directive).

Some of the recommended changes have already been implemented and the remainder were adopted at end-May 2024 to take effect on 1 January 2025. Implementation will take place over a protracted period and with significant transitional rules.

However the part of the FRTB regulation covering market risk has been postponed until 1 January 2026.

The Group expects a limited impact on its capital requirements as a consequence of the transition to Basel IV.

Sector-specific systemic risk buffer

On 30 June 2024 the government activated the sector-specific systemic risk buffer for exposures to real estate companies at a rate of 7% of the exposures' risk-weighted assets.

The buffer applies to exposures to real estate companies, ie under activity code "Development of building projects" as well as "Real estate" whereas exposures to "Social housing associations" and "Cooperative housing societies" under activity code "Real estate" are exempt.

As a result the Bank will be subject to a sector-specific systemic risk buffer of approx 0.2% in addition to the regulatory capital requirements.

Shareholders

In 2024 the Sydbank share yielded a return of 40% (2023: 6%) as a result of the increase in the share price during the year as well as dividend distributed for 2023.

The Board of Directors will propose to the AGM that a dividend of 50% of the Group's profit after tax, equal to DKK 26.88 per share, be distributed and that DKK 18m be donated to the Sydbank Foundation.

Outlook for 2025

Moderate growth is projected for the Danish economy.

Profit after tax is expected to be in the range of DKK 2,200- 2,600m.

The profit forecast assumes that the Danish central bank will lower the rate of interest on certificates of deposit by 1pp in 2025.

The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors which may affect eg the level of impairment charges.

Capital Management

The Group's capital management ensures efficient deployment of capital relative to the Group's overall capital targets. The Group's risk profile is determined on the basis of the capital targets, which ensure first and foremost that there is adequate capital to meet the Group's growth expectations and cover fluctuations in the risks assumed by the Group.

The Group uses internal ratings based approaches to manage the credit risk of the Group's corporate and retail client portfolios. The Group uses the advanced IRB approach as regards both retail clients and corporate clients to determine the Group's capital requirements.

The Group uses the standardised approach to calculate credit risk in relation to exposures to governments, credit institutions and a few specific portfolios.

Further details, also concerning the risk exposure amount (REA), capital information and capital ratios, are found in note 3.

The Group's capital management focuses on 4 capital elements: minimum capital, adequate total capital, capital requirements including buffers and total capital.

Minimum capital represents the necessary capital in compliance with CRR and adequate total capital equals the Group's determination of the capital sufficient to protect depositors against loss under the prevailing economic conditions. The solvency need is defined as adequate total capital in percentage terms of REA.

Capital requirements including buffers are calculated as the solvency need plus the combined buffer requirement, which constituted 6.0% at 31 December 2024.

Capital and solvency and capital requirements

% of REA	31 Dec 2024
Capital and solvency
CET1 ratio	17.8
T1 capital ratio	19.0
Capital ratio	21.4
Capital requirements (incl buffers)*
Total capital requirement	15.8
CET1 capital requirement	11.5
- of which SIFI buffer	1.0
- of which capital conservation buffer	2.5
- of which countercyclical buffer**	2.3
- of which sector-specific systemic risk buffer	0.2
Excess capital
CET1 capital	6.3
Total capital	5.6

* The total capital requirement consists of an individual solvency need and a combined buffer requirement. The countercyclical buffer is determined by the Danish Ministry of Industry, Business and Financial Affairs and may not exceed 2.5%. At present the rate has been calculated at 2.3%.

** The countercyclical buffer is calculated as an exposure weighted average of the specific rates in the countries where companies to which exposures have been granted are domiciled. The rate as regards exposures to companies domiciled in Denmark constitutes 2.5%.

The committees in the Group's risk organisation report directly to the Group Executive Management. The committees identify, monitor and assess risks within the individual risk areas and ensure that models and principles are formulated to calculate risks. The committees ensure that the Bank's business units proactively carry out their operations and address identified risks. Each committee reviews a risk assessment for its own area annually. The Group's Chief Risk Officer is a member of all committees, see "Risk Management" on page 149.

The adequate total capital is determined on the basis of the Danish FSA approach (8+). A proposal for the determination of the adequate total capital is prepared by Risk and is reviewed by the capital committee. The Board of Directors discusses and determines the adequate total capital on the basis of this proposal.

The proposal is based on the capital adequacy rules (Pillar I) with add-ons for any risks deemed not to be sufficiently covered under Pillar I. At year-end 2024 add-ons were allocated in relation to credit risk, market risk, operational risk and other exposures.

The approaches and methods used to calculate the Pillar I capital requirement are described in more detail in note 3. The adequate total capital/solvency need can be broken down as follows:

		% of
Adequate total capital/solvency need	DKKm	REA
Credit risk	3,872	5.9
Market risk	850	1.3
Operational risk	1,105	1.7
Other exposures	567	0.9
Adequate total capital/solvency need	6,394	9.8

Other exposures include property, plant and equipment and the Group's equity investments.

Total capital is the actual capital that the Group has at its disposal.

Based on the adequate total capital the Group's capital structure can be specified as follows at 31 December 2024:

		% of
Capital structure	DKKm	REA
Adequate total capital/solvency need	6,394	9.8
Combined buffer requirement	3,925	6.0
Capital requirements incl
combined buffer requirement	10,319	15.8
Excess capital	3,617	5.6
Total capital	13,936	21.4

The Board of Directors has determined internal capital targets securing adequate total capital, also during adverse macroeconomic conditions. Stress testing is another important element when determining the adequate total capital and the ongoing assessment thereof.

The object of stress testing is to assess the impact of adverse events on capital needed and income. Stress test calculations show the impact for the coming 3 years under given economic scenarios.

At 31 December 2024 the Group has based its stress test calculations on the following macroeconomic scenarios:

Base case scenario which reflects the Group's forecast of developments in the economy.

Global crisis which reflects that the Danish economy will be hit by a setback in 2025 which will be even stronger in 2026 when a deep global recession will start. The drop in GDP will be on a par with the drop during the financial crisis – in total 6.1% during the period. The decline in GDP combined with high interest rates will lead to large declines in housing prices and mounting unemployment. The projection is a

relatively large drop in household deposits, unchanged lending in 2025, followed by a decrease of 5% in 2026 and 2.5% in 2027. Inflation is forecast to rise slightly in the first 2 years and to fall in the last year. Interest rates will decline marginally during the period. Share prices will go down by 50% in 2025.

Global recession which reflects that the Danish economy will be hit by a setback in 2025 which will be even stronger in 2026 when a deep global recession will start. This scenario is based on the Danish FSA's stress scenario but the Bank is of the opinion that central banks will cut interest rates significantly during the stress period, which is not the case in the Danish FSA's stress scenario. It is assessed that interest rate changes will have a less negative effect on developments in GDP, housing prices, unemployment and share prices than in the global crisis scenario. GDP will drop by a total of 4.6% during the period. The decrease in GDP will bring about large declines in housing prices and a rise in unemployment during the period, which is expected to trigger a drop in household deposits. Lending is expected to remain unchanged in 2025, followed by a decrease of 4% in 2026 and 2.5% in 2027. Inflation is forecast to come down slightly in the first 2 years and fall in the last year. Interest rates will go down during the period – the money market rate by 270bp, the 1-year bond yield by 290bp and the 30 year bond yield by 170bp. Share prices will drop by 35% in 2025.

200bp interest rate drop which reflects that the European economy will be hit harder than forecast by a slowdown, which will force the European Central Bank (ECB) to lower its interest rates by a total of 200bp in 2025 and 2026. The measure will not quite have the expected effect and a downturn in the European economy will be seen in 2026 and 2027. GDP will drop in 2025 and 2026 and rise again in 2027. Housing prices will go down by 5% in 2025 before rising by 1.5% in both 2026 and 2027 and unemployment will also go up during the period. Negative growth in lending of 3.5% is expected in 2025, which will be offset by growth in lending of 0.5% in 2027. Deposits are projected to go up by 1.5% in 2025 and to go down by 1% in 2026 and 2027. Inflation will be largely unchanged and interest rates are projected to go down by around 170bp during the period. Share prices will fall by 20% in 2025 and go up again by 5% in 2027.

Trade war – USA and Europe which reflects that USA will raise its tariffs on imports of selected goods from Europe, which will affect European and Danish companies exporting to USA. As a result of a decline in demand the European economy will slow down, which will prompt the European Central Bank (ECB) to lower its interest rates in 2025 as well

Capital Management

as in 2026 in order to mitigate the adverse consequences for Europe's economic growth. During the period GDP will be lower than the Danish central bank's estimate for 2024 but it will be positive nonetheless. Housing prices will rise slightly during the period and unemployment will go up every year. Negative growth in lending of 1% is expected in 2025, which will be offset by growth in lending of 1% in 2027. Deposits are projected to go up by 1.5% in 2025 and to go down by 1% in 2026 and 2027. During the period inflation will be higher than the Danish central bank's estimate for 2024. Interest rates will go down during the period – the money market rate and the 1-year bond yield by 130bp and the 30-year bond yield by 80bp. Share prices will fall by 15% in 2025 and go up again by 5% in 2027.

Global trade war which reflects a situation where USA following the change of president will wage an extensive trade war against Europe. To avoid tariff barriers Europe will seek to negotiate solutions with USA although with no success. The trade war will spread globally and will result in retaliation tariffs from many countries against USA. The situation will lead to a decline in the European economy. The European Central Bank (ECB) will hold off on interest rate cuts in light of high inflation. GDP will be lower than the 2024 estimate of the Danish central bank and will be negative in 2025 and 2026. Housing prices will go down in 2025 and 2026 by a total of 7.5% and will rise by 1.5% in 2027. Unemployment will go up during the entire period. Negative growth in lending of 2.5% in 2026 and 1% in 2027 is expected. Deposits are projected to rise by 3% in 2025 and to go down by 1% in 2026. During the period inflation will be somewhat higher than the Danish central bank's estimate for 2024. Interest rates will decline marginally during the period. Share prices will drop by 30% in 2025.

The scenarios and their relevance are subject to ongoing assessment and they are approved by management as the basis for further stress test calculations.

The stress tests conducted show that the Group is adequately capitalised and that the capital targets determined are conservative.

Throughout 2024 the Group fully complied with external as well as internal capital requirements.

On the basis of the risk reporting at 31 December 2024, including the Group's ICAAP and ILAAP, the Board of Directors reviews an overall risk assessment aiming to make the Group's individual risks and overall risk visible.

The risk assessment contains a description and assessment of the types of risk to which the Group is exposed, including an assessment of the business model's impact on risks and risk level, as well as the activities to which the individual risks are related.

The most important types of risk and risk assessments are:

Credit risk, which is described in more detail in "Notes – Risk Management" and in "Credit Risk 2024", which is available on the Bank's website – sydbank.com.
Market risk, liquidity risk and operational risk, which are described in more detail in "Notes – Risk Management".
Stress tests, including in particular consequences as regards capital and income, see above.
The Group's risk organisation, which is described in more detail above and in "Notes – Risk Management".
The Group's overall control environment, including compliance, anti-money laundering, GDPR and IT security, which are described in more detail in "Mission Statement and Business Goals" and "Organisation and Corporate Governance".
The Group's capital and its composition, see above.
Employee resources, including an assessment of competences and number.
Communication, including the Group's ability to communicate internally in a fast, efficient and targeted manner, the Group's ability to communicate externally in a manner that meets legislative expectations and the expectations of external stakeholders, as well as communication via social media.

The risk assessment provides the basis for an assessment of whether policies and guidelines are appropriate in relation to business-related activities, organisation and resources as well as market conditions.

The Board of Directors has approved the risk assessment and finds that risks and risk management are appropriate with respect to the business model, risk appetite and capital.

Reference is made to "Notes – Risk Management" for more information on risks and risk management.

Risk Management and Internal Controls – Financial Reporting

Significant internal controls and risk management systems

Sydbank's risk management and internal controls relating to financial reporting are designed for the purpose of preparing:

Management accounts which make it possible to measure and follow up on the Group's performance.
Financial statements which give a true and fair view without material misstatement and which are in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish disclosure requirements for annual reports of listed financial companies.

The Group's internal controls and risk management systems are updated on an ongoing basis and are designed with a view to discovering and eliminating errors and omissions in the financial statements. Internal controls and risk management systems provide reasonable assurance that all material errors and omissions are detected and corrected.

Overall control environment

The Group Executive Management is responsible for maintaining effective internal controls and a risk management system in connection with financial reporting. The Group Executive Management has designed and implemented controls considered necessary and effective to counter identified risks relating to financial reporting.

Risk assessment

The Board of Directors and the Group Executive Management regularly assess the risks relating to the Group, including those affecting financial reporting. A description of the most significant identified risks is given in the annual report under "Accounting estimates and judgements" (note 2).

The Group Executive Management and the Audit Committee regularly consider whether new internal controls should be implemented to counter identified risks. In addition the Audit Committee reviews particularly risky areas on an ongoing basis.

Procedures have been put into place to ensure that Sydbank complies at all times with relevant legislation and other regulations in connection with financial reporting. The Audit Committee is regularly informed of significant changes in legislation.

Monitoring

Analyses and control activities are conducted in connection with the preparation of the financial statements to ensure that financial reporting is in compliance with IFRS as described under "Accounting policies" (note 1).

Investor Relations

To support its strategic goals the Group ensures that stakeholders receive accurate and complete information. This is achieved by targeting investor communication according to best practice and by maintaining a high degree of professionalism.

The Group strengthens and expands relations with investors and analysts by arranging roadshows in connection with the release of its financial statements.

In addition management interacts with analysts, shareholders and potential investors at seminars and conferences where current issues concerning Sydbank are presented and discussed.

Contact with analysts, shareholders and potential investors in 2024 was in the form of physical as well as virtual meetings.

The Sydbank share

The Sydbank share is listed on Nasdaq Copenhagen and as of 23 December 2024 it has been part of the OMX C25 index.

The Sydbank share rose from 293.6 at year-end 2023 to 380.0 at year-end 2024, equal to an increase of 29.4%. Adding dividend distributed in 2024 of DKK 30.56 per share, return to shareholders represented 39.8%. By comparison the bank index rose by 15.7%.

The Sydbank share	2024	2023
Share capital (DKKm)	546	565
Total market capitalisation at year-end (DKKm)	19,542	16,025
Share price at year-end	380.0	293.6
EPS (DKK)	50.9	58.8
Dividend per share (DKK)	26.88	30.56
Book value per share (DKK)	291.4	273.9
Share price/book value per share	1.30	1.07

5 analysts covered the Sydbank share at the end of 2024.

The average daily turnover of the Sydbank share was DKK 48m in 2024 compared with DKK 42m in 2023. The share was the 21st most traded share on Nasdaq Copenhagen.

Dividend policy

Sydbank's overall financial goal is to provide its shareholders with a competitive return by way of price increases and dividends.

The dividend policy must contribute to creating long-term shareholder value. The objective is to distribute 30-50% of profit for the year after tax as dividend while taking into account growth plans and capital policy.

In 2024 Sydbank distributed a dividend of 50%, cf the Bank's dividend policy, equal to DKK 30.56 per share.

Following the dividend distribution in 2024 Sydbank has acquired 3,384,000 own shares totalling DKK 1,200m within the share buyback programme which ended on 23 January 2025.

The share buyback was conducted as part of the adjustment to the Group's capital targets.

The Group's targets are a CET1 ratio of around 14.5%, a T1 capital ratio of around 16.0% and a capital ratio of around 18.5%.

As a consequence of a strong capital base it will be possible to initiate a new share buyback programme of DKK 1,350m with expected implementation from the beginning of March 2025 to the end of January 2026, thereby lifting the total amount to be distributed to Sydbank's shareholders to DKK 2,727m, equal to 99% of profit for the year after tax.

Mission Statement and Business Goals

Sydbank has a solid financial foundation that offers room for more business with new customers as well as existing customers. Our growth will be built on a firm and sound footing. Sydbank wishes to remain an independent bank and we aim to be the preferred business partner. We focus on our own products but use business partners for a wide variety of financial services, for instance mortgage credit, pensions and insurance.

Sydbank's primary objective is to meet its customers' needs for financial services. Sydbank achieves this objective by striving to be among the absolute top performers in Denmark in terms of operating a bank and providing advisory services to customers based on their unique situation.

Sydbank's roots in Southern Jutland coupled with its core story constitute Sydbank's framework as an independent bank operating on its own terms.

Sydbank's core story

Our core story

BANKING

Sydbank's mission is to be a bank that is close to its customers. We find solutions where they are – quickly and efficiently. We build on relationships between people. And we focus on what is important – banking and sound business.

Banking – pure and simple

OUR BANK

Rooted in Southern Jutland, Sydbank is a strong and independent nationwide bank operating on its own terms. For the backbone of the Danish corporate sector and for retail clients who value professional advice we are a bank for most people – but not the same bank for everyone. Good old-fashioned attentiveness, new technology – we use

what works. We know our customers and we are close to them providing advice tailored to their individual needs. Backed by the best business partners our competitive strength is increased.

Our bank – excellence and relationships create value

SYDBANK

Our bank makes 3 promises – to our customers, to our employees and to our shareholders. You will know us for the value we create for our customers.You will know us for our belief that excellent and committed employees are our most important asset. And you will know us for always having a level of profitability that will enable us to remain an independent and resourceful bank.

Sydbank – what can we do for you?

Mission Statement and Business Goals

Sydbank's business model

At Sydbank we focus on what is important – banking and sound business. We call it "Banking – pure and simple". The classic business model for banks is concerned with optimising risk management when short-term deposits are converted to long-term loans. This remains the cornerstone of Sydbank's business model.

Sydbank is a nationwide full-service advisory bank. In addition to deposit and loan products produced in-house, the Bank's business model includes activities within payment services, securities trading and asset management as well as arranging mortgage credit products, investment management products and insurance products via business partners.

Sydbank – our way of working

Equity At Sydbank we promise to deliver a competitive return on equity and to ensure attractive profitability to the benefit of shareholders. That's why Sydbank strives to have a return on equity that exceeds the cost of capital. Commodities The Bank's liquidity is the commodity used to produce in-house lending products. Liquidity is mainly made up of deposits but it also Production Sydbank's production comprises classic and sound banking, involving credit evaluation of customers based on credit analyses and ratings. Credit evaluation of customers is key to the Bank's capital consumption, ie its commodities, and consequently also decisive to the Bank's prices. In addition to classic and sound banking, compliance with legislation and regulation forms a substantial part of production activities, including prevention of money laundering. A significant share of the Bank's costs is tied to its production and as a result ongoing efficiency improvements are crucial in order to lower its operating costs. Value propositions The Bank's value propositions to customers are generated by value-adding advisory services, creating long-term relationships and offerings of relevant products Equity Commodities (Liquidity, LCR) Production (IRB, rating, solvency and capital) Value propositions Mortgage credit Data registration Legislative compliance Compliance Credit analysis Money market Bond issues Deposits Advisory services Asset management Payment services Lending Prices AML

comprises funds available via the money market or bond issues. Being able to procure competitively priced liquidity is decisive for the Bank's competitive strength. That's why Sydbank strives to have a strong credit rating.

and services at competitive prices. Sydbank seeks to offer its products and services at prices ensuring that customers are profitable, ie that prices exceed capital costs and production costs.

Sydbank's value chain

Sydbank's business model is based on the Bank, in addition to having its own products, being able to procure via strong business partners a wide range of financial products within mortgage credit, pensions and insurance. This enables Sydbank to offer customers a competitive selection of financial products.

As a bank we contribute to financing society via our lending and investment activities. The Bank's primary business

partners within mortgage credit are Totalkredit and DLR Kredit. The Bank cooperates with a number of sub-suppliers in the investment fund area, eg Sydinvest and BankInvest. The Bank arranges for insurance and pension products and its primary insurance partners are Letpension og PFA in life insurance and Alm. Brand Forsikring in non-life insurance.

Sydbank has outsourced a considerable part of its IT development and operations to Bankdata and JN Data.

Mission Statement and Business Goals

Local presence

Geographical distribution of

With its 2,016 employees in Denmark and 71 employees in Germany, Sydbank has a local presence in 12 Danish regions as well as in Northern Germany with 3 branches. High priority is placed on being close to customers and building long-term relationships by offering value-adding advice and by local engagement. Our decentralised organisation with a regional head office in each of the 13 regions gives our customers access to experts and ensures local and swift decision-making.

Sydbank is dependent on active local communities offering the potential to do business and generate growth. Our strong presence in local communities is therefore a key element of the Bank's fundamental values and business model.

Local support

Sydbank believes that active local communities are important and this belief is reflected in our sponsorships and fund donations. Sydbank supports via sponsorships small and large associations across the country – primarily within team sports and grassroot sports.

The Sydbank Foundation and the Trelleborg Foundation are charitable foundations supporting cultural and popular objectives in Denmark. In 2024 the Sydbank Foundation donated upwards of DKK 20m to more than 580 projects and the Trelleborg Foundation in excess of DKK 2.5m to more than 80 projects.

Sydbank's strategy for 2022-2024: "Growing our business"

We will be better known, increase our earnings and continue to enhance the Bank's efficiency. The strategy is implemented via initiatives under the strategic themes Better known and bigger, Sound business and Stronger competi- tive position. We are investing in increasing awareness to grow our business and boost earnings. At the same time we will strengthen the Bank's competitive position by means of a better balance between income and costs.

* The strategy and its objectives were formulated in 2021 when the interest rate environment was negative.

Strategic themes

Better known and bigger – profitable growth

Sydbank has a good reputation – and needs to be better known. On the back of Denmark's Corporate Bank we will increase awareness of Sydbank focusing in particular on large towns and cities. Our growth is profitable and organic and we are in good shape for friendly takeovers. We will incorporate ESG and sustainability in the Bank's products and processes. We have a strategic goal of an unaided brand awareness of 40% by the end of the strategy period.

At year-end unaided awareness stood at 28% (2023: 26%).

Sound business – higher earnings

At Sydbank focus is on banking and sound business. Our employees are highly qualified, proactive and valuecreating. We work on the principle of quid pro quo and will increase the Bank's earnings. We have a strategic goal of a return on equity of around 10% by the end of the strategy period – based on a normalised level of impairment charges. The goal was set in the context of negative interest rates.

In 2024 return on equity stood at 18.6% (2023: 23.6%).

Stronger competitive position – efficient bank

We will prioritise the Bank's efforts and reduce costs. We will optimise working procedures and processes to reduce time spent, enhance quality and shorten response times to customers. As a decent and responsible bank our constant focus is on compliance, including IT security. We have a strategic goal of a rate of costs of around 60% by the end of the strategy period.

In 2024 the rate of costs stood at 44.2% (2023: 42.7%).

Mission Statement and Business Goals

The Bank's value propositions

Sydbank's value propositions focus on value-creating advisory services based on customer needs. Therefore we ask 'What can we do for you?' and provide advice tailored to the individual customer's needs and demands for the Bank's products and services.

The value propositions, including providing correct advice, are expressed in the statement: 'Excellence and relationships create value'. The Bank's highly skilled employees are close to the customers and understand their needs. The Bank's organisation ensures high accessibility and easy access to decisions so we can act quickly. By being seamless and direct in its cooperation the Bank creates value for its customers.

Sydbank has a unique position and size in the Danish banking sector. We are sufficiently large to be competent and sufficiently small to be local and attentive. This means that we can accommodate the requirements of ordinary retail clients as well as be the bank for and a sparring partner to the Danish corporate sector. Sydbank aims to conduct banking transactions that benefit the Bank as well as its customers – this is sound business practice to us.

The Bank's customers

The Bank's customer portfolio can be divided into the segments: corporate clients, Private Banking clients and retail clients, and institutional clients. The Bank aims to have a diversified customer portfolio, including diversification across industries, reflecting the Danish corporate structure as much as possible. Sydbank has succeeded in building relationships in particular as regards the backbone of the Danish corporate sector – medium-sized and large enterprises – and by developing expertise among its employees, the Bank has secured a strong position as a bank offering a wide variety of professional financing solutions tailored to the requirements of the individual business.

The Bank strives to have a continued increase in customers primarily with the following profiles:

Medium-sized or large enterprises in the SME segment with growth potential
Retail clients with healthy finances
Young customers
Wealthy retail clients

Satisfied customers

Sydbank operates its business with the promise that customers can always be confident that we offer advice that adds value for them. We do not take this trust for granted, which is why we monitor developments in customer satisfaction within the corporate, Private Banking and retail segments.

Sydbank took the lead also in 2024 in the annual Aalund Business Research poll, which measures the satisfaction of corporate clients across banks. The Bank is considered best in class by customers in the 2 measurement points of considerable importance to satisfaction. Sydbank has very loyal corporate clients, which is reflected in the Bank having the highest share of corporate clients who would recommend their bank to others and the highest share of corporate clients who wish to stay with their current bank.

In collaboration with EPSI Sydbank conducts semi-annual surveys of satisfaction among Private Banking clients. With these surveys we can monitor developments in customer satisfaction and at the same time monitor the Bank's performance as regards the most important processes. The findings show that customer satisfaction among Private Banking clients was at a high level also in 2024 and the share of very satisfied Private Banking clients has gone up. Moreover dedicated focus on proactive relevant communication has boosted satisfaction and customers' experience that Sydbank proactively makes relevant proposals regarding their finances.

Retail clients' satisfaction with Sydbank is polled via its own surveys in collaboration with EPSI. Retail clients are invited 4 times a year to indicate their satisfaction with Sydbank. In 2024 the Bank focused its efforts on boosting retail clients' satisfaction with Sydbank. Our efforts were rewarded as findings show that retail clients' satisfaction with the Bank has improved. Consequently in 2025 the Bank will continue to use surveys to monitor developments locally in the Bank's branches and thus identify and act on the most value-creating points of improvement.

In addition to conducting its own satisfaction surveys among Private Banking clients and retail clients Sydbank monitors industry studies of Danes' satisfaction with banks.

Commercial banking

Sydbank aims to be the preferred business partner for medium-sized and large enterprises in Denmark. The position as Denmark's Commercial Bank is achieved by building and maintaining value-creating and close relationships with our corporate clients.

As a rule corporate clients are served by one of the Bank's regional head offices or by special corporate branches. The Bank's primary customer segments in the corporate sector are medium-sized and large enterprises with development potential that can benefit from the Bank's wide range of products. Corporate clients are divided into 6 segments and are served by the following entities:

Corporate by Corporate & Institutional Banking
Commercial Large by the corporate centres
Commercial Medium by the corporate departments
Commercial Small by the corporate departments
Commercial Local by retail branches with corporate local departments
Agricultural clients by the agricultural centres

Sydbank's corporate clients have access to a wide range of products and specialists tailored to the company's requirements. We make 4 promises to our corporate clients: personal advice, an annual cooperation plan, access to specialists and the Bank's strategy compass to facilitate the dialogue about the company's future.

The Bank's corporate clients receive professional advice from a personal adviser who knows the circumstances of the business and its plans for the future. As and when needed the personal adviser will select a team of highly skilled specialists and together with the customer formulate and maintain on a regular basis a plan for the future business relationship. In addition the Bank offers a strategy compass to support strategic discussions about eg the financial ratios, development potential and future plans of the company.

Being one of the largest commercial banks in Denmark, Sydbank offers a wide variety of financing solutions tailored to the requirements of the individual business. Our corporate clients have access to international commercial bank services, including payment services and cash management solutions, via the Bank's branches in Germany and its international partner banks. Sydbank also offers advisory services within Trade Finance to customers involved in international trade.

Sydbank Leasing offers leasing solutions to businesses. Rolling stock, cars, construction equipment and production equipment are examples of assets that can be leased from Sydbank Leasing.

Headquartered in Aabenraa, Sydbank Leasing has nationwide coverage and its own sales organisation working closely with Sydbank's branches.

Private Banking

Private Banking strives to provide competent and relevant advice at any stage in life. A customer's life goals are key to the advice offered focusing on wealth optimisation and

investments. As a result the Bank focuses on long-term and value-creating relationships with each customer.

Sydbank's Private Banking concept is offered to wealthy retail clients with investable assets or a household income above a specified level. As an add-on to the Private Banking concept, we offer our wealthiest customers Sydbank's Private Banking Elite.

Each of the Bank's 13 regions has a physical Private Banking and investment department. Advisory services are provided by dedicated Private Bankers who are assisted by a team of experts tailored to the specific requirements of the individual customer. The entire team offers advice on optimising wealth in relation to pensions, investments and a range of other financial issues.

Investing is important to Private Banking clients. Therefore access is given to the investment universe, investment reports, news and research. For many years Sydbank has targeted the investment area and primarily focuses on providing personal and individual advisory services to its customers. The extent of investment advisory services depends in general on a customer's investment preferences.

Asset management

Sydbank offers advice and asset management to for instance investment funds, pooled pension plans, foundations and institutional clients. Asset management is offered to wealthy customers and institutions through individual portfolio management agreements tailored to the requirements of the individual customer. Moreover the Bank offers investment management solutions to its various customer segments, including Private Banking clients and retail clients. Finally the division prepares economic research and equity research.

Retail banking

Sydbank is a bank for retail clients who value professional advice. We believe in long-term relationships with our customers – relationships that help to give us a better insight and understanding of their situation. Leasing

Advisory Online

Advisory Online is the Bank's take on the digital bank branch of the future. Retail clients who do not wish to use the classic bank branch can use Advisory Online, which offers advice, products and services to the same extent as a local branch – only digitally and with extended opening hours.

Mission Statement and Business Goals

The Bank's retail clients are assigned a personal adviser in a physical branch close to their home address unless the client actively chooses to receive advice through the Bank's digital branch – Advisory Online.

Backed by the best business partners we can offer our retail clients a full product range covering daily finances as well as housing, pensions, insurance and mortgage credit.

Retail clients can contact Sydbank through several channels. We satisfy customers' needs for physical and virtual meetings and also Sydbank Mobilbank helps customers manage their daily finances.

We are where our customers are and are accessible when we are needed. Therefore retail clients can get in contact with an adviser every day of the week and get in touch with our customer service department 7 days a week from 8am to 8pm.

Sydbank's advice to retail clients is always – regardless of the choice of channel – competent and attentive based on customers' finances and needs – regardless of whether a customer's daily finances or special financial circumstances are involved.

Sydbank Markets

Sydbank Markets offers advice and quotes prices as regards bonds, shares and foreign exchange as well as undertakes market making obligations with respect to a number of units and shares. Sydbank Markets serves institutional clients, central banks, asset managers, foreign clients, major corporate clients, banks as well as Sydbank's decentralised investment centres and departments. Moreover Sydbank Markets is a primary dealer in Danish mortgage bonds in series issued by Nykredit, DLR Kredit, Realkredit Danmark, Jyske Realkredit and Nordea Kredit.

Organisation and Corporate Governance

Sydbank's management actively addresses corporate governance. Sydbank's Board of Directors and Group Executive Management consider corporate governance to be a basic prerequisite for meeting the Bank's financial and non-financial objectives and maintaining a good dialogue and relationship with internal and external stakeholders alike.

The Bank considers the recommendations of the Committee on Corporate Governance. As a SIFI, Sydbank publishes the statutory corporate governance report on its website. The overall position of the Board of Directors as regards the recommendations appears from Sydbank's Corporate Governance Principles. Read more at sydbank.com.

Sydbank's Board of Directors also considers the management code of conduct of the Danish Bankers Association and follows all 12 recommendations. The overall position of the Bank as regards the management code of conduct of the Danish Bankers Association is available at sydbank.com.

The management of Sydbank is carried out by:

the general meeting
the Shareholders' Committee
the Board of Directors
the Group Executive Management

Shareholders

A positive and ongoing dialogue with shareholders is important for Sydbank so that investors gain an insight into the Bank's strategy, business model and performance. Sydbank takes part in investor presentations, investor conferences and roadshows where institutional investors can engage in dialogue with management and gain an insight into the Bank's development. All the Bank's shareholders can get a fuller picture of Sydbank via the Bank's website, sydbank. com, where also company announcements, interim reports and annual reports are available.

General meeting

Shareholders' voting rights are exercised at the general meeting. Sydbank considers the recommendations of the Committee on Corporate Governance regarding organising the Bank's general meeting. Sydbank's Articles of Association contain information on convening the general meeting, the right to submit proposals as well as attendance and voting rights. The Bank's Articles of Association are available at sydbank.com.

Resolutions to amend the Articles of Association and resolutions to dissolve the Bank and/or to merge the Bank with other companies will only be adopted if at least 2/3 of the voting share capital is represented at the general meeting and the resolution is carried by at least 2/3 of both the votes cast and the voting share capital represented at the general meeting.

If at least 2/3 of the voting share capital is not represented at the general meeting but the resolution is carried by at least 2/3 of both the votes cast and the voting share capital represented at the general meeting, the resolution can be adopted at a new general meeting by the majority of votes cast as prescribed above irrespective of the proportion of voting share capital represented. Resolutions to amend the Articles of Association submitted by the Shareholders' Committee or the Board of Directors may be finally adopted at a single general meeting by at least 2/3 of both the votes cast and the share capital represented at the general meeting.

Sydbank has a voting right limitation according to which no shareholder may cast a vote of more than 20,000 shares on his own behalf.

The share capital may be increased by up to DKK 59,676,320 in one or more issues as determined by the Board of Directors. The authorisation applies until 1 March 2026. Increases in share capital pursuant to this authorisation may be effected without any pre-emption rights for the Bank's existing shareholders if effected by an unrestricted public subscription at market price or by conversion of debt.

At the Annual General Meeting on 21 March 2024 the Board of Directors was authorised to acquire shares at a total value of up to 10% of the Bank's share capital. The price paid for shares may not differ by more than 10% from the price quoted on Nasdaq Copenhagen at the time of purchase. The authorisation is effective until the next annual general meeting on 20 March 2025.

Shareholders' Committee

The Bank's Shareholders' Committee is elected by the general meeting. On the recommendation of the Board of Directors the general meeting determines the total number of Shareholders' Committee members and their distribution by region.

The Shareholders' Committee elects the members of the Board of Directors.

Organisation and Corporate Governance

The Shareholders' Committee is obliged to work for the prosperity of the Bank as well as to represent the Bank to the best of its ability and assist the Board of Directors and the Group Executive Management.

Shareholders' Committee members are elected for a term of 3 years. Members are eligible for re-election.

Board of Directors

The Board of Directors consists of between 6 and 10 independent members elected by and from among the members of the Shareholders' Committee and 4 board members elected by the employees. Shareholder-elected board members are elected for a term of 1 year. Members are eligible for re-election. If the number of shareholder-elected board members is reduced to less than 6, the Shareholders' Committee will add to the number as soon as possible in order to increase the number to at least 6.

The Bank has no age limit applying to board members in the Articles of Association. The maximum term of office for shareholder-elected board members is 12 years.

The Board of Directors holds at least 11 ordinary meetings each year. In addition an annual strategy seminar is held as well as 2 annual training days. In 2024 the topics during the training days included AI, digital operational resilience and sustainability reporting requirements.

Sydbank's policy on diversity stipulates the qualifications and competences the Board of Directors must possess and includes general statutory, sector-specific and other professional competences. The policy specifies whether all or only some board members must possess these competences. The Board of Directors must also have basic knowledge of compliance and risk, and experience in sustainability must be present among the members of the Board of Directors.

The Board of Directors carries out an annual self-evaluation where the work and performance of the Board of Directors are assessed. On the basis of the Bank's business model the competences required to perform board duties are determined in connection with the evaluation. Following this an evaluation is made as to which qualifications are present in order to identify any need for further competences.

The evaluation is carried out by the Nomination Committee and every 3rd year with external assistance. The conclusions of the Nomination Committee's evaluation are presented for discussion by the full Board of Directors.

The Board of Directors' self-evaluation for 2024 was carried out by an external consultant. The process of carrying out the self-evaluation involved 6 steps, see the figure below. Based on Sydbank's business model the main conclusions are as follows:

The Board works well together
The working relationship is good and the level of motivation and commitment is high
The competences of the Board are considered to be sufficiently covered
Board succession is considered in a responsible and systematic manner

Other directorships held by the Board of Directors can be seen on pp 200-205.

Board of Directors – self-evaluation

Board committees

Sydbank's Board of Directors has set up 5 committees that oversee special areas or prepare matters for subsequent consideration by the full Board of Directors:

Audit Committee
Risk Committee
Remuneration Committee
Nomination Committee
Digitization Committee

The terms of reference of the committees are available at sydbank.com, which also contains an introduction to the members and their qualifications.

Audit Committee

The Audit Committee reports to the Board of Directors and convenes as a minimum 4 times a year.

The Audit Committee reviews accounting, auditing and collateral issues including issues which the Board of Directors, Internal Audit, the Audit Committee or the independent auditors wish to discuss.

The Audit Committee follows up on measures taken to rectify weaknesses in internal controls reported by Internal Audit or the independent auditors and ensures that material errors and omissions in the financial statements are corrected. Moreover the Audit Committee monitors the Bank's compliance with orders issued by the Danish FSA.

The Audit Committee supervises the financial reporting process, including ESG reporting, eg accounting policies, and reviews significant accounting estimates etc before the fullyear and interim financial statements are presented to the Board of Directors.

The Audit Committee convened 6 times in 2024.

The Board of Directors has appointed Søren Holm, former group executive, as the board member who possesses special qualifications within accounting and auditing. Søren Holm's special qualifications are in areas such as financial management, accounting, risk and credit management, ESG, auditing and governance.

Committee members: Søren Holm, former group executive, (Chairman); Ellen Trane Nørby, deputy mayor, professional board member and independent consultant; Gitte Poulsen, executive manager; Carsten Andersen, corporate account manager.

Risk Committee

The Risk Committee reports to the Board of Directors and convenes as a minimum 4 times a year.

The Risk Committee must provide the Board of Directors with an overview of the Group's current risk scenario and serve as a preparatory committee in terms of determining the Group's overall risk profile and risk strategy, including the risks associated with the Group's business model.

Moreover the Risk Committee must evaluate the Group's internal procedure for risk identification and the correlation with risk reporting and the calculation of the Group's solvency need. The Risk Committee is regularly informed of models and measurement methods forming the basis of the Group's capital management, including trends in and expectations of regulatory requirements.

The Risk Committee ensures that the policies and guidelines of the Board of Directors as regards risk are implemented and function effectively in the Group.

The Group's Chief Risk Officer must assist the committee with information and attend its meetings with a view to discussing the Group's risk management.

The Risk Committee convened 4 times in 2024.

Committee members: Henrik Hoffmann, former head of credits, (Chairman); Janne Moltke-Leth, CEO; Jon Stefansson, attorney; Pia Wrang, executive vice president.

Remuneration Committee

The Remuneration Committee reports to the Board of Directors and convenes as a minimum once a year.

The duties of the Remuneration Committee include updating the Bank's remuneration policy and deciding which of the Bank's functions are covered by the concept of "material risk takers". In the event of amendments adopted by the Board of Directors the remuneration policy will be presented for adoption at the general meeting. The Remuneration Committee ensures that the remuneration policy in force is complied with.

Legislation requires that the Remuneration Committee monitor remuneration issues, perform assessments and controls of the Bank's remuneration processes and ensure that the use of variable remuneration complies with the remuneration policy and legislation.

The Remuneration Committee also prepares a recommendation to the Board of Directors concerning the remuneration of the members of the Shareholders' Committee.

The Remuneration Committee convened 7 times in 2024.

Organisation and Corporate Governance

Committee members: Gitte Poulsen, executive manager, (Chairman); Jon Stefansson, attorney; Jørn Krogh Sørensen, head of credits.

Nomination Committee

The Nomination Committee reports to the Board of Directors and convenes as a minimum 4 times a year.

The duties of the Nomination Committee include evaluating management as well as identifying and describing the competences required to serve on the Bank's Board of Directors and assessing whether they are present.

The committee lends support to the Board of Directors with regard to the recruitment of new board members and ensures updating of the Bank's diversity policy, describing the qualifications and competences which the Board of Directors must possess. In addition the committee sets target figures for the underrepresented gender on the Board of Directors.

The Nomination Committee convened 5 times in 2024. Committee members: Janne Moltke-Leth, CEO, (Chairman); Lars Mikkelgaard-Jensen, former CEO and managing director; Susanne Schou, professional board member.

Attendance/number of meetings – Sydbank's Board of Directors

2024 Board of Directors Audit Committee Risk Committee Remuneration Committee Nomination Committee Digitization Committee Lars Mikkelgaard-Jensen (Chairman) 20/20 5/5 5/5 Ellen Trane Nørby (Vice-Chairman) 20/20 3/4 Janne Moltke-Leth 20/20 4/4 5/5 Susanne Schou 20/20 5/5 5/5 Gitte Poulsen 20/20 6/6 7/7 Jon Stefansson 19/20 4/4 7/7 Søren Holm 19/20 6/6 5/5 Henrik Hoffmann 18/20 4/4 Jacob Chr. Nielsen – resigned in 2024 5/5 2/2 Carsten Andersen 20/20 6/6 Jarl Oxlund 20/20 4/5 Jørn Krogh Sørensen 20/20 7/7 Pia Wrang 20/20 4/4

Digitization Committee

The Digitization Committee reports to the Board of Directors and convenes as a minimum 4 times a year.

The Digitization Committee is authorised to review, examine and analyse significant digitization initiatives in the financial sector in relation to the opportunities for Sydbank.

The Digitization Committee is tasked with advising on the Bank's long-term strategic digitization and discussing selected and planned initiatives.

The Digitization Committee convened 5 times in 2024.

Committee members: Susanne Schou, professional board member (Chairman); Lars Mikkelgaard-Jensen, former CEO and managing director; Søren Holm, former group executive; Jarl Oxlund, chairman of Sydbank Kreds.

Group Executive Management

The Group Executive Management is appointed by the Board of Directors and at the beginning of 2024 it consisted of 3 members: Karen Frøsig, CEO; Jørn Adam Møller, Deputy Group Chief Executive; and Stig Westergaard, Deputy Group Chief Executive.

On 1 April 2024 Mark Luscombe was appointed member of the Group Executive Management and on 1 August 2024 he was appointed CEO when Karen Frøsig, the then CEO, retired. At the end of 2024 the Group Executive Management consisted of 3 members: Mark Luscombe, CEO; Jørn Adam Møller, Deputy Group Chief Executive; and Stig Westergaard, Deputy Group Chief Executive.

The Group Executive Management constitutes the top day-to-day management of the Bank working in accordance with the guidelines and instructions issued by the Board of Directors. The distribution of duties between the Board of Directors and the Group Executive Management is laid down in the rules of procedure of the Board of Directors.

The Group Executive Management attends the meetings of the Shareholders' Committee and the Board of Directors without any voting rights.

Further information is available at sydbank.com.

Other directorships held by the Group Executive Management can be seen on pp 206-207.

Management's remuneration

The Bank's remuneration policy is determined by the Bank's Board of Directors and approved by the general meeting. The remuneration policy describes Sydbank's position on remuneration and the use of variable remuneration components. The most significant part of the remuneration to the Bank's management consists of a fixed salary the size of which must ensure that focus and incentives exist so that the desired results are achieved.

The remuneration policy applies to the Sydbank Group and aims to ensure an appropriate framework in order to attract, motivate and retain the Bank's management and employees. The Board of Directors is responsible for making any and necessary adjustments to the remuneration policy and for submitting the revised remuneration policy to the general meeting for adoption in case of any material changes or as a minimum every four years.

Members of the Board of Directors receive a fixed base fee which is assessed once a year. The Board of Directors is not covered by any type of bonus scheme and sustainability considerations are not included as a factor in the remuneration of the Board of Directors.

Within the limits of the remuneration policy the Board of Directors fixes the total remuneration of the Group Executive Management, including any severance terms. The remuneration of the Group Executive Management consists of a fixed gross salary which is reviewed once a year. The annual assessment of the Group Executive Management's remuneration includes eg the Bank's overall performance, customer satisfaction as well as overall performance over a long period. The KPIs set are also included. The KPIs may cover financial and non-financial targets, including targets set within the framework of the ESG and sustainability policy. Climate related considerations did not form part of the assessment of the remuneration of the Group Executive Management in 2024. No fixed bonus scheme has been agreed as regards the Group Executive Management.

The remuneration of the Board of Directors and the Group Executive Management appears from the notes to the annual report and from an annual remuneration report which is presented to the general meeting for an advisory vote.

Further information is available at sydbank.com.

The Bank's risk management and compliance

Assuming risks is a key element of the Bank's business model and therefore measuring and managing these risks is the most important thing for the Bank. Consequently Sydbank has centralised risk management.

The Bank's business units and business areas are responsible for establishing, complying with and monitoring measures designed to detect and mitigate the risk of the Bank's non-compliance with existing legislation, market standards or internal rules.

Compliance and Risk are independent divisions at the Bank reporting directly to the Group Executive Management which monitor and assess the efficiency of the methods, procedures and measures taken to correct any shortcomings. Using a risk-based approach, controls are carried out by Compliance as well as Risk to detect and reprimand inappropriate conduct.

Organisation and Corporate Governance

Risk management

Sydbank has a risk organisation comprising a number of risk committees and a Chief Risk Officer (CRO) reporting directly to the Group Executive Management. The CRO oversees that risk management within the Group is prudent and complies with internal and external requirements, including the requirements of the Danish executive order on management and control of banks etc.

The risk committees are headed by a member of the Group Executive Management and the CRO is a permanent member. The risk committees identify, monitor and assess risks within the individual risk areas and assess on a regular basis the models and principles used to manage risk. The committees ensure that risk management within the Group is in accordance with the policies and guidelines adopted by the Board of Directors.

For further elaboration reference is made to "Notes – Risk Management" on page 149.

Compliance

Via controls, assessment and advice, Compliance aims to minimise the Bank's compliance risks, for example the risk of financial loss, the loss of good standing or administrative sanctions as a result of non-compliance with rules. For each control and assessment carried out by Compliance the conclusion is reported to the relevant business unit managers who are responsible for correcting any errors or omissions identified, including adjusting inadequate systems and procedures. Compliance follows up on whether appropriate measures have been implemented. Compliance submits quarterly reports of its most significant activities to the Bank's Board of Directors and Group Executive Management. Sydbank has established a compliance committee across the Bank which discusses current compliance risks and measures to implement regulatory requirements. The Bank's Risk Executive (Group Executive Management member) chairs the committee. The committee also consists of key group executive vice presidents (or their representatives) as well as the Bank's Data Protection Officer (DPO).

Internal Audit

The Bank's Internal Audit, working independently of the day-to-day management and reporting directly to the Board of Directors, performs audits focusing on the most significant areas of the Bank's compliance and risk management, including overseeing that there are business procedures and internal controls for the most important areas of activity as well as their compliance. The aim is to obtain an objective and independent review of the adequacy, effectiveness and quality of Sydbank's internal controls.

In addition Internal Audit oversees that the Group has good administrative and accounting practices, that there are business procedures and internal controls for the most important areas of activity, that management's requirements as to security and controls are incorporated into business procedures and are observed and that there are prudent control and security measures within IT.

Sustainability Reporting

General Information

Preparation of sustainability reporting	44
ESG and sustainability efforts	45
Materiality assessment	47

E – Environmental Information

Responsible finance	52
Responsible investment	55
Responsible climate and environmental footprint	57
Accounting policies – environmental information	60
Reporting under EU Taxonomy	160

S – Social Information

Dialogue with customers and society	63
Human rights	63
Data processing and information security	63
Strengthening of digital infrastructure	64
Fighting crime	64
Consumer protection and product management	65
Responsible employer	65
Accounting policies – social information	68

G – Business Conduct

Annual Report 2024 43

A decent bank	70
Anti-corruption and bribery	72

Appendices – Sustainability Reporting

Appendices	74

General Information

Preparation of sustainability reporting

Sydbank's sustainability reporting comprises the entire Sydbank Group unless otherwise stated. The Sydbank Group is defined in the same way as in the financial statements and therefore comprises Sydbank A/S and consolidated subsidiaries. An overview of Group holdings and enterprises is found in note 44.

Sydbank acquired Coop Bank A/S in 2024 and the bank is now part of the Sydbank Group. Coop Bank continues to operate as an independent bank. Coop Bank is included in the CO2e footprint of loans, the Bank's energy consumption and energy mix as well as in reporting in accordance with Article 8 of the EU Taxonomy Regulation. Furthermore Coop Bank is included in the number of employees by gender, the employee turnover rate and the pay gap between men and women.

In addition to the Bank's own operations, the Bank's sustainability reporting includes relevant information on the Bank's most important business partners and suppliers as well as value chain activities, including activities related to lending to the Bank's customers as well as activities related to investments in companies and countries in the Bank's investment universe.

The appendices starting on page 74 contain a table of contents of included disclosure requirements and underlying datapoints, an overview of reporting incorporated in sustainability reporting by reference, central elements of due diligence as well as an overview of reporting on datapoints deriving from other EU legislation.

The Bank's sustainability reporting forms part of the management's review

Responsibility and control

The implementation of the new requirements for sustainability reporting in the EU Corporate Sustainability Reporting Directive (CSRD) lies with the Bank's compliance committee, which is kept regularly informed by the department Group ESG to ensure broad involvement within the Bank.

The responsibility of preparing and coordinating sustainability reporting as well as complying with requirements in this regard lies primarily with Group ESG. The divisions Compliance and Risk monitor and assess on an ongoing basis the effectiveness of the Bank's processes and methods to comply with internal and external requirements, including sustainability reporting requirements.

Compliance's most recent risk assessment of the Bank's sustainability reporting in 2023 showed considerable reputational consequences and a low probability of breach of rules. Compliance has faith in the implementation of CSRD and compliance efforts with respect to reporting under CSRD will not be carried out until after reporting has been published in 2025. In cases where the compliance function, in connection with its controls and assessments, identifies errors or omissions relating to adhering to external and internal rules, they are reported to the persons responsible for the relevant areas who must correct errors or omissions within the set time limits. Compliance submits quarterly reports of its most significant activities to the Bank's Board of Directors and Group Executive Management. The Bank's Internal Audit may perform audit procedures as a basis for the statement on sustainability reporting while the Board of Directors' Audit Committee is tasked with monitoring sustainability reporting in the annual report, including calculation methods, controls and processes, and submitting recommendations to the Board of Directors. The Audit Committee must assess the appropriateness of the calculation methods chosen as regards the most significant areas and assess the most significant estimates.

Comparative figures for 2023 and previous years (apart from required figures) are not covered by the independent limited assurance report on the sustainability reporting.

International endorsements

To strengthen its ESG and sustainability efforts, Sydbank has endorsed a number of international initiatives and principles, which also involve annual reporting obligations for the Bank. The Bank's reporting is available on the websites of the relevant organisations etc.

Sydbank joined the UN Global Compact in 2020, which is the world's largest initiative for corporate responsibility and sets universal standards for companies' progress, reporting and communication as regards sustainability. As a result the Bank has undertaken to adhere to the 10 principles of the UN Global Compact. The principles are based on international conventions and agreements and they are in compliance with OECD's guidelines, the UN Guiding Principles on Business and Human Rights, the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the Rio Declaration and the UN Convention Against Corruption.

In 2020 Sydbank signed the UN Principles for Responsible Banking, which provide a framework for sustainable banking. Signatory banks strive to align their business activities and sustainability efforts with the UN Sustainable Development Goals and the goal of the Paris Agreement to limit a rise in global temperatures to less than 2 degrees Celsius and preferably less than 1.5 degrees Celsius.

Sydbank signed the UN Principles for Responsible Investment in 2010. As a result the Bank is obliged to comply with

Focus areas

the 6 principles for responsible investment and to take into account sustainability factors such as human rights, environmental issues, social conditions, corporate governance and strong institutions in its overall investment process.

ESG and sustainability efforts

The goals of Sydbank's strategy for 2025-2027 include ensuring long-term value creation and a good reputation by continuing to incorporate ESG in the Bank's core business. This will ensure that integration of the ESG efforts are business driven whereby the Bank takes into account ESG risks and business potential and achieves the greatest long-term value of its efforts. ESG was also included as an initiative in Sydbank's strategy for 2022-2024.

The Bank has set targets for the 5 strategic focus areas.

Sydbank wishes to ensure that the level of knowledge among employees within ESG and sustainability is sufficiently high. This is why ongoings efforts are made by the Bank to develop and raise the level of knowledge. In addition constant focus is on improving underlying ESG data and data availability to ensure the quality of data required by increasing regulation, markets, our customers and our own needs.

Organisation

Sydbank's organisational set-up as regards ESG is illus-

trated in the diagram overleaf. The Board of Directors is responsible for the Bank's ESG and sustainability strategy and approves the objectives in this area. At least once a year the Board of Directors reviews the progress of achieving the objectives and receives reports in this regard from relevant business units and business areas. Also once a year the Board of Directors examines whether the ESG and sustainability policy is complied with.

The Board of Directors approves relevant policies and plans on the basis of the Bank's business model and its annual risk assessment. To the extent relevant, the policies must include guidelines for the risks arising from ESG issues that the Bank chooses to assume.

The Group Executive Management is responsible for the Bank's ESG and sustainability efforts and is briefed by the Bank's business units and business areas through participation in various fora, including the ESG forum.

The ESG forum consists of at least one Group Executive Management member, relevant group executive vice presidents and selected ESG specialists. The forum guarantees dialogue and sparring on targets for the 5 strategic focus areas and determines which ESG and sustainability activities should be launched. In addition the Bank has 2 fora for its core business: ESG in Credits and ESG in Investment, including the Responsible Investment Committee (RI Committee).

General Information

Governance foundation	Scope of application	Accessible
Code of conduct	Management and employees as well as business partners and suppliers	External
Health and safety manual	Employees	Internal
Stakeholder policy	Management and employees	External
IT security policy	Employees	Internal
Credit policy	Customers to whom the Bank has granted loans etc	Internal
Remuneration policy	Management and employees	External
Diversity policy	Board of Directors	External
Staff policy	Employees	Internal
Personal data policy for Sydbank	Management and employees	Internal
Responsible investment and active ownership policy	All investment activities carried out by Sydbank either as the Bank's investment for its own portfolio or customers' assets under a direct mandate as well as the Bank's invest ment advice to institutional clients	External
Anti-corruption and bribery policy	Employees	External
Data ethics policy	All data collected, stored and processed by the Bank	External
Policy for the underrepresented gender	Board of Directors and other levels of management	External
ESG and sustainability policy	Employees of the Sydbank Group	External
Policy for prevention of money laundering, terrorist financing and sanctions breaches	Employees	External
Conflicts of interest policy	Customer relationships, including corporate client relationships, and all activities at the Bank in connection with providing products and services to customers	External
Policy for healthy corporate culture	Management and employees	External
Tax policy	Tax matters of the Bank, customers and business associates	External

The aim of these fora is to ensure that ESG is rooted in, communicated to and integrated in the credit area and the Wealth Management areas.

The day-to-day activities concerning ESG and sustainability are carried out in the Bank's business areas and business units, which have controls and procedures to manage the Bank's impacts, risks and opportunities. These controls and procedures are described in more detail below under environmental information, social information and business conduct. ESG and sustainability efforts are wide ranging, which is why an ESG working group has been set up to focus on sparring and knowledge sharing across the Bank's areas. The working group includes employees whose daily work involves ESG and sustainability. The day-to-day activities, including the Bank's compliance with legislation and reporting obligations, are coordinated by Group ESG.

Management's roles related to business conduct

Sydbank's Board of Directors determines the overall direction for the Bank's business conduct by updating and approving the relevant policies at least once a year. The Board of Directors monitors that the policy for healthy corporate culture is complied with and that it works as intended and ensures that this policy is consistent with the Bank's other policies. When updating the policy the Board of Directors assesses whether the policy is appropriate. The assessment includes the Bank's activities, organisation and resources as well as the market conditions under which the Bank operates its activities. In his report at the Bank's annual general meeting the board chairman gives an account of how the policy is implemented and observed by reviewing overall focus areas and measures taken to counter risks that have a negative effect on corporate culture.

The Group Executive Management ensures that reporting on the Bank's corporate culture, including on eg money laundering, compliance, data protection and risk, to the Board of Directors is carried out at least on a quarterly basis. Furthermore the results of the employee engagement survey are reported to the Board of Directors. Sydbank has appointed a Risk Executive (Group Executive Management member), who helps to ensure that the other members of management at the Bank focus on a healthy corporate culture. The Risk Executive has also been appointed as the AML Executive of the Bank's Group Executive Management and therefore chairs the Bank's AML Committee.

Governance foundation

The Bank's policies and business procedures ensure a foundation for good governance regarding sustainable decisions in relation to environmental, social and governance matters. Internal policies and business procedures are available to

the Bank's employees on the Bank's intranet while external policies are available to stakeholders on the Bank's website. Examples of the Bank's governance foundation can be seen in the table on the previous page.

The Board of Directors is responsible for implementing and at least once a year updating and approving the policies on the previous page with the exception of the health and safety manual, which HR is responsible for updating.

Materiality assessment

As an important precondition for Sydbank's sustainability reporting, the Bank has conducted a (double) materiality assessment based on the requirements and methods specified in the European Sustainability Reporting Standards (ESRS).

Sydbank's materiality assessment is based on the Bank's business model. In practice the assessment is carried out on the basis of the Bank's 5 ESG focus areas: responsible finance and responsible investment, covering the Bank's core business, and responsible employer, responsible climate footprint and a decent bank, covering the Bank's own operations. The assessment shows that the issues regarding the standards ESRS E2, E3 and E4 are not essential.

The materiality assessment comprises the geographical areas in which the Bank operates. Danish conditions are assumed to be identical across the entire country whereas deviations relating to North German conditions are registered.

The Bank's most important value chain actors are included in the assessment. Their inclusion is mainly limited to the first layer of the value chain, with the exception of direct

General Information

requirements regarding the assessment of the next layer of the value chain (eg employees in the value chain).

In connection with the materiality assessment the Bank used material and data in selected focus areas that provide a more objective insight into the Bank's impacts, risks and opportunities. In order to assess the Bank's lending we used the latest CO2e figures for the Bank's lending compared with an overview of lending by customer segment and industry as well as internal analyses of ESG risks within the Bank's focus industries. For the assessment of the Bank's investments we conducted an impact analysis based on the UNEP FI Portfolio Impact Analysis Tool for Banks enriched with data from the Bank's investment pools. Sydbank's efforts to maximise energy efficiency and focus on reusing resources in its own operations have provided the Bank with considerable knowledge of and insight into the Bank's own impact on the environment.

In 2024 the Bank conducted a climate stress test for the first time of the physical risks and transition risks that can impact the Bank via its lending portfolio. The climate stress test involved corporate loans and mortgaged properties, which is considered to be a fair presentation of the most significant climate-related credit risks. The stress test was carried out according to the materiality assessment but the results of the climate stress test were used to validate the outcome of the materiality assessment and did not give cause for changes in the assessment. As for physical risks the stress test was performed on the basis of relevant risks with data from eg DMI (the Danish Meteorological Institute) and therefore it included flooding due to heavy rain and rising water levels. The IPCC scenario RCP8.5 was used here, which represents a "business as usual" emissions scenario. As regards transition risks the stress test was based on a scenario involving higher CO2 taxes, which is also representative of other types of transition risks. A "Divergent Net Zero scenario" from NGFS was used here, which is compatible with the goals of the Paris Agreement. It is Sydbank's ambition to enhance its efforts regarding climate stress testing on an ongoing basis. In 2024 efforts were made to define and incorporate short, medium and long time horizons in connection with further work regarding stress testing.

The identification and assessment of material impacts, risks and opportunities were carried out on the basis of the ESG topics listed in ESRS 1, AR 16. First the negative and positive impacts of each topic are identified and assessed. Business risks and opportunities are subsequently identified and assessed so that dependencies as a result of the Bank's impact may be included in the assessment of business risks and opportunities. The assessment is conducted by choosing between 5 descriptive answer options within each assessment parameter. The impact perspective was assessed on a gross basis, which means that impacts were assessed before mitigating actions, while the financial perspective was assessed on a net basis, which means that risks and opportunities were assessed after mitigating actions. The answers are converted to numerical values so that a score can be assigned to negative and positive impacts as well as risks and opportunities within an ESG topic. The materiality of a topic is then determined by the quantitative threshold, which will be exceeded if the score is equal to or higher than half of the maximum score, or by more qualitative considerations to help ensure a complete and comparable outcome of the materiality assessment.

As regards material ESG topics, the individual impacts, risks and opportunities on which the materiality of a topic is based are subsequently identified. The method used to assess risk is the same as that used in the Bank's other risk assessments in overall risk management.

Approval of materiality assessment

The process and method regarding the materiality assessment are agreed on an ongoing basis with the compliance committee, Internal Audit and the Board of Directors' Audit Committee.

The outcome of the Bank's materiality assessment, including the list of the Bank's most material impacts, risks and opportunities, is approved by the Bank's ESG forum.

The Group ESG department informs the Group Executive Management, the Audit Committee and the full Board of Directors about the Bank's material impacts, risks and opportunities after the annual materiality assessment has been approved by the Bank's ESG forum.

The processes and method regarding Sydbank's materiality assessment are reviewed and, if necessary, updated annually before the next reporting.

Stakeholder analysis

In order to validate the outcome of the materiality assessment Sydbank includes expectations of and recommendations from the Bank's principal stakeholders by means of a stakeholder analysis. The stakeholder analysis provides insights into the impacts, risks and opportunities that the Bank is expected to and is recommended to focus on. The material analysed is selected due to its scientific credibility.

The stakeholder analysis shows that stakeholders focus in particular on the Bank's impact on climate change via lending and investments (E), topics relating to the Bank's employees (S) as well as ethics, good governance and decency (G).

Principal stakeholders	Description of dialogue and collaboration	Purpose of dialogue and collaboration	Use of outcome
Customers	We monitor industry surveys of custo mer satisfaction and carry out our own surveys. Surveys of corporate clients' satisfaction are conducted annually by Aalund whereas surveys of Private Banking clients' satisfaction are carried out semi-annually in collaboration with EPSI. Retail clients' satisfaction is polled quarterly via the Bank's own own sur veys in collaboration with EPSI. In additi on the Bank monitors EPSI's annual industry survey of retail clients' satisfac tion.	Sydbank wishes to build long-term relationships with its customers and to be known for its value-adding advice.	The responsibility for the Bank's own cust omer satisfaction surveys lies with the divisions Corporate and Retail Clients & Private Banking. The surveys are reported to the Bank's management. The findings enable the Bank to monitor developments and act on the ongoing feedback from customers.
Investors and shareholders	Activities aimed at investors and share holders are communicated via company announcements, regular written and ele ctronic information and via an active and open dialogue with equity investors, analysts and providers of news about the Bank, including the media and press.	Sydbank will at all times make correct and full information about the Bank's circumstances available to equity mar ket stakeholders, also as regards the external ratings of the Bank, including ESG ratings. ESG ratings are included as a measurement point in the Bank's strategy.	Markets are given the possibility on an informed basis to value the Sydbank share and its future development. The dialogue enables the Bank to gain an insight into what is expected of us and we can act accordingly.
Employees	The Bank works continuously to be a workplace with a healthy corporate cul ture and a good and healthy physical and psychosocial work environment. Every year an employee engagement survey is carried out to gauge whether the Bank has a healthy culture and a good work environment.	Excellent and committed employees are important in order to ensure conti nued success and value creation for Sydbank and the Bank's customers.	The results of the employee engagement survey are presented to management and employees. On the basis of the findings, the Bank's management will determine whether measures should be implemen ted and follow-up activities in the indivi dual departments are agreed where justi fied by the survey.
Interest organisations, policymakers and authorities	Sydbank is a member of a number of interest organisations which safeguard the interests of the Bank and the sector in relation to policymakers and authoriti es. Sydbank is open and transparent and cooperates with public authorities.	Sydbank seeks to have a professional and ongoing dialogue with relevant interest organisations, policymakers and autho rities.	Communications from interest organisati ons, policymakers and authorities are reviewed in relevant internal fora, includ ing at meetings of the Board of Directors and the Group Executive Management. The collaboration with interest organisati ons enables the Bank, among other things, to contribute to legislation that can be managed effectively in practice and find solutions that contribute to society.
Local communities	Dialogue is a natural part of the Bank's wish to be an active player in the sur rounding community in which the Bank operates. Sydbank obtains knowledge of and discusses ongoing efforts and activi ties for the surrounding community in collaboration with for instance Sydbank's advisory boards, local networks and inte rest organisations.	Sydbank wishes to be an active player in the sur rounding community. We are conscious of the Bank's significance to society and of the impor tance that the Bank is strong and can be relied on – during times of pro sperity and times of	There is an interdependence between society and Sydbank. Society is dependent on banks' infrastructure, including finan cing and investment opportunities as well as advisory services and payments. Sydbank is dependent on active local com munities offering the potential to do busi ness and generate growth.

recession.

General Information

Sydbank has involved employees with relevant professional knowledge in the materiality assessment to ensure a true and fair assessment. In some instances the employees also acted as proxies for external stakeholders such as customers, suppliers and business partners. Sydbank will seek to achieve more direct involvement of external stakeholders.

Outcome

The outcome of Sydbank's materiality assessment for the 2024 financial year shows that the following reporting standards are significant:

ESRS E1 Climate change
ESRS E5 Resource use and circular economy
ESRS S1 Own workforce
ESRS S3 Affected communities
ESRS S4 Consumers & end-users
ESRS G1 Business conduct

The outcome consists solely of material impacts, the majority of which are actual material impacts. The Bank's material potential impacts are expected within a short time horizon. Risks and opportunities have been identified but are not

considered to be material. Optimal risk management is a part of the Bank's business model and therefore the Bank's identified risks are not material. As a result the Bank is currently not affected by material financial ESG effects. We are positive about the existing business opportunities and those that are expected to emerge as a result of the sustainable transition of society, for instance green finance.

Sydbank is well prepared for the future. The Bank is strong and well capitalised. Its lending portfolio is healthy and its compliance level is high. Sydbank will continue to run a decent bank. We will not compromise on our risk profile or business standards.

Continuous assessments and tests are carried out to ensure that the Bank will continue to be in a strong position. In 2024, in addition to climate stress testing, which will be integrated as a regular annual exercise, the Bank made calculations of the effect of CO2 taxes on the Bank's agricultural portfolio in connection with the green tripartite agreement. The Bank is considered to be well prepared to deal with climate impacts.

Outcome Material impacts, risks and opportunities	ESRS	Impact, risk or opportunity?	Positioning in value chain
Direct and indirect CO2e emissions from the Bank's own operations	E1 Climate change	Actual adverse impact	Own operations
Indirect CO2e emissions from the Bank's core business – companies and countries in our investment universe as well as the Bank's customers	E1 Climate change	Actual adverse impact	Downstream
Large share of corporate loans, including industries with a significant energy consumption and hence high CO2e emissions	E1 Climate change	Actual adverse impact	Downstream
Loan products that can support customers' green transition	E1 Climate change	Actual positive impact	Downstream
Resource use in own operations of IT hardware, office furniture and fittings, cars etc which are the Bank's primary tools	E5 Resource use and circular economy	Actual adverse impact	Own operations
Focus on recycling and reuse of the Bank's own resources	E5 Resource use and circular economy	Actual positive impact	Own operations and downstream
Good working conditions and collective agreement with staff benefits for all employees	S1 Own workforce	Actual positive impact	Own operations
In their jobs employees may be exposed to work related injuries, unpleasant customer experiences (especially in customer-facing functions) and unconscious discrimination	S1 Own workforce	Potential adverse impact	Own operations
Focus on well-being and security for employees to create a safe, healthy and inclusive workplace	S1 Own workforce	Actual positive impact	Own operations
The right to privacy of employees and customers can be infringed in the event of IT breaches or personal data breaches at the Bank	S1 Own workforce S4 Consumers & end-users	Potential adverse impact	Own operations
Focus on protecting employees' and customers' data and hence their right to privacy	S1 Own workforce S4 Consumers & end-users	Actual positive impact	Own operations
The Bank's digital tools, eg Mobilbank and Netbank, can be used for criminal purposes that can affect the Bank's customers	S4 Consumers & end-users	Potential adverse impact	Own operations
Focus on protecting customers and society against crime	S3 Affected communities S4 Consumers & end-users	Actual positive impact	Own operations
The Bank contributes to maintaining and strengthening the financial infrastructure in society	S3 Affected communities	Actual positive impact	Own operations
Focus on a healthy corporate culture that defines our conduct	G1 Business conduct	Actual positive impact	Own operations
Protection of whistleblowers in case of suspected wrongdoing	G1 Business conduct	Actual positive impact	Own operations
The possibility of corruption and bribery occurring at the Bank cannot be ruled out	G1 Business conduct	Potential adverse impact	Own operations

E – Environmental Information

Sydbank is an advisory and service undertaking and therefore the CO2e emissions from the Bank's own consumption and internal operations are minimal compared to the CO2e emissions from the Bank's core business, which consists of lending and investments.

Consequently a key element in relation to the Bank's overall impact is the green transition of customers. As a result business procedures and dialogue with customers are adjusted to create transparency and we make products and advice

available to support customers' transition. Naturally we also optimise processes driving the transition of the Bank's own operations. Sydbank's work on the green transition in its core business and own operations is described in this section but it is not formalised in a transition plan. At present we do not see the need for a transition plan as the work is being driven by the Bank's policies, business procedures and targets.

An overview of the Bank's environmental targets, including reduction targets, is found in the table below.

Environmental targets	Target	Base year	Reference value	Unit	Status in 2024
Responsible finance
Electricity and heat production	Reduction of 50% in 2030	2022	4.5	tCO2e/DKKm	Down 36.7%
Agriculture	Reduction of 40-50% in 2030	2022	41.0	tCO2e/DKKm	Up 9.6%
Transport by road	Reduction of 30% in 2030	2022	64.9	tCO2e/DKKm	Down 20.6%
Owner-occupied dwellings	Reduction of 65% in 2030	2022	1.7	tCO2e/DKKm	Down 43.3%
Private cars (EV loans)	EV loans will represent 55% of new car loans in 2030	-	-	The share of new car loans for EVs	EV loans represent 70.4% of new car loans
Green finance	Loans of DKK 10bn for green purposes in 2027	2020	0.0	DKKbn	DKK 8.1bn
Responsible investment
Shares and corporate bonds	Reduction of 25-35% in 2025 and 50-70% in 2030	2020	67.1	tCO2e/USDm	Down 57.5%
Responsible climate and environmental footprint
Own operations (scope 1 and 2)	Reduction of 75% in 2030	2019	2,712	tCO2e	Down 57.0%

Responsible finance

Through decency and systematic procedures Sydbank will ensure that it continues to be a well-run and solid bank with a responsible approach to providing finance to the Bank's customers. The Bank's sensible approach as regards lending supports a high credit quality. Sound advice and creditworthiness assessments must ensure that customers will be able to repay debt without being placed in an unsustainable financial situation.

Green finance

Sydbank wants to contribute to financing the green transition. Consequently the Bank issues green bonds enabling us to support customers' greater financing requirements in relation to their green transition. A transition that is instrumental in reducing customers' CO2e emissions.

Sydbank issued its third green bond in May 2024 and the Bank has now issued green bonds for a total of EUR 1.5bn. In connection with the green issuances Sydbank made a commitment whereby the proceeds from the individual issuance must be allocated to green finance within 36 months of the issuance. Sydbank reports once a year on the allocation of proceeds from the green bond issuances in an Impact and Allocation Report, which is available on the Bank's website.

Sydbank's Green Bond Framework was formulated in 2022 and defines what we consider to be green finance. The framework was updated in 2024 and comprises 3 green lending categories: renewable energy, green buildings and clean transportation. Sydbank offers 4 loan products to the Bank's corporate and retail clients that can be characterised as green finance in accordance with the framework: green loans and green bridging loans for the Bank's corporate

clients as well as energy loans to make homes more energy efficient and EV loans for the Bank's retail clients. Work to develop existing and new loan products for the Bank's customers is ongoing and we also continue to work on ESG training for advisers.

Sydbank has set a target that the Bank has provided loans of DKK 10bn for green purposes in the period 2020-2027. At year-end 2024 Sydbank's lending for green purposes totalled DKK 8.1bn.

Data quality and data availability are crucial elements in connection with responsible finance. Credit assessments must be made on the basis of accurate data, which is why we invest in and are constantly working on improving data collection from the Bank's customers. Identifying green finance requires information about the purpose of a loan and ongoing efforts are therefore made by the Bank to improve IT support in relation to collecting and registering ESG data.

ESG in credit evaluations

The integration of ESG in credit evaluations of the Bank's customers is anchored in the Bank's credit policy, which applies to the Bank's lending activities. The policy sets out guidelines for the approach regarding customers' environmental, social and governance issues and highlights that Sydbank should have a cautious approach to customers whose assets, business model or future earnings are particularly exposed to ESG risks.

ESG risks are an integrated element of the credit evaluation of the Bank's corporate clients – when the exposure is approved as well as at least once a year. The Bank gains insight into corporate clients' ESG risks on the basis of a question frame with ESG questions along with the Bank's industry knowledge and analyses. This helps the Bank to learn more about eg customers' CO2e emissions as well as social and governance aspects that are important competition param-

Green transition among the Bank's homeowners

Sydbank wants to support homeowners' green transition. In 2024 the Bank focused on talking with homeowners about transitioning to a greener heat source by being visible and present in the local community. The Bank has held local events for its retail clients and taken part in public meetings, fairs etc to discuss financing possibilities relating to being connected to district heating or other alternative greener sources of heat if district heating is not an option in the area in question. In addition discussions on financing options regarding the installation of district heating take place on a regular basis between the Bank's corporate account managers and district heating companies.

Sydbank's loan products to retail clients seek to make it attractive to optimise energy efficiency by offering loans at a lower rate of interest and lower set-up costs – so that customers save money and CO2e emissions are reduced. The Bank's energy loans can be used for instance to switch to a new heat source, for additional insulation and to change windows and doors. With the energy loan comes property advice from the Bank's business partner NRGi and retail clients are also offered professional energy advice, including an energy check-up and information on the possibilities of optimising energy efficiency, via the Bank's collaboration with Totalkredit. In 2024 the energy check-up was expanded to include the option of a climate check-up to provide customers with insight into how they can future-proof their homes against climate challenges such as rain, torrential rain, floods and rising water levels.

eters for the Bank's corporate clients. As regards the Bank's retail clients the assessment of ESG risks is predominantly included in relation to the valuation of real property by taking into account energy labelling and climate impact risks.

Sydbank has decided that some ESG issues are so serious that it will not provide finance to businesses that:

do not have measures in place to ensure safe handling of hazardous waste
do not have the necessary licences for activities requiring publicly issued environmental permits
do not observe human rights in accordance with the UN Universal Declaration of Human Rights
use child labour in violation of the UN Convention on the Rights of the Child

Reduction targets for the CO2e footprint of the Bank's lending

A significant share of the Bank's overall CO2e emissions originate from the Bank's loans. In order to lower CO2e emissions at the Bank as well as in society, Sydbank set a number of reduction targets in 2023 for its lending portfolio, comprising selected industries and areas in the Bank's lending portfolio: the industries electricity and heat production, agriculture and transport by road as well as owner-occupied dwellings and private cars.

E – Environmental Information

Agriculture

40-50% reduction in emission intensity of the agricultural sector from 2022 to 2030. The target covers loans to corporate clients with activities within crop production and livestock farming, plant propagation as well as services to the agricultural sector and processing after harvest. The reduction is calculated in tCO₂e/DKKm.

Reduction targets

Transport by road

30% reduction in emission intensity of the transport sector from 2022 to 2030. The target covers loans to corporate clients engaged in road transport and removal services. The reduction is calculated in tCO₂e/DKKm.

Electricity and heat production

50% reduction in emission intensity of electricity and heat production from 2022 to 2030. The target covers loans for electricity supply and district heating. The reduction is calculated in tCO₂e/DKKm.

Owner-occupied dwellings

65% reduction in emission intensity of owner-occupied dwellings from 2022 to 2030. The target covers loans for private owner-occupied dwellings. The reduction is calculated in tCO₂e/DKKm.

Private cars

55% of new car loans must be for EVs in 2030. The target covers loans for private cars. The reduction is calculated as the number of new EV loans.

Our ambition is for Sydbank's reduction targets to reflect the reality experienced by customers, and the targets have been determined based on our line of approach that we will support the green transition of our customers. It is our expectation that overall the Bank's customers will follow the general green transition in Denmark. Consequently Sydbank wishes to support this transition by providing finance to customers for a greener way or life or a more sustainable business model.

The industries and areas covered by the reduction targets have been selected on the basis of the composition of the Bank's lending portfolio and the credit policy's focus on customers who are particularly exposed to ESG risks. The industries and areas selected have the largest CO2e emissions in the lending portfolio and represent a significant share of the Bank's total loans and have attracted political attention.

The reduction targets reflect political targets and the Danish Energy Agency's climate projections and have been determined on the basis of sector expectations and political agreements aiming to ensure that Denmark succeeds in

reducing its CO2e emissions by 70% in 2030. The targets are based on regulation and new technological measures that are expected to support the green transition among customers but the Bank has no evidence that the targets are science based or are in accordance with the goals of the Paris Agreement, and the reduction targets have not been externally validated. Due to changes in Sydbank's lending book from year to year, the reduction targets are calculated as intensity targets (tCO2e/DKKm – lending) and not as absolute target figures. The Bank has chosen this method of calculation to ensure a fair basis of comparison of the development in the reduction targets from year to year.

In connection with its follow-up on the reduction targets, Sydbank has changed its baseline year from 2021 to 2022. The change is due to the fact that 2021 data is considered much more immature than data from 2022 and also there has been a change in the statements from Statistics Denmark. Therefore using 2022 as the baseline year provides a more accurate basis for future work in this regard. The reduction targets remain unchanged.

CO₂e footprint of loans	Loans (DKKm)	CO2e emissions (t) of loans	2024 CO2e footprint per DKK 1m loan	Loans (DKKm)	CO2e emissions (t) of loans	2023 CO2e footprint per DKK 1m loan
Retail – car	2,186	21,362	9.77	1,809	25,702	14.21
Retail – residential property	5,619	5,450	0.97	5,298	6,397	1.21
Total retail	7,805	26,811	3.44	7,107	32,099	4.52
Corporate – loans	59,250	374,621	6.32	53,108	412,939	7.78
Corporate – leasing	9,144	107,049	11.71	8,678	134,382	15.49
Total corporate	68,394	481,670	7.04	61,786	547,321	8.86
Loans – CO2e footprint can be calculated	76,199	508,482	6.67	68,893	579,420	8.41
Loans – CO2e footprint cannot be calculated	6,335	-	-	5,642	-	-
Total loans	82,534	-	-	74,535	-	-
Share of loans – CO2e footprint can be calculated (%)	92	-	-	92	-	-

2024 saw a favourable trend in the reduction targets concerning the Bank's retail clients as the emission intensity of owner-occupied dwellings went down and the target for private cars was already reached in 2024. The emission intensity of the transport sector as well as electricity and heat production declined and as a result the Bank is on track to reach the targets for these 2 industries. A rise in emission intensity was recorded within agriculture. The emission intensity of the 3 selected industries is determined on the basis of a sector average from Statistics Denmark. The trend in the reduction targets is therefore attributable to the overall development in the 3 industries in Denmark based on external factors beyond Sydbank's control. Even though the development is due to external factors, our efforts are focused on reducing the emission intensity of loans to our customers in the 3 industries. Furthermore ongoing efforts are made to improve data calculations so that sector averages are used to a lesser extent and instead we can gain an insight into the trend among customers.

CO2e footprint of the Bank's lending

Sydbank complies with the recommendations of the Forum for Sustainable Finance to calculate the CO2e footprint of the Bank's lending.

Corporate loans account for most of Sydbank's loans. Corporate loans are associated with substantially higher CO2e emissions per unit loaned compared to loans to retail clients. CO2e emissions from Sydbank's loans totalled 508,402 tonnes at 31 December 2024 and correspond to an emission intensity of 6.67 tonnes per DKK 1m.

The CO2e footprint of the Bank's total loans decreased from 2023 to 2024. The reduction was seen in the retail segment and the corporate segment. As for private cars the reduction

is attributable to a change in the composition of car loans where the share of EV loans continued to rise after the introduction of Sydbank's EV loans. The smaller CO2e footprint of the corporate segment is primarily due to a decline in the emission factors from Statistics Denmark.

Responsible investment

At Sydbank it is our wish that our investments create value for our customers. We also strive to invest responsibly and contribute to sustainable developments in society. We have therefore established an investment process to ensure that our investment decisions take into account all relevant risks, including sustainability risks.

Responsible investment and active ownership

Our process regarding responsible investment is anchored in active ownership, which we believe to be the best way to contribute to more sustainable developments in society. Active ownership also helps to ensure the best risk-adjusted return for our customers.

Sydbank's responsible investment and active ownership policy contains the Bank's overall principles for exercising active ownership, including in particular the concrete work with responsible investment and managing sustainability risks. Sustainability risks, including climate risks, are managed in the same way as financial risks in the investment process. In order to limit the impact of investments on the climate, we will advocate that our customers' funds are gradually invested in companies and activities that comply with the goals of the Paris Agreement and also the Bank has goals and initiatives to limit the CO2e footprint of the Bank's investments.

E – Environmental Information

Sustainability in investment situations

Sydbank's investment managers must be equipped in the best possible way to talk about sustainability in investment situations. Sustainability is a constantly evolving topic and therefore the Bank's investment managers were given the opportunity to receive additional ESG training in 2024. Transparency is a key element when sustainability is a component of the investment situation. In 2024 it became possible for the Bank's customers to see the percentage of sustainable investments in the Bank's investment pools.

Sydbank wishes to make a targeted effort as regards violations of widely recognised international conventions and norms. The aim is to influence the companies in the investment portfolio to act more responsibly thereby mitigating the sustainability risks of investments. The Bank screens companies in its investment portfolio on a continuing basis for violations of international norms focusing on the UN Global Compact's 10 principles. If we become aware of serious conditions indicating a potential violation of one or more of these principles, we will always engage with the company via our business partner. By joining forces with other investors in the engagement process we increase our chances of getting companies to address the points of criticism that have led them to be in conflict with one or more of the UN Global Compact principles.

Voting at companies' general meetings is an important element of our overall interaction with the companies in which we exercise active ownership because the managements of companies are often susceptible to the positions and demands of their owners. Sydbank's responsible investment and active ownership policy includes principles regarding voting in the active ownership and according to the policy the Bank will generally vote in favour of motions that encourage the management to promote the company's climate transition, including to reduce the company's environmental or social sustainability risks.

We are basically of the opinion that selling off polluting companies in strategically important industries, eg cement and steel, will not contribute effectively to the sustainable transition. However we are conscious that a tool such as active ownership in the form of dialogue and voting at general meetings can encourage companies to develop a more sustainable business model and for instance reduce their CO₂e emissions. Divestment may however be a possibility if a company does not wish to engage in dialogue or if the engagement process does not lead to the desired changes.

In some instances the exclusion of companies and countries may be a necessary consequence of ensuring a responsible investment process. Exclusion is used as regards companies that are considered to be incompatible with Sydbank's principles for responsible investment and active ownership. An

exclusion list stating the reasons for exclusion is available on the Bank's website. For instance companies with a turnover exceeding 5% from the production of thermal coal or oil sand, which are industries with a substantial CO2e footprint, are excluded from the Bank's investment universe.

Reduction targets for the CO2e footprint of the Bank's investments

CO2e emissions are the largest single negative impact related to the investment portfolio. As stated in the Bank's responsible investment and active ownership policy, the Bank will take responsibility for our shared future and will work towards customers' assets gradually being invested in companies and activities which comply with the goals of the Paris Agreement. The effect of the Bank's efforts concerning responsible investment and active ownership can primarily be measured in CO2e.

Sydbank has therefore set a reduction target for the investment portfolio of a 50-70% lower CO2e footprint in 2030 compared to 2020, including a subtarget of a 25-35% lower CO2e footprint of the investment portfolio in 2025. To ensure market conformity, Sydbank complies with the trade organisation the Danish Investment Association's climate targets for sustainable investments, which are based on national legislation, EU legislation and international standards and support the goals of the Paris Agreement. As a result the base year year-end 2020 is also considered to be representative of the sector as it was determined by the Danish Investment Association and was the first year when there was comprehensive data for the industry.

The reduction target covers investments in listed shares and corporate bonds in Sydbank's investment pools – asset classes that account for a substantial part of the Bank's total CO2e emissions. The reduction target includes a broad and diversified portfolio and consequently we expect that future

Status of target: Percentage change in emissions per million

developments in for instance regulation and technologies within individual countries or industries will not affect our ability to reduce CO2e emissions from the overall portfolio.

In addition to the reduction target, Sydbank works continuously to include more asset classes in the Bank's calculation of the CO2e footprint of investments. In 2024 investments in Danish mortgage bonds were included in the calculation of the CO2e footprint even though the asset class is not included in the reduction target.

Active ownership and screening help on an ongoing basis to promote the continuous reduction of CO2e, which is essential in order to meet the Bank's reduction target for investments. The development in the reduction target and in the Bank's CO2e emissions from investments are monitored by the Bank's Responsible Investment Committee quarterly. In addition the Bank monitors developments in measures and methods of calculation in the sector to ensure market conformity.

Data quality and underlying data are crucial elements in our responsible investment efforts. Including ESG in the investment process requires insight into and evaluation of data. As a result the Bank allocates resources to purchase data and systems as well as to process data so that it is used correctly.

CO2e footprint of the Bank's investments

Sydbank complies with the recommendations of the Forum for Sustainable Finance to calculate the CO₂e footprint of the Bank's investments. CO2e emissions from investments are included in the Bank's total CO2e accounts under scope 3, category 15, and are calculated on the basis of Finance Denmark's CO2 model for the financial sector and the prioritised list of data quality.

Ongoing efforts are made to improve data quality and underlying data across asset classes and increase the volume of assets for which a CO2e footprint can be calculated. The CO2e footprint related to investments in Danish mortgage bonds was calculated for the first time in 2024 and it is therefore included in the calculation. Danish mortgage bonds generally have a lower CO2e footprint per million

CO2e footprint of investments	2024	2023
Business volume (DKKbn)	22.91	19.17
CO2e emissions (tCO2e)	88,893	99,959
CO2e footprint per million USD invested (tCO2e/USDm)	27.94	35.19

USD invested than shares and corporate bonds. The inclusion of mortgage bonds has therefore resulted in a decline in the historical footprint per million USD invested and a rise in total CO2e emissions from investments as the total volume of the investment portfolio for which CO2e is calculated has gone up. To ensure comparability between the calculations from 2023 to 2024, the 2023 calculations have been recalculated to include Danish mortgage bonds.

In 2024 the CO2e footprint of the investment portfolio was smaller than that of 2023. The smaller CO2e footprint is predominantly attributable to changes in the geographical exposure of the portfolio composition and its exposure to various sectors. Furthermore rising financial markets and actual CO2e reductions in companies contribute to a smaller CO2e footprint of the investment portfolio. The trend in the CO2e footprint in 2024 emphasises that a number of external factors are beyond Sydbank's control. Despite these external factors targeted efforts are made to select companies with CO2e efficient business models or companies that have a significant efficiency potential in terms of their current CO2e emissions.

Responsible climate and environmental footprint

The climate impact from Sydbank's own operations is extremely limited compared to the impact from the Bank's core business – lending and investments. However, as we see it, work regarding the Bank's own footprint on the environment, including its climate footprint and the Bank's use of resources, is part of being a responsible bank – and therefore focus is on transitioning our own operations.

Sydbank's efforts regarding its own climate footprint are anchored in the Bank's code of conduct and its ESG and sustainability policy, stating that the Bank will be respectful of the environment in all aspects of its business and make a positive difference in order to reach its own, national and global climate goals. We optimise energy efficiency on an ongoing basis to reduce the Bank's energy consumption and high priority is given to ensuring transparent reporting of our consumption. Efforts to reduce the climate footprint of the Bank's own operations are operationalised in an internal business procedure focusing on energy optimisation and use of renewable energy sources whereas activities relating to the reuse and recycling of resources are not operationalised in internal business procedures as there is a need for flexibility and decisive action in a rapidly evolving field.

E – Environmental Information

Reduction target for CO2e emissions from own operations

For the purpose of complying with the Bank's code of conduct and its ESG and sustainability policy to make a positive difference to the climate and reach national and global climate goals, the Bank has set a reduction target for its own operations. The target is a 75% CO2e reduction from its own operations (scope 1 and scope 2) in 2030 compared to the CO2e emissions in 2019. The Bank's reduction target for its own operations covers direct emissions from properties owned or leased and transport in Sydbank's cars as well as indirect CO2e emissions from consumption of energy purchased that is used to produce electricity, district heating and district cooling – the Bank's scope 1 and 2 activities. The base year is 2019, which is considered to be a representative and normal year without impacts from large individual events.

The reduction target is determined on the basis of the effect of the Bank's projects to optimise energy efficiency and while considering our expectations of what is achievable. The Bank has no evidence that the reduction target is science based or externally validated but by having the target as regards its own operations the Bank contributes to Denmark reaching its 2030 goal as specified in the Danish Climate Act while working actively on the goals of the Paris Agreement.

Sydbank has focused on energy optimisation for a number of years and as a result a long line of measures have been implemented to help reduce the Bank's CO2e emissions. However, in order to achieve this goal, the Bank is dependent on factors beyond Sydbank's control, eg emission factors defined at national level.

The Bank's energy consumption

Sydbank's reduction targets require insight into the Bank's energy consumption. Since 2004 the Bank has used an automated energy management tool which monitors consumption on an hourly basis. Alarms are linked to the system that sends a warning if readings are constantly high or if there are variations in data. The tool enables the Bank to calculate its CO2e emissions according to the Greenhouse Gas Protocol.

Apart from one year Sydbank's consumption has been on the decline since 2018. The reduction is primarily attributable to energy optimisation by means of a number of energy-related initiatives.

Energy consumption and energy mix
(MWh)		2024	2023
Fossil energy consumption
Fuel consumption from crude oil and petroleum products	1,220	1,384
Fuel consumption from natural gas	62	74
Consumption of purchased or acquired
fossil sources	electricity, heat, steam and cooling from		1,835
Total fossil energy consumption		3,148	3,293
Share of fossil sources of total energy consumption (%)	25	25
Renewable energy consumption
Fuel consumption from renewable energy sources, including biomass		181	197
Consumption of purchased or acquired electricity, heat, steam and cooling from renewable energy sources	9,057	9,075
Consumption of self-generated non fuel renewable energy	378	382
Total renewable energy consumption		9,616	9,654
Share of renewable sources of total

energy consumption (%)		75	75
Total energy consumption		12,764	12,947
CO2e accounts (tonnes)	2024	2023	Index
Scope 1 GHG emissions
Gross scope 1 GHG emissions	322	371	87
Scope 2 GHG emissions
Gross scope 2 GHG emissions – location-based	850	1,138	75
Gross scope 2 GHG emissions – market-based	371	391	95
Significant scope 3 GHG emissions
13 Downstream leased assets – leasing	107,049	134,382	80
15 Investments – Bankdata	115	126	91
15 Investments – loans	401,433	445,038	90
15 Investments – investments	88,893	99,959	89
Total GHG emissions
Total GHG emissions – location-based	598,662	681,014	88

The Bank's total CO2e emissions

High priority is given to transparent reporting of Sydbank's CO2e emissions and consequently its CO2e accounts are based on the Greenhouse Gas Protocol.

In terms of the Bank's own operations Sydbank's CO₂e accounts for 2024 show total emissions of 1,172 tonnes CO2e (2023: 1,509 tonnes CO₂e) based on a location-based calculation. In 2024 CO2e emissions from own operations (scope 1 and scope 2) declined by 22.3% compared to the previous year (2023: decline of 6.9%), which was attributable in part to developments in emission factors, including the possibility to use municipal emission factors.

The Bank's own scope 1 and scope 2 emissions constitute less than 0.2% of total GHG emissions. Consequently the Bank's core business activities, including leasing, lending and investments, are significant in terms of ESG efforts.

The Bank's total GHG emissions are equivalent to an emission intensity of 88.0 tCO2e/DKKm (location-based) and 87.9 tCO2e/DKKm (market-based).

Energy optimisation and renewable energy sources

Energy optimisation is a necessary tool to lower the Bank's actual consumption. The Bank's activities to optimise energy efficiency in its own operations are an ongoing process and may be divided into 3 main areas: lowering the fossil fuel consumption of the Bank's cars, enhancing the efficiency of heating/cooling premises and increasing the efficiency of electricity consumption.

In 2024 the Bank continued to replace its light sources with sensor activated LED lighting. The total area replaced with sensor activated LED lighting represents about 99% (2023: 72%) of the Bank's building stock and therefore we have almost finished replacing the lights throughout the Bank. Furthermore the Bank focused on structuring its energy measures in a hot spot analysis in 2024 to help the Bank with the difficult task of measuring and assessing the effects of efforts relating to energy optimisation and renewable energy sources.

Energy optimisation requires capital and must therefore be included in the Bank's budget planning. The Bank allocates a proportion of its budget to activities to optimise energy efficiency based on the necessary need.

The use of renewable energy sources is important to ensure that Sydbank can meet the reduction target for its own operations. Sydbank has set up solar cell systems for instance at the Bank's head office in Aabenraa as well as in Svendborg, Næstved, Padborg, Esbjerg and Slagelse. In 2024 electricity

generated from the solar cell systems represented 7.8% (2023: 7.5%) of Sydbank's total power consumption.

Sydbank does not regard climate compensation as a first choice. First and foremost the Bank strives to reduce its emissions as much as possible by means of measures that reduce actual consumption. So carbon offsetting is not a long-term solution but an existing alternative aid. Sydbank buys electricity generated by Danish wind turbines to offset its use of conventional power and to promote the use of renewable wind energy in Denmark.

Reuse and recycling of the Bank's resources

Sydbank focuses on using its own resources, in particular reusing and recycling resources, for instance reuse of IT hardware, office furniture and fittings and cars as well as reuse and recycling of building materials in connection with new builds or renovation of the building stock.

The Bank is an advisory and service undertaking and therefore IT hardware and office furniture and fittings are its primary tools. To the extent possible we attempt to give new life to surplus IT hardware, office furniture and fittings and cars to ensure that the lifespan of resources and products is extended and used as much as possible. It may be necessary to restore surplus office furniture and fittings before reuse. If restoration is not possible the Bank will make sure that the item in question is sold on or as a last resort disposed of according to current regulations for waste management. Sydbank collaborates with IT company Codeex to reuse and sell on computers and screens when this equipment can no longer be used at the Bank. Naturally all data is deleted from the computers before being handed over. Cars no longer in the Bank's service are sold on to the highest bidder among the Bank's employees and external parties.

Sydbank carries out renovations or rebuilds of the existing building stock as well as new builds according to Danish building legislation. The Bank's construction plans are in the process of being updated and, in addition to determining the general requirements and wishes for building projects, they will contain environmental requirements regarding building projects, including requirements concerning subcontractors on the reuse, recycling or disposal of building components. Sydbank strives to ensure that building projects are carried out in accordance with the EU Taxonomy requirements regarding green buildings.

The Bank has not set targets for its efforts concerning the reuse and recycling of the Bank's resources as it is an ongoing process. Sydbank does however measure the efficiency of reusing IT hardware and receives statements of reduced CO2e emissions from the Bank's supplier.

E – Environmental Information

Data quality score of loans and investments (%)	Score 1	Score 2	Score 3	Score 4	Score 5	Weighted data quality score
Retail – residential property	-	-	52.3	38.2	9.5	3.57
Retail – car	-	-	-	100	-	4.00
Corporate – loans	0.5	-	-	78.7	20.8	4.19
Corporate – leasing	0.3			88.8	10.9	4.10
Total loans	0.5	-	3.9	77.5	18.2	4.13
Investments	-	62.4	13.2	18.7	5.7	2.68

Accounting policies – environmental information

Data quality in core business

Third party data is used when Sydbank calculates its CO2e footprint of the Bank's core business and consequently it is especially relevant for the Bank to evaluate the quality of this data. The situation is different as regards calculations of the CO2e emissions of Sydbank's own operations where the Bank uses its own data.

It is Sydbank's wish that the financing of and investment in a sustainable transition occur on an informed basis. Constant efforts are therefore made to strengthen data quality.

Sydbank's reporting of the CO2e footprint of the Bank's lending and investments is based on the latest version of Finance Denmark's CO2 model for the financial sector. Finance Denmark's CO2 model uses a prioritised list of data quality based on the Partnership for Carbon Accounting Financials (PCAF). Sydbank always uses the best available data based on the prioritised list in the CO2 model.

The data quality scores of data on which the CO2e footprint is based are shown in the table above. 1 is the highest score (actual emissions are known, eg data is reported directly from the third party) and 5 is the lowest score (emissions are based exclusively on estimates).

Accounting policies – responsible finance

The Bank's CO2e emissions from lending are included in the Bank's total CO2e accounts under scope 3 and are calculated on the basis of Finance Denmark's CO2 model for the financial sector and the prioritised list of data quality. In 2024 the CO2e footprint of the Bank's lending was calculated for the fourth time.

The categories in Finance Denmark's CO2 model do not cover all the Bank's loans and therefore, combined with data limitations, the CO2e footprint of some of the loans cannot be calculated. As a result the share of Sydbank's loans for which it is not possible to calculate the CO2e footprint is calculated separately.

The CO2e footprint is calculated as regards loans to the Bank's corporate clients, leasing, car loans to retail clients, and home loans. Since Sydbank acquired Coop Bank in 2024, the calculation includes the CO2e footprint of Coop Bank's lending. However the inclusion of Coop Bank has not resulted in any significant changes in the total CO2e footprint.

Corporate

The CO2e footprint of corporate loans is calculated according to the prioritised list in Finance Denmark's CO2 model and the CO2e footprint is calculated for each corporate client with a registered industry code. The calculations are based on available data.

The calculation of the CO2e footprint of corporate loans primarily depends on the composition of loans and the industry averages prepared by Statistics Denmark. Emission factors declined in 2024 and Statistics Denmark has made a minor change in the method of calculation, which has meant that Statistics Denmark has recalculated emission factors from previous years. As a result Sydbank has recalculated the CO2e footprint of corporate loans for 2023.

Leasing

In compliance with the GHG Protocol the CO2e footprint of the Bank's leasing is calculated separately from the Bank's other lending. The Bank does not have data for the CO2e footprint of the individual lease assets. The footprint is therefore computed in the same manner as for the remaining corporate loans and is calculated according to the prioritised list in Finance Denmark's CO2 model and on the basis of the relevant industry code. See the explanation under 'Corporate' above.

Private cars

The CO2e footprint of cars is calculated on the basis of the car's engine/motor in cases where Sydbank holds a charge on the car. If Sydbank does not hold a charge on the car, an average of Denmark's motor vehicles from the Danish Center for Environment and Energy (DCE) is used.

The CO2e footprint is calculated on the basis of the size of the loan at loan origination and the car's market value. In cases where Sydbank does not hold a charge on the car the market value of the car cannot be calculated. In such cases the market value is conservatively calculated as 125% of the size of the loan at loan origination as retail clients must pay at least 20% of the car's market value.

Residential properties

The CO2e footprint of residential properties is calculated according to the latest version of the prioritised list in Finance Denmark's CO2 model. The CO2e footprint is calculated on the basis of Sydbank's own data and estimates used as regards residential properties' emissions provided by e-nettet.

Share of loans for which the CO2e footprint cannot be calculated

The CO2e footprint is calculated as regards all corporate loans with a registered industry code. We are unable to calculate the CO2e footprint of the share of retail client loans used for cooperative housing, residential properties outside Denmark, cars not registered in Denmark and retail client loans that are not for cars, residential properties or that are secured on real estate. Loans for which the CO2e footprint is not calculated represent DKK 6,335m. Not calculating the CO2e footprint of the Bank's total lending is in keeping with Finance Denmark's CO2 model as it is not possible to calculate the CO2e footprint of all asset classes. In accordance with the recommendations of Finance Denmark, the Bank discloses for which asset classes calculations have been made.

Accounting policies – responsible investment

The CO2e footprint of the Bank's investment portfolio is calculated on the basis of the latest version of Finance Denmark's CO2 model for the financial sector and with available data at the top of the prioritised list of data quality prepared by Finance Denmark on the basis of the Partnership for Carbon Accounting Financials. Finance Denmark's CO2 model was chosen to support comparability across the sector.

In 2024 it became possible to include the asset class Danish mortgage bonds in the calculation of CO2e emissions from the Bank's investments. In compliance with CSRD and to ensure comparability between 2023 and 2024, the CO2e footprint for 2023 has been recalculated so as to include Danish mortgage bonds in the calculation for 2023. The recalculation is important for comparability as the inclusion of a new asset class increases the share of investments for which the CO2e footprint is calculated and results in a rise in total CO2e emissions from investments. However the CO2e footprint per million USD invested (tCO2e/USDm) can go either way depending on the characteristics of the asset class.

The inclusion of Danish mortgage bonds has resulted in an overall decline in the footprint per million USD invested (tCO2e/USDm).

Our investments in shares, corporate bonds and Danish mortgage bonds that are part of Sydbank's total pooled plans are included in the calculation of CO2e emissions from investments. The calculations include our direct investments and investments made via index funds and ETFs. Our investments in ship finance, government bonds and alternatives are not included in the calculations. The CO2e footprint of the investment portfolio is a snapshot at the end of the accounting period. The basis of calculation has been aligned with the financial statement of assets related to the pooled plans for which a CO2e footprint can be calculated.

According to Finance Denmark's CO2 model, CO2e emissions from shares and corporate bonds must be calculated according to our ownership interests in individual companies on the basis of Enterprise Value Including Cash (EVIC). This ensures that total CO2e emissions are distributed proportionally between equity investors and debt investors in the individual company. Danish mortgage bonds must be calculated according to our ownership interests in individual issuances on the basis of the total CO2e emissions of the issuance.

CO2e data from our data providers MSCI ESG Research and Scanrate is used to calculate the CO2e footprint of investments. In the calculation of the CO2e emissions for 2024, CO2e data is available for 94.3% of the 85.9% of the investment portfolio for which CO2e emissions can be calculated. Data coverage is set at 100% by scaling the known CO2e emissions in the individual asset classes.

Accounting policies – responsible climate and environmental footprint

The Bank's energy consumption and total CO2e emissions (except for leasing, loans and investments) concern the Bank's own operations.

Consumption comprises Sydbank's head office as well as branches owned or leased by Sydbank and discontinued branches, which are properties or sites sold by the Bank or no longer leased by the Bank. In addition consumption relating to Coop Bank A/S is included. Consumption is included until the properties are no longer leased or sold. Electricity consumption at sites with ATMs that are not associated with a branch is not included since consumption is less than 1% of total electricity consumption. Holiday homes and apartments are not included as consumption is not considered to be business-related.

E – Environmental Information

Fossil fuel consumption

Sydbank collects data on its consumption of petrol and diesel from the Bank's fuel suppliers. Charging of EVs made available to employees as part of their salary package was reported for the first time in connection with the 2022 financial year.

Renewable energy consumption

The share of biogas in the Danish natural gas network from Evida is included in renewable energy consumption. We have entered into an agreement to purchase biogas for the Bank's branches in Juelsminde and Køge.

Renewable energy relating to electricity is calculated on the basis of purchased wind turbine electricity and electricity produced by the Bank's solar cells. We receive certificates showing that the electricity purchased is based on renewable energy.

The renewable energy share relating to district heating consumption is based on calculations in accordance with the energy statistics of the Danish Energy Agency.

Method of calculation

Sydbank prepares its CO₂e accounts regarding scope 1 and scope 2 in accordance with the guidelines of the Greenhouse Gas Protocol. The CO2e accounts are made up according to a location-based method. In addition scope 2 is calculated according to a market-based method.

GHG emissions are calculated by multiplying energy consumption by an emission factor. The Bank uses the most recently published emission factors from national authorities, with the exception of petrol and diesel where the Bank uses emission factors from the Department for Environment, Foods & Rural Affairs (DEFRA). Energy consumption consists of fuel for cars, natural gas, biogas, electricity and district heating.

Scope 1 emissions comprise direct emissions from sources owned or controlled by Sydbank, eg emissions from transport in the Bank's cars.

Data on fuel consumption and charging of EVs at external charging stations is collected from the Bank's fuel suppliers.

Scope 2 emissions consist of indirect emissions from energy purchased by Sydbank from a third party for its own consumption, ie electricity, district heating and district cooling. The difference between the location-based calculation and the market-based calculation of CO2e emissions primarily

reflects the fact that Sydbank has entered into an agreement with the Bank's electricity supplier to purchase electricity from renewable energy sources, which is included in the market-based calculation.

Consumption meters in properties are used to read the usage of electricity and heating. A small percentage of the consumption is estimated.

Scope 3 emissions comprise indirect emissions not deriving from sources owned directly by Sydbank but deriving from the Bank's activities. Scope 3 emissions are divided into 15 categories. In the Bank's CO2e accounts the following categories are included: category 13 in relation to leasing and category 15 in relation to the Bank's lending and investments as well as indirect energy consumption from Bankdata.

Indirect energy consumption from Bankdata is included according to Sydbank's ownership interest and is estimated on the basis of information from Bankdata about electricity and heat consumption.

CO2e emissions from lending, leasing and investments account for the majority of Sydbank's scope 3 emissions. The method of calculation for lending, leasing and investments is described in the paragraphs on accounting policies relating to responsible finance and responsible investment.

Scope 3 categories 1-12 and 14 are not included in the Bank's CO2e accounts as, taken as a whole, the categories are not of significance to Sydbank. The Bank's emission intensity of total GHG emissions is calculated by dividing the Bank's total GHG emissions (location-based and market-based) by the Bank's net interest and fee income stated in the financial statements.

Reporting under EU Taxonomy

Sydbank's reporting under Article 8 of the EU Taxonomy Regulation is found on page 160.

S – Social Information

Sydbank focuses on social issues with respect to employees, customers and society at large. The Bank's impact on social issues concerning customers and society is managed as an ongoing process in several of the Bank's areas where the effectiveness of policies and goals are constantly monitored and tested and as a result the Bank has not set specific targets for the impact. Employee engagement is very important to employees and the Bank. Consequently the Bank has set a target that employee engagement will be in the top quartile compared to the financial sector in Denmark. The target is followed up on annually.

Dialogue with customers and society

Sydbank bases its decisions on dialogue with key stakeholders, including the Bank's customers. The Bank's stakeholder policy sets out the general guidelines for how we aim to maintain and develop positive and value-creating relationships with the Bank's stakeholders, including customers and society at large.

Dialogue is a natural part of the Bank's wish to be an active player in the local communities in which the Bank operates and in the public debate. Sydbank obtains knowledge of and discusses ongoing efforts and activities in the surrounding community in collaboration with for instance the interest organisation Finance Denmark as well as Sydbank's advisory boards, where members are required to have a connection to the local area and act as sparring partners for the regional management. Finance Denmark publishes analyses and reports regularly focusing on documenting and raising awareness of how the financial sector interacts with the rest of society. Sydbank's CEO sits on the board of directors of Finance Denmark.

At Sydbank we make a great effort to listen and offer advice based on customers' wishes, plans and requirements. The Bank's customers are therefore always welcome to contact their adviser or their local branch management if they are not happy with the service they have received. The Bank's customers can also submit a complaint to the complaints officer, the Head of Legal Department. The Bank processes complaints from current and former customers promptly and properly. Retail clients can also complain to the Danish Financial Complaint Board and via the EU Commission's online complaints portal. Complaints are included in the quarterly reporting of the Bank's operational risks, which are reviewed by the Group Executive Management, the Risk Committee of the Board of Directors and the Board of Directors.

If customers or society have general concerns or needs, they may be communicated to the Bank directly via telephone or email. We have set up mandatory grievance mechanisms for the Bank's stakeholders, including a whistleblower

scheme, and we expect from our business partners that they comply with current legislation, including the mandatory grievance mechanisms. The Bank is contacted via the mandatory grievance mechanisms, which indicates that society knows about and trusts these mechanisms.

Human rights

All persons must be treated with respect and decency regardless of whether we do business with or decline business with customers or business associates. This applies to employees, customers, suppliers, business partners and other relationships. Sydbank respects and complies with human rights. The Bank does not accept discrimination on the grounds of gender, ethnic background, sexual orientation, religion or age, and harassment and bullying are not tolerated. This is stated in the Bank's code of conduct and its ESG and sustainability policy.

As regards the 2024 financial year the Bank is not aware of having contributed to serious violations of human rights and events in relation to employees, customers or society in general.

Data processing and information security

Digitization and IT represent a significant part of Sydbank's business model. We work continuously to ensure compliance with applicable rules on information security and data protection. Our customers and employees must be able to trust that data and information are processed in a confidential, secure and safe manner. The Bank invests in technology and infrastructure to facilitate the implementation of effective solutions, for instance to protect privacy. Data processing and storage of personal data are a prerequisite for Sydbank's banking operations and processing of employee data. Data processing poses a risk of violation of privacy and therefore the Bank has several measures in place to ensure correct data processing and IT protection so that the Bank's business adapts dynamically to customers and an increasingly digitized everyday life. Given the underlying actions and obligations, Sydbank's policies concerning personal data and IT security will ensure correct data processing and information security.

Data protection

Sydbank's GDPR department analyses the Bank's processing activities to continuously improve and optimise processes and thereby avoid errors. The department is responsible for day-to-day operations, including to protect and respect the rights of our customers. Information on how Sydbank processes personal data is available at sydbank.dk/ persondata.

S – Social Information

Sydbank has appointed a Data Protection Officer (DPO), who is part of the division Compliance. The tasks of the DPO are to advise Sydbank on personal data matters as well as monitor and assess whether the Bank complies with the rules governing personal data. In addition the DPO serves as the point of contact for the Danish Data Protection Agency as well as the persons about whom Sydbank has registered information. Sydbank's DPO reports to the Board of Directors and Group Executive Management quarterly. The reports and the current risk scenario in relation to the General Data Protection Regulation are discussed by the compliance committee so that the Bank's measures can be improved. The Danish Data Protection Agency oversees Sydbank's measures to reduce the number of personal data breaches. Most recently in 2023 the Danish Data Protection Agency found that the Bank's measures in relation to data breaches are appropriate and in accordance with the General Data Protection Regulation.

IT security

Sydbank's approach to cyber security and information security is an approach ensuring that we comply with legislation and implement recommended measures. Sydbank takes part in the Danish central bank's Threat Intelligence Based Ethical Red Teaming (TIBER-DK), which is a programme to test the critical parts of the financial infrastructure. TIB-ER-DK aims to increase the cyber resilience of the financial sector and promote financial stability. Furthermore operational cyber security is strengthened on a continuing basis where focus is on preventing hostile persons from accessing our systems. The most important risks concerning IT breakdowns and cybercrime are minimised via compliance with Sydbank's internal policies in this area and Sydbank's IT security policy set outs the responsibility of the Bank and its employees as regards IT security.

In order to be well prepared in case of violations of customers' privacy, Sydbank has operational contingency plans in place to ensure that any breaches of IT security or personal data security are handled promptly, effectively and correctly. Via its participation in the Danish central bank's initiative the Financial Sector forum for Operational Resilience (FSOR), the Bank has a crisis management plan for cyberattacks at sector level which supplements the Bank's own contingency plans.

Any breaches of IT security are reported to the Bank's IT risk committee and subsequently to the Board of Directors. Lessons learned from the incident together with regular testing are used to improve the technical and organisational security measures.

Data ethics policy

Sydbank's data ethics policy describes Sydbank's approach to sound data ethics and the principles applying to how Sydbank processes data in an ethically responsible and transparent manner and reduces discrimination in relation to customers and employees. The day-to-day activities concerning data ethics are carried out in the Bank's business units and business areas, and activities concerning data ethics are operationalised through internal policies and business procedures. We make sure that our data processing is improved on an ongoing basis and we also collaborate with the relevant authorities within this area.

Sydbank is subject to the General Data Protection Regulation and consequently the Bank may not without a legal basis collect information on racial or ethnic origin, colour, sexual orientation, gender identity, disability, religion, political opinion, national extraction or social origin.

Strengthening of digital infrastructure

Sydbank is one of Denmark's largest banks and is a systemically important financial institution (SIFI), which is indicative of the Bank's importance to the financial infrastructure of Danish society. Sydbank has allocated considerable resources to its efforts to ensure financial stability and maintain a secure and robust payment infrastructure but the Bank cannot succeed alone. As a result we depend on the collaboration with the financial sector and the authorities. As a member of Finance Denmark, Sydbank contributes along with the country's other banks to promoting and strengthening the digital infrastructure in Denmark. Most recently banks have invested a total of DKK 1 billion in MitID for the benefit of all Danish citizens. Sydbank is also a member of the steering committee under the supervision of Finance Denmark's board of directors on the sector programme for the payment infrastructure of the future, which aims to ensure the continued modernisation of the Danish financial payment infrastructure and clearing.

Fighting crime

Banks help to secure and maintain a safe and robust payment infrastructure in Denmark, which is why Sydbank has a fraud department that monitors and stops suspicious transactions, processes cases involving online banking and card misuse and provides information in connection with cases regarding fraud and other criminal activity.

Money laundering and terrorist financing

Sydbank monitors transactions in its efforts to identify transactions related to money laundering and terrorist financing that may pose a threat to financial stability in society. In addition foreign transactions are screened against existing EU, UN, OFSI and OFAC sanctions lists. The Bank's policy on money laundering and terrorist financing as well as its other activities in this area are described in more detail in section G – Business Conduct.

Sydbank's compliance officer must oversee and assess whether the Bank's measures in relation to money laundering are efficient and the Bank's Internal Audit department must oversee whether the measures are organised and function satisfactorily.

Sydbank participates in a Danish information and intelligence network ODIN, which is a collaboration between several public authorities and private actors covered by the Danish Money Laundering Act. ODIN seeks to prevent and combat serious and complex money laundering, terrorist financing and remote abuse. The collaboration enhances the efforts by authorities and the Bank to combat financial crime and organised crime.

Efforts to combat IT fraud

IT fraudsters exploit every opportunity to trick money out of Sydbank's customers and this is why considerable efforts are made to protect customers and society from IT fraudsters. In the media as well as on our own digital channels and platforms, information on the risk of fraud is provided on an ongoing basis and advice is offered on how to avoid fraud. In 2023 Sydbank designed the tool sikkerklikker.dk to better equip customers and the general public against IT fraud. Sydbank organises "Stop svindlerne" (Stop the fraudsters) events regularly where participants can learn how to protect themselves against financial fraud.

Focus on digital fraud during Money Week

Learning about money is important at any age. This is why we participate in Money Week organised by the interest organisation Finance Denmark. During this week employees from Sydbank visit schools throughout the country to teach classes in financial literacy. In 2024 the classes also focused on digital fraud, security and money laundering.

In addition Sydbank is a member of Finance Denmark's Fraud Task Force, which aims to find solutions to get a step ahead in the fight against the widespread crime and to better prepare society to resist it. The task force's activities took place throughout 2024.

Consumer protection and product management

Sydbank strives to ensure that its customers make decisions on an informed basis and are afforded the protection they are entitled to as consumers. Based on the Bank's knowledge of a customer's finances, proactive efforts are made to communicate relevant and beneficial products to customers. Sydbank has a number of policies to ensure that all the Bank's customers are treated properly in terms of the products and services offered by the Bank. Consumer protection elements are incorporated in the Bank's policies and procedures. Sydbank builds on relationships between people and in this context trust plays a major role. This is why the Bank has product approval procedures and product governance measures so that we do not recommend problematic products to our customers. Continuous training and tests in product knowledge help to support the measures in this area.

The Group Executive Management approves all new products and significant changes to existing products in compliance with legislation. The basis for the approval is a description of the product and its characteristics accompanied by a risk assessment prepared by the business units Compliance and Risk as well as other relevant parties. If the risk assessment so requires, any necessary adjustments are made before the product is launched. The Bank's retail products, including deposit and loan products, are subject to continuous monitoring to ensure follow-up on developments in product characteristics and distribution to customers.

Sydbank is subject to MiFID II's product governance rules. This means that the investment products offered by the Bank must have a defined and specific target group. Ongoing internal controls and monitoring are carried out by the Bank's product management committee and aim to ensure that the Bank offers the right products to the right target groups and that the products continue to meet customers' requirements. If a product no longer meets customers' wishes or requirements, necessary measures are implemented.

Responsible employer

Sydbank seeks to offer its employees a healthy and attractive work environment as well as working conditions that allow for professional skills development and further training.

Dialogue with employees

Excellent and committed employees are the Bank's most important asset. Therefore employees are asked about their

S – Social Information

Employees	Male	Female	Other	N/A	Total
Number of employees (number of persons/FTE)	1,084/1,077	1,060/1,010	0	0	2,144/2,087
Number of permanent staff (number of persons/FTE)	1,074/1,068	1,041/994	0	0	2,115/2,062
Number of temporary staff (number of persons/FTE)	9/9	19/16	0	0	28/25
Number of non-guaranteed hours staff (number of persons)	96	89	0	0	185
Employee turnover rate
Number of staff who have resigned (FTE)					273
Employee turnover rate (%)					13.1

engagement and job satisfaction in an engagement survey every year. A comprehensive survey is conducted every other year and smaller surveys are carried out in the years when the comprehensive survey is not carried out. The surveys help us to evolve as a workplace. We will continue to work on maintaining the high level of employee engagement and therefore Sydbank has set a target for its employee engagement to be in the top quartile compared with the financial sector in Denmark in the year in question. Since the target has been approved by the Board of Directors employees have been indirectly involved in setting the target via the board members who are elected by the employees. If the employee engagement survey shows that there is scope for improvement actions will be formulated to address the elements of improvement, which managers and HR will follow up on.

Sydbank engages in dialogue with employees via the board members elected by the employees and the Bank's works council. The works council consists of 3 representatives from management and 4 employee representatives. The

Employee engagement – rating on a scale from 1 to 100

Bank's CEO chairs the works council and the 4 employee representatives are appointed by Financial Services Union in Denmark, Sydbank Kreds. The works council holds 6 ordinary meetings annually as well as extraordinary meetings as and when needed. The chairman of the Board of Directors and the chairman of the works council ensure the involvement of employees in relevant decision-making processes. Sydbank examines and assesses on an ongoing basis the effectiveness of measures and initiatives to guarantee good conditions for employees. Therefore HR gathers feedback from employees at regular intervals via evaluations from immediate superiors as well as the annual employee engagement survey. In addition key indicators can help to measure the effectiveness of measures and initiatives, for instance absence due to sickness, employee engagement scores and productivity. The key indicators are compared to industry standards to identify areas with potential for improvement and to understand the Bank's performance relative to comparable banks. Costs associated with measures and initiatives are reviewed to ensure that they deliver value to employees as well as the Bank as a whole. The works council considers on an ongoing basis whether measures etc should be initiated in light of the feedback collected and the key indicators.

Sydbank trains managers and partners from HR to deal with concerns and issues voiced by employees proactively and at an early stage, which results in a very low number of reported complaints and concerns. The Bank received no complaints regarding discrimination in 2024.

Well-being and security for employees

Sydbank believes that a proactive approach is crucial to ensure that employees can carry out their work safely and securely every day. The Bank allocates considerable staff resources to identify, monitor and address significant impacts in order to ensure a safe and secure work environment.

The Bank has written and implemented a health and safety manual establishing guidelines, procedures and best practice for workplace health and safety with minimal risks of physical accidents. The manual serves as a valuable tool to ensure that the work environment complies with regulatory requirements and internal standards. The Bank's health and

safety organisation comprises all employees and contains procedures to identify, assess and manage risks related to work accidents, and the Bank has clear lines of responsibility and reporting mechanisms to ensure effective and efficient management of safety conditions and ongoing improvement of the work environment. Furthermore priority is given to preventing accidents at work by the Bank's health and safety committee by means of continuous training, risk awareness and ongoing evaluation of the Bank's health and

Work-related injuries	2024
Unpleasant customer experiences	16
Work-related injuries	10

safety practice.

Sydbank's employees are primarily office workers and consequently there is minimal risk of work-related injuries.

Sydbank is under an obligation to conduct workplace risk assessments and has an internal process for this to ensure the best possible conditions to avoid work-related injuries. In addition the health and safety manual contains a description of various aids for employees with special needs. Aids include system support for people with dyslexia, special chairs/stools, screen protection glasses, special lighting, special mice and special screens.

Grievance mechanisms as well as ongoing updating and follow-up of the Bank's policies and business procedures seek to ensure the prevention of discrimination and mitigating measures in this regard. However the possibility remains that unacceptable behaviour can occur. Unfortunately conflicts and unpleasant confrontations occur occasionally between employees and customers whose expectations have not been met. These confrontations can affect employees' physical and emotional well-being – in some instances so severely that the consequences are considered a work-related injury. Unpleasant customer experiences may occur physically and digitally and are typically individual concrete cases. From the reports received the Bank has learnt that customer-facing functions are at greater risk of being exposed to unpleasant customer experiences. Special counselling and support are therefore offered to employees exposed to psychological pressure in customer-facing functions. In 2024 an occupational psychologist was engaged by the Bank's fraud department to help employees cope with stressful situations.

The health and safety organisation encourages all employees to report unpleasant customer experiences and work-related injuries and the head of health and safety monitors and follows up on reports received. Employees can also report concerns and needs via the Bank's whistleblower scheme, the works council, trade union representatives, partners from HR, group executive vice presidents or their own manager. The whistleblower scheme is described in section G – Business Conduct. Sydbank's employee engagement survey asks employees whether they feel safe using the various reporting options and employees gave this question a score of 88 out of 100, which indicates that there is an overall sense of safety as regards the reporting possibilities. Furthermore workers' representatives who voice concerns and needs on behalf of employees are afforded special protection against employment law sanctions under the collective agreement between the Financial Services Union in Denmark and the Employers' Association for the Financial Sector.

Sydbank's policy for healthy corporate culture seeks to create a supportive and inclusive work environment that places high priority on employees' well-being and job satisfaction.

Reducing absence due to sickness

In 2024 the Bank focused on reducing absence due to sickness and it has dropped from 3.1% in 2023 to 2.5% in 2024. Focus was on personal contact with the employees at an early stage, and employees' well-being and health will remain high on the agenda going forward.

Furthermore Sydbank has a staff policy designed to ensure that employees feel happy and confident in their roles. Diversity

At Sydbank we believe that diversity among managers and employees creates the best results. A diversity policy has been formulated for the Board of Directors which, in addition to describing the qualifications and competences that the Board of Directors must have collectively, aims to promote sufficient diversity among the members of the Board of Directors as regards age, gender, educational and professional background as well as experience.

In order to increase the percentage of the underrepresented gender on the Board of Directors, in the Group Executive Management and among group executive vice presidents, the Bank has formulated a policy for the underrepresented gender. Sydbank's overall objective is to achieve an equal gender balance among all managers and the policy contains for instance a target that the underrepresented gender will account for at least 35% of all employees in management positions in 2025. In addition to the overall objective Sydbank has set a collective target for the Group Executive Management and for group executive vice presidents that the underrepresented gender will account for at least 30% in 2027. The Bank is working on moving closer to the targets.

Sydbank seeks to achieve the objectives of a more equal

S – Social Information

2024	2023

8 (4/5)	9 (4/5)
50	44
40	40
2024	2023

3 (0/3)	3 (1/2)
38 (6/32)	35 (6/29)
16	19
30	30
2027	2027

gender balance among managers in connection with the recruitment of new managers as well as by supporting more broadly the development of existing employees. An increase in the percentage of the underrepresented gender in the Bank's other management levels must be supported by clear and transparent goals and initiatives stipulated by the Bank regarding gender equality in the layers of management and inspiring employees to become part of the Bank's management and offering them the opportunity to develop professional and personal skills by taking part in courses and personal development programmes. Women and men must participate equally in these offers and there must be clear and transparent processes when recruiting managers which include goals to increase the percentage of the underrepresented gender. In addition an unbiased culture at the Bank must help to ensure that the individual employee can make the most of his/her qualifications regardless of gender.

Sydbank complies with the recommendation of the Committee on Corporate Governance that once a year the Board of Directors discusses activities to ensure diversity. The ongoing aim is that the underrepresented gender accounts for a minimum of 40% of shareholder-elected board members. There is an equal gender balance on the Board of Directors.

In terms of age the Bank's employees are as follows: 228 employees are under 30, 1,050 employees are between 30- 50 and 900 employees are over 50.

Remuneration and staff benefits

Employees' pay and working conditions are determined in accordance with collective agreements in force. All the Bank's Danish employees except for the Group Executive Management are covered by the Danish standard collective agreement in the financial sector whereas all the Bank's German employees with fixed working hours are covered by the German collective agreement for the private banking sector.

Sydbank has implemented a number of initiatives with

the primary purpose of creating staff benefits in addition to the traditional working conditions. In addition to group life insurance, health insurance, dental insurance, holiday allowance, 5 special days of holiday and 5 childcare leave days, Sydbank offers employees the option of a free mobile phone and the option to buy shares under a flexible benefits arrangement. Employees can take leave to care for a sick child for up to 5 consecutive days. Furthermore Sydbank offers favourable terms regarding employees' banking transactions and insurance.

Sydbank does not wish to discriminate on pay. We are committed to determining pay in a fair and appropriate manner according to job content and employees' skills and qualifications, which is the case in Denmark as well as in Germany. Sydbank's employees are paid in accordance with the collective agreement in force, which is believed to set a fair and appropriate salary. There are several professional groups at Sydbank where one gender is overrepresented. The gender overrepresentation as regards various professional groups and positions affects the pay gap at Sydbank. When focusing on a few large professional groups, there are instances where the median salary for women is equivalent to or higher than the median salary for men but the overall picture is that the median salary for men is higher.

Pay and remuneration	2024
Pay gap between men and women (%)	14.6
Remuneration ratio between the highest paid and the median salary (times)	16.9

Accounting policies – social information

Responsible employer

Employees in the Bank's own workforce include employees in the Sydbank Group, including Syd Fund Management, Syd Administration and Coop Bank.

The Bank's own workforce consists of:

• staff who receive an agreed salary/wage from the Bank

and have a valid employee access card to the Bank. This includes permanent staff, temporary staff (temporary replacement) and non-guaranteed hours staff (student assistants and young workers).

Self-employed persons (non-staff) or persons providing services from third party businesses who have a personal access card, and therefore personal data as regards these persons is registered by the Bank.
Non-staff carrying out work on the Bank's premises in connection with a third party supplier agreement, for instance window cleaners, gardeners and electricians. Personal data as regards this type of non-staff is not registered by the Bank, which is why they are not included in the Bank's sustainability reporting.

Overview of the Bank's employees

The number of employees, including the number of fulltime staff and temporary staff, is calculated as the number of persons and full-time equivalent (FTE). FTE is the average number of staff translated to full-time staff during the accounting period and is calculated on the basis of the number of staff at the end of each of the 12 months of the financial year. The number of staff is also stated in the financial statements, see page 106.

The total number of staff does not include non-guaranteed hours employees, employees released from the duty to work, employees on leave without pay, pension commitments of former employees, employees on standby duty, employees paid on an hourly basis and parliamentary committees.

Non-guaranteed hours employees are referred to at the Bank as employees paid on an hourly basis. As the number of employees paid on an hourly basis varies greatly over the year, non-guaranteed hours employees are calculated as an average of the number of employees paid on an hourly basis for each of the 12 months of the financial year.

The employee turnover rate is calculated as follows: Employees who have resigned translated to full-time staff / average number of full-time staff * 100 during the accounting period.

Employee engagement survey

Sydbank uses Ennova to measure employee engagement. The survey includes all the Bank's employees except for employees on leave, employees on long-term sick leave, employees released from the duty to work, employees in temporary positions, employees paid on an hourly basis or employees who changed departments in the month preceding the survey.

Ennova gives all its business partners in the sector the same questions. This gives us a sector average enabling us to compare ourselves to around 40,000 employees with employers in the financial sector in Denmark.

Work-related injuries

All kinds of physical injuries at the workplace or during the performance of work must be reported as work-related injuries. Similarly assaults, threats and robberies where an employee receives psychological support must be reported as work-related injuries. The head of security decides whether a reported incident constitutes a work-related injury to be registered. Registered work-related injuries are included in the calculation.

Customer confrontations of an unpleasant but less severe nature and as regards which an employee does not receive psychological support right away are registered as 'unpleasant customer experiences'. The assessment of whether an incident is reported as an unpleasant customer experience is made in consultation with the employee concerned, the branch management and the head of health and safety.

Diversity

Only shareholder-elected members are included in the calculation of Sydbank's supreme governing body (the Board of Directors). Gender diversity in Sydbank's supreme governing body and other management levels (the Group Executive Management and group executive vice presidents) is calculated at the end of the accounting period. Gender is defined on the basis of civil registration number.

The number of employees by age is the Group's average number of staff during the accounting period by age interval and does not include employees released from the duty to work, employees on leave without pay, pension commitments of former employees, employees on standby duty, employees paid on an hourly basis and parliamentary committees.

Pay and remuneration

The pay gap between men and women is calculated as the difference between the average salary for men and women expressed as a percentage of the average salary for men. The CEO's salary is not included. The calculation is based on employees' fixed annual salary at the end of the accounting period.

The total annual remuneration ratio is calculated as the remuneration to the highest paid person divided by the median of the total annual remuneration for all employees except for the highest paid person. The remuneration is calculated as the sum of salaries paid, compensation paid, company cars and bonuses. Data is extracted from the payroll system where all gross salaries and pension payments are found. Only employees as of 31 December 2024 are included in the calculation.

G – Business Conduct

Sydbank plays a key role in society as a nationwide, full-service, corporate and advisory bank. We will fulfil this role in the best possible way.

A decent bank

Sydbank strives to be perceived as a competent and decent bank that complies with legislation and takes into consideration principles concerning responsible business activities.

Healthy corporate culture and code of conduct

Sydbank's business conduct and corporate culture are multifaceted and are defined by a number of policies at the Bank.

Sydbank's policy for healthy corporate culture has been formulated to ensure and preserve a healthy corporate culture. The policy sets the overall framework for ensuring a healthy corporate culture by means of risk awareness, appropriate conduct and open communication. Furthermore Sydbank's intranet has guidelines for employees on how to act if they learn of any illegal acts or irregularities at the workplace.

A healthy corporate culture requires constant attention and efforts across the entire organisation. The Group Executive Management ensures that the policy for healthy corporate culture is a part of Sydbank's day-to-day operations and is followed by the employees, and the CEO reports on a regular basis and at least once a year to the Board of Directors on its compliance. Conditions supporting the healthy corporate culture at the Bank are measured as part of the employee engagement survey.

Digital learning modules concerning relevant topical subjects and legislation are completed on an ongoing basis and HR follows up on completion rates. In addition in-house campaigns based on the Bank's policies, including its policy for healthy corporate culture, are carried out at regular intervals to ensure that focus remains on Sydbank's policies and the healthy culture at the Bank. Before their employment starts, new employees receive the policy for healthy corporate culture and by signing, they confirm that they have read the policy. In addition new employees take part in an introduction programme where they are introduced to Sydbank as a place of work, legislation, other policies, business procedures and job descriptions.

Sydbank's code of conduct sets out the general guidelines for the Bank's business conduct. The code of conduct explains to the Bank's stakeholders what they can expect of Sydbank and what Sydbank expects from its business partners and suppliers. The code of conduct emphasises that the Bank's conduct must be characterised by responsibility, decency and respect for others. Non-compliance with the Bank's policies and business procedures may have consequences relating to employment law and liability for the Bank's management and employees.

Corporate culture focus: What can we do for you?

Sydbank is a service and advisory undertaking, and culture and conduct are important because this is what sets us apart from our competitors offering the same products as us. Consequently in 2024 Sydbank's culture and core story were brought into focus within the Bank under the heading "What can we do for you?". The initiative consists of workshops and regular presentations of dilemmas on the Bank's intranet to encourage employees to reflect on and engage in dialogue about how we act in terms of the Bank's values. The dialogue about culture aims to make employees more aware of their conduct.

Whistleblower scheme and suspicion of wrongdoing

Sydbank seeks to promote an environment with open communication. The management expects that employees have a constructive critical approach to their work and that they will contact their immediate superior straight away if they obtain knowledge of or suspect wrongdoing. If an employee does not wish to discuss a problem with his or her immediate superior the employee is always welcome to contact a superior in another area.

With regard to money laundering and market abuse any suspicion of wrongdoing by employees is managed promptly and reviewed by several persons to ensure a correct and objective assessment of the employee. If the employee is notified about suspected wrongdoing, the Bank's head of HR is notified and will consider whether it will have consequences relating to employment law for the employee.

In compliance with EU whistleblower rules the Bank has established a scheme that can be used by employees and the Bank's stakeholders to report a suspicion of serious or repeated violations of applicable law or the Bank's internal guidelines. The scheme aims to bring matters to light that would not otherwise have been brought to the Bank's knowledge and should be seen as a supplement to the usual reporting channels, such as direct and daily communication at the workplace about errors and unsatisfactory conditions. All reports are treated in the strictest confidence and in accordance with applicable personal data legislation. The whistleblower scheme is initially managed by a third party – law firm Poul Schmith – which screens reports after which they are sent to the Bank's head of compliance. The chairman of the Board of Directors' Audit Committee is informed about the reports and how they are dealt with. Reports received via Sydbank's whistleblower scheme may

be anonymous or may include name and contact details. Sydbank protects reporting persons in accordance with the Danish act on the protection of whistleblowers. Retaliation against employees who report knowledge of or suspicion of wrongdoing or who make use of the Bank's whistleblower scheme is not tolerated.

New employees are made aware of the Bank's whistleblower scheme in the policy for healthy corporate culture, which is sent to employees beforehand, as well as in the digital learning module on compliance, which is a part of employees' introduction programme.

Training courses supporting a decent bank

The Bank's employees participate regularly in a number of different training courses supporting a decent bank including a course on business conduct. The courses consist of 5 digital learning modules listed below. Sydbank's target is that at least 95% of employees have completed these internal training programmes. The completion rate of each learning module in shown in the table.

The Group Executive Management is also required to complete the learning modules. The Board of Directors is only required to attend the course on prevention of money laundering and terrorist financing and in addition to this board members have 2 annual training days in relevant topics concerning Sydbank.

Learning module	Background and purpose	Employee group	Completion rate
Prevention of money laundering and terrorist financing	The Bank's employees are required to complete training at appropriate intervals in applicable rules regarding money laundering, terrorist financing and sanctions breaches as well as related internal guidelines. The training is adjusted according to job function and aims to ensure that the Bank's employees understand risks and are aware of their individual obligations in connection with carrying out their jobs.	All relevant employees	99.6
Processing of personal data	The Bank's employees are required to complete mandatory training at appropriate intervals in the rules governing processing of personal data as well as related internal guidelines. The course aims to ensure that the All relevant Bank's employees understand the rules and are aware of the Bank's obliga employees tions and their individual obligations in connection with carrying out their jobs.		99.6
Cyber security and information security	In order to strengthen the Bank's cyber resilience the Bank's employees are required to complete mandatory awareness training on an annual basis to gain an understanding of and be equipped to identify threats and vulnera bilities in relation to using information technology. In addition employees with special areas of responsibility and rights receive more targeted trai ning.	All employees	99.7
Compliance at Sydbank	The Bank's employees are required to complete mandatory training at appropriate intervals in compliance issues and legislation. The course on compliance covers topics such as duty of confidentiality, healthy corporate culture, competition law, management of conflicts of interest, including guidelines on receiving gifts, as well as management of data and docu ments.	All employees	99.6
ESG and sustainability	The Bank's employees are required to complete mandatory training at appropriate intervals in ESG and sustainability. The course provides a basic knowledge of ESG and sustainability and offers employees insight into why and how Sydbank is active in the field of ESG and sustainability. In addition to this the Bank provides targeted training to selected groups of employees where specific knowledge is relevant.	All employees	99.8

The completion rate is calculated as the number of employees who have completed the course compared to the number of employees who have been given the possibility to and who are required to complete the training. This means that employees with long-term absence, employees who have resigned/employees who are released from the duty to work, employees who have not yet commenced employment as well as employees who are not part of the target group regarding the specific training course are not included in the calculation of completion rates.

HR has a follow-up procedure for the training courses which is described in an internal business procedure. Data for the follow-up is extracted twice a year – in mid-May and mid-November – from the Bank's system Videnbarometer®.

Anti-corruption and bribery

Sydbank's anti-corruption and bribery policy underlines Sydbank's position and disapproval of corruption and bribery and establishes the general guidelines for Sydbank's measures to prevent corruption and bribery.

Sydbank disapproves of any form of corruption or bribery and does not tolerate its existence neither in relation to public authorities, business associates, business partners nor otherwise.

Danish society is characterised by a very low rate of corruption and bribery. Sydbank's primary business area is Denmark and consequently the occurrence of corruption and bribery is assumed to be low in relation to the Bank. However the risk of corruption and bribery can never be ruled out and therefore the Bank has implemented a series of measures aimed at ensuring that employees are not exposed to or involved in corruption or bribery. Similarly a number of measures have been established to ensure that Sydbank's customers do not use the Bank to receive and/or launder money derived from corruption or bribery.

Since all the Bank's employees may be at risk of exposing themselves or others to corruption and bribery, all employees complete mandatory training at appropriate intervals in selected subjects related to corruption and bribery. The same applies to external consultants where considered necessary. The course consists of 2 digital learning modules concerning the prevention of money laundering and terrorist financing as well as compliance as described above.

In addition to the usual reporting channels and the Bank's whistleblower scheme, Sydbank has an effective organisation regarding risk management and internal control functions in place to prevent and detect non-compliance with legislation and internal rules. The organisational set-up with regard to risk management is described in more detail in "Organisation and Corporate Governance" under "The Bank's risk management and compliance" and "Internal Audit".

Conflicts of interest and gifts

We are strongly committed to providing value-creating advice to our customers and therefore we have introduced a number of measures to ensure that focus is on safeguarding the interests of our customers in the best possible way. In some cases there may be a conflict of interest. Sydbank's conflicts of interest policy describes the general measures taken to prevent and manage conflicts of interest.

The Bank encourages employees to exercise great care when offered gifts and to contact their immediate superior or Compliance if they are uncertain how to respond in connection with gifts or conflicts of interest.

Money laundering and terrorist financing

To ensure targeted and effective efforts to prevent money laundering and terrorist financing, Sydbank has established a strong governance structure, robust risk management and a constructive collaboration with stakeholders and authorities to combat money laundering and terrorist financing. The Bank takes part in relevant collaboration forums within the financial sector, for instance Finance Denmark, in order to gain knowledge about suspicious transactions and financial crime. Sydbank's policy for prevention of money laundering, terrorist financing and sanctions breaches establishes the overall framework for the reporting as well as the procedures, business procedures, job descriptions and controls aimed at minimising the Bank's risk of being used for money laundering and terrorist financing. Furthermore the policy is accompanied by an internal appendix of the Bank's risk tolerance in this area.

The Bank's AML committee discusses the Bank's efforts to combat money laundering and terrorist financing and consists of group executive vice presidents (or their representatives) of the divisions with tasks within this area as well as the AML Executive (Group Executive Management member). The AML Risk Management department, which is headed by the risk officer as regards AML, reports on a regular basis to the AML Executive, the AML committee and the Board of Directors including when new risks are identified. The overall progress at the Bank as well as in society is also reported. Furthermore AML Risk Management carries out a number of controls to ensure the Bank's compliance with applicable legislation and business procedures. The KYC Support department ensures that appropriate measures are implemented to address risks identified and assessed by AML Risk Management.

Every year Sydbank prepares a risk assessment in which risks relating to money laundering and terrorist financing are identified and assessed so that the Bank has a complete overview of the areas in which the Bank could be used for money laundering and terrorist financing. The policy for prevention of money laundering, terrorist financing and sanctions breaches has been approved and is updated on the basis of the conclusions of the risk assessment.

Appendices – Sustainability Reporting

Sustainability reporting – contents

Sustainability reporting – contents	Compliance with legal requirements
General information
Preparation of sustainability reporting	ESRS BP-1
Responsibility and control	ESRS GOV-5 paras 36a, 36b, 36c, 36d, 36e ESRS IRO-1 para 53e
International endorsements	ESRS BP-2 para 15 ESRS S1-1 paras 20, 20a, 21 ESRS S3-1 paras 16, 16a, 17 ESRS S4-1 paras 16, 16a, 17 ESRS G1-1 para 10b
ESG and sustainability efforts	ESRS SBM-1 paras 40e, 40f, 40g ESRS SBM-3 para 48b
Organisation	ESRS GOV-1 paras 22a, 22c, 22d, 23b ESRS GOV-2 paras 26a, 26b, 26c ESRS SBM-3 para 48f
Management's roles related to business conduct	ESRS G1.GOV-1 para 5a ESRS G1-3 para 18c
Governance foundation
Materiality assessment	ESRS 2 IRO-1 paras 53a, 53b, 53bi, 53bii, 53biv, 53c, 53ci, 53cii, 53ciii, 53g ESRS E1.IRO-1 paras20a, 20b, 20c, 21, AR9, AR11a, AR11b AR11d, AR12a, AR 12c ESRS E2.IRO-1 ESRS E3.IRO-1 ESRS E4.IRO-1 ESRS E5.IRO-1 para 11a ESRS G1.IRO-1 ESRS 2 IRO-2 para 59
Approval of materiality assessment	ESRS 2 GOV-2 paras 26a, 26c ESRS 2 IRO-1 paras 53d, 53h
Stakeholder analysis	ESRS 2 SBM-2 paras 45ai, 45aii. 45aiii, 45aiv, 45av, 45b, 45d ESRS S1.SBM-2 para 12 ESRS S1.SBM-3 para 13a ESRS S3.SBM-2 para 7 ESRS S3.SBM-3 para 8aii ESRS S4.SBM-2 para 8 ESRS S4.SBM-3 para 10 ESRS 2 IRO-1 para 53biii ESRS S1-2 para 27 ESRS S3-2 paras 20, 21a ESRS S4-2 paras 20a, 20b, 20c
Outcome	ESRS 2 SBM-3 paras 48a, 48c, 48ci, 48cii, 48ciii, 48civ, 48d, 48f, 48h ESRS E1.SBM-3 para 19
E – Environmental information
Responsible finance	ESRS E1-6 paras 47, AR39b
Green finance	ESRS E1-2 para 24 ESRS E1-3 paras 28, 29a, AR21
ESG in credit evaluations	ESRS E1-2 para 25
Reductions targets for the CO2e footprint of the Bank's lending	ESRS E1-3 para 29b ESRS E1-4 paras 33, 34b, 34e, 34f, AR25a
CO2e footprint of the Bank's lending	ESRS E1-6 paras 51, AR46d

Sustainability reporting – contents – continued

Sustainability reporting – contents	Compliance with legal requirements
General information
Responsible investment
Responsible investment and active ownership	ESRS E1-2 paras 24, 25a, 25e ESRS E1-3 para 29a
Reduction targets for the CO2e footprint of the Bank's investments	ESRS E1-3 para AR21 ESRS E1-4 paras 33, 34a, 34b, 34e, 34f, AR25a ESRS E1-6 paras 51, AR46d
CO2e footprint of the Bank's investments	ESRS E1-3 para 28
Responsible climate and environmental footprint	ESRS E1-2 paras 24, 25, 25a, 25c, 25d ESRS E1-4 para 33
Reduction target for CO2e emissions from own ope rations	ESRS E1-3 para 29b ESRS E1-4 paras 34a, 34b, 34e, 34f, AR25a, AR30c
The Bank's energy consumption	ESRS E1-5 paras 37, 37a, 37ci, 37cii, 37ciii, AR34
The Bank's total CO2e emissions	ESRS E1-6 paras 44, 48a, 49a, 49b, 51, 52, 52a, 52b, 53, 54, AR46d
Energy optimisation and renewable energy sources	ESRS E1-3 paras 28, 29a, 34f, 16b, AR21
Reuse and recycling of the Bank's resources	ESRS E5-2 paras 19 ESRS E5-3
Accounting policies – environmental information	ESRS 2 BP-2 paras 10-14
Data quality in core business	ESRS E1-6 para AR46g
Accounting policies – responsible finance	ESRS E1-6 paras 47, AR39b
Accounting policies – responsible investment	ESRS E1-6 para AR39b
Accounting policies – responsible climate and environmental footprint	ESRS E1-6 paras 39b, AR45d, AR46i, AR46h, 55, AR55
Reporting under Article 8 of the Taxonomy Regulation	Article 8 of the Taxonomy Regulation
S – Social information
Dialogue with customers and society	ESRS S3-1 paras 14, 16b and 16c ESRS S3-2 paras 21a, 21b, ESRS S3-3 paras 27b, 27c, 27d, 28 ESRS S4-1 para 16b ESRS S4-2 para 20 ESRS S4-3 paras 25b, 25c, 25d, 26
Human rights	ESRS S1-1 paras 20, 20a, 24a, 24b ESRS S3-1 paras 14, 16, 16a ESRS S3-4 para 36 ESRS S4-1 paras 16, 16a
Data processing and information security	ESRS S3.SBM-3 para 9c ESRS S4.SBM-3 paras 9a, 10a(i)-(iv), 10c ESRS S1-1 para 20c ESRS S1-4 paras 41, 43 ESRS S4-1 para 16 ESRS S4-4 para 31a
Data protection IT security	ESRS S4-3 para 25a ESRS S1-1 para 19 ESRS S3-1 para 16c ESRS S4-1 para 16c ESRS S4-3 para 25a ESRS S4-4 paras 31a, 31c, 31d, 32a

Appendices – Sustainability Reporting

Sustainability reporting – contents – continued

Sustainability reporting – contents	Compliance with legal requirements
General information
Data ethics policy	ESRS S1-1 para 24a ESRS S1-4 para 41 ESRS S4-1 paras 14, 16 ESRS S4-4 para 31c Section 154 (data ethics policy) of the Danish executive order on financial repor ting of credit institutions and brokerage firms etc
Strengthening of digital infrastructure	ESRS S3.SBM-3 para 8a(i) ESRS S3-4 paras 32c, 38
Fighting crime	ESRS S3.SBM-3 paras 8a(i), 9c ESRS S4-4 paras 31a, 32b, 34
Money laundering and terrorist financing	ESRS S3-1 para 14 ESRS S3-4 paras 30, 32c, 32d ESRS G1-1 para 7 ESRS G1-3 para 18a
Efforts to combat IT fraud	ESRS S3-4 paras 30, 32c ESRS S4-4 para 31a
Consumer protection and product management	ESRS S4.SBM-3 paras 10a(i)-(iv), 10b, 10c ESRS S4-1 para 15 ESRS S4-4 paras 31, 31a, 34
Responsible employer	ESRS S1-6 paras 50, 50a, 50b, 50c
Dialogue with employees	ESRS S1-1 para 20b ESRS S1-2 paras 27a, 27b, 27c ESRS S1-4 paras 38a, 38b, 38d, 39 ESRS S1-5 para 47c ESRS S1-17 paras 103a, 103b
Well-being and security for employees	ESRS S1.SBM-3 paras 14a, 14b, 14c, 15 ESRS S1-1 paras 19, 23, 24c, 24d ESRS S1-3 paras 32a, 32b, 32c, 32d, 33 ESRS S1-4 paras 37, 38a, 43 ESRS S1-14 paras 88a, 88c
Diversity	ESRS GOV-1 para 21d ESRS S1-1 para 19 ESRS S1-9 paras 66a and 66b Section 150(1)8 (diversity policy) and section 152 (the underrepresented gender) of the Danish executive order on financial reporting of credit institutions and bro kerage firms etc
Remuneration and staff benefits	ESRS S1.SBM-3 para 14c ESRS S1-4 para 38c ESRS S1-10 para 69 ESRS S1-16 paras 97a, 97b
Accounting policies – social information
Accounting policies – responsible employer	ESRS 2 BP-2 paras 10-14 ESRS S1-6 paras 50b, 50d, 50di, 50dii, 50e, 50f ESRS S1-8 paras 60a, 60b ESRS S1-9 para AR71 ESRS S1-16 paras 97a, 97b, 97c

Sustainability reporting – contents – continued

Sustainability reporting – contents	Compliance with legal requirements
General information
G – Business conduct
A decent bank
Healthy corporate culture	ESRS G1-1 paras 7, 9 ESRS G1-3 para 20
Whistleblower scheme and suspicion of wrongdoing	ESRS S1-3 paras 32c, 32e ESRS S3-3 para 28 ESRS G1-1 paras 10a, 10c, 10e
Training courses supporting a decent bank	ESRS G1-1 para 10g ESRS G1-3 para 21c
Anti-corruption and bribery	ESRS G1-1 paras 7, 10h ESRS G1-3 paras 18a, 21a, 21c
Conflicts of interest and gifts	ESRS G1-1 para 7 ESRS G1-3 para 18a
Money laundering and terrorist financing	ESRS S3-1 para 14 ESRS S3-4 paras 30, 32c, 32d ESRS G1-1 para 7 ESRS G1-3 para 18a
Appendices – sustainability reporting	ESRS 2 IRO-2 para 56 ESRS 2 BP-2 paras 15, 16 ESRS 2 GOV-4

The table below shows the sections in the remainder of the financial review that are incorporated in the Bank's sustainability reporting by reference.

Incorporated in sustainability reporting by reference

Incorporated in sustainability reporting by reference	Compliance with legal requirements
Mission statement and business goals
Sydbank's business model	ESRS SBM-1 paras 40ai, 42a and 42b
Sydbank's value chain	ESRS SBM-1 para 42c
Local presence	ESRS SBM-1 paras 40aii and 40aiii
The Bank's value propositions
The Bank's customers	ESRS SBM-1 para 40aii ESRS S4.SBM-3 para 10a
Organisation and corporate governance
Board of Directors	ESRS GOV-1 paras 21a, 21b, 21c, 21e, 23 and 23a ESRS G1.GOV-1 para 5b
Board committees	ESRS GOV-1 para 22b
Group Executive Management	ESRS GOV-1 para 21a
Management remuneration	ESRS GOV-3 ESRS E1.GOV-3
The Bank's risk management and compliance	ESRS G1-3 para 18b
Internal Audit	ESRS G1-3 para 18b

Appendices – Sustainability Reporting

Central elements of due diligence

Central elements of due diligence	Location in sustainability reporting
Embedding due diligence in governance, strategy and business model	General information, "Organisation", page 45 and "Approval of materiality assessment", page 48 Organisation and corporate governance, "Management remuneration", page 41 General information, "ESG and sustainability efforts", pages 44-47, and "Materiality assessment", pages 47-50, including "Outcome", page 50
Engaging with affected stakeholders	General information, "Organisation", page 45 General information, "Approval of materiality assessment", page 48 General information, "Materiality assessment", page 47, including "Stakeholder analysis", page 48 S, "Dialogue with customers and society", page 63 S, "Dialogue with employees", page 65
Identifying and assessing negative impacts on peop le and the environment	General information, "Materiality assessment", page 47 , including the underlying paragraphs
Actions to remediate nega tive impacts on people and the environment	E, "Green finance", pages 52-53, and "ESG in credit evaluations", page 53 E, "Responsible investment and active ownership", pages 55-56 E, "Energy optimisation and renewable energy sources", page 59, and "Reuse and recycling of the Bank's resources, page 59 S, "Data processing and information security", page 63, including the underlying paragraphs S, "Fighting crime", page 64, including the underlying paragraphs S, "Consumer protection and product management", page 65, including the underlying paragraphs S, "Responsible employer", page 65, including the underlying paragraphs
Measuring the effective ness of actions	E, table "The Bank's environmental targets", page 52 S, "Dialogue with employees", page 65 G, "Training courses supporting a decent bank", page 71

Reporting on datapoints deriving from other EU legislation

Reporting on datapoints deri ving from other EU legislation	SFDR	Pillar III	Benchmark Regulation	EU climate act	Location in sustainability reporting
ESRS 2 GOV-1 para 21d	X		X		"Diversity", page 67
ESRS 2 GOV-1 para 21e			X		"Board of Directors", page 38
ESRS 2 GOV-4 para 30	X				Table "Central elements of due diligence", page 78
ESRS 2 SBM-1 para 40di	X	X	X		Non-essential
ESRS 2 SBM-1 para 40dii	X		X		Non-essential
ESRS 2 SBM-1 para 40diii	X		X		Non-essential
ESRS 2 SBM-1 para 40div			X		Non-essential
ESRS E1-1 para 14				X	"Environmental information", page 52
ESRS E1-1 para 16g		X	X		Non-essential
ESRS E1-4 para 34	X	X	X		"Environmental information", page 52
ESRS E1-5 para 38	X				Non-essential
ESRS E1-5 para 37	X				"The Bank's energy consumption", page 58
ESRS E1-5 paras 40-43	X				Non-essential
ESRS E1-6 para 44	X	X	X		"The Bank's total CO2e emissions", page 58
ESRS E1-6 paras 53-55	X	X	X		"The Bank's total CO2e emissions", page 59
ESRS E1-7 para 56				X	Non-essential
ESRS E1-9 para 66			X		Non-essential
ESRS E1-9 para 66c		X			Non-essential
ESRS E1-9 para 67c		X			Non-essential
ESRS E1-9 para 69			X		Non-essential

Reporting on datapoints deriving from other EU legislation

Reporting on datapoints		Pillar	Benchmark	EU climate
from other EU legislation	SFDR	III	Regulation	act	Location in sustainability reporting
ESRS E2-4 para 28	X				Non-essential
ESRS E3-1 para 9	X				Non-essential
ESRS E3-1 para 13	X				Non-essential
ESRS E3-1 para 14	X				Non-essential
ESRS E3-4 para 28c	X				Non-essential
ESRS E3-4 para 29	X				Non-essential
ESRS 2 IRO 1.E4 para 16ai	X				Non-essential
ESRS 2 IRO 1.E4 para 16b	X				Non-essential
ESRS 2 IRO 1.E4 para 16c	X				Non-essential
ESRS E4-2 para 24b	X				Non-essential
ESRS E4-2 para 24c	X				Non-essential
ESRS E4-2 para 24d	X				Non-essential
ESRS E5-5 para 37d	X				Non-essential
ESRS E5-5 para 39	X				Non-essential
ESRS 2 SBM3.S1 para 14f	X				Non-essential
ESRS 2 SBM3.S1 para 14g	X				Non-essential
ESRS S1-1 para 20	X				"Human rights", page 63
ESRS S1-1 para 21			X		"International endorsements", page 44
ESRS S1-1 para 22	X				Non-essential
ESRS S1-1 para 23	X				"Well-being and security for employees", page 66
ESRS S1-3 para 32c	X				"Well-being and security for employees", page 67
ESRS S1-14 para 88b	X		X		Non-essential
ESRS S1-14 para 88c	X		X		"Well-being and security for employees", page 67
ESRS S1-14 para 88e	X				Non-essential
ESRS S1-16 para 97a	X		X		"Remuneration and staff benefits", page 68
ESRS S1-16 para 97b	X				"Remuneration and staff benefits", page 68
ESRS S1-17 para 103a	X				Non-essential
ESRS S1-17 para 104a	X		X		Non-essential
ESRS 2 SBM3.S2 para 11b	X				Non-essential
ESRS S2-1 para 17	X				Non-essential
ESRS S2-1 para 18	X				Non-essential
ESRS S2-1 para 19	X		X		Non-essential
ESRS S2-1 para 19			X		Non-essential
ESRS S2-4 para 36	X				Non-essential
ESRS S3-1 para 16	X				"Human rights", page 63
ESRS S3-1 para 17	X		X		"International endorsements", page 44
ESRS S3-4 para 36	X				"Human rights", page 63
ESRS S4-1 para 16	X				"Human rights", page 63
ESRS S4-1 para 17	X		X		"International endorsements", page 44
ESRS S4-4 para 35	X				Non-essential
ESRS G1-1 para 10b	X				"International endorsements", page 44
ESRS G1-1 para 10d	X				"Whistleblower scheme and suspicion of wrong doing", page 70
ESRS G1-4 para 24a	X		X		Non-essential
ESRS G1-4 para 24b	X				Non-essential

Financial Statements

Income Statement	82
Statement of Comprehensive Income	82
Balance Sheet	83
Statement of Changes in Equity	84
Cash Flow Statement	86

Annual Report 2024 81

1 Accounting policies	87
2 Accounting estimates and judgements	97
3 Solvency	99
4 Leverage ratio	100
5 Segment reporting	100
6 Correlation between the Group's performance measures
and the statement according to IFRS	102
7 Interest income	103
8 Interest expense	104
9 Dividends on shares	104
10 Fee and commission income	104
11 Market value adjustments	105
12 Other operating income	105
13 Staff costs and administrative expenses	106
14 Impairment of loans and advances etc	108
15 Profit/(Loss) on holdings in associates and subsidiaries	109
16 Tax	109
17 Amounts owed by credit institutions and central banks	110
18 Loans and advances	112
19 Bonds at fair value	121
20 Shares etc	121
21 Holdings in associates etc	121
22 Holdings in subsidiaries etc	122
23 Assets related to pooled plans	122
24 Intangible assets	123
25 Owner-occupied property	124
26 Other property, plant and equipment	125
27 Other assets	125
28 Amounts owed to credit institutions and central banks	125
29 Deposits and other debt	126

	30 Bonds issued at amortised cost	126
	31 Other liabilities	126
	32 Provisions	126
	33 Subordinated capital	127
	34 Own holdings	128
	35 Contingent liabilities and other obligating agreements	129
	36 Fair value hedging of interest rate risks (macro hedge)	130
	37 Collateral	131
	38 Related parties	132
	39 Fair value disclosure	134
	40 Financial liabilities – contractual maturities	138
	41 Activity per country	138
	42 Financial highlights	139
	43 Reporting events occurring after the balance sheet date	140
	44 Group holdings and enterprises	141
	45 Large shareholders	141
	46 Correlation between Group profit and equity
	according to IFRS and FSA accounting rules	141
	47 Acquisition of associates	142
	Definitions – Group Financial Ratios & Performance
	Measures	144
	Derivatives	145
	Risk Management	149
	Credit risk	150
	Market risk	153
	Liquidity risk	155
	Operational risk	157
	Cyber and information security	157
	Total capital	158

Income Statement

			Sydbank Group	Sydbank A/S
DKKm	Note	2024	2023	2024	2023
Interest income calculated using the effective interest method		5,228	4,921	5,156	4,931
Other interest income		1,663	1,240	1,656	1,240
Interest income	7	6,891	6,161	6,812	6,171
Interest expense	8	2,583	1,694	2,578	1,856
Net interest income		4,308	4,467	4,234	4,315
Dividends on shares	9	105	20	128	31
Fee and commission income	10	2,731	2,494	2,541	2,343
Fee and commission expense	10	341	309	280	260
Net interest and fee income		6,803	6,672	6,623	6,429
Market value adjustments	11	714	737	798	778
Other operating income	12	31	24	35	25
Staff costs and administrative expenses	13	3,181	3,024	3,055	2,964
Amortisation, depreciation and impairment of intangible assets and
property, plant and equipment		145	139	130	141
Other operating expenses		34	23	34	23
Impairment of loans and advances etc	14	595	(27)	595	(27)
Profit/(Loss) on holdings in associates and subsidiaries	15	52	7	86	185
Profit before tax		3,645	4,281	3,728	4,316
Tax	16	883	939	890	941
Profit for the year		2,762	3,342	2,838	3,375
Distribution of profit for the year
Shareholders of Sydbank A/S				2,799	3,336
Holders of AT1 capital				39	39
Total amount to be allocated				2,838	3,375

Proposed dividend to shareholders of Sydbank A/S				1,377	1,668
Interest paid to holders of AT1 capital				39	39
Proposal for allocation for other purposes				18	18
Transfer to equity				1,404	1,650
Total amount allocated				2,838	3,375

EPS Basic (DKK)*		50.9	58.8	52.8	60.0
EPS Diluted (DKK)*		50.9	58.8	52.8	60.0
Proposed dividend per share (DKK)		26.88	30.56	26.88	30.56

* Calculated on the basis of average number of shares outstanding, see page 19.

Statement of Comprehensive Income

Profit for the year	2,762	3,342	2,838	3,375
Other comprehensive income
Items that may not be reclassified to the income statement: Property revaluations	29	(10)	29	(10)
Value adjustment of certain strategic shares	85	39	-	-
Other comprehensive income after tax	114	29	29	(10)
Comprehensive income for the year	2,876	3,371	2,867	3,365

Balance Sheet

			Sydbank Group	Sydbank A/S
DKKm	Note	2024	2023	2024	2023
Assets
Cash and balances on demand at central banks		3,349	6,523	1,249	6,523
Amounts owed by credit institutions and central banks	17	13,873	18,262	13,725	18,262
Loans and advances at fair value	18	23,842	16,743	23,842	16,743
Loans and advances at amortised cost	18	82,534	74,535	81,827	75,019
Bonds at fair value	19	31,780	34,619	31,780	34,619
Shares etc	20	3,004	3,018	3,004	3,018
Holdings in associates etc	21	433	164	433	164
Holdings in subsidiaries etc	22	-	-	535	2,295
Assets related to pooled plans	23	27,005	22,903	27,005	22,903
Intangible assets	24	421	329	305	328
Owner-occupied property	25	1,122	1,095	896	870
Owner-occupied property (leasing)		104	107	102	107
Total land and buildings		1,226	1,202	998	977
Other property, plant and equipment	26	79	60	78	59
Current tax assets		309	88	335	103
Deferred tax assets	16	13	94	13	94
Other assets	27	5,725	6,478	5,222	6,023
Prepayments		76	83	71	83
Total assets		193,669	185,101	190,422	187,213

Equity and liabilities
Amounts owed to credit institutions and central banks	28	6,113	6,395	6,039	6,395
Deposits and other debt	29	116,672	111,651	113,780	113,926
Deposits in pooled plans		27,005	22,903	27,005	22,903
Bonds issued at amortised cost	30	11,175	11,161	11,175	11,161
Current tax liabilities		10	38	10	38
Other liabilities	31	14,394	15,906	14,257	15,782
Deferred income		16	15	16	15
Total liabilities		175,385	168,069	172,282	170,220
Provisions	32	358	166	331	166
Subordinated capital	33	2,142	1,118	2,067	1,118
Equity
Share capital		546	565	546	565
Revaluation reserves		163	134	163	134
Other reserves:
Reserves according to articles of association		435	429	435	429
Reserve for net revaluation according to equity method		56	3	56	3
Retained earnings		12,387	12,133	12,387	12,133
Proposed dividend etc		1,395	1,686	1,395	1,686
Shareholders of Sydbank A/S		14,982	14,950	14,982	14,950
Holders of AT1 capital		760	759	760	759
Minority shareholders		42	39	-	-
Total equity		15,784	15,748	15,742	15,709
Total equity and liabilities		193,669	185,101	190,422	187,213

Statement of Changes in Equity

Sydbank										Sydbank Group
DKKm		Share capital	Reserves acc to ar Revaluation reserves	ticles of association*	Reserve for net revaluation acc to equity method	Retained earnings	dividend etc Proposed	of Sydbank A/S Shareholders	AT1 capital**	shareholders Minority	Total equity
Equity at 1 Jan 2024	565	134	429	3	12,133	1,686	14,950	759	39	15,748
Profit for the period Other comprehensive income		29	6	53	1,260 85	1,395	2,714 114	39	9	2,762 114
Comprehensive income for the year	-	29	6	53	1,345	1,395	2,828	39	9	2,876
Transactions with owners Purchase of own shares					(2,195)		(2,195)			(2,195)
Sale of own shares					1,080		1,080			1,080
Reduction in share capital	(19)				19		-			-
Interest paid on AT1 capital							-	(39)		(39)
Exchange rate adjustment					(1)		(1)	1		-
Dividend etc paid						(1,686)	(1,686)		(6)	(1,692)
Dividend, own shares					6		6			6
Total transactions with owners Equity at 31 Dec 2024	(19) 546	163	435	56	(1,091) 12,387	(1,686) 1,395	(2,796) 14,982	(38) 760	(6) 42	(2,840) 15,784

Equity at 1 Jan 2023	584	144	425	2	11,071	959	13,185	757	39	13,981
Profit for the period			4	1	1,606	1,686	3,297	39	6	3,342
Other comprehensive income		(10)			39		29			29
Comprehensive income for the year	-	(10)	4	1	1,645	1,686	3,326	39	6	3,371
Transactions with owners
Purchase of own shares					(1,613)		(1,613)			(1,613)
Sale of own shares					1,013		1,013			1,013
Reduction in share capital	(19)				19		-			-
Interest paid on AT1 capital							-	(39)		(39)
Exchange rate adjustment					(2)		(2)	2		-
Dividend etc paid						(959)	(959)		(6)	(965)
Dividend, own shares					0		0			0
Total transactions with owners	(19)				(583)	(959)	(1,561)	(37)	(6)	(1,604)
Equity at 31 Dec 2023	565	134	429	3	12,133	1,686	14,950	759	39	15,748

* Reserves according to the articles of association equal the undistributable savings bank reserve in accordance with Article 4 of the Articles of Association. ** AT1 capital has no maturity date. Payment of interest and repayment of principal are voluntary. Therefore AT1 capital is accounted for as equity. In May 2018 Sydbank issued EUR 100m with optional redemption on 28 August 2025. The issue carries interest at the Mid-Swap Rate + a margin of 4.62%, a total of 5.25%. Under the issue the loan will be written down if the CET1 ratio of Sydbank A/S or the Sydbank Group drops below 7%.

									Sydbank A/S
DKKm		Share capital	Revaluation reserves	ticles of association* Reserves acc to ar Reserve for net	revaluation acc to equity method	Retained earnings	dividend etc Proposed	Shareholders of Sydbank A/S	AT1 capital**	Total equity
Equity at 1 Jan 2024	565	134	429	3	12,133	1,686	14,950	759	15,709

Profit for the period			6	53	1,345	1,395	2,799	39	2,838
Other comprehensive income		29					29		29
Comprehensive income for the year	-	29	6	53	1,345	1,395	2,828	39	2,867

Transactions with owners
Purchase of own shares					(2,195)		(2,195)		(2,195)
Sale of own shares					1,080		1,080		1,080
Reduction in share capital	(19)				19		-		-
Interest paid on AT1 capital							-	(39)	(39)
Exchange rate adjustment					(1)		(1)	1	-
Dividend etc paid						(1,686)	(1,686)		(1,686)
Dividend, own shares					6		6		6
Total transactions with owners	(19)	-	-	-	(1,091)	(1,686)	(2,796)	(38)	(2,834)
Equity at 31 Dec 2024	546	163	435	56	12,387	1,395	14,982	760	15,742


Equity at 1 Jan 2023	584	144	425	2	11,071	959	13,185	757	13,942

Profit for the period			4	1	1,645	1,686	3,336	39	3,375
Other comprehensive income		(10)					(10)		(10)
Comprehensive income for the year	-	(10)	4	1	1,645	1,686	3,326	39	3,365

Transactions with owners
Purchase of own shares					(1,613)		(1,613)		(1,613)
Sale of own shares					1,013		1,013		1,013
Reduction in share capital	(19)				19		-		-
Interest paid on AT1 capital							-	(39)	(39)
Exchange rate adjustment					(2)		(2)	2	-
Dividend etc paid						(959)	(959)		(959)
Dividend, own shares					0		0		0
Total transactions with owners	(19)	-	-	-	(583)	(959)	(1,561)	(37)	(1,598)
Equity at 31 Dec 2023	565	134	429	3	12,133	1,686	14,950	759	15,709

The share capital comprises 54,588,420 shares at a nominal value of DKK 10 or a total of DKK 545.9m. The Bank has only one class of shares as all shares carry the same rights.

Cash Flow Statement

			Sydbank Group
DKKm	Note	2024	2023

Operating activities
Pre-tax profit for the year		3,645	4,281
Taxes paid		(887)	(528)
Adjustment for non-cash operating items:
Profit/(Loss) on holdings in associates		47	0
Amortisation and depreciation of intangible assets and property, plant and equipment		111	101
Impairment of loans and advances/guarantees	14, 18	595	(27)
Other non-cash operating items		273	(116)

Changes in working capital:
Credit institutions and central banks		5,868	4,523
Trading portfolio		2,975	(4,132)
Other financial instruments at fair value		77	120
Loans and advances		(14,449)	(6,827)
Deposits		1,916	4,149
Other assets/liabilities		(1,081)	326
Cash flows from operating activities		(910)	1,870

Investing activities
Purchase of holdings in associates		(7)	-
Sale of holdings in associates		14	3
Purchase of equity investments		(6)	(134)
Sale of equity investments		28	245
Acquisition of Coop Bank A/S	47	(347)	-
Purchase of property, plant and equipment		(94)	(92)
Sale of property, plant and equipment		3	2
Cash flows from investing activities		(409)	24
Financing activities
Purchase and sale of own holdings		(1,115)	(600)
Dividend etc		(1,680)	(959)
Raising of subordinated capital	33	1,529	-
Redemption of subordinated capital	33	(560)	-
Issue of bonds		3,731	3,727
Redemption of bonds		(3,728)	(5,758)
Cash flows from financing activities		(1,823)	(3,590)

Cash flows for the year		(3,142)	(1,696)

Cash and cash equivalents at 1 Jan		6,904	8,600
Cash flows for the year (changes during the year)		(3,142)	(1,696)
Cash and cash equivalents at 31 Dec		3,762	6,904

Cash and cash equivalents at 31 Dec
Cash and balances on demand at central banks		3,349	6,523
Fully secured cash and cash equivalent balances on demand with credit institutions and insurance companies		413	381
Cash and cash equivalents at 31 Dec		3,762	6,904

Note 1 Accounting policies

Basis of preparation

The consolidated financial statements of Sydbank are prepared in compliance with International Financial Reporting Standards (IFRS) as adopted by the EU. The financial statements of the parent, Sydbank A/S, are prepared in compliance with the Danish Financial Business Act, including the Danish executive order on financial reporting of credit institutions and brokerage firms etc, which is in compliance with the provisions on recognition and measurement according to IFRS.

Furthermore the consolidated financial statements are prepared in compliance with additional Danish disclosure requirements for annual reports of listed financial companies.

New accounting policies

The following amended IFRS standards have been implemented effective from 1 January 2024:

Amendments to IAS 1 regarding the classification of liabilities as current or non-current and information about supplier finance arrangements.
Amendments to IFRS 16 regarding sale and leaseback transactions with variable lease payments.

The changes have not had any effect on recognition and measurement in the consolidated financial statements and the financial statements and consequently they have had no impact on EPS Basic.

Apart from the above the accounting policies applied are consistent with those adopted in the previous year.

Recognition and measurement

Income is recognised in the income statement as earned. Costs incurred to earn the year's income are recognised in the income statement. Value adjustments of financial assets, financial liabilities and derivatives are recognised in the income statement apart from value adjustments of derivatives used to provide foreign currency hedging of net investments in foreign subsidiaries and associates. The latter value adjustments are recognised in other comprehensive income.

Purchase and sale of financial instruments are recognised on the settlement date.

Significant recognition and measurement principles

Consolidated financial statements

The consolidated financial statements include the parent, Sydbank A/S, as well as subsidiaries in which Sydbank A/S exercises control over financial and operating policies. "Group holdings and enterprises" (note 44) lists the consolidated entities.

The consolidated financial statements combine the items of the parent and the individual subsidiaries in accordance with the Group's accounting policies, in which intra-group income, costs, shareholdings, balances and dividends as well as realised and unrealised gains on intra-group transactions have been eliminated.

Acquisitions

Entities acquired are recognised in the consolidated financial statements from the acquisition date. Comparative figures are not restated for entities acquired.

Identifiable assets acquired and liabilities and contingent liabilities assumed of entities acquired are measured at the acquisition date at fair value in accordance with the acquisition method. Identifiable intangible assets are recognised if they are separable or arise from a contractual right. Deferred tax on revaluations is recognised.

The acquisition date is the date on which the Group obtains control over the entity acquired.

Where the acquisition cost exceeds the fair value of the net assets of the entity acquired, the difference is recognised as goodwill. Goodwill is not amortised but is tested for impairment at least once a year. On acquisition goodwill is allocated to the cash-generating units which subsequently form the basis of impairment tests.

Costs incurred in connection with acquisitions are included in administrative costs in the year when incurred.

Where at the acquisition date there is uncertainty as regards the identification or measurement of assets acquired, liabilities or contingent liabilities assumed or the determination of the acquisition cost, initial recognition is based on provisional values. Where the identification or measurement of the acquisition cost or of assets acquired, liabilities or contingent liabilities assumed subsequently proves to have been incorrect on initial recognition, the determination will be adjusted retroactively, including goodwill, until 12 months after the acquisition and comparative figures are

restated. After such time the pre-acquisition balance sheet will not be adjusted. Changes in estimates of contingent acquisition costs are recognised in profit for the year.

Entities disposed of are consolidated until the transfer date.

Foreign currency translation

The consolidated financial statements are presented in DKK, the functional currency of the parent. Transactions in foreign currencies are translated at the exchange rate on the date of transaction. Balances in foreign currencies are translated at the closing rate.

Offsetting

The Group sets off assets and liabilities only when the Group has a legally enforceable right to set off the recognised amounts and intends to settle on a net basis or to realise the asset and settle the liability simultaneously.

Income criteria

Income and expenses, including interest income and interest expense, are accrued over the periods to which they relate and are recognised in profit or loss at the amounts relevant to the accounting period. Guarantee commission is recognised as income over the life of the guarantees. Income for implementing a given transaction, including securities fees and payment service fees, is recognised as income when the transaction has been implemented.

The Group's fees are divided into the following categories:

1. Fees that are an integral part of the effective interest rate
1. Fees obtained when a service has been supplied
1. Fees obtained on performance of a specific act

Fees that are an integral part of the effective interest rate are recognised as income over the expected life of the loans and are included under interest income, see note 7.

Fees covered by 2 and 3 above are recognised as income when the service has been supplied and when the transaction has taken place respectively. The fees are specified in note 10.

Loan fees, which appear from note 10, primarily concern arranged mortgage loans.

Financial assets and liabilities

Fair value measurement

The Group uses the concept of fair value in connection with certain disclosure requirements as well as recognition of financial instruments.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. Fair value is a market-based measurement, not an entity-specific measurement. The entity uses the assumptions that market participants would use when pricing the asset or liability under current market conditions, including assumptions about risk. As a result the entity's intention to hold an asset or to settle a liability is not considered when measuring fair value.

Fair value measurement is based on the principal market. If there is no principal market the most advantageous market is used as a basis, ie the market achieving the highest price for the asset or liability less transaction costs.

Fair value measurement is based to the widest extent possible on market values in active markets or alternatively on values derived from observable market data.

In so far as such observations are not available or cannot be used without significant modifications, acknowledged valuation techniques and reasonable estimates are used as the basis of fair values.

General provisions concerning recognition and measurement Financial assets are classified on the basis of the Group's business model and the contractual cash flow characteristics of the individual financial assets. With this as a basis, measurement is according to one of the following principles: • Amortised cost

Fair value through other comprehensive income (FVOCI)
Fair value through profit or loss (FVPL)

The Group's financial assets are measured at amortised cost if they are held for a commercial purpose in order to collect the contractual cash flows of the assets ("hold to collect") and if such contractual cash flows of the financial assets consist solely of payments of principal and interest on the amount outstanding.

With the exception of certain strategic shareholdings the Group's other financial assets are measured at FVPL, including financial assets which are held for a different commercial purpose, eg financial assets which are managed on a fair value basis or which form part of the trading portfolio,

and financial assets for which the contractual cash flows of the financial assets do not solely consist of payments of principal and interest on the amount outstanding.

Some of the Group's strategic shareholdings are measured at FVOCI. Dividends on such shareholdings are recognised in the income statement whereas unrealised and realised market value adjustments are recognised in other comprehensive income and therefore do not have an impact on the income statement.

Assessment of business model

The Group's operating segments include Banking, which has a "hold to collect" business model. Financial assets consist primarily of loans and advances. Sydbank Markets' business model is neither based on "hold to collect" or "hold to collect and sell" and consequently financial assets must be measured at FVPL. Assets comprise bonds, shares, repo transactions and loans and advances at fair value (reverse transactions). Certain of these financial assets form part of portfolios with a trading pattern meeting the definition of "held for trading" whereas other portfolios are managed on a fair value basis.

Assessment of contractual cash flow characteristics (solely payments of principal and interest on amount outstanding) The classification of financial assets which form part of portfolios that are either "hold to collect" or "hold to collect and sell" is assessed based on whether the contractual cash flows of the financial asset consist solely of payments of principal and interest on the amount outstanding. The principal reflects the fair value at initial recognition and subsequent changes, eg as a result of repayment. Interest payments should only reflect consideration for the time value of money, for the credit risk and for other basic lending risks as well as a margin consistent with the basic lending arrangement.

Repo and reverse transactions

Securities sold under agreements to repurchase the same remain on the balance sheet. Consideration received is recognised as a debt and the difference between selling and buying prices is recognised over the life as interest in the income statement. Gains or losses on securities are recognised in the income statement.

Securities bought under agreements to resell the same are not recognised in the balance sheet and gains or losses on securities are not recognised in the income statement. Consideration paid is recognised as a receivable and the difference between buying and selling prices is recognised over the life as interest in the income statement.

Repo and reverse transactions are recognised and measured at fair value as they are regarded as an integral part of the trading portfolio and form part of ongoing risk management and determination of gains thereon.

Transfer of loans

The Group transfers certain loans secured on real estate to a mortgage credit institution under the joint funding provisions of the Danish Financial Business Act. As of the transfer date the loans are no longer recognised in the Group's balance sheet because the Group has transferred control and a certain share of the risks and benefits associated with the loans to the mortgage credit institution. The Group provides a guarantee for part of the risk associated with the loans for which it receives guarantee commission. Moreover the Group receives fee income from the mortgage credit institution for ongoing servicing of the loans transferred.

Amounts owed and loans and advances

Initial recognition of amounts owed by credit institutions and central banks as well as loans and advances is at fair value plus transaction costs and less origination fees received.

Subsequent measurement of amounts owed by credit institutions etc and loans and advances that are not reverse transactions is at amortised cost less impairment charges for expected losses.

Amounts owed by credit institutions etc and loans and advances at amortised cost are all assessed to determine whether evidence of credit impairment exists.

ECL impairment model

Impairment charges are recorded for expected credit losses as regards all financial assets measured at amortised cost and similar provisions are made for expected credit losses as regards loan commitments and financial guarantees. As regards financial assets recognised at amortised cost, impairment charges for expected credit losses are recognised in the income statement and deducted from the value of the asset in the balance sheet. Provisions for loan commitments and financial guarantees are recognised as a liability.

According to the impairment model impairment charges are recorded for all exposures on the basis of an expected loss model. At the date of initial recognition an exposure is written down by an amount equal to the expected credit loss within 12 months (stage 1). Impairment charges for expected credit losses subsequently depend on whether the credit risk of a financial asset (facility) has increased significantly since initial recognition and follow a 3-stage model:

Note 1 Accounting policies – continued

Stage 3 – facilities where the financial asset is in default or is otherwise credit impaired. As opposed to stages 1 and 2 interest income is recognised solely on the basis of the impaired value of the asset.

Credit impaired at initial recognition – facilities which are credit impaired at the time of acquisition. They are recognised on acquisition at the fair value (net) of the debt acquired. Subsequent measurement is on repayment in full or in part and recognition is through profit or loss under market value adjustments.

The staging assessment and the calculation of expected credit loss are based on the Group's rating models and credit management.

Expected losses regarding exposures in stages 1 and 2 are calculated on the basis of models while the calculation for exposures in stage 3 and weak stage 2 is based on an individual assessment.

Model calculation is based on the Group's rating model, which has been instrumental in connection with credit management for many years, and is supplemented by macroeconomic factors adjusting the calculated PD values (probability of default).

The retail client model is based primarily on account behaviour (overdue payments and overdrafts). On the basis of this data and inherent statistical correlations, clients are rated according to their probability of default vis-à-vis the Group within the next 12 months.

In addition to account behaviour the corporate client model is based on accounting data, financial conduct as well as appraisals by the credit officer and/or the account manager of the client's current strength profile and an industry analysis.

The assessment of whether credit risk has increased significantly since initial recognition is made by assessing changes in the risk of default over the remaining life of the financial asset rather than assessing the increase in the expected credit loss. A facility is transferred from stage 1 to stage 2 when the following increase in PD is observed: • Facilities with a PD below 1% on establishment: an increase in the 12-month PD of the facility of at least 0.5pp and a doubling of the lifetime PD of the facility since its establishment.

• Facilities with a PD above 1% on establishment: an increase in the 12-month PD of the facility of at least 2pp or a doubling of the lifetime PD of the facility.

Moreover facilities are transferred to stage 2 as a result of the conditions below:

They are more than 30 days past due.
They are forborne and losses are not expected in the most likely scenario.
A 2-year waiting period for facilities on special terms is observed without overdrafts.

Exposures relating to customers whose ability to pay shows significant signs of weakness are classified as weak stage 2. By means of analyses and random sampling, Risk Follow-up monitors the credit quality, registrations, impairment calculations of the exposures as well as the compliance with policies and business procedures in general. Risk Follow-up evaluates on the basis of a credit expert assessment whether the Group's rating models rank exposures correctly.

In connection with renegotiation the Group does not transfer exposures back to stage 1 regardless of whether the contractual cash flows are renegotiated to a level reflecting customer risk. In this connection an exposure is regarded as a new exposure and consequently renegotiation will not result in recognition of gains or losses.

The expected credit loss is calculated for each individual facility on the basis of EAD (exposure at default) multiplied by PD (probability of default) and LGD (loss given default).

Exposures in default, see the definition below, or as regards which the exposure has been transferred to the central department for non-performing exposures or whose probability of loss is higher than 50% are credit impaired and are classified as stage 3.

The expected credit loss over the life of the financial asset covers the expected remaining life of the facility. For most facilities the expected life is limited to the remaining contractual term. For facilities consisting of a loan as well as an undrawn loan commitment and for which a contractual right to demand early repayment and cancellation of the undrawn loan commitment exists, the Group's exposure to credit losses is not limited to the contractual notice period. In this case the expected life is assumed to equal the period during which the Group expects to be exposed to credit losses. The expected life is determined on the basis of the

Note 1 Accounting policies – continued

historical life of the instruments in question. Facilities for which the expected life is longer than the remaining contractual term comprise for instance credit cards, overdraft facilities and certain revolving credit facilities.

The calculation of the expected loss reflects management's current expectations. Scenarios are prepared: baseline, upturn and downturn, including an assessment of the likelihood of each scenario. Management's review of the scenarios may imply that changes are made to the scenarios or the probability weighting.

In addition to the calculated impairment charges to cover expected credit losses at exposure level, management makes a number of estimates of factors which are expected to affect future losses on the exposures existing on the balance sheet date, including for instance expectations of macroeconomic trends, industry developments or particularly risky portfolios. On the basis of this adjustments of calculated impairment charges are recognised.

Moreover the Group has recognised management estimates which are described in note 2 on page 97.

Default

The definition of default used to measure expected credit losses and to assess whether an asset must be transferred to another stage corresponds to the definition applied for internal risk management purposes and is adapted to the Capital Requirements Regulation (CRR). Consequently exposures which for regulatory purposes are considered to be in default are always classified as stage 3 except for exposures which are in default as a result of a waiting period. This is the case both as regards the number of days for which material amounts are past due (90 days) and as regards the assessment of factors that in all likelihood will result in a failure to pay and consequently default for regulatory purposes.

According to the Group's rating system, a customer is in default if at least one of the following events has occurred:

A write-off has been recorded as regards the customer
The customer has at least one non-accrual credit facility
An impairment charge/provision has been registered in connection with the customer and a loss must be regarded as the most likely
The exposure is being treated as non-performing
The exposure has been significantly overdrawn for more than 90 consecutive days
Distressed restructuring has been granted
Exposures in default are classified as stage 3

Collateral

Collateral is measured on the basis of a cautiously estimated fair value in connection with the calculation of impairment charges.

Write-off policy

The Group's practice is that a debt is written off for accounting purposes if the legal claim is forfeited or the likelihood of collection is very remote. The fundamental principles as regards write-offs are as follows:

For retail clients a debt is written off in part or in full if the management of the customer relationship is transferred to the Group's collection department.
For corporate clients a debt is written off in part or in full in connection with a forthcoming bankruptcy, restructuring or initiated realisation of collateral.

Debt which has been written off for accounting purposes but where a legal claim has been upheld is specified in the notes.

Leases (lessor)

Lease assets in connection with finance leases in which the Group is the lessor are recognised under loans and advances at the net investment in the leases less amortisation (repayment) which is computed according to the annuity method over the lease term.

Income from the lease assets is recognised on the basis of the agreed effective interest rate of the leases and is recognised in profit or loss under "Interest income". Sales proceeds from lease assets are recognised under "Other operating income".

Leases (lessee)

Lease assets and lease liabilities are recognised in the balance sheet when the Group, under the terms of a lease agreement concerning an explicitly identified asset, is given possession of the lease asset during the lease term and when the Group obtains the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset during the lease term.

Lease liabilities are measured initially at the present value of future lease payments discounted using an alternative borrowing rate. The following lease payments are recognised as part of the lease liability:

Fixed payments.
Variable payments depending on changes in an index or an interest rate.
Payments due under residual value guarantees.

Note 1 Accounting policies – continued

The exercise price of a purchase option if the Group is reasonably certain to exercise the option.
Payments comprised by an option to extend a lease if the Group is reasonably certain to exercise the option.
Penalties relating to an option to terminate a lease unless the Group is reasonably certain not to exercise the option.

A lease liability is measured at amortised cost using the effective interest method. The lease liability is reassessed if there are changes in the underlying contractual cash flows as a result of changes in an index or an interest rate, if there are changes in the Group's estimate of a residual value guarantee or if the Group changes its assessment of whether it is reasonably certain to exercise a purchase option or an option to extend or terminate a lease.

A lease asset is initially measured at cost, which corresponds to the value of the lease liability less any prepayments of lease payments plus any directly related costs and estimated costs for dismantling, restoration or similar and less any discounts or other types of incentive payments from the lessor.

The lease asset is subsequently measured at cost less accumulated depreciation and impairment charges. The lease asset is depreciated over the shorter of the lease term and the useful life of the lease asset. Depreciation is recognised in profit or loss on a straight-line basis.

The lease asset is adjusted for changes in the lease liability as a result of changes in the terms and conditions of the lease or changes in the contractual cash flows depending on changes in an index or an interest rate.

Lease assets are depreciated on a straight-line basis over the expected lease term of 4-13 years.

The Group presents lease assets and lease liabilities separately in the balance sheet.

The Group has elected not to recognise lease assets of a low value and short-term leases in the balance sheet. Instead lease payments concerning these leases are recognised in profit or loss on a straight-line basis.

Bonds and shares etc

Bonds and shares etc are recognised and measured at fair value. Similarly for shares outside the trading portfolio the fair value option is used and changes are recognised in profit or loss apart from certain strategic shareholdings which are measured at FVOCI.

Fair value is the amount for which a financial asset can be exchanged between market participants. In an active market, fair value is expressed by quoted prices. Alternatively it is expressed by a model value, based on recognised models and observable market data, which corresponds to fair value. The fair value of unlisted shares and other holdings is calculated on the basis of available information on trades and taking into account any shareholders' agreements etc. Alternatively it is calculated on the basis of a discounted value of expected cash flows.

Holdings in associates

Associates are entities in which the Group has holdings and significant influence but not control. Holdings in associates are recognised and measured according to the equity method.

The proportionate share of the profit or loss after tax of the entities is recognised under "Profit/(Loss) on holdings in associates and subsidiaries".

Derivatives and hedge accounting

Derivatives are recognised and measured at fair value (market value). Positive market values are recognised under "Other assets". Negative market values are recognised under "Other liabilities".

Market value adjustment of derivatives concluded for the purpose of hedging the interest rate risk of fixed-rate loans and advances generates immediate asymmetry in the financial statements as fixed-rate loans and advances are measured at amortised cost. This asymmetry is eliminated by using the macro hedging rules of IAS 39 (fair value hedging) as dynamic hedging with daily updating. The calculated change in the fair value of the loans and advances effectively hedged is recognised in the balance sheet under "Other assets" or under "Other liabilities" and is recognised in the income statement under "Market value adjustments".

Pooled plans

All pooled assets and deposits are recognised in separate balance sheet items. Return on pooled assets and distribution to holders of pooled assets are recognised under "Market value adjustments". The assets in which holders' savings are placed are measured at fair value.

The portfolio of shares and bonds issued by the Group is reduced in equity and bonds issued respectively. Consequently "Deposits in pooled plans" may exceed "Assets related to pooled plans".

Intangible assets

Intangible assets concern the value of customer relations-

hips acquired in connection with acquisitions as well as goodwill.

The value of customer relationships acquired is measured at cost less accumulated amortisation and impairment charges. The value of customer relationships acquired is amortised over the expected useful life of 5-15 years.

Initial recognition of goodwill is at cost in the balance sheet. Subsequent measurement of goodwill is at cost less accumulated impairment charges. Goodwill is not amortised. Goodwill is tested for impairment once a year and is written down to its recoverable amount through profit or loss if the carrying amount is higher. The recoverable amount is determined as the present value of the future net cash flows expected to be derived from the activity to which goodwill is related. The determination of cash-generating units follows the management structure and the management control. Management assesses the lowest level of cash-generating units to which the carrying amount of goodwill may be allocated. The carrying amount of goodwill is allocated to Banking at the acquisition date.

Impairment charges for goodwill are not reversed.

Owner-occupied property

Owner-occupied property is property mainly used by the Group to operate its banking business.

Owner-occupied property is recognised on acquisition at cost and subsequently carried at a revalued amount corresponding to the fair value at the date of revaluation less depreciation and impairment charges. Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.

Any decrease in the carrying amount as a result of the revaluation of owner-occupied property is charged to the income statement except where the decrease reverses previously recognised increases. Any increase as a result of the revaluation of owner-occupied property is recognised in other comprehensive income and transferred to revaluation reserves under equity except where an increase reverses previously recognised impairment charges as regards the property in question. Owner-occupied property is depreciated on a straight-line basis over the expected useful life of 50 years taking into account the expected residual value at the expiry of the useful life.

As regards ongoing measurement of land and buildings, the

value of the individual property is measured on the basis of the return method. The underlying assumptions, return and rate of return are assessed by external valuers.

Depreciation and impairment charges are recognised in the income statement under "Depreciation and impairment of property, plant and equipment".

Other property, plant and equipment

Other property, plant and equipment consists primarily of IT equipment, furniture and fixtures and leasehold improvements and is measured at cost less depreciation and impairment charges. Depreciation is provided on a straight-line basis over the expected useful life, typically 3-5 years. Leasehold improvements are depreciated over the term of the lease. Depreciation and impairment charges are recognised in the income statement under "Depreciation and impairment of property, plant and equipment".

Other assets

This item includes assets not recognised under other asset items, eg positive market values of spot transactions and derivatives, cash collateral provided in connection with CSA agreements as well as interest receivable.

Dividend

Proposed dividend is recognised as a liability at the date of adoption by the AGM. Proposed dividend for the year is recognised as a separate item in equity until adoption.

AT1 capital

AT1 capital which has no maturity and with voluntary payment of interest and voluntary repayment of principal is recognised in equity. Similarly the interest expense related to the issue is recognised as dividend. Interest is deducted from equity at the time of payment (date of decision).

Own shares

Consideration paid or received in connection with the Group's purchase and sale of Sydbank shares is recognised directly in equity.

Other liabilities

This item includes negative market values of spot transactions and derivatives, cash collateral received in connection with CSA agreements, negative portfolios in connection with reverse transactions, interest payable as well as provisions for employee benefits.

Negative portfolios in connection with reverse transactions arise when the Group resells assets received as collateral in

Note 1 Accounting policies – continued

connection with reverse transactions. The assets received are not recognised in the balance sheet and any resale will therefore result in a negative portfolio.

Wages and salaries, payroll tax, social security contributions as well as paid absences are recognised in the financial year in which the related service has been rendered by the Group's employees. Costs relating to the Group's long-term employee benefits are accrued and follow the service rendered by the employees in question. Pension contributions are paid into the employees' pension plans on a continuing basis and are charged to the income statement.

Employee shares

When the Group's employees are given an option to subscribe for shares at a price below the market price, the bonus element is recognised from the grant date as a cost under staff costs. The set-off is recognised directly in equity as an owner's transaction. The bonus element is expensed successively during the vesting period as the difference between the fair value and the subscription price of the shares subscribed or the subscription rights.

Provisions

Provisions include provisions for guarantees, provisions for onerous contracts as well as legal actions etc. Initial recognition of financial guarantees is at fair value, which is often equal to the guarantee premium received.

Subsequent measurement of guarantees is at the higher of the guarantee premium received amortised over the guarantee period and any provision for expected losses.

A provision for a non-financial guarantee or an onerous contract is recognised if claims for payment under the guarantee or contract are probable and the size of the liability can be measured reliably. Provisions are based on management's best estimates of the size of the liabilities. Measurement of provisions includes discounting when significant.

Financial liabilities

Deposits, bonds issued, subordinated capital and amounts owed to credit institutions etc are recognised initially at fair value less transaction costs incurred.

Subsequent measurement of deposits, bonds issued, subordinated capital and amounts owed to credit institutions etc that are not repo transactions is at amortised cost using the effective interest method whereby the difference between net proceeds and nominal value is recognised in the income statement under "Interest expense" over the loan period.

Other liabilities are measured at net realisable value.

Assets in temporary possession

Assets in temporary possession include property, plant and equipment and disposal groups held for sale, including assets or entities taken over in connection with non-performing exposures.

Assets are classified as being in temporary possession when their carrying amount will be recovered principally through a sale transaction within 12 months in accordance with a formal plan. Assets or disposal groups in temporary possession are measured at the lower of the carrying amount and fair value less costs to sell. Assets are not depreciated or amortised from the time when they are classified as being in temporary possession.

Impairment losses arising at initial classification as assets being in temporary possession and gains or losses at subsequent measurement at the lower of the carrying amount and fair value less costs to sell are recognised in the income statement under the items they concern.

Guarantee scheme

Contributions to the Guarantee Fund and the Resolution Fund, for instance to cover losses related to the resolution or bankruptcy of banks, are recognised under "Other operating expenses".

Tax

The Bank is jointly taxed with its Danish consolidated entities.

Sydbank A/S has been appointed the management company of the joint taxation entity. Corporation tax on income subject to joint taxation is fully distributed on payment of joint taxation contributions between the Danish consolidated entities. Tax for the year includes tax on taxable income for the year, adjustment of deferred tax and adjustment of prior year tax charges. Tax for the year is recognised in the income statement as regards the elements attributable to profit for the year, in other comprehensive income as regards the elements attributable thereto and directly in equity as regards the elements attributable to items recognised directly in equity.

Current tax liabilities and current tax assets are recognised in the balance sheet as calculated tax on taxable income for the year adjusted for tax on prior year taxable income as well as for tax paid on account.

Deferred tax is recognised on the basis of all temporary dif-

Note 1 Accounting policies – continued

ferences between the carrying amounts and the tax base of the balance sheets of each consolidated entity as well as tax loss carry forwards that are expected to be used. Deferred tax is measured on the basis of the tax rules and tax rates that, according to the rules in force at the balance sheet date, are applicable at the time the deferred tax is expected to crystallise as current tax.

Cash flow statement

The cash flow statement presents cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and end of the year. The cash flow statement is presented using the indirect method based on profit before tax.

The cash flow effect of the acquisition and disposal of entities is reported separately under cash flows from investing activities. The cash flow statement recognises cash flows concerning entities acquired from the acquisition date and cash flows concerning entities disposed of until the transfer date.

Cash flows from operating activities are determined as profit before tax for the year adjusted for non-cash operating items, taxes paid as well as changes in working capital.

Cash flows from investing activities include purchase and sale of property, plant and equipment, intangible assets as well as holdings in associates.

Cash flows from financing activities include dividends paid as well as changes in equity, subordinated capital and bonds issued.

Cash and cash equivalents comprise cash and balances on demand at central banks, fully secured cash and cash equivalent balances on demand with credit institutions and insurance companies as well as unencumbered certificates of deposit.

Segment reporting

The Group consists of a number of business units and central functions. The segments are based on product and service characteristics and comprise Banking, Asset Management, Sydbank Markets, Treasury and Other. Further details of the business units are provided in note 5. The correlation between the income statement according to IFRS and the Group's performance measures is shown in note 6.

Segment reporting as regards the business units complies with the Group's accounting policies as regards recognition and measurement. Inter-segment transactions are settled on an arm's length basis. Centrally incurred costs are allocated to the business units in accordance with their estimated proportionate share of overall activities.

The following performance measures are used in connection with the Group's management control, see segment information stated in note 5.

Core income

Core income comprises income from customers served by the Group's branch network, including interest, commission, investment fund commission, custody account fees and asset management fees.

Trading income

Trading income only comprises income from customers affiliated with Sydbank Markets as well as income from flows and market-making as regards securities and other financial instruments as well as related position-taking.

Core earnings before impairment

Core earnings before impairment charges for loans and advances etc represent core income and trading income less costs relating to these activities.

Impairment of loans and advances etc

Impairment of loans and advances etc represents impairment charges for bank loans and advances, provisions for guarantees as well as credit valuation adjustment of derivatives.

Core earnings

Core earnings represent core income and trading income less costs and impairment charges for loans and advances etc relating to these activities.

Investment portfolio earnings

Investment portfolio earnings represent the return on the portfolios of shares, bonds, derivatives and holdings managed by Treasury, which is part of the business unit Sydbank Markets.

Investment portfolio earnings are less funding charges and administrative costs.

Forthcoming standards and interpretations

The International Accounting Standards Board (IASB) has issued the following new International Financial Reporting Standards (IFRS) and Interpretations (IFRIC), which are not mandatory for the Group in connection with the preparation

of the 2024 financial statements. These include:

Amendments to IFRS 9 and IFRS 7 regarding the classification and measurement of financial assets.
IFRS 18 Presentation and Disclosure in Financial Statements (replaces IAS 1).

The Group does not plan to implement the new standards and interpretations until they become mandatory. New/ amended standards and interpretations are not expected to have any significant impact on the Group's financial reporting.

Accounting policies of the parent

The financial statements of the parent are prepared in accordance with the Danish Financial Business Act and the Danish FSA's executive order on financial reporting of credit institutions. The financial statements of the parent are prepared according to the same accounting policies as the consolidated financial statements except for:

Strategic shareholdings where value adjustment is through profit or loss in the financial statements of the parent and through other comprehensive income in the consolidated financial statements. This difference is due to incompatibility between the Danish FSA's executive order on financial reporting of credit institutions and IFRS in this regard. The balance sheet and equity are not affected. For the impact on profit for the year, reference is made to note 46.
The leasing of property from subsidiaries by the parent, which in accordance with the Danish FSA's executive order on financial reporting of credit institutions is not treated according to the principles of IFRS 16 but continues to be treated according to the principles of IAS 17. This is due to the fact that the properties are fully financed by the parent and therefore the application of IFRS 16 would result in double recognition of the properties in the balance sheet of the parent.

Subsidiaries are entities in which the parent has control. Holdings in subsidiaries are recognised and measured according to the equity method. The proportionate share of profit or loss after tax of the entities is recognised under "Profit/(Loss) on holdings in associates and subsidiaries".

Reporting under the ESEF Regulation

The annual report of Sydbank is prepared in accordance with the ESEF Regulation (Commission Delegated Regulation (EU) 2019/815 on a European single electronic format (ESEF)).

The annual report is reported in XHTML format with an iXBRL tagging as regards the consolidated financial statements including notes. The ESEF Regulation requires the use of the special electronic reporting format as regards annual reports of listed companies and stipulates general rules for the format of the annual report and more specific rules as regards the tagging of the consolidated financial statements including notes.

By combining the XHTML format and iXBRL tagging the consolidated financial statements are machine-readable and the comparability of accounting data is improved.

The consolidated financial statements including notes are tagged in iXBRL using the ESEF taxonomy, which is part of the ESEF Regulation.

The annual report consists of the XHTML document and the technical files that are all included in the ZIP file "Sydbank-2024-12-31-da.zip".

Key definitions

XHTML (eXtensible HyperText Markup Language) is used to structure and markup contents in documents to be shown in standard browsers.

iXBRL tagging is hidden information contained in the source code in the XHTML document allowing for conversion of information into machine-readable XBRL data.

ESEF data

Domicile of entity	Denmark
Name of ultimate parent of Group	Sydbank A/S (listed on Nasdaq Copenhagen)
Description of nature of entity's operations and principal activities	Financial business, banking
Country of incorporation	Denmark
Principal place of business	Denmark
Explanation of change in name of reporting entity	N/A
Legal form of entity	A/S (public limited company)
Name of reporting entity	Sydbank A/S
Name of parent entity	Sydbank A/S (listed on Nasdaq Copenhagen)
Address of entity's registered office	Peberlyk 4 6200 Aabenraa

Note 2 Accounting estimates and judgements

Management's estimates and judgements are based on assumptions considered reasonable by management but which by their nature are uncertain and unpredictable. These assumptions may be incomplete or inaccurate and unexpected future events or circumstances may occur. Consequently it is by nature difficult to make estimates and judgements and since they also involve customer relationships and other counterparties they will be subject to uncertainty. It may be necessary to change previous estimates as a result of changes in the basis of previous estimates or because of new knowledge or subsequent events.

The areas where critical estimates and judgements have the most significant effect on the financial statements are:

Measurement of loans and advances and guarantees etc, including in particular the management estimate as
regards macroeconomic risks.
Fair value of unlisted financial instruments.

Measurement of loans and advances and guarantees etc

Impairment of loans and advances and provisions for guarantees and undrawn credit commitments are made to take into account the expected losses on conclusion as well as any credit impairment after initial recognition. The determination of impairment charges for expected losses is subject to a number of estimates, including which loans and advances or portfolios of loans and advances are subject to credit impairment as well as calculation of expected losses.

Assessing the degree of credit impairment of exposures involves a number of estimates and is therefore subject to uncertainty.

To a large extent the determination of expected losses at exposure level is based on risk registrations, models and past experience but it also involves a number of estimates of risks and expected developments in the individual exposure, including the future ability to pay and the value of collateral which in particular comprises mortgages on property. During periods of uncertain economic trends or significant demographic or structural changes uncertainty is greater. This is reflected in the need for management adjustments that by their nature are subject to uncertainty.

The Group's models to calculate impairment of exposures in stages 1 and 2 include expectations as to economic developments. The outlook is based on estimates of the probability of different outcomes of economic growth. The outlook results in a determination of the probability of the scenarios baseline, upturn and downturn.

At 31 December 2024 the probability of the downturn scenario was fixed at 95%, which is unchanged compared with 31 December 2023.

Impairment of exposures in stage 3 and the weak part of stage 2 is based on individual assessments which include expectations of future changes in collateral value etc.

In addition to the calculated impairment charges, management assesses whether there is a need for additional impairment charges as regards exposed industries, customer segments or other elements that are estimated as having not yet been reflected in the Bank's registrations.

At 31 December 2023 the management estimate to hedge macroeconomic uncertainty represented DKK 500m. The management estimate represented DKK 400m as regards corporate clients and DKK 100m as regards retail clients.

At 31 December 2024 the management estimate to hedge macroeconomic uncertainty still represented DKK 500m where DKK 400m concerns corporate clients and DKK 100m concerns retail clients.

The management estimate to hedge macroeconomic risks covers potential losses related to high interest rates, the geopolitical situation as well as the risk of a trade war centred on tariff barriers.

Reference is made to the notes on risk management for a more detailed description of impairment charges for loans and advances. Loans and advances constituted 55% of the Group's assets at the end of 2024.

Provisions for financial guarantees and undrawn credit commitments issued in connection with customer exposures are made according to the same principles as those applying to the impairment of loans and advances and involve the same elements of uncertainty.

Fair value of financial instruments

The Group measures a number of financial instruments at fair value, including all derivatives as well as shares and bonds.

Judgements are made in connection with the determination of the fair value of financial instruments in the following areas:

Choice of valuation technique.
Determination of when available quoted prices do not represent fair value.

Note 2 Accounting estimates and judgements – continued

Calculation of fair value adjustments to take into account relevant risk factors such as credit risk, model risk and liquidity risk.
Assessment of which market parameters must be observed.
Estimate of future cash flows and required rates of return as regards unlisted shares.

Management estimates are based on an assessment in accordance with the Group's accounting policies and generally accepted valuation techniques.

As part of its operations the Group has acquired strategic holdings. Strategic holdings are measured at fair value on the basis of available information on trades in the relevant entity's holdings or alternatively a valuation model based on recognised methods and current market data, including a judgement of projected future earnings and cash flows. Valuation will also be influenced by co-ownership, trade and shareholders' agreements etc.

As regards financial instruments where measurement is only to a limited extent based on observable market data, measurement is affected by estimates. This is the case as regards for instance unlisted shares and certain bonds for which there is no active market. Measurement of illiquid bonds is affected by the assumption of the relevant credit spread.

Reference is made to "Accounting policies" (note 1) and to "Fair value disclosure" (note 39) for a more detailed description. Financial instruments measured on the basis of unobservable inputs represented DKK 2,459m, equivalent to 1.3% of the Group's assets at the end of 2024.

Acquisition

In connection with the acquisition of Coop Bank the fair value of assets and liabilities acquired has been assessed in accordance with the rules.

The value of customer relationships acquired (intangible asset) as well as loans and advances, loan commitments and guarantees are substantially based on estimates and calculations as there are no market prices for these assets.

As a result of the determination of fair values, the value of customer relationships has been recognised.

Reference is made to note 47 for a list of the assets and liabilities acquired as well as additional information about the acquisition. Apart from usual uncertainty of such estimates the determination of fair values at the acquisition date has not been subject to difficulties.

Note 3 Solvency

The Group uses the following methods and approaches to calculate solvency:

Credit risk outside trading portfolio, retail clients	A-IRB
Credit risk outside trading portfolio, corporate clients	A-IRB
Credit risk outside trading portfolio, financial counterparties	Standardised approach
Counterparty risk	SA-CCR approach
Valuation of collateral	Financial collateral comprehensive method
Market risk	Standardised approach
Operational risk	Standardised approach
Credit valuation adjustment	Standardised approach

The Group's portfolio of equity investments primarily comprises strategic sector shares etc and in the Group's solvency calculation it is included under other exposures incl credit valuation adjustment.

Various types of collateral are used to mitigate the risk of the Group's lending portfolio. The most significant types of collateral comprise charges and guarantees.

Charges relate to deposit accounts and financial assets in the form of bonds and shares. The Group ensures that the items charged are separate from customers' right of disposal and that the charge is of legal validity. Valuation is ensured via the requirements of the financial collateral comprehensive method according to EU Regulation 575/2013 and Directive 2013/36/EU on requirements for credit institutions and investment firms (CRR/CRD IV) which reduces the value of collateral on the basis of issuer, maturity and liquidity.

The Group has concluded netting agreements with all significant counterparties.

		Sydbank Group
DKKm	2024	2023
CET1 ratio	17.8	18.9
T1 capital ratio	19.0	20.1
Capital ratio	21.4	21.1

Total capital
Equity, shareholders of Sydbank A/S	14,982	14,950
Capital deduction – prudent valuation	(78)	(82)
Actual or contingent obligations to purchase own shares	(114)	(9)
Proposed dividend	(1,395)	(1,686)
Intangible assets and capitalised deferred tax assets	(329)	(267)
Significant investments in the financial sector	(1,356)	(1,189)
Insufficient coverage for non-performing exposures	(75)	(46)
CET1 capital	11,635	11,671
AT1 capital – equity	746	745
T1 capital	12,381	12,416
T2 capital	1,582	559
Instruments in entities in the financial sector in which the institution has significant investments	(28)	(146)
Difference between expected losses and impairment for accounting purposes	-	227
Total capital	13,936	13,056

Note 3 Solvency – continued		Sydbank Group
DKKm	2024	2023
Credit risk	40,721	39,187
Market risk	6,023	6,047
Operational risk	11,934	10,250
Other exposures, incl CVA	6,536	6,412
REA	65,214	61,896
Pillar I capital requirement (8%)	5,217	4,952

Note 4 Leverage ratio	Sydbank Group Sydbank A/S
	2024	2023	2024	2023
Leverage ratio exposures
Total assets	193,669	185,101	190,422	187,213
Of which pooled assets	(27,005)	(22,903)	(27,005)	(22,903)
Correction derivatives etc	3,072	5,161	3,072	5,161
Guarantees etc	16,154	15,521	16,096	15,521
Undrawn credit commitments etc	11,154	11,832	11,122	11,832
Other adjustments	(2,286)	(2,603)	(2,702)	(2,584)
Total	194,758	192,109	191,005	194,240

T1 capital – current (transitional rules)	12,381	12,416	12,124	12,416
T1 capital – fully loaded	12,381	12,416	12,124	12,416

Leverage ratio (%) – current (transitional rules)	6.4	6.5	6.3	6.4
Leverage ratio (%) – fully loaded	6.4	6.5	6.3	6.4

Note 5 Segment reporting

Operating segments

The Group's segment statements are divided into the following business units: Banking, Asset Management, Sydbank Markets, Treasury and Other.

Banking serves all types of retail and corporate clients.

Asset Management primarily comprises the Bank's advisory-related income from customers and investment funds.

Sydbank Markets comprises trading income as well as a share of the income from customers with decentral affiliation calculated on the basis of its market price. The share represents the payment by Banking for Sydbank Markets' facilities, including advisory services and administration.

Treasury comprises the Group's return on positions handled by Treasury, including liquidity allocation.

Other includes non-recurring items, costs to the Group Executive Management etc as well as return on strategic shareholdings that are not allocated to Banking or Sydbank Markets.

Inter-segment transactions are settled on an arm's length basis. Centrally incurred costs are allocated to the business units in accordance with their estimated proportionate share of overall activities.

Excess liquidity is settled primarily at short-term money market rates whereas other balances are settled on an arm's length basis.

Note 5 Segment reporting – continued						Sydbank Group
DKKm	Banking	Asset Management	Sydbank Markets	Treasury	Other	Total
Operating segments 2024
Core income*	6,654	457	116	-	-	7,227
Trading income	-	-	268	-	-	268
Total income	6,654	457	384	-	-	7,495
Costs, core earnings	2,917	139	181	-	75	3,312
Impairment of loans and advances etc	595	-	-	-	-	595
Core earnings	3,142	318	203	-	(75)	3,588
Investment portfolio earnings	(14)	-	-	87	-	73
Profit before non-recurring items	3,128	318	203	87	(75)	3,661
Non-recurring items, net	(16)	-	-	-	-	(16)
Profit before tax	3,112	318	203	87	(75)	3,645
Depreciation and impairment of property, plant and equipment Full-time staff at 31 Dec	134 1,928	3 41	7 101	- 4	1 20	145 2,094
Operating segments 2023
Core income*	6,614	345	112	-	-	7,071
Trading income	-	-	275	-	-	275
Total income	6,614	345	387	-	-	7,346
Costs, core earnings	2,765	127	168	-	76	3,136
Impairment of loans and advances etc	(27)	-	-	-	-	(27)
Core earnings	3,876	218	219	-	(76)	4,237
Investment portfolio earnings	(11)	-	-	99	-	88
Profit before non-recurring items	3,865	218	219	99	(76)	4,325
Non-recurring items, net	(44)	-	-	-	-	(44)
Profit before tax	3,821	218	219	99	(76)	4,281
Depreciation and impairment of property, plant and equipment	128	3	7	-	1	139
Full-time staff at 31 Dec	1,867	40	98	4	20	2,029

* See specification on page 15.

The Sydbank Group's internal reporting is not based on products and services. Reference is made to notes 7, 8 and 10 for the distribution of interest income as well as fee and commission income.

Note 5 Segment reporting – continued				Sydbank Group
DKKm		2024		2023
	Total income	Assets	Total income	Assets
Geographical segments
Denmark	7,109	2,112	7,000	1,706
Abroad	386	47	346	49
Total	7,495	2,159	7,346	1,755

Income from external customers is broken down by organisational affiliation within the Sydbank Group. Assets, comprising only intangible assets, land and buildings, other property, plant and equipment as well as holdings in associates, are broken down by location.

The geographical breakdown of the Group's income and assets is disclosed in compliance with IFRS and does not reflect the Group's management structure. Management is of the opinion that operating segmentation provides a more informative description of the Group's activities.

Note 6 Correlation between the Group's performance measures and the income statement according to IFRS								Sydbank Group
DKKm	Core income	Trading income	Costs, core earnings	Impair ment of loans/ advances etc	Core earnings	Invest ment portfolio earn ings	Non-re curring items, net	Profit before tax
2024
Net interest and fee income	6,711	100			6,811	(8)		6,803
Market value adjustments	433	168	-	-	601	88	25	714
Other operating income	31				31			31
Income	7,175	268	-	-	7,443	80	25	7,548
Staff costs and administrative expenses			(3,133)		(3,133)	(7)	(41)	(3,181)
Amortisation, depreciation and impair ment of intangible assets and property, plant and equipment			(145)		(145)			(145)
Other operating expenses			(34)		(34)			(34)
Impairment of loans and advances etc				(595)	(595)			(595)
Profit/(Loss) on holdings in associates and subsidiaries	52				52			52
Profit before tax	7,227	268	(3,312)	(595)	3,588	73	(16)	3,645

2023
Net interest and fee income	6,553	174			6,726	(54)		6,672
Market value adjustments	487	101		0	588	149		737
Other operating income	24				24			24
Income	7,064	275	-	0	7,338	95	-	7,433
Staff costs and administrative expenses			(2,973)		(2,973)	(7)	(44)	(3,024)
Amortisation, depreciation and impair
ment of intangible assets and property,
plant and equipment			(139)		(139)			(139)
Other operating expenses			(23)		(23)			(23)
Impairment of loans and advances etc				27	27			27
Profit/(Loss) on holdings in associates
and subsidiaries	8				7			7
Profit before tax	7,071	275	(3,136)	27	4,237	88	(44)	4,281

Note 7 Interest income	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Interest income calculated using the effective interest method
Amounts owed by credit institutions and central banks	886	926	862	926
Loans and advances and other amounts owed	4,338	3,994	4,290	4,004
Other interest income	4	1	4	1
Total	5,228	4,921	5,156	4,931

Other interest income
Reverse transactions with credit institutions and central banks	95	92	95	92
Reverse loans and advances	680	370	680	370
Bonds	827	675	820	675
Total derivatives	61	103	61	103
comprising:
Foreign exchange contracts	74	66	74	66
Interest rate contracts	(13)	37	(13)	37
Total	1,663	1,240	1,656	1,240

Total interest income	6,891	6,161	6,812	6,171
Fair value, designated at initial recognition	775	462	775	462
Fair value, held for trading	888	778	881	778
Assets recognised at amortised cost	5,228	4,921	5,156	4,931
Total	6,891	6,161	6,812	6,171

The Group's cash resources primarily comprise Danish mortgage bonds. The interest rate risk concerning these positions is reduced via derivatives. As a result the Group's external income statement is affected in terms of interest income and the market value adjustment of bonds and derivatives. The same applies to the Group's position-taking as regards bonds as well as shares. The breakdown by income statement item does not disclose income independently and consequently these items must be regarded as one as they are in "Segment reporting" (note 5) as well as in the Group's financial review, which also takes funding of the positions into account.

Note 8 Interest expense		Sydbank Group	Sydbank A/S
DKKm	2024	2023	2024	2023
Repo transactions with credit institutions and central banks	94	100	94	100
Amounts owed to credit institutions and central banks	76	52	76	52
Repo deposits	67	55	67	55
Deposits and other debt	1,785	1,053	1,783	1,215
Bonds issued	445	386	445	386
Subordinated capital	109	46	106	46
Other interest expense	7	2	7	2
Total	2,583	1,694	2,578	1,856

Fair value, designated at initial recognition	161	155	161	155
Liabilities recognised at amortised cost	2,422	1,539	2,417	1,701
Total	2,583	1,694	2,578	1,856
Note 9 Dividends on shares Fair value, designated at initial recognition (FVPL) Fair value, held for trading Total	105 - 105	20 - 20	105 23 128	20 11 31
Note 10 Fee and commission income
Securities trading and custody accounts	834	788	655	637
Advisory fee, asset management	469	357	469	357
Payment services	417	381	408	381
Loan fees	194	206	194	206
Guarantee commission	164	176	164	176
Income concerning funded mortgage-like loans	51	12	51	12
Other fees and commission	602	574	600	574
Total fee and commission income	2,731	2,494	2,541	2,343

Fee expense, asset management	12	12	12	12
Other fee and commission expense	329	297	268	248
Total fee and commission expense	341	309	280	260
Net fee and commission income	2,390	2,185	2,261	2,083

Except for guarantee commission recognised according to IFRS 9, fee and commission income is recognised according to IFRS 15. The set-off of loss concerning arranged mortgage loans represents DKK 8m (2023: DKK 8m) and has been deducted from commission received which is included under other fees and commission.

Note 11 Market value adjustments	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Other loans and advances and amounts owed at fair value	34	37	34	37
Bonds	261	329	259	329
Shares etc	184	238	270	279
Foreign exchange	287	268	287	268
Derivatives	(52)	(134)	(52)	(134)
Assets related to pooled plans	2,790	1,877	2,790	1,877
Deposits in pooled plans	(2,790)	(1,877)	(2,790)	(1,877)
Other assets/liabilities	0	(1)	0	(1)
Total	714	737	798	778

Fair value, held for trading, trading portfolio	560	528	558	528
Fair value, designated at initial recognition, equity investments (FVPL)	154	209	240	250
Total	714	737	798	778

Note 12 Other operating income

Rental income – real estate	14	14	15	14
Other operating income	17	10	20	11
Total	31	24	35	25

Note 13 Staff costs and administrative expenses	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Salaries and remuneration
Group Executive Management	23	48	23	48
Board of Directors	8	8	8	8
Shareholders' Committee	4	4	4	4
Total	35	60	35	60
Staff costs
Wages and salaries	1,506	1,437	1,433	1,395
Pensions	164	157	157	152
Social security contributions	8	8	8	8
Payroll tax	207	201	196	194
Total	1,885	1,803	1,794	1,749
Other administrative expenses
IT	866	798	839	787
Rent etc	116	112	124	126
Marketing and entertainment expenses	120	101	100	88
Other costs	159	150	163	154
Total	1,261	1,161	1,226	1,155
Total	3,181	3,024	3,055	2,964

Audit fees
Statutory audit	2.9	2.4	2.4	2.4
Other assurance engagements	1.5	0.4	1.3	0.4
Tax consultancy	0.3	0.4	0.3	0.4
Fees for other services	0.5	0.9	0.5	0.9
Total	5.2	4.1	4.5	4.1

In addition to the statutory audit, services provided by the Bank's independent auditor have comprised statutory reports and audit services in connection with bond issues. Moreover services have included reports provided in connection with internal controls and ESG issues as well as consulting on VAT and duties.

In addition to fees paid to the independent auditor, operating expenses have been incurred as regards the Group's Internal Audit.

Staff
Average number of staff (full-time equivalent)	2,087	2,076	1,985	2,008

Note 13 Staff costs and administrative expenses – continued	Sydbank Group			Sydbank A/S
DKK thousand	2024	2023	2024	2023
Directors' remuneration
Directors' remuneration	5,938	5,899	5,948	5,899
Committee fees*	1,890	1,816	1,890	1,816
Total	7,828	7,715	7,838	7,715

* Of which:
Audit Committee	502	482	502	482
Risk Committee	502	482	502	482
Remuneration Committee	192	185	192	185
Nomination Committee	298	286	298	286
Digitization Committee	396	381	396	381

Sydbank's Board of Directors receive fixed remuneration. In addition board committee members receive a fixed committee fee. Directors' remuneration is adjusted in accordance with the adjustment of the collective agreement concluded between the Employers' Association for the Financial Sector and the Financial Services Union in Denmark.

	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Remuneration of the Group Executive Management
Fixed remuneration	23.2	20.4	23.2	20.4
Variable remuneration	0.0	0.0	0.0	0.0
Benefits in the form of company car etc	1.0	0.7	1.0	0.7
Severance pay etc*	0.0	27.1	0.0	27.1
Of which fees received in connection with directorships	(0.5)	(0.6)	(0.5)	(0.6)
Group costs	23.7	47.6	23.7	47.6

* The item includes severance pay etc as regards the deputy group chief executives who resigned as well as expected severance pay in connection with the resignation of the CEO in July 2024.

Details about remuneration for members of the Board of Directors and the Group Executive Management for 2024 are available at the Bank's website sydbank.com.

In connection with the annual review of the remuneration of the Group Executive Management an assessment of the market level is made. Moreover the remuneration of the Group Executive Management is adjusted in accordance with the adjustment of the collective agreement concluded between the Employers' Association for the Financial Sector and the Financial Services Union in Denmark.

Group costs include a privately paid pension.

Group Executive Management – severance terms

The notice of termination is 6 and 12 months for the Group Executive Management member and the Bank respectively. In respect of dismissal by the Bank, the Group Executive Management member is entitled to receive severance pay equal to 12 months' salary.

The Bank's remuneration policy is available at the Bank's website sydbank.com/about-sydbank/corporate-governance..

Note 13 Staff costs and administrative expenses – continued	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Remuneration to material risk takers
Fixed remuneration	47.6	45.2	44.2	43.2
Variable remuneration	0.2	0.0	0.2	0.0
Total	47.8	45.2	44.4	43.2
Number of full-time staff (average)	27.3	27.0	25.8	26.0
Remuneration to material control functions
Fixed remuneration	16.9	16.5	16.9	16.5
Variable remuneration	0.1	0.0	0.1	0.0
Total	17.0	16.5	17.0	16.5
Number of full-time staff (average)	12.3	13.0	12.3	13.0

Material risk takers and control functions only receive variable remuneration below the minimum threshold, cf the Danish executive order on remuneration.

In addition to the above, material risk takers and control functions receive benefits in the form of a company car, telephone etc, cf the Group's remuneration policy.

	Note 14 Impairment of loans and advances etc

Impairment of loans and advances recognised in the income statement
Impairment and provisions	441	46	443	46
Write-offs	219	29	217	29
Recovered from debt previously written off	65	102	65	102
Impairment of loans and advances etc	595	(27)	595	(27)
Impairment and provisions at 31 Dec (allowance account)
Stage 1	136	133	130	133
Stage 2	511	608	507	608
Stage 3	1,039	658	1,361	954
Management estimates	502	500	500	500
Impairment and provisions at 31 Dec	2,188	1,899	2,498	2,195
Impairment and provisions
Impairment and provisions at 1 Jan	1,899	1,929	2,195	2,152
New impairment charges and provisions during the period, net	439	19	484	92
Additions, portfolio acquired	37	-	-	-
Impairment charges previously recorded, now finally written off	187	49	181	49
Impairment and provisions at 31 Dec	2,188	1,899	2,498	2,195
Impairment charges for loans and advances	2,017	1,738	2,327	2,034
Provisions for undrawn credit commitments	57	67	57	67
Provisions for guarantees	114	94	114	94
Impairment and provisions at 31 Dec	2,188	1,899	2,498	2,195

Loans and advances recognised as a loss for the year where a legal claim has been upheld represented DKK 263m at year-end 2024 (2023: DKK 35m).

Note 15 Profit/(Loss) on holdings in associates and subsidiaries	Sydbank Group	Sydbank A/S
DKKm	2024	2023	2024	2023
Profit/(Loss) on holdings in associates etc	52	7	52	7
Profit/(Loss) on holdings in subsidiaries	-	-	34	178
Total	52	7	86	185
Note 16 Tax
Tax calculated on income for the year	644	663	649	661
Deferred tax	234	341	236	345
Adjustment of prior year tax charges	5	(65)	5	(65)
Total	883	939	890	941
Of which tax in Germany	75	64	75	64
Effective tax rate
Current tax rate of Sydbank	22.0	22.0	22.0	22.0
Special tax applying to financial undertakings	4.0	3.2	4.0	3.2
Permanent differences	(1.9)	(1.8)	(2.2)	(1.9)
Adjustment of prior year tax charges and deferred taxes	0.1	(1.5)	0.1	(1.5)
Effective tax rate	24.2	21.9	23.9	21.8
Of which effective tax rate in Germany	30.9	30.7	30.9	30.7
Deferred tax
Deferred tax at 1 Jan	(94)	(4)	(94)	(8)
Additions, acquisition of Coop Bank	28	-	-	-
Deferred tax for the year recognised in profit for the year	234	(90)	236	(86)
Deferred tax at 31 Dec, net	168	(94)	142	(94)
Deferred tax assets	13	94	13	94
Deferred tax liabilities	181	-	155	-
Deferred tax at 31 Dec, net	168	(94)	142	(94)

Note 16 Tax – continued							Sydbank Group
DKKm				2024			2023
	1 Jan	Additions, acquisition of Coop Bank	Recognised in profit for the year	31 Dec	1 Jan	Recog nised in profit for the year	31 Dec
Breakdown of deferred tax
Loans and advances at amortised cost
(incl IFRS 9 adjustment)	(75)	(3)	204	126	66	(141)	(75)
Shares	0		(3)	(3)	0	0	0
Land and buildings	4		1	5	4	0	4
Property, plant and equipment	(25)		(3)	(28)	(26)	1	(25)
Intangible assets	61	31	1	93	64	(3)	61
Other assets	(8)		37	29	(64)	56	(8)
Provisions	(2)		0	(2)	(1)	(1)	(2)
Other liabilities	(46)		(3)	(49)	(44)	(2)	(46)
AT1 capital	(3)		0	(3)	(3)	0	(3)
Deferred tax at 31 Dec, net	(94)	28	234	168	(4)	(90)	(94)

In compliance with the Bank's tax policy Sydbank uses tax incentives where the Bank's conduct is in line with the wishes of the Danish Parliament. In 2024 the following tax incentives were used:

Depreciation of operating equipment based on a higher depreciable amount in accordance with section 5 D of the Danish Act on Amortisation and Depreciation.

The Sydbank Group does not expect to be subject to the Pillar II rules for 2024 as the turnover threshold has not been met.

Decency in taxation

We take our responsibility as regards tax reporting and payments seriously as tax payments represent the foundation of our welfare society and this area is of great significance to the Bank's stakeholders and its business. It is important for Sydbank that it can explain and defend its tax-related transactions in terms of its stakeholders. This is why for instance Sydbank has no activities in countries included on the EU's list or the OECD's list of tax havens.

Sydbank collaborates and has an ongoing dialogue with the Danish Tax Agency via for instance Tax Governance to ensure that the Bank's work related to taxation is carried out in an orderly manner.

Sydbank's tax policy determines the framework for the Bank's conduct in the area of taxation in relation to its own tax affairs as well as those of its customers and business connections. The Board of Directors is responsible for the tax policy.

Note 17 Amounts owed by credit institutions and central banks	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Amounts owed at notice by central banks	10,747	14,006	10,747	14,006
Amounts owed by credit institutions	3,126	4,256	2,978	4,256
Total	13,873	18,262	13,725	18,262

On demand	560	382	412	382
3 months or less	13,313	17,880	13,313	17,880
Total	13,873	18,262	13,725	18,262
Of which reverse transactions	2,363	3,874	2,363	3,874

Note 18 Loans and advances	Sydbank Group		Sydbank A/S
DKKm	2024	2023	2024	2023
On demand	25,422	20,690	25,662	20,999
3 months or less	25,113	17,879	25,007	17,879
Over 3 months not exceeding 1 year	30,042	29,189	30,111	29,364
Over 1 year not exceeding 5 years	16,647	14,769	15,956	14,769
Over 5 years	9,152	8,751	8,933	8,751
Total	106,376	91,278	105,669	91,762
Loans and advances at fair value – reverse transactions	23,842	16,743	23,842	16,743
Loans and advances at amortised cost – bank loans and advances	82,534	74,535	81,827	75,019
Total	106,376	91,278	105,669	91,762

Loans and advances and guarantee debtors by sector and industry (%)
Building and construction	2.8	4.0	2.8	4.1
Energy supply etc	4.1	4.9	4.1	4.8
Real estate	9.2	8.2	9.3	8.2
Finance and insurance	28.5	23.9	28.3	23.8
Trade	14.0	15.6	14.4	15.7
Hotels and restaurants	0.3	0.3	0.3	0.3
Manufacturing and extraction of raw materials	7.4	8.0	7.3	8.0
Information and communication	0.3	0.4	0.3	0.4
Agriculture, hunting, forestry and fisheries	3.0	3.6	3.1	3.7
Transportation	2.2	2.5	2.2	2.5
Other industries	9.3	9.7	9.2	9.7
Total corporate	81.1	81.1	81.3	81.2
Public authorities	0.0	0.0	0.0	0.0
Retail	18.9	18.9	18.7	18.8
Total	100.0	100.0	100.0	100.0
Collateral received and types of collateral
Loans and advances at fair value	23,842	16,743	23,842	16,743
Loans and advances at amortised cost	82,534	74,535	81,596	75,019
Guarantees	16,154	15,521	16,096	15,521
Credit exposure for accounting purposes	122,530	106,799	121,534	107,283
Collateral value	71,342	63,209	71,176	63,209
Total unsecured	51,188	43,590	50,358	44,074
Types of collateral
Real estate	12,773	12,542	12,689	12,542

Financial collateral Lease assets, mortgages etc	31,121 7,109	23,220 7,138	31,121 7,113	23,220 7,138

Floating charges, operating equipment etc	11,595	10,222	11,509	10,222
Guarantees	1,424	2,036	1,424	2,036
Other items of collateral	649	101	649	101
Total collateral used	64,671	55,259	64,505	55,259
Particularly secured transactions (mortgage guarantees) Total	6,671 71,342	7,950 63,209	6,671 71,176	7,950 63,209

In the event that the Group uses collateral that is not immediately convertible into cash, the Group's policy is to dispose of such assets as quickly as possible. In 2024 repossessed equipment in connection with non-performing exposures amounted to DKK 34m (2023: DKK 11m). Lease assets are assessed and depreciated on an ongoing basis. As a result the calculated collateral as regards the Group's leasing activities will decline during periods of lower lease asset prices.

Note 18 Loans and advances – continued							Sydbank Group
DKKm				2024				2023
	Loans/ advances	Guaran tees	Collateral value	Un secured	Loans/ advances	Guaran tees	Collateral value	Un secured
Collateral by rating category
Rating category
1	22,193	5,728	20,487	7,434	18,124	4,114	17,410	4,828
2	25,086	5,325	12,180	18,231	22,098	5,388	10,743	16,743
3	27,264	1,999	22,544	6,719	21,320	2,215	17,265	6,270
4	16,869	1,190	7,267	10,792	14,961	1,585	8,030	8,516
5	6,832	570	3,135	4,267	8,482	949	4,609	4,822
6	2,501	121	1,510	1,112	2,159	162	1,453	868
7	2,163	177	1,278	1,062	1,843	309	1,202	950
8	418	39	264	193	380	47	316	111
9	1,313	164	948	529	1,258	162	983	437
Default	1,566	169	706	1,029	1,138	110	177	1,071
NR/STD	2,188	672	1,023	1,837	1,253	480	1,021	712
Total	108,393	16,154	71,342	53,205	93,016	15,521	63,209	45,328
Impairment of loans and advances	2,017			2,017	1,738			1,738
Total	106,376	16,154	71,342	51,188	91,278	15,521	63,209	43,590
Stage 1	97,493	15,303	65,753	47,043	83,073	14,561	58,062	39,572
Stage 2	8,256	668	4,799	4,125	7,650	814	5,081	3,383
Stage 3	528	183	691	20	443	146	66	523
Credit impaired at initial recognition	99	0	99	0	112			112
Total	106,376	16,154	71,342	51,188	91,278	15,521	63,209	43,590

In addition to loans and advances and guarantees the Group's credit risks comprise credit commitments. For further details of guarantees and irrevocable credit commitments, see note 35.

						Sydbank Group
DKKm			2024			2023
	Retail	Corporate	Total	Retail	Corporate	Total
Past due amounts but not impaired*
0-30 days	43	131	174	52	95	147
31-60 days	0	0	0	0	0	0
61-90 days	0	0	0	0	0	0
Total	43	131	174	52	95	147

Rating category
1	16	11	27	16	12	28
2	5	25	30	8	13	21
3	8	17	25	8	18	26
4	3	22	25	4	17	21
5	2	35	37	4	25	29
6	0	5	5	1	2	3
7	0	10	10	1	4	5
8	2	1	3	10	1	11
9	1	5	6	0	3	3
NR/STD	6	0	6	0	0	0
Total	43	131	174	52	95	147

* Past due amounts concerning loans and advances etc not subject to individual impairment. Loans and advances and amounts owed payable beyond 90 days are treated as impaired.

Note 18 Loans and advances – continued						Sydbank Group
DKKm					2024	2023
	Stage 1	Stage 2	Stage 3	Credit impaired at initial recognition*	Total	Total
Loans and advances, guarantees and allowance
account by stage
Loans and advances before impairment charges	74,031	8,855	1,566	99	84,551	76,273
Guarantees	15,303	668	183	-	16,154	15,521
Total loans and advances and guarantees	89,334	9,523	1,749	99	100,705	91,794
%	88.7	9.5	1.7	0.1	100.0	100.0

Impairment charges for loans and advances	380	599	1,038		2,017	1,738
Provisions for undrawn credit commitments	17	27	13		57	67
Provisions for guarantees*	8	30	76		114	94
Total allowance account	405	656	1,127	-	2,188	1,899

Allowance account at 1 Jan	400	740	759		1,899	1,929
New impairment charges and provisions during the
period, net	(3)	(88)	530		439	19
Impairment charges previously recorded, now finally
written off	-	-	187		187	49
Allowance account of subsidiary	8	4	25		37	-
Total allowance account at 31 Dec	405	656	1,127	-	2,188	1,899

Impairment charges as % of loans and advances	0.5	6.8	66.3		2.4	2.3
Provisions as % of guarantees	0.1	4.5	41.5		0.7	0.6
Allowance account as % of loans and advances and
guarantees	0.5	6.9	64.4		2.2	2.1

Loans and advances before impairment charges	74,031	8,855	1,566	99	84,551	76,273
Impairment charges for loans and advances	380	599	1,038		2,017	1,738
Loans and advances after impairment charges	73,651	8,256	528	99	82,534	74,535
%	89.2	10.0	0.6	0.1	100.0	100.0

* Loans and advances before impairment charges recognised as credit impaired at initial recognition total DKK 235m.

The Group's models to calculate impairment charges as regards exposures in stages 1 and 2 include expectations as to business trends which are based on estimates of the probability of different outcomes of economic growth. See note 2 "Accounting estimates and judgements" on page 97 for a more detailed description.

In addition to individually calculated impairment charges, a management estimate of DKK 500m was recognised at year-end 2024 (2023: DKK 500m) to hedge macroeconomic uncertainty.

Note 18 Loans and advances – continued								Sydbank Group
DKKm	Loans/advances and guarantees		Impairment and provisions		Impairment charges for loans/advances etc for the period		Losses for the period
	2024	2023	2024	2023	2024	2023	2024	2023
Building and construction	3,523	4,387	131	146	11	27	27	13
Energy supply etc	5,284	5,181	262	16	451	0	200	0
Real estate	11,344	8,821	76	59	19	(36)	1	3
Finance and insurance	11,255	8,855	155	127	26	9	4	0
Trade	17,662	17,155	501	488	133	130	128	23
Hotels and restaurants	373	391	31	67	(4)	8	2	1
Manufacturing and extraction of raw
materials	9,345	8,769	301	246	58	(6)	7	4
Information and communication	410	473	31	32	2	17	1	0
Agriculture, hunting, forestry and
fisheries	3,819	4,004	161	189	(42)	(85)	7	14
Transportation	2,709	2,694	39	25	13	(5)	1	1
Other industries	11,538	10,525	180	143	30	(2)	4	5
Total corporate	77,262	71,255	1,868	1,538	697	57	382	64
Public authorities	26	36
Retail	23,417	20,503	320	361	(102)	(84)	24	14
Total	100,705	91,794	2,188	1,899	595	(27)	406	78

Building and construction
Completion of building projects	448	630	25	3	22	(1)	2	0
Building and construction activities,
specialised	1,869	1,812	87	111	0	34	25	13
Construction of buildings	603	890	15	30	(13)	(6)	0	0
Other building and construction	603	1,055	4	2	2	0	0	0
Total	3,523	4,387	131	146	11	27	27	13
Real estate
Non-profit housing associations	6,795	4,328	3	2	1	(5)	0	0
Leasing of commercial real estate	2,887	2,555	47	38	11	(10)	0	3
Leasing of residential real estate	715	789	9	5	3	(1)	0	0
Other related to real estate	947	1,149	17	14	4	(20)	1	0
Total	11,344	8,821	76	59	19	(36)	1	3

Finance and insurance
Holding companies	6,472	5,123	100	82	14	7	0	0
Financing companies	4,783	3,732	55	45	12	2	4	0
Total	11,255	8,855	155	127	26	9	4	0

Note 18 Loans and advances – continued Sydbank Group
DKKm	Loans/advances and guarantees			Impairment and	Impairment charges		Losses for
				provisions	for loans/advances			the period
						etc for the period
	2024	2023	2024	2023	2024	2023	2024	2023

Trade
Retail	1,803	1,842	68	52	17	15	1	3
Trade, passenger cars and motorcycles	3,085	3,188	63	70	(7)	8	5	0
Wholesale, other machinery	1,769	1,808	93	30	64	3	2	0
Wholesale, food, beverages and tobacco	2,171	1,982	73	39	0	11	0	0
Wholesale, household durables	3,990	3,579	118	210	17	5	118	10
Wholesale, agricultural raw
materials and live animals	1,608	1,405	34	34	(1)	24	0	0
Other specialised wholesale	2,220	2,237	28	30	40	71	0	9
Other trade	1,016	1,114	24	23	3	(7)	2	1
Total	17,662	17,155	501	488	133	130	128	23
Manufacturing and extraction of
raw materials
Extraction of raw materials	279	213	1	2	(1)	(1)	0	0
Manufacture of textiles and clothing	661	772	8	7	1	(2)	0	0
Manufacture and repair of
machinery and equipment	1,728	1,635	36	32	6	0	0	0
Manufacture of food products	2,468	1,920	64	59	5	5	2	4
Manufacture of fabricated metal pro ducts, excl machinery and equipment	1,172	1,356	79	69	9	(23)	0	0
Other manufacturing	3,037	2,873	113	77	38	15	5	0
Total	9,345	8,769	301	246	58	(6)	7	4

Agriculture, hunting, forestry and fisheries
Pig farming	510	729	14	24	(22)	(21)	0	1
Cattle farming	998	1,127	77	59	18	(34)	1	0
Crop production	1,321	1,220	22	53	(34)	(25)	5	2
Other agriculture	990	928	48	53	(4)	(5)	1	11
Total	3,819	4,004	161	189	(42)	(85)	7	14

Transportation
Land transport	1,000	1,029	22	16	6	(6)	1	1
Water transport	394	438	0	0	0	0	0	0
Air transport	188	268	2	3	(1)	0	0	0
Other transportation	1,127	959	15	6	8	1	0	0
Total	2,709	2,694	39	25	13	(5)	1	1

Other industries
Rental and leasing activities	4,773	4,319	32	23	10	1	0	0
Activities of head offices	2,472	2,022	14	13	0	(4)	0	0
Liberal professions	1,563	1,471	45	39	9	5	3	5
Other industries	2,730	2,713	89	68	11	(4)	1	0
Total	11,538	10,525	180	143	30	(2)	4	5

Note 18 Loans and advances – continued						Sydbank Group
DKKm					2024	2023
				Credit impaired at initial
	Stage 1	Stage 2	Stage 3	recognition	Total	Total
Loans and advances before impairment charges
Rating category
1	15,442				15,442	11,981
2	23,481				23,481	22,097
3	11,778				11,778	10,751
4	15,221	1,648			16,869	14,931
5	4,773	2,059			6,832	8,482
6	991	1,510			2,501	2,159
7	276	1,887			2,163	1,843
8	6	412			418	380
9		1,313			1,313	1,258
Default			1,566		1,566	1,138
NR/STD	2,063	26		99	2,188	1,253
Total	74,031	8,855	1,566	99	84,551	76,273

Impairment of loans and advances

Rating category

1	5			5	2
2	17			17	17
3	81			81	80
4	93	15		108	106
5	81	36		117	142
6	65	43		108	107
7	19	80		99	101
8	1	41		42	43
9		365		365	427
Default			1,038	1,038	695
NR/STD	18	19		37	18
Total	380	599	1,038	- 2,017	1,738

Loans and advances after impairment charges

Rating category

1	15,437				15,437	11,979
2	23,464				23,464	22,080
3	11,697				11,697	10,671
4	15,128	1,633			16,761	14,825
5	4,692	2,023			6,715	8,340
6	926	1,467			2,393	2,052
7	257	1,807			2,064	1,742
8	5	371			376	337
9		948			948	831
Default			528		528	443
NR/STD	2,045	7		99	2,151	1,235
Total	73,651	8,256	528	99	82,534	74,535

Note 18 Loans and advances – continued						Sydbank Group
DKKm					2024	2023
				Credit impaired
	Stage 1	Stage 2	Stage 3	at initial recognition	Total	Total
Loans and advances before impairment charges
1 Jan	66,698	8,325	1,138	112	76,273	75,673

Transfers between stages
Additions, portfolio acquired	1,204	33	52		1,289	-
Transfers to stage 1	2,016	(1,998)	(18)		-	-
Transfers to stage 2	(3,739)	3,824	(85)		-	-
Transfers to stage 3	(353)	(518)	871		-	-
New exposures	18,194	814	226		19,234	16,825
Final repayments	(12,379)	(1,553)	(112)		(14,044)	(14,551)
Changes in balances	2,390	(72)	(100)	(13)	2,205	(1,596)
Write-offs			(406)		(406)	(78)
31 Dec	74,031	8,855	1,566	99	84,551	76,273

Impairment of loans and advances
1 Jan	368	675	695	-	1,738	1,740

Transfers between stages
Additions, portfolio acquired	9	4	31		44	-
Transfers to stage 1	97	(92)	(5)		-	-
Transfers to stage 2	(41)	83	(42)		-	-
Transfers to stage 3	(4)	(136)	140		-	-
New exposures	83	52	117		252	196
Final repayments	(58)	(119)	(75)		(252)	(257)
Changes in balances	(74)	132	364		422	108
Write-offs			(187)		(187)	(49)
31 Dec	380	599	1,038	-	2,017	1,738

Loans and advances after impairment charges
1 Jan	66,330	7,650	443	112	74,535	73,933

Transfers between stages
Additions, portfolio acquired	1,195	29	21		1,245	-
Transfers to stage 1	1,919	(1,906)	(13)		-	-
Transfers to stage 2	(3,698)	3,741	(43)		-	-
Transfers to stage 3	(349)	(382)	731		-	-
New exposures	18,111	762	109		18,982	16,629
Final repayments	(12,321)	(1,434)	(37)		(13,792)	(14,294)
Changes in balances	2,464	(204)	(464)	(13)	1,783	(1,704)
Write-offs			(219)		(219)	(29)
31 Dec	73,651	8,256	528	99	82,534	74,535

Note 18 Loans and advances – continued								Sydbank Group
DKKm				2024				2023
	Loans/advances neither credit impaired nor past due	Loans/ advances with evi dence of credit impairment	Past due loans/ advances	Loans/ advances	Loans/advances neither credit impaired nor past due	Loans/ advances with evi dence of credit impairment	Past due loans/ advances	Loans/ advances
Rating category
1	22,166		27	22,193	18,096		28	18,124
2	25,056		30	25,086	22,077		21	22,098
3	27,239		25	27,264	21,294		26	21,320
4	16,844		25	16,869	14,940		21	14,961
5	6,795		37	6,832	8,453		29	8,482
6	2,496		5	2,501	2,156		3	2,159
7	2,153		10	2,163	1,838		5	1,843
8	415		3	418	369		11	380
9	410	897	6	1,313	251	1,004	3	1,258
Default	0	1,566	0	1,566	0	1,138	0	1,138
NR/STD	2,072	110	6	2,188	1,125	128	0	1,253
Total	105,646	2,573	174	108,393	90,599	2,270	147	93,016
Impairment charges	829	1,188	0	2,017	873	865	0	1,738
Total	104,817	1,385	174	106,376	89,726	1,405	147	91,278

						Sydbank Group
DKKm			2024			2023
	Gross investment	Unearned interest	Net investment	Gross investment	Unearned interest	Net investment
Lease payment receivables – finance leases
1 year or less	2,751	255	2,496	2,583	236	2,347
Over 1 year not exceeding 5 years	6,561	697	5,864	6,243	824	5,419
Over 5 years	931	23	908	1,039	39	1,000
Total	10,243	975	9,268	9,865	1,099	8,766

Lease payment receivables comprise receivables on leasing of various operating equipment under non-cancellable leases. The leases are fixed-rate and floating-rate leases in foreign and Danish currencies.

Loans and advances at amortised cost included finance lease payment receivables of DKK 10,243m at year-end 2024 (2023: DKK 9,865m). Impairment charges for uncollectible lease payment receivables represented DKK 0m in 2024 (2023: DKK 0m).

Note 18 Loans and advances – continued						Sydbank Group
DKKm			2024			2023
	Loans/advan ces and gua rantees before impairment charges	Impairment charges	Book value	Loans/advan ces and gua rantees before impairment charges	Impairment charges	Book value
Forborne loans and advances and
guarantees
Stage 1	14	0	14	35	0	35
Stage 2	16	3	13	36	12	24
Stage 3	668	472	196	407	228	179
Total	698	475	223	478	240	238
Credit impaired non-defaulted loans and advances and guarantees	27	2	25	64	9	55
Credit impaired defaulted loans and advances and guarantees	671	473	198	414	231	183
Total	698	475	223	478	240	238
Due to financial difficulties:
- Interest rates have been reduced	389	308	81	152	105	47
- Interest-only terms have been granted	104	56	48	132	57	75
- Other special terms have been granted	205	111	94	194	78	116
Total	698	475	223	478	240	238

Forborne loans and advances and guarantees are defined as loans and advances and guarantees where there has been a change in loan terms that would not have been granted if the borrower had not been experiencing financial difficulties, see EBA guidance (ANNEX V).

					Sydbank Group
DKKm
	Credit impaired loans/advances	Impairment charges	Carrying amount	Value of collateral	Unsecured part of carrying amount
2024
Credit impaired loans and advances
Corporate	1,482	867	615	530	85
Retail	183	90	93	76	17
Total	1,665	957	708	606	102
2023
Credit impaired loans and advances
Corporate	1,089	542	547	511	36
Retail	161	83	78	110	0
Total	1,250	625	625	621	36

Note 19 Bonds at fair value	Sydbank Group		Sydbank A/S
DKKm	2024	2023	2024	2023
Government bonds	912	852	912	852
Mortgage bonds	29,830	32,117	29,830	32,117
Other bonds	1,038	1,650	1,038	1,650
Total	31,780	34,619	31,780	34,619
Government bonds – by country
Denmark	904	377	904	377
Finland	-	475	-	475
Germany	8	-	8	-
Total	912	852	912	852

Note 20 Shares etc
Listed on Nasdaq Copenhagen A/S	523	658	523	658
Listed on other exchanges	2	0	2	0
Unlisted shares recognised at fair value	2,479	2,360	2,479	2,360
Total	3,004	3,018	3,004	3,018

Trading portfolio	92	94	92	94
Portfolio of equity investments, FVPL	2,509	2,378	2,509	2,378
Portfolio of equity investments, FVOCI	403	546	403	546
Total	3,004	3,018	3,004	3,018

Note 21 Holdings in associates etc
Carrying amount at 1 Jan	164	165	164	165
Of which credit institutions	-	-	-	-
Cost at 1 Jan	163	165	163	165
Additions	230	0	230	0
Disposals	13	2	13	2
Cost at 31 Dec	380	163	380	163
Revaluations and impairment charges at 1 Jan	1	0	1	0
Dividend	(15)	(7)	(15)	(7)
Share of profit	67	8	67	8
Reversal of revaluations and impairment charges	0	0	0	0
Revaluations and impairment charges at 31 Dec	53	1	53	1
Carrying amount at 31 Dec	433	164	433	164

Note 22 Holdings in subsidiaries etc		Sydbank A/S
DKKm	2024	2023
Carrying amount at 1 Jan	2,295	2,128

Cost at 1 Jan	2,346	2,346
Exchange rate adjustment	-	-
Additions	347	-
Disposals	-	-
Cost at 31 Dec	2,693	2,346

Revaluations and impairment charges at 1 Jan	(51)	(218)
Exchange rate adjustment	-	-
Profit/(Loss)	39	178
Dividend	(2,142)	(11)
Amortisation of customer relationships	(4)	-
Reversal of revaluations and impairment charges	-	-
Revaluations and impairment charges at 31 Dec	(2,158)	(51)
Carrying amount at 31 Dec	535	2,295

Note 23 Assets related to pooled plans	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Cash deposits	43	46	43	46
Other bonds	7,475	6,836	7,475	6,836
Other shares etc	8,045	8,153	8,045	8,153
Units	11,441	7,869	11,441	7,869
Other items	1	(1)	1	(1)
Total	27,005	22,903	27,005	22,903

Note 24 Intangible assets

Intangible assets

The Group's intangible assets comprise the value of customer relationships as well as goodwill acquired in connection with acquisitions. Activities acquired are allocated to the operating segments Banking, Asset Management and Sydbank Markets.

Goodwill represented DKK 170m at year-end 2024 (2023: DKK 170m) and primarily concerned Banking. Goodwill is tested for impairment once a year.

The impairment test carried out in 2024 did not result in impairment of goodwill. The value of customer relationships represented DKK 270m at year-end 2024 (2023: DKK 158m).

Customer relationships are amortised on a straight-line basis over the expected economic life of 5-15 years.

Impairment test

The Group's goodwill is tested for impairment once a year and where there is any indication of impairment.

The impairment test compares the carrying amount and the estimated present value of expected future cash flows. As a consequence of the special capital structure of financial groups, the calculation of the present value of future cash flows is based on an equity model/dividend discount model.

The key assumptions are based on a forward projection of the Group's most recent results for 2024 as follows:

Profit for the year in 2024 represents DKK 2.8bn
Earnings for the budget period are based on a budget for 2025 as approved by management
Equity for 2024 is affected by dividend paid for 2023 of DKK 1,686m as well as a share buyback of DKK 1,200m
The risk exposure amount is based on the 2024 estimate
The discount rate (cost of equity) has been calculated at 9.4%
Annualised growth of 1.5% is expected in the terminal period

Expected future cash flows are discounted at the Group's risk-adjusted required rate of return and discount factor which together constituted 12.7% before tax and 9.4% after tax at year-end 2024 (2023: 16.0% before tax and 11.8% after tax). The required rate of return and the discount factor are based on current market data and external benchmarks.

The impairment test conducted does not indicate any impairment at 31 December 2024.

An increase in the Group's risk-adjusted required rate of return from 9.4% to for instance 15.0% would not result in goodwill impairment. Correspondingly a decline in estimated growth in the terminal period of 1.0pp would not result in impairment. In addition a decrease in earnings of 15% during the terminal period would not result in impairment.

Note 24 Intangible assets – continued	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Carrying amount at 1 Jan	329	364	328	363
Cost at 1 Jan	615	615	609	609
Additions	121	-	-	-
Disposals	-	-	-	-
Cost at 31 Dec	736	615	609	609
Amortisation and impairment charges at 1 Jan	286	251	281	246
Amortisation and impairment charges for the year	29	35	23	35
Amortisation and impairment charges at 31 Dec	315	286	304	281
Carrying amount at 31 Dec	421	329	305	328

The value of customer relationships is amortised over 5-15 years.

Note 25 Owner-occupied property

Carrying amount at 1 Jan	1,095	1,125	870	903
Exchange rate adjustment	0	0	0	0
Additions, including improvements	17	0	9	0
Disposals	0	0	0	0
Depreciation for the year	7	7	6	6
Value adjustment recognised directly in equity	29	(10)	28	(10)
Value adjustment recognised in the income statement	(12)	(13)	(5)	(17)
Carrying amount at 31 Dec	1,122	1,095	896	870
Required rate of return for calculation of fair value (%)*	4.25-11.00	4.25-11.00	4.25-11.00	4.25-11.00

* The required rate of return reflects eg the geographical location.

Sensitivity analysis:

Other things being equal an increase in the required rate of return of 0.50pp will reduce fair value by DKK 81m (2023: DKK 78m).

Note 26 Other property, plant and equipment	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Carrying amount at 1 Jan	60	48	59	48

Cost at 1 Jan	655	623	654	623
Exchange rate adjustment	0	0	0	0
Additions	95	77	94	77
Disposals	46	45	46	46
Cost at 31 Dec	704	655	702	654

Depreciation and impairment charges at 1 Jan	595	575	595	575
Exchange rate adjustment	0	0	0	0
Depreciation for the year	73	63	73	63
Reversal of depreciation and impairment charges	43	43	44	43
Depreciation and impairment charges at 31 Dec	625	595	624	595
Carrying amount at 31 Dec	79	60	78	59

Note 27 Other assets

Total	5,725	6,478	5,222	6,023
Other assets	0	1	0	1
Cash collateral provided, CSA agreements etc	605	623	605	623
Interest and commission receivable	373	406	370	406
Sundry debtors	1,058	730	558	275
Positive market value of derivatives etc	3,689	4,718	3,689	4,718

Note 28 Amounts owed to credit institutions and central banks

Amounts owed to central banks	4	10	4	10
Amounts owed to credit institutions	6,109	6,385	6,035	6,385
Total	6,113	6,395	6,039	6,395

On demand	2,869	2,524	2,795	2,524
3 months or less	3,154	3,871	3,154	3,871
Over 3 months not exceeding 1 year	90	-	90	-
Total	6,113	6,395	6,039	6,395
Of which repo transactions	2,612	3,485	2,612	3,485

Note 29 Deposits and other debt	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
On demand	89,128	83,910	86,236	86,185
At notice	57	78	57	78
Time deposits	23,705	23,558	23,705	23,558
Special categories of deposits	3,782	4,105	3,782	4,105
Total	116,672	111,651	113,780	113,926

On demand	89,321	84,118	86,429	86,394
3 months or less	22,352	20,712	22,352	20,711
Over 3 months not exceeding 1 year	1,894	3,031	1,894	3,031
Over 1 year not exceeding 5 years	393	753	393	753
Over 5 years	2,712	3,037	2,712	3,037
Total	116,672	111,651	113,780	113,926
Of which repo transactions	1,504	3,299	1,504	3,299
Of which secured lending	-	-	-	-

Note 30 Bonds issued at amortised cost

Over 1 year not exceeding 5 years	11,175	11.161	11,175	11,161
Total	11,175	11,161	11,175	11,161

Note 31 Other liabilities

Total	14,394	15,906	14,257	15,782
Cash collateral received, CSA agreements etc	350	425	350	425
Interest and commission etc	226	224	224	224
Negative portfolio, reverse transactions	3,649	5,950	3,649	5,950
Sundry creditors	6,533	4,719	6,398	4,595
Negative market value of derivatives etc	3,636	4,588	3,636	4,588

Note 32 Provisions

Provisions for pensions and similar obligations	2	2	2	2
Provisions for deferred tax	181	-	154	-
Provisions for guarantees	114	94	114	94
Other provisions	61	70	61	70
Total	358	166	331	166

Note 32 Provisions – continued					Sydbank Group
DKKm					2024
	Provisions for pensions and similar obligations	Provisions for deferred tax	Provisions for guarantees	Other provisions	Total provisions
Carrying amount at 1 Jan	2	-	94	70	166
Additions	-	181	63	31	275
Disposals	-	-	43	40	83
Carrying amount at 31 Dec	2	181	114	61	358

Other provisions mainly concern provisions for onerous contracts and legal actions.

Note 33 Subordinated capital				Sydbank Group		Sydbank A/S
DKKm Interest rate	Note		Nominal (m)	Maturity	2024	2023	2024	2023
5.685 (floating)	1	Bond loan	EUR 75	2 Nov 2029	-	559	-	559
2.550 (floating)	2	Bond loan	EUR 75	Perpetual	559	559	559	559
7.730 (floating)	3	Bond loan	NOK 650	25 Apr 2034	408	-	408	-
5.942 (floating)	4	Bond loan	SEK 550	25 Apr 2034	357	-	357	-
4.977 (floating)	5	Bond loan	EUR 100	6 Sep 2035	743	-	743	-
7.337 (floating)	6	Bond loan	DKK 25	23 Sep 2031	25	-	-	-
6.917 (floating)	7	Bond loan	DKK 50	22 Jun 2032	50	-	-	-
Total subordinated capital					2,142	1,118	2,067	1,118

1) Redeemed on 6 September 2024.

2) The interest rate follows the 10Y Mid-Swap plus a margin of 0.2%. Not included in total capital.

3) Optional redemption from 25 April 2029. The interest rate will be fixed at 3.05% above 3M NIBOR.

4) Optional redemption from 25 April 2029. The interest rate will be fixed at 3.00% above 3M STIBOR.

5) Optional redemption from 6 September 2030. The interest rate will be fixed at 2.10% above 3M EURIBOR.

6) Optional redemption from 23 September 2026. The interest rate will be fixed at 4.00% above 6M CIBOR.

7) Optional redemption from 22 June 2027. The interest rate will be fixed at 4.25% above 6M CIBOR.

Over 5 years	1,303	1,118	1,303	1,118
Total	2,142	1,118	2,067	1,118
Costs relating to raising and redeeming subordinated capital	0	0	0	0

Correlation between subordinated capital and financing activities in cash flow statement						Sydbank Group
DKKm			Cash flows	Non-cash changes
	1 Jan	Raising	Redemption	Exchange rate	Other*	31 Dec
Subordinated capital – 2024	1,118	1,529	559	(16)	70	2,142
Subordinated capital – 2023	1,115	-	-	3	0	1,118

* Of which DKK 75m issues in Coop Bank.

Fair value changes comprise the impact of market value adjustments and transaction costs. Cash flows from raised and redeemed debt are based on the exchange rate on the date of transaction. The note shows changes in the nominal value of subordinated capital. Raising and redemption amounts are based on the exchange rate at the balance sheet date.

DKKm 2024 2023 2024 Nominal portfolio of own holdings 32 19 32 Nominal portfolio of own holdings as % of share capital 5.8 3.4 5.8 Shares outstanding (number) 51,425,137 54,582,651 51,425,137 Holding of own shares (number) 3,163,283 1,917,669 3,163,283 Total share capital (number) 54,588,420 56,500,320 54,588,420 Own holdings purchased during the year Number of shares 6,233,735 5,109,363 6,233,735	Note 34 Own holdings	Sydbank Group Sydbank A/S
					2023
					19
					3.4

					54,582,651
					1,917,669
					56,500,320


					5,109,363
	Nominal value	62	51	62	51
Consideration paid 2,195 1,613 2,195					1,613
Number of shares as % of share capital 11.4 9.0 11.4					9.0

Own holdings sold during the year
Number of shares 4,988,121 5,084,354 4,988,121					5,084,354
Nominal value 50 51 50					51
Consideration received 1,597 1,537 1,597					1,537
Number of shares as % of share capital 9.1 9.0 9.1					9.0

Within the share buyback programme of DKK 1,200m, 3,188,000 shares totalling DKK 1,126m were purchased during the period from 28 February to 31 December 2024.

Within the share buyback programme 1,911,900 shares totalling DKK 600m were purchased during the period from 6 July to 22 December 2023. In addition the Bank has purchased and sold own holdings as part of the ordinary banking transactions of Sydbank A/S.

Note 35 Contingent liabilities and other obligating agreements	Sydbank Group		Sydbank A/S
DKKm	2024	2023	2024	2023
Contingent liabilities
Financial guarantees	7,568	5,964	7,529	5,964
Mortgage finance guarantees*	2,310	3,174	2,309	3,174
Funded mortgage-like loan guarantees*	574	703	574	703
Registration and remortgaging guarantees*	3,787	4,073	3,779	4,073
Other contingent liabilities	1,915	1,607	1,905	1,607
Total	16,154	15,521	16,096	15,521
* Subject to IFRS 9.
Other obligating agreements
Irrevocable credit commitments	1,948	1,627	1,948	1,627
Other liabilities*	5	6	43	53
Total	1,953	1,633	1,991	1,680

* Of which intra-group liabilities in relation to rented premises - - 38 47

						Sydbank Group
DKKm					2024	2023
	Stage 1	Stage 2	Stage 3	Credit impaired at initial recognition	Total	Total
Guarantees
1 Jan	14,561	814	146	-	15,521	15,949
Transfers between stages
Additions, portfolio acquired	46	0	0		46	-
Transfers to stage 1	196	(195)	(1)		-	-
Transfers to stage 2	(281)	292	(11)		-	-
Transfers to stage 3	(123)	(23)	146		-	-
New exposures	8,767	126	9		8,902	7,759
Final repayments	(7,136)	(239)	(36)		(7,411)	(7,275)
Changes in balances	(727)	(107)	(70)		(904)	(912)
31 Dec	15,303	668	183	-	16,154	15,521

1 Jan	9	34	51	- 94	116
Transfers between stages
Additions, portfolio acquired	4	(4)		-	-
Transfers to stage 1		6	(6)	-	-
Transfers to stage 2		(1)	1	-	-
Transfers to stage 3				-	-
New exposures	5	3	39	47	7
Final repayments	(6)	(8)	(6)	(20)	(19)
Changes in balances	(4)	0	(3)	(7)	(10)
31 Dec	8	30	76	- 114	94

Rating category/DKKm	1	2	3	4	5	6	7	8	9	Default	Total
Irrevocable credit commitments
2024	269	897	116	519	131	0	0	0	0	16	1,948
2023	62	1,105	183	183	94	0	0	0	0	0	1,627

Note 35 Contingent liabilities and other obligating agreements – continued

Totalkredit loans arranged for by Sydbank are comprised by an agreed right of set-off against future current commission which Totalkredit may invoke in the event of losses on the loans arranged.

Sydbank does not expect that this set-off will have a significant effect on Sydbank's financial position.

As a result of the Bank's membership of Bankdata, the Bank is obligated to pay an exit charge in the event of exit.

As a result of the contribution of DKK 34m to the resolution fund (deposit guarantee scheme) in May 2024, the target funding level totalling 1% of covered deposits has been reached. Over the past 10 years Sydbank has contributed approx DKK 225m and currently the amount contributed represents 5.9% of any losses.

The Group is party to legal actions. These legal actions are under continuous review and the necessary provisions made are based on an assessment of the risk of loss. Pending legal actions are not expected to have any significant impact on the financial position of the Group.

Sydbank is jointly taxed with its Danish consolidated entities. The Sydbank Group has not opted for international joint taxation. Sydbank A/S has been appointed the management company of the joint taxation entity. Being the management company Sydbank has unlimited and joint and several liability with its subsidiaries as regards the joint taxation concerning Danish corporation tax.

Note 36 Fair value hedging of interest rate risks (macro hedge)

The overall risk of fixed-rate loans and advances consists of credit risk, foreign exchange risk and interest rate risk. Similarly the overall risk of hedging transactions – primarily interest rate swaps – consists of counterparty risk, foreign exchange risk and interest rate risk. Credit risk is managed separately in line with the credit risk of floating-rate loans and advances whereas the foreign exchange risk of loans and advances and the hedging transactions is subject to ongoing hedging. The counterparty risk of the hedging transactions is subject to ongoing hedging via CSA agreements requiring exchange of collateral to hedge positive market values, see note "Derivatives".

The remaining part of risk is attributable to the risk-free interest rate which the Bank manages by means of a cash flow model which delivers a synthetic cash flow divided into maturity zones expressing the Bank's risk positions. The model is updated daily with all the Group's positions. These are allocated to portfolios according to responsibility and product.

One of these portfolios consists of the Group's positions in fixed-rate loans and advances, including leases, fixed-rate deposits and related hedging transactions.

The Group's basis for concluding hedging transactions (rebalancing) is thus a synthetic net cash flow which is updated daily based on the actual cash flow of loans and advances, deposits and previously concluded hedging transactions in the relevant portfolio.

The synthetic cash flows are placed in maturity zones (under 1 year, 1-3 years, 3-7 years and over 7 years) for each currency. Each zone is subject to an interest rate limit (typically DKK 1m) and a requirement that the interest rate risk of the hedging transaction must not exceed the hedged item.

This ensures that the interest rate risk in the portfolio is kept at a minimum as the Group wishes to place its interest rate risk in other portfolios containing bonds and other cash positions.

The Group applies the rules on macro hedge which aim to ensure symmetry between income and expense in the financial statements. Symmetry is achieved by making a hedge adjustment of the hedged loans and advances and deposits corresponding to the part of the market value adjustment of derivatives which concerns future periods. This hedge adjustment is recorded under "Other liabilities" and represented DKK 125m at 31 December 2024 (2023: DKK 23m under "Other assets").

During the year a net loss on hedging transactions of DKK 164m was recorded (2023: net loss of DKK 148m). The loss eliminates a corresponding net gain on hedged items.

The Group's interest rate risk management is described in more detail in "Notes – Risk Management" on page 149.

Note 36 Fair value hedging of interest rate risks (macro hedge) – continued	Sydbank Group		Sydbank A/S
DKKm	2024	2023	2024	2023
Fixed-rate loans and advances
Carrying amount	6,957	8,070	6,957	8,070

Fixed-rate deposits
Carrying amount	4,987	5,889	4,987	5,889
Swaps
Principal – purchase	3,159	1,217	3,159	1,217
Principal – sale	7,475	6,607	7,475	6,607
Fair value	70	162	70	162
Fixed-rate subordinated capital/bonds issued/AT1 capital
Carrying amount	13,389	12,607	13,389	12,607
Swaps
Principal	13,254	12,476	13,254	12,476
Fair value	111	(103)	111	(103)

The Group's fair value hedging of interest rate risks (macro hedge) is described in more detail in note 39 on page 134.

Note 37 Collateral

At the end of 2024 the Group had deposited as collateral securities and cash at a total value of DKK 161m with Danish and foreign exchanges and clearing centres etc in connection with margin calls and securities settlements etc. In addition the Group has provided cash collateral in connection with CSA agreements of DKK 605m and deposited securities at a value of DKK 0m. The correlation to market values of derivatives appears from "Notes – Derivatives".

In connection with repo transactions, which involve selling securities to be repurchased at a later date, the securities remain on the balance sheet and consideration received is recognised as a debt. Repo transaction securities are treated as assets provided as collateral for liabilities. Counterparties are entitled to sell the securities or deposit them as collateral for other loans. For the breakdown by amounts owed to credit institutions and deposits, see notes 28 and 29.

In connection with reverse transactions, which involve purchasing securities to be resold at a later date, the Group is entitled to sell the securities or deposit them as collateral for other loans. The securities are not recognised in the balance sheet and consideration paid is recognised as a receivable.

Assets received as collateral in connection with reverse transactions may be sold to a third party. In such cases a negative portfolio may arise as a result of the accounting rules. This is recognised under "Other liabilities".

	Sydbank Group		Sydbank A/S
DKKm	2024	2023	2024	2023
Assets sold as part of repo transactions
Bonds at fair value	4,080	6,743	4,080	6,743
Assets purchased as part of reverse transactions
Bonds at fair value	26,327	20,864	26,327	20,864

Note 38 Related parties						Sydbank Group
DKKm	Associates	Board of Directors	2024 Group Executive Management	Associates	Board of Directors	2023 Group Executive Management
Loans and advances and loan commitments	143	16	1	0	14	0
Deposits and other debt	13	16	11	56	33	8
Guarantees issued	0	0	0	0	0	0
Collateral received	0	13	0	0	7	0
Interest income	2	0	0	0	0	0
Interest expense	0	0	0	0	0	0
Fee and commission income	0	0	0	0	0	0
Other expenses	647	0	0	609	0	0

Interest rates 2024

Group Executive Management: No loans and advances

Board of Directors: 3.68-5.45% p.a.*

* Interest rates concern loans in different currencies.

There are no parties with significant influence over Sydbank A/S (ownership share of at least 20%).

The Board of Directors and the Group Executive Management columns comprise the Group's exposures to and transactions with members of the Board of Directors and the Group Executive Management as well as their dependants. Further information on the remuneration of management appears from note 13.

Other expenses include primarily IT costs to Bankdata.

Transactions with related parties are settled on an arm's length basis and are subject to the terms and conditions in force. No unusual transactions took place with related parties in 2024.

Amounts owed by and to subsidiaries etc	Sydbank Group			Sydbank A/S
DKKm	2024	2023	2024	2023
Loans and advances at amortised cost	-	-	527	484
Total asset items	-	-	527	484

Deposits and other debt	-	-	193	2,277
Total liability items	-	-	193	2,277

Note 38 Related parties – continued Sydbank Group

Number
	1 Jan 2024	On appointment/ resignation	Additions	Disposals	31 Dec 2024
Sydbank A/S shares held by
Board of Directors (personal holdings)
Lars Mikkelgaard-Jensen (Chairman)	6,000				6,000
Ellen Trane Nørby (Vice-Chairman)	228		230		458
Jacob Chr. Nielsen (former Vice-Chairman) – resigned	914	(914)			-
Carsten Andersen	966		181		1,147
Henrik Hoffmann	750				750
Søren Holm	3,000		1,000		4,000
Janne Moltke-Leth	255		56		311
Jarl Oxlund	1,799		145		1,944
Gitte Poulsen	5,330				5,330
Susanne Schou	110				110
Jon Stefansson	389				389
Jørn Krogh Sørensen	2,862		181		3,043
Pia Wrang	425		254		679
Total	23,028	(914)	2,047	-	24,161
Board of Directors
(own holdings and holdings of dependants)

Lars Mikkelgaard-Jensen (Chairman) 6,000 6,000 Ellen Trane Nørby (Vice-Chairman) 228 268 496 Jacob Chr. Nielsen (former Vice-Chairman) – resigned 914 (914) - Carsten Andersen 966 181 1,147 Henrik Hoffmann 750 750 Søren Holm 3,000 1,000 4,000 Janne Moltke-Leth 255 56 311 Jarl Oxlund 1,799 145 1,944 Gitte Poulsen 5,330 5,330 Susanne Schou 420 420 Jon Stefansson 389 389 Jørn Krogh Sørensen 2,867 181 3,048 Pia Wrang 435 254 689 Total 23,353 (914) 2,085 - 24,524

Group Executive Management

(own holdings and holdings of dependants)

Total	46,265	(10,042)	7,240	-	43,463
Total	22,912	(9,128)	5,155	-	18,939
Stig Westergaard	5,758		545		6,303
Jørn Adam Møller	8,026		545		8,571
Karen Frøsig – resigned	9,128	(9,128)			-
Mark Luscombe – appointed	-		4,065		4,065

Note 39 Fair value disclosure

Financial instruments are included in the balance sheet either at fair value or at amortised cost. The table below breaks down financial instruments by valuation technique.

					Sydbank Group
DKKm					2024
	FVPL	Fair value option	FVOCI	Total fair value	Amortised cost
Financial assets
Cash and balances on demand at central banks				-	3,349
Amounts owed by credit institutions and central banks	2,363			2,363	11,510
Loans and advances at fair value	23,842			23,842	-
Loans and advances at amortised cost				-	82,534
Bonds at fair value	16,778	15,002		31,780	-
Shares etc	92	2,509	403	3,004	-
Assets related to pooled plans		27,005		27,005	-
Land and buildings			1,226	1,226	-
Other assets	3,826	124		3,950	1,775
Total	46,901	44,640	1,629	93,170	99,168
Undrawn credit commitments				-	56,283
Maximum credit risk, collateral not considered	46,901	44,640	1,629	93,170	155,451
Financial liabilities
Amounts owed to credit institutions and central banks	2,612			2,612	3,501
Deposits and other debt	1,504			1,504	115,168
Deposits in pooled plans		27,005		27,005	-
Bonds issued at amortised cost				-	11,175
Other liabilities	7,288			7,288	7,106
Subordinated capital				-	2,142
Total	11,404	27,005	-	38,409	139,092

Note 39 Fair value disclosure – continued					Sydbank Group
DKKm					2023

	FVPL	Fair value option	FVOCI	Total fair value	Amortised cost
Financial assets
Cash and balances on demand at central banks				-	6,523
Amounts owed by credit institutions and central banks	3,874			3,874	14,388
Loans and advances at fair value	16,743			16,743	-
Loans and advances at amortised cost				-	74,535
Bonds at fair value	13,914	20,705		34,619	-
Shares etc	94	2,378	546	3,018	-
Assets related to pooled plans		22,903		22,903	-
Land and buildings			1,202	1,202	-
Other assets	4,815	177		4,992	1,486
Total	39,440	46,163	1,748	87,351	96,932
Undrawn credit commitments				-	60,952

Maximum credit risk, collateral not considered	39,440	46,163	1,748	87,351	157,884

Financial liabilities
Amounts owed to credit institutions and central banks	3,485			3,485	2,910
Deposits and other debt	3,299			3,299	108,351
Deposits in pooled plans		22,903		22,903	-
Bonds issued at amortised cost				-	11,161
Other liabilities	10,549			10,549	5,358
Subordinated capital				-	1,118
Total	17,333	22,903	-	40,236	128,898

Financial instruments recognised at fair value

Measurement of financial instruments is based on quoted prices from an active market, on generally accepted valuation models with observable market data or on available data that only to a limited extent is observable market data.

Measurement of financial instruments for which prices are quoted in an active market or which is based on generally accepted valuation models with observable market data is not subject to significant estimates.

As regards financial instruments where measurement is based on available data that only to a limited extent is observable market data, measurement is subject to estimates. Such financial instruments appear from the column unobservable inputs below and include primarily unlisted shares, including shares in DLR Kredit A/S.

The fair value of unlisted shares and other holdings is calculated on the basis of available information on trades etc – including to a very significant extent on shareholders' agreements based on book value. To an insignificant extent fair value is calculated on the basis of expected cash flows.

A 10% change in the calculated market value of financial assets measured on the basis of unobservable inputs will affect profit before tax by DKK 246m (2023: DKK 234m) of the calculated price.

Note 39 Fair value disclosure – continued				Sydbank Group
DKKm
	Quoted	Observable	Unobservable	Total
	prices	inputs	inputs	fair value
2024
Financial assets
Amounts owed by credit institutions and central banks		2,363		2,363
Loans and advances at fair value		23,842		23,842
Bonds at fair value		31,780		31,780
Shares etc	523	22	2,459	3,004
Assets related to pooled plans	19,488	7,517		27,005
Land and buildings			1,226	1,226
Other assets	220	3,730		3,950
Total	20,231	69,254	3,685	93,170

Financial liabilities
Amounts owed to credit institutions and central banks		2,612		2,612
Deposits and other debt		1,504		1,504
Deposits in pooled plans		27,005		27,005
Other liabilities	219	7,069		7,288
Total	219	38,190	-	38,409

2023
Financial assets
Amounts owed by credit institutions and central banks		3,874		3,874
Loans and advances at fair value		16,743		16,743
Bonds at fair value		34,619		34,619
Shares etc	658	22	2,338	3,018
Assets related to pooled plans	16,021	6,882		22,903
Land and buildings			1,202	1,202
Other assets	272	4,720		4,992
Total	16,951	66,860	3,540	87,351

Financial liabilities
Amounts owed to credit institutions and central banks		3,485		3,485
Deposits and other debt		3,299		3,299
Deposits in pooled plans		22,903		22,903
Other liabilities	198	10,351		10,549
Total	198	40,038	-	40,236

Note 39 Fair value disclosure – continued		Sydbank Group
DKKm	2024	2023
Assets measured on the basis of unobservable inputs
Carrying amount at 1 Jan	2,338	2,382
Additions	6	2
Disposals	27	245
Market value adjustment	142	199
Value at 31 Dec	2,459	2,338

Recognised in profit for the year

Interest income	-	-
Dividend	101	19
Market value adjustment	142	199
Total	243	218

To take into account changes in credit risk concerning derivatives with positive fair value, an adjustment is made – CVA. CVA is a function of the risk of counterparty default (PD), the expected positive exposure and the loss ratio in the event of default. PD is determined on the basis of the Group's credit models – default probability in 12 months. PD beyond 12 months is adjusted on the basis of market data of exposures with a similar PD level. At year-end 2024 CVA constituted DKK 16m compared to DKK 16m at year-end 2023.

Customer margins recognised in connection with derivatives are amortised over the life of the transaction. At year-end 2024 customer margins not yet recognised as income totalled DKK 15m compared to DKK 12m at year-end 2023.

Financial instruments recognised at amortised cost

The vast majority of the Group's amounts owed, loans and advances and deposits cannot be transferred without the prior consent of customers and no active market exists for trading in such financial instruments. Consequently fair value disclosures are solely based on circumstances where market conditions have changed after initial recognition of the instrument, including in particular changes in interest rates. Fair value disclosures on financial instruments recognised at amortised cost are based on the assumptions below:

As regards financial instruments for which a quoted price exists in the market, such a price is applied. This applies to bonds issued and subordinated capital. In the absence of a market price, the value is determined on the basis of estimates of the market's existing required rate of return – level 2.
As regards loans and advances, impairment charges are presumed to equal the fair value of the credit risk.
As regards financial instruments with a maturity of less than 6 months, amortised cost is presumed to equal fair value.
As a rule the interest rate risk of fixed-rate deposits and loans and advances with a maturity exceeding 6 months is hedged by derivatives, primarily interest rate swaps. The hedge is treated as a fair value hedge for accounting purposes. The portfolio comprises loans and advances, deposits and swaps, see note 36.

Based on the above it is the overall assessment that the fair value of loans and advances and deposits corresponds to the carrying amount at 31 December 2024 in all material respects.

				Sydbank Group
DKKm		2024	2023
	Carrying		Carrying
	amount	Fair value	amount	Fair value
Bonds issued at amortised cost	11,175	11,195	11,161	11,148
Subordinated capital	2,142	1,980	1,118	1,008

Note 40 Financial liabilities – contractual maturities					Sydbank Group
DKKm	On demand	3 months or less	Over 3 months not exceeding 1 year	Over 1 year not exceeding 5 years	Over 5 years
2024
Amounts owed to credit institutions and central banks	2,869	3,154	90	-	-
Deposits and other debt	89,321	22,352	1,894	393	2,712
Bonds issued at amortised cost	-	-	-	11,175	-
Subordinated capital	-	-	-	-	2,142
Total	92,190	25,506	1,984	11,568	4,854
Contingent liabilities (guarantees)	6,827	4,910	1,805	1,290	1,322
2023
Amounts owed to credit institutions and central banks	2,524	3,871	-	-	-
Deposits and other debt	84,118	20,712	3,031	753	3,037
Bonds issued at amortised cost	-	-	-	11,161	-
Subordinated capital	-	-	-	-	1,118
Total	86,642	24,583	3,031	11,914	4,155
Contingent liabilities (guarantees)	7,472	4,146	1,078	1,120	1,705
Amounts are exclusive of expected cash flows.

2024

Amounts owed to credit institutions and central banks	2,869	3,156	93	0	-
Deposits and other debt	89,321	22,388	1,914	408	3,304
Bonds issued at amortised cost	-	-	-	11,973	-
Subordinated capital	-	-	-	-	3,223
Total	92,190	25,544	2,007	12,381	6,527
Contingent liabilities (guarantees)	6,827	4,910	1,805	1,290	1,322
2023
Amounts owed to credit institutions and central banks	2,524	3,872	-	-	-
Deposits and other debt	84,118	20,752	3,076	786	4,071
Bonds issued at amortised cost	-	-	-	11,162	-
Subordinated capital	-	-	-	-	1,118
Total	86,642	24,624	3,076	11,948	5,189
Contingent liabilities (guarantees)	7,472	4,146	1,078	1,120	1,705

Amounts include undiscounted expected cash flows in the contractual maturities of the financial liabilities.

Note 41 Activity per country					Sydbank Group
DKKm	Turnover	Number of employees	Profit before tax	Tax	Public subsidies received
2024
Denmark, banking and leasing	7,162	2,023	3,421	808	0
Germany, banking	386	71	224	75	0
Total	7,548	2,094	3,645	883	0
2023
Denmark, banking and leasing	7,087	1,958	4,070	875	0
Germany, banking	346	71	211	64	0
Total	7,433	2,029	4,281	939	0

Turnover is defined as net interest and fee income, market value adjustments and other operating income.

Note 42 Financial highlights					Sydbank Group
	2024	2023	2022	2021	2020
Income statement highlights (DKKm)
Net interest and fee income	6,803	6,672	4,981	4,252	3,557
Market value adjustments	714	737	386	474	340
Staff costs and administrative expenses	3,181	3,024	2,931	3,237	2,724
Impairment of loans and advances etc	595	(27)	(96)	(415)	48
Profit/(Loss) on holdings in associates etc	52	7	8	7	8
Profit for the year*	2,762	3,342	1,901	1,411	799

Balance sheet highlights (DKKbn)
Loans and advances	106.4	91.3	84.4	84.0	78.2
Total equity	15.8	15.7	14.0	13.2	12.5
Total assets	193.7	185.1	179.3	168.2	165.8

Financial ratios per share (DKK per share of DKK 10)
EPS	50.9	58.8	32.3	23.2	12.7
Book value	291.4	273.9	233.4	212.6	197.6
Dividend	26.88	30.56	16.77	12.00	4.00
Share price/EPS	7.5	5.0	9.1	8.9	10.6
Share price/book value	1.30	1.07	1.25	0.97	0.68

Other financial ratios and key figures
Capital ratio	21.4	21.1	19.6	22.8	24.0
T1 capital ratio	19.0	20.1	18.6	19.3	20.4
Pre-tax profit as % of average equity	24.6	30.3	18.9	14.2	8.6
Post-tax profit as % of average equity	18.6	23.6	14.8	11.3	6.7
Income/cost ratio (DKK)	1.92	2.36	1.82	1.59	1.35
Interest rate risk	1.2	0.5	1.3	1.6	1.6
Foreign exchange position	1.2	0.7	1.8	1.1	1.2
Foreign exchange risk	0.0	0.0	0.0	0.0	0.0
Loans and advances relative to deposits	0.6	0.6	0.7	0.7	0.7
Loans and advances relative to equity	5.5	6.1	6.4	6.7	6.7
Growth in loans and advances for the year	10.7	0.8	10.3	11.3	(0.5)
Liquidity, LCR (%)	230	223	200	200	210
Total large exposures	110	137	147	140	149
Impairment ratio for the year	0.6	0.0	(0.1)	(0.4)	0.0
Return on assets (%)	1.46	1.83	1.09	0.84	0.51

* Determined according to IFRS.

Financial highlights and financial ratios are specified in the Danish FSA's executive order on financial reporting of credit institutions etc.

2024 2023 2022 2021 2020 Income statement highlights (DKKm) Net interest and fee income 6,623 6,429 4,897 4,149 3,427 Market value adjustments 798 778 427 593 348 Staff costs and administrative expenses 3,055 2,964 2,871 3,179 2,632 Impairment of loans and advances etc 595 (27) (96) (415) 48 Profit/(Loss) on holdings in associates etc 86 185 31 7 11 Profit for the year 2,838 3,375 1,937 1,494 802









Balance sheet highlights (DKKbn)
Loans and advances 105.7 91.8 84.9 84.5 79.4
Total equity 15.7 15.7 13.9 13.2 12.5
Total assets 190.4 187.2 181.3 170.3 168.8

Financial ratios per share (DKK per share of DKK 10)
EPS 52.8 60.0 33.0 24.7 12.9
Book value 291.4 273.9 233.4 212.6 197.6
Dividend 26.88 30.56 16.77 12.00 4.00
Share price/EPS 7.2 4.9 8.9 8.4 10.5
Share price/book value 1.30 1.07 1.25 1.00 0.68

Other financial ratios and key figures
Capital ratio 21.2 20.4 19.0 22.0 22.7
T1 capital ratio 18.9 19.4 18.0 18.6 19.4
Pre-tax profit as % of average equity 24.6 30.4 18.8 15.0 8.5
Post-tax profit as % of average equity 18.7 23.7 14.8 12.1 6.7
Income/cost ratio (DKK) 1.98 2.39 1.84 1.63 1.36 Interest rate risk 1.2 0.5 1.3 1.6 1.5
Foreign exchange position 1.2 0.7 1.8 1.1 1.2
Foreign exchange risk 0.0 0.0 0.0 0.0 0.0
Loans and advances relative to deposits 0.8 0.7 0.7 0.7 0.7
Loans and advances relative to equity 7.1 6.1 6.4 6.8 6.8
Growth in loans and advances for the year 9.1 0.8 10.2 9.9 0.7
Liquidity, LCR (%) 230 223 200 200 210
Total large exposures 113 137 147 140 149
Impairment ratio for the year 0.5 0.0 (0.1) (0.4) 0.0
Return on assets (%) 1.46 1.81 1.08 0.88 0.50

Financial highlights and financial ratios are specified in the Danish FSA's executive order on financial reporting of credit institutions etc.

Note 43 Reporting events occurring after the balance sheet date

No matters of significant impact on the financial position of the Group have occurred after the expiry of the financial year.

Ownership
share
(%)


100
100
100
100
67


100

31
20

20
20

* Financial information according to the companies' most recently published annual reports (2023).

Note 45 Large shareholders

Nykredit Realkredit A/S owns more than 5% of Sydbank's share capital.

Note 46 Correlation between Group profit and equity according to IFRS and the Danish FSA accounting rules

The Group's financial statements are prepared according to IFRS. The Group's accounting policies correspond to the provisions of the Danish FSA's rules excepting that the Danish FSA's executive order does not allow the use of FVOCI as regards shareholdings. In the Group's reporting to the Danish FSA all shareholdings are measured at FVPL.

Sydbank Group
DKKm		Profit for the year		Equity
	2024	2023	2024	2023
Group profit and equity according to IFRS	2,762	3,342	15,784	15,748
Value adjustment of certain strategic shares	109	52	-	-
Tax on value adjustment of certain strategic shares	(24)	(13)	-	-
Group profit and equity according to the Danish FSA accounting rules	2,847	3,381	15,784	15,748

Note 47 Acquisition of associates

Sydbank has acquired 100% of the share capital of Coop Bank. The acquisition took effect on 1 July 2024.

The activities acquired are included in the segment reporting of the Sydbank Group under Banking. The acquisition cost of Coop Bank represented DKK 347m, which has been paid in cash. The transaction includes approx 88,000 customers, including approx 21,000 NemKonto (Easy Account) customers, bank loans and advances of DKK 1.2bn and arranged Totalkredit mortgage loans representing DKK 1.0bn. Moreover the agreement includes a partnership that will create attractive value propositions for the customers of Coop Bank A/S and Coop Danmark as well as for other members. The partnership is expected to generate an increase in business volume at Coop Bank A/S.

After recognition of identifiable assets, liabilities and contingent liabilities at fair value, goodwill in connection with the acquisition constitutes DKK 0m. The assets acquired and liabilities assumed can be broken down as follows at the acquisition date:

Statement of fair value	Sydbank Group
	2024
Assets
Cash and balances on demand at central banks	1,640
Amounts owed by credit institutions and central banks	141
Loans and advances at amortised cost	1,245
Bonds at fair value	467
Shares etc	0
Intangible assets, customer relationships	120
Land and buildings	3
Other property, plant and equipment	1
Deferred tax	3
Other assets	20
Prepayments	7
Total assets	3,647
Recognised in profit for the year Amounts owed to credit institutions and central banks	52
Deposits and other debt	3,105
Bonds issued	17
Other liabilities	21
Liabilities in temporary possession	31
Provisions	0
Subordinated capital	74
Total liabilities	3,300

Net assets acquired	347
Purchase price	347
Goodwill	0
Contingent liabilities
Guarantees	46

Note 47 Acquisition of associates – continued

Calculation of fair values

In connection with the acquisition of Coop Bank, Sydbank has determined identifiable assets and liabilities which are recognised in the pre-acquisition balance sheet at fair value.

The fair value of loans and advances is based on an assessment of the market value of the portfolio acquired. Before the fair value adjustment, the net value of loans and advances represented DKK 1,246m at the acquisition date. The fair value adjustment of loans and advances totalled DKK 0m. Total loans and advances after fair value adjustment represented DKK 1,246m.

The fair value of customer relationships has been determined using the Multi-Period Excess Earnings Method (MEEM). Customer relationships are determined at the present value of the net cash flows generated through sale to customers after deducting a reasonable return on all other assets which contribute to generating the cash flows in question.

The fair value of other intangible assets is based on the discounted cash flows expected to be derived from the ongoing use of the assets or from the sale of the assets.

Liabilities are valued at the present value of the amounts to be applied to settle the liabilities. The Group's lending rate before tax is used in connection with discounting. Discounting is avoided as regards short-term liabilities when the effect is insignificant.

Impact of the acquisition on the Sydbank Group's income statement

The activities acquired form part of the Sydbank Group's net interest and fee income from 1 July 2024 and represent DKK 80m and profit for the year represents DKK 15m for the period from the acquisition on 1 July 2024 to 31 December 2024.

The Group's net interest and fee income and profit for the year for 2024 made up pro forma as if Coop Bank had been acquired as of 1 January 2024 total DKK 161m and DKK 34m respectively. The pro forma figures are determined on the basis of the actual acquisition cost and the allocation of the acquisitio cost as at the acquisition date. However depreciation/amortisation, loan costs etc are included in the pro forma figures as of 1 January 2024.

Definitions – Group Financial Ratios & Performance Measures

Financial ratio/performance measure	Definition
EPS Basic (DKK)*	Profit for the year divided by average number of shares outstanding.
EPS Diluted (DKK)*	Profit for the year divided by average number of shares outstanding, including dilutive effect of share options and restricted shares.
Share price at year-end	Closing price of the Sydbank share at year-end.
Book value per share (DKK)	Equity at year-end divided by number of shares outstanding at year-end.
CET1 ratio	CET1 capital divided by risk exposure amount.
T1 capital ratio	T1 capital including AT1 capital divided by risk exposure amount.
Capital ratio	Total capital divided by risk exposure amount.
Pre-tax profit as % of average equity*	Pre-tax profit divided by quarterly average equity calculated as an average of equity of the year's 4 quarters at year-end.
Post-tax profit as % of average equity*	Post-tax profit divided by quarterly average equity calculated as an average of equity of the year's 4 quarters at year-end.
Return on assets (%)	Profit for the year divided by total average assets.
Loans and advances relative to deposits	Loans and advances at amortised cost divided by deposits (deposits and other debt and deposits in pooled plans).
Loans and advances relative to equity	Loans and advances at amortised cost divided by equity.
Growth in loans and advances for the year	Calculated on the basis of loans and advances at amortised cost.
Accumulated impairment ratio	Impairment charges and provisions at year-end (allowance account) divided by loans and advances at amortised cost and guarantees before impairment charges and provisions.
Impairment ratio for the year	Impairment charges for loans and advances etc divided by loans and advances at amortised cost and guarantees before impairment charges and provisions.
Number of full-time staff at year-end	Number of full-time equivalent staff (part-time staff translated into full-time staff) at year-end.

* Financial ratios are calculated as if AT1 capital is accounted for as a liability.

Reference is made to "Accounting policies" (note 1) for a definition of core income and investment portfolio earnings.

Notes – Derivatives

Distribution by maturity

DKKm		Over 3	Over 1
	3 months or	months not exceeding	year not exceeding
	less	1 year	5 years	Over 5 years	Total 2024	Total 2023
Nominal values
Foreign exchange contracts:
Spot, bought	408	-	-	-	408	423
Spot, sold	1,142	-	-	-	1,142	882
Forwards/futures, bought	18,420	2,214	19	-	20,653	18,639
Forwards/futures, sold	9,933	2,553	304	-	12,790	20,719
Swaps, bought	-	-	-	12	12	16
Swaps, sold	100	214	785	127	1,226	424
Options, acquired	1,190	164	13	-	1,367	2,070
Options, written	1,132	134	6	-	1,272	1,777

Interest rate contracts:
Spot, bought	2,399	-	-	-	2,399	3,910
Spot, sold	1,341	-	-	-	1,341	2,777
Forwards/futures, bought	4,603	-	-	-	4,603	4,181
Forwards/futures, sold	8,271	-	-	-	8,271	3,741
Forward rate agreements, bought	0	-	-	-	0	0
Forward rate agreements, sold	0	-	-	-	0	1,491
Swaps, bought	27,614	44,613	82,980	9,566	164,773	118,378
Swaps, sold	32,822	52,025	83,442	9,091	177,380	129,826
Options, acquired	3,325	435	590	436	4,786	4,717
Options, written	(3,018)	436	846	537	(1,199)	5,088

Equity contracts:
Spot, bought	342	-	-	-	342	1,364
Spot, sold	349	-	-	-	349	1,378
Forwards/futures, bought	0	-	-	-	0	0
Forwards/futures, sold	0	-	-	-	0	0
Options, acquired	0	-	-	-	0	0
Options, written	0	-	-	-	0	0

Notes – Derivatives

Distribution by maturity

DKKm		Over 3	Over 1
	3 months or	months not exceeding	year not exceeding
	less	1 year	5 years	Over 5 years	Total 2024	Total 2023
Net market values
Foreign exchange contracts:
Spot, bought	2	-	-	-	2	(1)
Spot, sold	0	-	-	-	0	1
Forwards/futures, bought	93	9	(1)	0	101	(47)
Forwards/futures, sold	(87)	(17)	1	0	(103)	118
Swaps, bought	0	0	0	8	8	-
Swaps, sold	0	0	(13)	10	(3)	14
Options, acquired	4	3	0	0	7	18
Options, written	(8)	(3)	0	0	(11)	(13)

Interest rate contracts:
Spot, bought	(1)	-	-	-	(1)	18
Spot, sold	2	-	-	-	2	(12)
Forwards/futures, bought	5	-	-	-	5	25
Forwards/futures, sold	1	-	-	-	1	(26)
Forward rate agreements, bought	0	-	-	-	0	0
Forward rate agreements, sold	(51)	(181)	324	44	136	1
Swaps, bought	39	78	(143)	(56)	(82)	-
Swaps, sold	0	0	1	6	7	68
Options, acquired	0	0	(4)	(12)	(16)	10
Options, written	0	0	0	0	0	(48)

Equity contracts:
Spot, bought	-	-	-	-	0	3
Spot, sold	-	-	-	-	0	(2)
Forwards/futures, bought	-	-	-	-	0	4
Forwards/futures, sold	-	-	-	-	0	(1)
Options, acquired	0	-	-	-	0	0
Options, written	0	-	-	-	0	0
Total net market values	(1)	(111)	165	0	53	130

DKKm	Total contracts 2024*		Total contracts 2023*
	Positive	Negative	Net	Positive	Negative	Net
Market values
Foreign exchange contracts:
Spot, bought	3	(1)	2	2	(3)	(1)
Spot, sold	1	(1)	0	1	0	1
Forwards/futures, bought	153	(52)	101	91	(139)	(48)
Forwards/futures, sold	51	(154)	(103)	169	(51)	118
Swaps, bought	8	0	8	-	-	-
Swaps, sold	12	(15)	(3)	22	(7)	15
Options, acquired	7	0	7	18	0	18
Options, written	0	(11)	(11)	0	(13)	(13)
Interest rate contracts:
Spot, bought	0	(1)	(1)	21	(2)	19
Spot, sold	2	0	2	2	(14)	(12)
Forwards/futures, bought	7	(2)	5	38	(13)	25
Forwards/futures, sold	4	(3)	1	16	(42)	(26)
Forward rate agreements, bought	0	0	0	0	0	0
Forward rate agreements, sold	0	0	0	1	0	1
Swaps, bought	1,771	(1,633)	138	-	-	-
Swaps, sold	1,653	(1,735)	(82)	4,316	(4,248)	68
Options, acquired	7	0	7	11	0	11
Options, written	0	(16)	(16)	0	(49)	(49)
Equity contracts:
Spot, bought	1	(4)	(3)	4	(1)	3
Spot, sold	4	(1)	3	1	(4)	(3)
Forwards/futures, bought	0	(7)	(7)	5	(1)	4
Forwards/futures, sold	5	0	5	0	(1)	(1)
Options, acquired	0	-	0	0	-	0
Options, written	-	0	0	-	0	0
Total market values	3,689	(3,636)	53	4,718	(4,588)	130

* All contracts are non-guaranteed.

Notes – Derivatives

DKKm	Total contracts 2024*		Total contracts 2023*
	Positive	Negative	Net	Positive	Negative	Net
Average market values
Foreign exchange contracts:
Spot, bought	1	(1)	0	3	(5)	(2)
Spot, sold	1	(1)	0	1	(2)	(1)
Forwards/futures, bought	111	(114)	(3)	172	(131)	41
Forwards/futures, sold	108	(88)	20	171	(120)	51
Swaps, bought	8	-	8	-	-	-
Swaps, sold	12	(14)	(2)	22	(88)	(66)
Options, acquired	12	0	12	25	-	25
Options, written	0	(10)	(10)	-	(15)	(15)

Interest rate contracts:
Spot, bought	6	(2)	4	6	(2)	4
Spot, sold	2	(5)	(3)	6	(4)	2
Forwards/futures, bought	20	(14)	6	19	(7)	12
Forwards/futures, sold	16	(15)	1	12	(14)	(2)
Forward rate agreements, bought	-	-	0	-	-	0
Forward rate agreements, sold	-	-	0	-	-	0
Swaps, bought	1,140	(2,758)	(1,618)	-	-	-
Swaps, sold	2,801	(1,068)	1,733	5,448	(5,209)	239
Options, acquired	9	0	9	22	0	22
Options, written	0	(24)	(24)	0	(73)	(73)
Equity contracts:

Spot, bought	16	(7)	9	5	(5)	0
Spot, sold	7	(16)	(9)	5	(5)	0
Forwards/futures, bought	8	(2)	6	10	(2)	8
Forwards/futures, sold	2	(4)	(2)	1	(5)	(4)
Options, acquired	1	-	1	0	-	0
Options, written	-	(1)	(1)	-	0	0
Total average market values	4,281	(4,144)	137	5,928	(5,687)	241

* Average market value calculations are based on monthly statements.

DKKm	Market values		Collateral		Exposure by counterparty
	Positive	Negative	Provided	Received	Amount due	Amount owed
2024
Exposure
Counterparties with CSA agreements	3,471	3,430	504	350	233	38
Counterparties without CSA agreements	218	206	-	-	169	157
Total	3,689	3,636	504	350	402	195
2023
Exposure
Counterparties with CSA agreements	4,421	4,294	520	425	244	23
Counterparties without CSA agreements	297	294	-	-	229	226
Total	4,718	4,588	520	425	473	249

Notes – Risk Management

On the basis of the strategic objectives for the Group, the Board of Directors has issued guidelines for the Group Executive Management and adopted policies as regards credit risk, leverage risk, liquidity risk, market risk, operational risk, insurance and IT security.

The Board of Directors has set up a Risk Committee to address risk management in greater detail. The committee convenes as a minimum every quarter where ongoing reporting to the Board of Directors is reviewed and current issues are discussed. At subsequent board meetings the contents and conclusions of the Risk Committee meetings are presented to the full Board of Directors.

Credits is responsible for the day-to-day handling of credit risk whereas Sydbank Markets is responsible for the dayto-day handling of liquidity and market risks. The individual business units are each responsible for the day-to-day handling of operational risk. Finance is responsible for handling the Group's insurance and IT is responsible for the Group's IT security.

Overall risk management, including ongoing reporting to the Group Executive Management and the Board of Directors, is performed by Risk. The Group Executive Vice President of Risk is the CRO of the Sydbank Group.

Risk management is supported by the Group's risk organisation, see the chart below.

The relevant business units are represented in the committees, each headed by a Group Executive Management member. The CRO is a member of all committees.

It is the responsibility of the committees, within their respective risk areas, to identify, assess and follow up on the Group's risks including principles to determine risk, models applied, and to assess whether exposures and risks comply with the Group's intended profile and policy.

The committees convene as a minimum every quarter and prepare once a year a risk analysis which is included as an important element in the annual risk assessment of the Group.

The risk assessment at 31 December 2024 together with the Group's 2024 financial statements, Credit Risk 2024, the Group's Internal Liquidity Adequacy Assessment Process (ILAAP) at 31 December 2024 and the Group's Internal Capital Adequacy Assessment Process (ICAAP) at 31 December 2024 constitute the main elements of Risk Committee and Audit Committee meetings as well as board meetings at the beginning of 2025. On the basis of the discussions at these meetings the Board of Directors will subsequently update the Group's policies and guidelines.

Notes – Risk Management

Credit risk

Credit and customer policy

The Group's overall credit risk is managed according to policies and limits determined and adopted by the Board of Directors.

The Board of Directors lays down the general framework for lending and the largest exposures are submitted on a regular basis to the Board of Directors for approval or information.

Employees with a lending authority may grant approvals. Such authority is adjusted to the employee's position. The lending authority is risk-based, ie a higher risk means reduced lending authority.

Corporate clients

As a rule corporate clients are served by the regional head office or by special corporate departments. The Group's largest and most complex exposures are handled by Corporate & Institutional Banking. The objective is that all small corporate exposures with satisfactory credit quality are approved by the customer's branch. Medium-size and major exposures are approved centrally by Credits, the Group Executive Management or the Board of Directors.

The Group's credit-related decisions are based on a systematic and structured review of the customer's circumstances and industry affiliation. The review is based on all accessible information, including industry analyses and financial analyses, and also comprises an assessment of the customer's forward-looking business plan and its risk and feasibility.

Retail clients

Lending to retail clients is based on the customer's disposable amount, wealth and leverage (defined as total household debt divided by household personal income) as well as knowledge of the customer.

The objective is that the majority of retail client exposures are approved by the customer's branch and that the remaining client exposures are approved by specially appointed heads of credit. Consequently exposures where the customer has negative assets of more than DKK 100,000 are approved by heads of credit. Major exposures and exposures with an increased risk are reviewed centrally by Credits.

Credit activities

Credit activities are conducted partly in the retail and corporate departments and partly centrally in Credits. As described below, the Group has developed rating models to assess risks to retail clients and corporate clients.

The Group's credit activities are an active element in the Group's efforts to increase its income by:

Maintaining and increasing the portfolio of profitable and promising retail, corporate and investment clients.
Maintaining and increasing customers' business volume with the Group through a balanced composition of:
loans and advances and guarantees
deposits
payment services transactions
trading in securities etc
financial instruments
Reducing risk of loss by implementing action plans for weak exposures. These action plans involve reducing the Group's exposure as well as hedging risks by securing additional collateral.

Risks in connection with lending must be precalculated on an informed and well-founded basis.

The Group's credit exposure is in particular to customers in Denmark and Northern Germany.

Particular focus is given to weak exposures. The objective is to ensure that the Group's action plans for these exposures are monitored, evaluated and adjusted on an ongoing basis to reduce the risk of loss.

Moreover Credits has a department which is assigned to exposures with a significant risk of loss. These exposures are closely monitored and Credits is actively involved in preparing solutions to mitigate the Group's credit risk.

On the basis of a risk-based approach Credit Control ensures that procedures and lending authorities are complied with as well as checks the Bank's systems and business procedures in the credit area. Moreover Credit Control, which is a separate department, follows up that any errors detected are corrected and reports to the Bank's management about its activities.

Risk Follow-up

Risk Follow-up is part of the division Risk.

Risk Follow-up monitors the most significant risks in the credit area. Using a variety of defined key areas, monitoring is based on an assessment as to whether the Group's internal control system as regards the credit area is adequate and whether the Group has business procedures describing the internal control system. In addition monitoring of risks is based on supplementary analyses, research and controls of

Credit risk – continued

the credit quality of exposures, registrations, impairment calculations as well as the compliance with policies and business procedures in general..

This process involves research and analyses using information from the Group's database of all exposures.

Finally Risk Follow-up is tasked with assessing the data quality of the data used in the Group's IRB models.

Collateral

The Group aims to mitigate the risk on individual exposures by way of charges on assets, netting agreements and guarantees.

The most frequent types of charges include mortgages and charges on financial assets (shares, bonds and units).

The Group receives different kinds of guarantees for exposures. Many of these are provided by companies or individuals who have a group relationship with the debtor.

The Group assesses on an ongoing basis the value of collateral provided. The value is determined as the expected net proceeds on realisation.

The 2 tables below illustrate the breakdown of collateral by type and rating category respectively.

Collateral received and types of collateral

DKKm	2024	2023
Loans and advances at fair value	23,842	16,743
Loans and advances at amortised cost	82,534	74,535
Guarantees	16,154	15,521
Credit exposure for accounting purposes	122,530 106,799
Collateral value	71,342	63,209
Total unsecured	51,188	43,590

Types of collateral
Real estate	12,773	12,542
Financial collateral	31,121	23,220
Lease assets, mortgages etc	7,109	7,138
Floating charges, operating equipment etc	11,595	10,222
Guarantees	1,424	2,036
Other items of collateral	649	101
Total collateral used	64,671	55,259
Particularly secured transactions
(mortgage guarantees)	6,671	7,950
Total	71,342	63,209

In the event that the Group uses collateral that is not imme-

diately convertible into cash, the Group's policy is to dispose of such assets as quickly as possible. In 2024 repossessed equipment in connection with non-performing exposures amounted to DKK 34m (2023: DKK 11m). Lease assets are assessed and depreciated on an ongoing basis. As a result the calculated collateral as regards the Group's leasing activities will decline during periods of lower lease asset prices.

Collateral represented DKK 71,342m in 2024 – an increase of DKK 8,133m compared to 2023. The increase is predominantly attributable to a rise in financial collateral of DKK 7,901m from DKK 23,220m in 2023 to DKK 31,121m in 2024.

The increase in financial collateral is primarily attributable to the change in loans and advances at fair value, which have gone up by DKK 7,099m.

Loans and advances at fair value are repo loans and advances secured by financial collateral.

Notes – Risk Management

Credit risk – continued

The table below shows the size of loans and advances, guarantees as well as collateral according to rating category. The value of collateral is assessed relative to loans and advances and guarantees. Excess collateral is not included in the calculation of collateral. 58.2% (2023: 59.2%) of the Group's loans and advances and guarantees after impairment charges is secured.

Collateral by rating category

DKKm					2024	2023
	Loans/		Collateral
Rating category	advances	Guarantees	value	Unsecured	%	%
1	22,193	5,728	20,487	7,434	14.0	10.7
2	25,086	5,325	12,180	18,231	34.3	36.9
3	27,264	1,999	22,544	6,719	12.5	13.8
4	16,869	1,190	7,267	10,792	20.3	18.8
5	6,832	570	3,135	4,267	8.0	10.6
6	2,501	121	1,510	1,112	2.1	1.9
7	2,163	177	1,278	1,062	2.0	2.1
8	418	39	264	193	0.4	0.2
9	1,313	164	948	529	1.0	1.0
Default	1,566	169	706	1,029	1.9	2.4
STD/NR	2,188	672	1,023	1,837	3.5	1.6
Total	108,393	16,154	71,342	53,205	100.0	100.0
Impairment of loans and advances	2,017			2,017
Total	106,376	16,154	71,342	51,188

Financial counterparties

Trading in securities, currencies and derivatives, as well as payment services etc involve exposure to financial counterparties in the form of delivery risk or credit risk.

Delivery risk is the risk that the Group does not receive payments or securities in connection with the settlement of securities or currency transactions equalling the securities or payments delivered by the Group.

Credits, the Group Executive Management and the Board of Directors grant delivery risk lines and credit risk lines to financial counterparties. Based on the risk profile of the individual counterparty, rating, earnings and capital position as well as size are assessed. Risks and lines to financial counterparties are monitored continuously.

The Group participates in an international foreign exchange settlement system, CLS®, which aims to reduce delivery risk. In CLS® payment is made on the net position for each currency and only one amount for each currency is paid or received. In addition this net exposure is only to one counterparty, who is the Group's partner in the system.

The Group aims to mitigate credit risk to financial counterparties in many ways, eg by concluding netting agreements (ISDA and GMRA agreements). Moreover the Group has entered into agreements (CSA agreements) with all significant counterparties to ensure credit risk mitigation of derivatives. Exposures are calculated on a daily basis after which the parties settle collateral. Consequently exposures are reset in all material respects on a daily basis. The agreements are managed by Transaction Banking.

Market risk

Market risk is the risk that the market value of the Group's assets and liabilities will be affected as a result of changes in market prices.

Assuming market risk is considered a natural and integral part of all-round banking. Assuming risk must be on a conscious and well-documented basis. To the extent possible, risk should be assumed in products which offer a possibility of eliminating or mitigating risk at short notice.

Interest rate and foreign exchange risks deriving from deposits by and loans and advances to the Group's customers are hedged on an ongoing basis and are consequently not used for position-taking.

For further information reference is made to note 36.

The Group operates with the following types of market risk:

Interest rate risk
Credit spread risk
Equity risk
Foreign exchange risk

Other market risks

For security and control reasons, the Board of Directors emphasises that the Group's market risk is subject to central decision-making and management. Consequently the Group's most significant interest rate, foreign exchange and equity risks must be assumed by the parent.

The Board of Directors has determined the Group's risk tolerance as follows: medium as regards interest rate risk and low as regards the other types of market risk.

Market risk is managed by Sydbank Markets according to policies and limits determined and adopted by the Bank's Board of Directors. The overall limits from the Board of Directors are passed on to Sydbank Markets and Treasury by the Group Executive Management. Sydbank Markets manages trading and market making as regards the Group's customers and financial counterparties. Treasury manages the Group's long-term interest rate positions and hedging, including the Group's primary liquidity positions as well as liquidity generation. The Group's returns in Sydbank Markets and Treasury appear from "Segment reporting" (note 5). Treasury has primarily interest rate risks and credit spread risks.

Middle Office in Transaction Banking as well as Risk continuously monitor the individual risk areas and provide management with extensive reporting on a regular basis.

Interest rate risk

Interest rate risk comprises the Group's total risk of loss resulting from interest rate changes in financial markets.

The Group uses a cash flow model to determine the interest rate risk of fixed-rate positions. A duration model is used to calculate the interest rate risk of Danish callable mortgage bonds. Interest rate risk and credit spread risk make up the bulk of the Group's overall market risk.

In accordance with the Danish FSA's method of calculation, interest rate risk is calculated as the change in market values at a parallel shift in the interest rate level of plus 1pp in all currencies and at 31 December 2024 it represented DKK 150m or 1.3% of the Group's CET1 capital.

Interest rate risk by maturity and currency

DKKm	0-1 yr	1-2 yrs	2-3 yrs	> 3 yrs	Total 2024	Total 2023
DKK	59	7	60	60	186	137
EUR	(15)	2	(40)	15	(38)	(76)
EUR/DKK	44	9	20	75	148	61
Other	(3)	2	1	2	2	4
Total 2024	41	11	21	77	150
Total 2023	37	(18)	7	39		65

The Group's interest rate risk is predominantly attributable to positions in EUR and DKK. The Group has no significant interest rate risk apart from EUR/DKK.

The Group's interest rate risk is – in line with 2023 – positive, ie the Group's profit will be adversely affected by an interest rate increase.

The Danish FSA's method of calculation allows full set-off between different currencies, maturities and yield curves. The Group is aware of the risk of these assumptions and monitors these risks separately on an ongoing basis.

Interest rate risk – Sydbank Markets and Treasury

DKKm			2024			2023
	Sydbank			Sydbank
	Markets	Treasury	Total	Markets	Treasury	Total
DKK	64	122	186	73	64	137
EUR	(2)	(36)	(38)	(63)	(13)	(76)
EUR/DKK	62	86	148	10	51	61
Other	2	0	2	2	2	4
Total	64	86	150	12	53	65

Notes – Risk Management

Market risk – continued

Credit spread risk

Credit spread risk is the risk that the credit spreads of the bonds in the bond portfolio change to the detriment of the Group.

The Group determines its credit spread risk on the basis of the following credit spread changes:

Government bonds 25bp
Mortgage bonds 50bp
Other high-yield bonds 100bp

The Group's credit spread risk made up DKK 281m at 31 December 2024 and is included when determining the solvency need.

Credit spread risk by bond type

DKKm	2024	2023
Mortgage credit	262	185
Governments	5	9
Other	14	29
Total	281	223

Equity risk

The Group's portfolio of shares and holdings in associates represented DKK 3,437m at 31 December 2024 (2023: DKK 3,182m), including equity investments totalling DKK 3,345m (2023: DKK 3,088m).

In the event of a 10% change in share prices, profit before tax will be affected by DKK 303m (2023: DKK 264m) as well as other comprehensive income by DKK 40m (2023: DKK 55m). Equity investments represent DKK 294m (2023: DKK 254m) and DKK 40m (2023: DKK 55m) respectively.

Foreign exchange risk

As in previous years the Group's foreign exchange risk was insignificant in 2024 and consequently a 10% change in exchange rates against DKK at 31 December 2024 will not affect profit before tax significantly.

Other market risks

The Group had no other significant market risks at 31 December 2024.

Liquidity risk

Liquidity risk is the risk that the Group cannot meet its payment obligations as they mature or is only able to do so via disproportionately large funding costs.

The Bank's Board of Directors has adopted a liquidity risk policy which sets out the framework for the Group's liquidity management, including operational targets for the Group's risk tolerance as well as requirements for the funding structure, liquidity buffer calculations and stress tests. Moreover the liquidity risk policy sets out requirements for employee competences, contingency plans and reporting as well as determines the framework for asset encumbrance and allocation of the Group's liquidity costs.

Targets and policies

Consistently strong and stable deposit base which ensures stability in the long-term funding of the Group's lending activities.
Prudent funding of long-term loans and advances.
Maintenance of high ratings.
Access to international money markets as well as access to international capital markets through the application of loan programmes. Coupled with a high rating this ensures that the Group has uninterrupted access to a diversified and competitive funding base.
Maintenance of a liquidity buffer which together with prudent management of the run-off profile of funding ensures that the Group's operating activities do not depend on capital market funding. In other words the liquidity buffer may counterbalance the effects of an adverse liquidity situation in the short and medium term.

The Bank's Board of Directors determines the Group's risk tolerance as regards liquidity risk. Operational targets for the Group's risk tolerance comprise:

A minimum share of stable funding by way of deposits from non-financial counterparties and equity
A funding ratio (stable funding, incl SNP loans with maturities over 1 year relative to loans and advances)
Liquidity Coverage Ratio (LCR)
A 3-month stress scenario (LCR3) calculated according to the excess liquidity coverage benchmark of the Supervisory Diamond
A liquidity reserve in the combined scenario must represent at least 110% relative to run-off
Liquidity Coverage Ratio euro (LCR EUR)
Net Stable Funding Ratio (NSFR)
Requirements regarding funding of long-term loans and advances

LCR, LCR3 and the Group's combined scenario are based on a regulatory cautiously determined liquidity buffer. The buffer must be sufficient to survive a 30-day stress scenario (LCR) according to regulatory guidance, a stress scenario (LCR3) calculated according to the excess liquidity coverage benchmark, and an internal scenario (combined scenario) without market funding possibilities and with significant run-off of the funding of deposits.

The LCR's 30-day horizon specifies a run-off of the Group's exposures while taking into account counterparties, funding size, hedging and maturity. Consequently the most stable deposits (small deposits covered by a guarantee scheme) are favoured relative to large deposits, in particular large deposits from businesses and financial counterparties.

LCR

DKKbn	2024	2023
Total liquidity buffer	61.9	57.7
Net cash outflows	27.0	25.9
LCR (%)	230	223

The Group has met the regulatory LCR requirement of 100% throughout the year and its excess cover was significant at 31 December 2024.

Funding ratio

DKKbn	2024	2023
Equity and subordinated capital	17.9	16.9
SNP loans with maturities over 1 year	11.2	11.2
Stable deposits	110.8	104.4
Total stable funding	139.9	132.6
Loans and advances (excl reverse)	82.5	74.5
Funding ratio (%)	170	178

As shown above the Group's stable funding exceeded the Group's loans and advances by DKK 57.4bn at 31 December 2024 (2023: DKK 58.1bn).

The maturity profiles of the Group's debt exposures appear from note 40.

The Board of Directors' requirements regarding the funding structure are based on the following:

The Group's funding must be diversified so as to minimise to the greatest extent possible reliance on individual sources.
Compliance with the LCR and the funding ratio target ensures a prudent funding profile and an adequate level of stable non-market-based funding and longer-term market-based funding.

Notes – Risk Management

Liquidity risk – continued

The LCR and the funding ratio ensure that the higher the level of stable deposits, the lower the necessary level of long-term senior funding. In contrast a falling level of stable deposits will increase the need for long-term senior funding.
Short-term market funding and funding from financial counterparties must predominantly be used to fund short-term placements and investments in securities which can be realised or which are eligible as collateral with the Danish central bank or in the repo market.

The Group's risk policy states that:

• Asset encumbrance may only occur as part of ordinary banking operations and includes securities provided as collateral with the central bank and in the repo market, collateral for clearing transactions as well as collateral under CSA and GMRA agreements.

Asset encumbrance may be by way of deposits with credit institutions or securities.
Moreover asset encumbrance may be by way of funding of mortgage-like loans via external counterparties.

The asset encumbrance appears from note 37.

With these issues the Group complies with the MREL requirement as determined by the Danish FSA.

		Optional		Inclusion
	DKKm	redemption	Maturity	ceases on
EUR 500m	3,728	10 Nov 2025	10 Nov 2026	10 Nov 2025
EUR 500m	3,724	30 Sep 2026	30 Sep 2027	30 Sep 2026
EUR 500m	3,723	6 Sep 2027	6 Sep 2028	6 Sep 2027
Total	11,175

SNP loans

Operational risk

Operational risk is the risk of direct or indirect loss resulting from inadequate or failed internal processes, people and systems or from external events, including legal risk and risks arising from outsourcing.

The Group collects data on all operational events and classifies them in 4 main groups:

Operational events without loss
Operational events, IT
Operational events, internal
Operational events, compensation

Management receives reporting on the basis of this data. Furthermore it forms the basis for analyses and research for the purpose of identifying systematics as well as improving on an ongoing basis internal controls, business procedures and routines to minimise the number of errors and the risk of loss.

Moreover the system for collecting data on operational events ensures compliance with the Group's business procedures for approval, information, accounting and payment, if any.

The Group reviews all areas annually with the aim of identifying, describing and analysing the largest individual risks where the Group may incur significant losses as well as the relevant business procedures and routines for the purpose of minimising such risks.

A risk analysis of operational risks conducted in autumn 2024 showed that the Group has a number of scenarios in which the risk of loss exceeds DKK 5m. At the same time it must be expected that such scenarios – despite risk mitigation by way of for instance business procedures and control environment, requirements as regards access and authorisation as well as insurance cover – will occur within a foreseeable time horizon.

The Group's management has reviewed the extent of such loss scenarios and related risks.

Cyber and information security

IT supports a large part of the processes used by the Bank's customers and advisers. This function is strengthened by the increased digitization at Sydbank which customers experience by way of increased self-service and improved online services.

Consequently cyber security and information security are significant aspects of the Bank's operational risk.

The Group regularly reviews this area – on a strategic level, on a tactical level and on an operational level. On the basis of new statutory requirements and regulations, IT system requirements as to confidentiality, integrity/authenticity and accessibility are updated and specified on a regular basis in relation to cyber security and information security.

The Board of Directors specifies and formulates requirements as regards IT risk management in the IT risk management policy, the IT security policy and the IT operational stability policy. These policies form the basis of the cyber security and information security efforts.

As part of these efforts an analysis is prepared annually in which critical processes and supporting systems are assessed. The assessment is made in terms of probability and implications coupled with the maturity of administrative and technical measures.

All policies are reviewed and updated annually by the Board of Directors.

In the policies the Board of Directors assesses the current risk scenario and against this background specifies the requirements for the digital operational resilience of IT and data use at Sydbank. As a result of these requirements, a large part of the Group's use of IT and data is redundant so as to minimise the risk of operational disruptions.

The IT risk management policy, the IT security policy as well as the IT operational stability policy apply to all aspects of the Group's use of IT and consequently also where IT or parts of it has been outsourced. As a result Sydbank's collaboration with Bankdata, which is responsible for the day-to-day operations, is also comprised by the cyber security and information security processes.

IT contingency exercises are performed on a regular basis in the sector, with suppliers as well as with internal parties, to ensure that Sydbank is as well prepared as possible for the events that may arise.

Notes – Total Capital

Total capital

The Bank is a licensed financial services provider and must therefore comply with the capital requirements determined by the EU.

The capital adequacy rules require a minimum capital level of 8.0% of the risk exposure amount plus any additional individual capital needed. Detailed rules regulate the calculation of capital as well as the risk exposure amount.

Total capital is made up of T1 capital and T2 capital. T1 capital comprises equity and AT1 capital.

The difference between shareholders' equity and total capital is shown in note 3.

The Group's subordinated capital, AT1 capital and T2 capital may, subject to certain conditions, be included in total capital. The conditions are specified in CRR. The Group's subordinated capital is shown in note 33.

The Group has determined capital targets and considers a CET1 ratio of 14.5%, a T1 ratio of 16.0% as well as a capital ratio of 18.5% as being satisfactory for the years ahead.

The international rating agency Moody's regularly assesses the Group's ability to honour its payment obligations. The rating targets are an essential part of the capital targets because good ratings give access to the capital markets.

In 2024 the Group met regulatory capital requirements as well as internal capital targets.

Reporting under Article 8 of the Taxonomy Regulation

Sydbank supports a common definition of environmental sustainability. The EU taxonomy for environmentally sustainable activities sets an ambitious framework for which economic activities qualify as environmentally sustainable. At Sydbank we strive to live up to this ambitious approach in our work with responsible finance and investment.

The EU taxonomy is continuously updated and expanded. Sydbank monitors its development and gradual implementation. The KPI for taxonomy reporting is the Green Asset Ratio (GAR). GAR shows the proportion of the Bank's total assets that are aligned with the taxonomy criteria and thus qualify as sustainable.

Accounting policies

Sydbank's taxonomy reporting is in compliance with Article 8 of the Taxonomy Regulation (EU 2020/852) and the Delegated Regulation (EU 2021/2178). It is based on the mandatory reporting in accordance with Annexes V and VI to the Delegated Regulation.

Sydbank's taxonomy reporting is based on the Group's reporting pursuant to EU 2021/451 (FINREP), home loans and car loans to retail clients, investment activities and publicly available taxonomy reporting from corporate clients and financial counterparties subject to taxonomy reporting.

GAR, the KPI for taxonomy reporting, will be low as a result of the currently prescribed calculation method. The technical screening criteria of the taxonomy and especially the principle of 'do no significant harm' are complex and remain a new field for Sydbank and our customers. Sydbank will continue to work to secure data and documentation for our lending activities and it is our ambition to improve our taxonomy reporting in the coming years. In addition the majority of Sydbank's corporate clients are SMEs which are not subject to taxonomy reporting. Consequently Sydbank's taxonomy reporting covers a small part of the Bank's total lending to corporate clients.

Template 0 – Summary of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation

At 31 December 2024 Main KPI	Green asset ratio (GAR) stock	Total environmentally sustainable assets (DKK million) 673	KPI (Turnover) - % 0,5	KPI (CapEx) - % 0,5	% coverage (over total assets) 62,7	% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V) 35,9	% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V) 37,3
		Total environmentally sustainable activities (DKK million)	KPI (Turnover) - %	KPI (CapEx) - %	% coverage (over total assets)	% of assets excluded from the numerator of the GAR (Article 7(2) and (3) and Section 1.1.2. of Annex V)	% of assets excluded from the denominator of the GAR (Article 7(1) and Section 1.2.4 of Annex V)
Additional KPIs	Green asset ratio (GAR) flow Trading book Financial guar antees	289 0	0,9 0,0	0,9 0,0	16,6
	Assets under management Fees and commis sions income	748	1,0	1,3

Template 1 – Assets for the calculation of GAR – Turnover

		31.12.2024
				Climate Change Mitigation				Climate Change Adaptation				Water and marine resources
					(CCM)				(CCA)				(WTR)
				Of which towards taxonomy					Of which towards taxonomy					Of which towards taxonomy
					relevant sectors				relevant sectors				relevant sectors
			(Taxonomy-eligible)			(Taxonomy-eligible)				(Taxonomy-eligible)
					Of which					Of which				Of which
	(DKK million)					environmentally				environmentally				environmentally
					sustainable					sustainable				sustainable
						(Taxonomy-aligned)				(Taxonomy-aligned)				Taxonomy-aligned)
					Of					Of				Of
					which	Of	Of			which	Of			which	Of
					Use of	which	which			Use of	which			Use of	which

		Total gross			Pro	transi	ena			Pro	ena			Pro	ena
		carrying amount			ceeds	tional	bling			ceeds	bling			ceeds	bling
	GAR - Covered assets in both numerator
	and denominator
	1 Loans and advances, debt securities and
	equity instruments not HfT eligible for
	GAR calculation	52.498 7.225		655	0	3	68	63	19	0	0	0	0	0	0
	2 Financial undertakings	39.393	514	67	0	3	3	63	19	0	0	0	0	0	0
3	Credit institutions	3.191	408	35	0	3	0	0	0	0	0	0	0	0	0
	4 Loans and advances	954	408	35	0	3	0	0	0	0	0	0	0	0	0
	5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	6 Equity instruments	2.237	0	0		0	0	0	0		0	0	0		0
7	Other financial corporations	36.202	106	32	0	0	3	63	19	0	0	0	0	0	0
8	of which investment firms	30.536	0	0	0	0	0	0	0	0	0	0	0	0	0
	9 Loans and advances	29.875	0	0	0	0	0	0	0	0	0	0	0	0	0
10	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0

11	Equity instruments	661	0	0		0	0	0	0		0	0	0		0
12	of which management companies	184	0	0	0	0	0	0	0	0	0	0	0	0	0
13	Loans and advances	184	0	0	0	0	0	0	0	0	0	0	0	0	0
14	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15	Equity instruments	0	0	0		0	0	0	0		0	0	0		0
16	of which insurance undertakings	5.483	106	32	0	0	3	63	19	0	0	0	0	0	0
17	Loans and advances	5.483	106	32	0	0	3	63	19	0	0	0	0	0	0
18	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19	Equity instruments	0				0	0	0	0		0	0	0		0
	20 Non-financial undertakings	193	65	65	0	0	65	0	0	0	0	0	0	0	0
21	Loans and advances	193	65	65	0	0	65	0	0	0	0	0	0	0	0
22	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23	Equity instruments	0	0	0		0	0	0	0		0	0	0		0

	24 Households	12.911 6.646		523	0	0	0	0	0	0	0
	25 of which loans collateralised by residential
	immovable property		5.619 5.619	523	0	0	0	0	0	0	0
26	of which building renovation loans	0	0	0	0	0	0	0	0	0	0
27	of which motor vehicle loans		2.186 1.027	0	0	0	0
	28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29	Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30	Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	31 Collateral obtained by taking possession:
	residential and commercial immovable
	properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	32 Assets excluded from the numerator for GAR
	calculation (covered in the denominator)	70.170	0	0	0	0	0	0	0	0	0	0	0	0	0
	33 Financial and Non-financial undertakings	61.541

	34 SMEs and NFCs (other than SMEs) not subject
	to NFRD disclosure obligations	61.541
35	Loans and advances	61.528
36	of which loans collateralised by
	commercial immovable property	0
37	of which building renovation loans	0
38	Debt securities	0
39	Equity instruments	14
	40 Non-EU country counterparties not subject to
	NFRD disclosure obligations	0
41	Loans and advances	0
42	Debt securities	0
43	Equity instruments	0
	44 Derivatives	3.689
	45 On demand interbank loans	561
	46 Cash and cash-related assets	171

	47 Other categories of assets
	(e.g. Goodwill, commodities etc.)	4.208
	48 Total GAR assets	122.668 7.225		655	0	3	68	63	19	0	0	0	0	0	0
	49 Assets not covered for GAR calculation	73.018
	50 Central governments and Supranational
	issuers	1.183
51	Central banks exposure	13.928
52	Trading book	57.907
	53 Total assets	195.686 7.225		655	0	3	68	63	19	0	0	0	0	0	0
	Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
	54 Financial guarantees	13	2	0	0	0	0	0	0	0	0	0	0	0	0
	55 Assets under management	78.215 1.620		716	0	86	380	38	4	0	4	16	8	0	0
56	Of which debt securities	41.513	917	419	0	75	199	12	4	0	4	12	8	0	0
57	Of which equity instruments	36.224	703	297	0	11	181	25	0	0	0	4	0	0	0

	Circular economy					Pollution					Biodiversity and Ecosystems		TOTAL
		(CE)				(PPC)				(BIO)			(CCM + CCA + WTR + CE + PPC + BIO)
		relevant sectors	Of which towards taxonomy			Of which towards taxonomy relevant sectors				relevant sectors	Of which towards taxonomy		Of which towards taxonomy relevant sectors
			(Taxonomy-eligible)			(Taxonomy-eligible)					(Taxonomy-eligible)				(Taxonomy-eligible)
(DKK million)			Of which				Of which				Of which				Of which
			environmentally sustainable				environmentally sustainable				environmentally sustainable				environmentally sustainable
			(Taxonomy-aligned) Of				Taxonomy-aligned) Of				(Taxonomy-aligned) Of				Of	(Taxonomy-aligned)
			which	Of			which	Of			which	Of			which	Of	Of
			Use of Pro	which ena			Use of Pro	which ena			Use of Pro	which ena			Use of Pro	which transi	which ena
			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
GAR - Covered assets in both numerator and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	7.288	673	0	3	68
2 Financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	577	86	0	3	3
3 Credit institutions 4 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	408 408	35 35	0 0	3 3	0 0
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments 7 Other financial corporations	0 0	0 0	0	0 0	0 0	0 0	0	0	0	0	0	0	0 169	0 51	0 0	0	0 3
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
9 Loans and advances 10 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
11 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances 14 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
16 of which insurance undertakings 17 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	169 169	51 51	0 0	0 0	3 3
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments 20 Non-financial undertakings	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 65	0 65	0 0	0	0 65
21 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	65	65	0	0	65
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments 24 Households	0 0	0 0	0	0 0	0	0		0	0	0		0	0 6.646	0 523	0 0	0	0 0
25 of which loans collateralised by residential
immovable property 26 of which building renovation loans	0 0	0 0	0 0	0 0									5.619 0	523 0	0 0	0 0	0 0
27 of which motor vehicle loans													1.027	0	0	0	0
28 Local governments financing 29 Housing financing	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession: residential and commercial immovable
properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Assets excluded from the numerator for GAR calculation (covered in the denominator)	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
33 Financial and Non-financial undertakings
34 SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations 35 Loans and advances
36 of which loans collateralised by
commercial immovable property 37 of which building renovation loans
38 Debt securities
39 Equity instruments 40 Non-EU country counterparties not subject to
NFRD disclosure obligations
41 Loans and advances 42 Debt securities
43 Equity instruments
44 Derivatives
45 On demand interbank loans 46 Cash and cash-related assets
47 Other categories of assets
(e.g. Goodwill, commodities etc.) 48 Total GAR assets	0	0	0	0	0	0	0	0	0	0	0	0	7.288	673	0	3	68
49 Assets not covered for GAR calculation
50 Central governments and Supranational issuers
51 Central banks exposure
52 Trading book 53 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	7.288	673	0	3	68
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
54 Financial guarantees 55 Assets under management	0 203	0 7	0 0	0 4	0 105	0 4	0 0	0 4	0 7	0 0	0 0	0 0	2 3.208	- 748	0 0	- 86	- 396
56 Of which debt securities	58	0	0	0	54	4	0	4	0	0	0	0	1.295	440	0	75	208
57 Of which equity instruments	145	7	0	4	51	0	0	0	7	0	0	0	1.913	308	0	11	188

Template 1 – Assets for the calculation of GAR – Turnover

		31.12.2023
				Climate Change Mitigation					Climate Change Adaptation			Water and marine resources
					(CCM)				(CCA)			(WTR)
				Of which towards taxonomy	relevant sectors				Of which towards taxonomy relevant sectors			Of which towards taxonomy relevant sectors
					(Taxonomy-eligible)				(Taxonomy-eligible)					(Taxonomy-eligible)
					Of which					Of which				Of which
	(DKK million)					environmentally				environmentally				environmentally
					sustainable					sustainable				sustainable
						(Taxonomy-aligned)				(Taxonomy-aligned)				Taxonomy-aligned)
					Of					Of				Of
					which	Of	Of			which	Of			which	Of
					Use of	which	which			Use of	which			Use of	which
		Total gross			Pro	transi	ena			Pro	ena			Pro	ena
		carrying amount			ceeds	tional	bling			ceeds	bling			ceeds	bling
	GAR - Covered assets in both numerator and denominator
	1 Loans and advances, debt securities and
	equity instruments not HfT eligible for
	GAR calculation	44.173 5.618		198	0	0	29	0	0	0	0	0	0	0	0
	2 Financial undertakings	30.808	0	0	0	0	0	0	0	0	0	0	0	0	0
3	Credit institutions	3.304	0	0	0	0	0	0	0	0	0	0	0	0	0
4	Loans and advances	1.005	0	0	0	0	0	0	0	0	0	0	0	0	0
5	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6	Equity instruments	2.299	0	0		0	0	0	0		0	0	0		0
7	Other financial corporations	27.504	0	0	0	0	0	0	0	0	0	0	0	0	0
8	of which investment firms	23.584	0	0	0	0	0	0	0	0	0	0	0	0	0
9	Loans and advances	22.986	0	0	0	0	0	0	0	0	0	0	0	0	0
10	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
11 12	Equity instruments of which management companies	598 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0
13	Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0
14	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15	Equity instruments	0	0	0		0	0	0	0		0	0	0		0
16	of which insurance undertakings	3.920	0	0	0	0	0	0	0	0	0	0	0	0	0
17	Loans and advances	3.920	0	0	0	0	0	0	0	0	0	0	0	0	0
18	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19	Equity instruments	0	0	0		0	0	0	0
	20 Non-financial undertakings	82	30	29	0	0	29	0	0	0	0	0	0	0	0
21	Loans and advances	82	30	29	0	0	29	0	0	0	0	0	0	0	0
22	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23	Equity instruments	0	0	0		0	0	0	0		0	0	0		0
	24 Households	13.283 5.589		169	0	0	0	0	0	0	0
	25 of which loans collateralised by residential
	immovable property		5.298 5.298	169	0	0	0	0	0	0	0
26	of which building renovation loans	0	0	0	0	0	0	0	0	0	0
27	of which motor vehicle loans	1.809	291	0	0	0	0
	28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29	Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30	Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	31 Collateral obtained by taking possession: residential and commercial immovable
	properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	32 Assets excluded from the numerator for GAR
	calculation (covered in the denominator)	62.216	0	0	0	0	0	0	0	0	0	0	0	0	0
	33 Financial and Non-financial undertakings	53.381
	34 SMEs and NFCs (other than SMEs) not subject
	to NFRD disclosure obligations	53.381
35	Loans and advances	53.354
36	of which loans collateralised by
	commercial immovable property	0
37	of which building renovation loans	0
38 39	Debt securities Equity instruments	0 27
	40 Non-EU country counterparties not subject to
	NFRD disclosure obligations	0
41	Loans and advances	0
42	Debt securities	0
43	Equity instruments	0
	44 Derivatives	4.721
	45 On demand interbank loans	381
	46 Cash and cash-related assets	200
	47 Other categories of assets
	(e.g. Goodwill, commodities etc.)	3.533
	48 Total GAR assets	106.389 5.618		198	0	0	29	0	0	0	0	0	0	0	0
	49 Assets not covered for GAR calculation	78.713
	50 Central governments and Supranational
	issuers	1.524
51	Central banks exposure	20.329
52	Trading book 53 Total assets	56.859 185.101 5.618		198	0	0	29	0	0	0	0	0	0	0	0
	Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
	54 Financial guarantees	8.001	0	0	0	0	0	0	0	0	0	0	0	0	0
	55 Assets under management	17.007	47	91	0	4	56	0	1	0	1	0	0	0	0
56	Of which debt securities	13.461	29	68	0	3	39	0	1	0	1	0	0	0	0
57	Of which equity instruments	3.546	18	23	0	1	16	0	0	0	0	0	0	0	0

	Circular economy (CE) Of which towards taxonomy relevant sectors (Taxonomy-eligible)				Pollution (PPC) Of which towards taxonomy relevant sectors (Taxonomy-eligible)				Biodiversity and Ecosystems (BIO) Of which towards taxonomy relevant sectors (Taxonomy-eligible)			TOTAL (CCM + CCA + WTR + CE + PPC + BIO) Of which towards taxonomy relevant sectors (Taxonomy-eligible)
(DKK million)			Of which environmentally sustainable				Of which environmentally sustainable				Of which environmentally sustainable				Of which environmentally sustainable
			(Taxonomy-aligned) Of which Use of Pro	Of which ena			Taxonomy-aligned) Of which Use of Pro	Of which ena			(Taxonomy-aligned) Of which Use of Pro	Of which ena			(Taxonomy-aligned) Of which Use of Pro	Of which transi	Of which ena
GAR - Covered assets in both numerator			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	8.043	198	0	0	29
2 Financial undertakings 3 Credit institutions	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	2.425 1.214	0 0	0 0	0 0	0 0
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	360	0	0	0	0
5 Debt securities, including UoP 6 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 854	0 0	0 0	0	0 0
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	1.211	0	0	0	0
8 of which investment firms 9 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
10 Debt securities, including UoP 11 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances 14 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
16 of which insurance undertakings 17 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	1.211 1.211	0 0	0 0	0 0	0 0
18 Debt securities, including UoP 19 Equity instruments	0	0	0	0	0	0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	30	29	0	0	29
21 Loans and advances 22 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	30 0	29 0	- 0	- 0	29 0
23 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
24 Households 25 of which loans collateralised by residential	0	0	0	0									5.589	169	0	0	0
immovable property 26 of which building renovation loans	0 0	0 0	0 0	0 0									5.298 -	169 0	0 0	0 0	0 0
27 of which motor vehicle loans													291	-	0	0	0
28 Local governments financing 29 Housing financing	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession: residential and commercial immovable
properties 32 Assets excluded from the numerator for GAR	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
calculation (covered in the denominator) 33 Financial and Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations 35 Loans and advances
36 of which loans collateralised by commercial immovable property 37 of which building renovation loans
38 Debt securities
39 Equity instruments 40 Non-EU country counterparties not subject to
NFRD disclosure obligations
41 Loans and advances 42 Debt securities
43 Equity instruments 44 Derivatives
45 On demand interbank loans
46 Cash and cash-related assets 47 Other categories of assets
(e.g. Goodwill, commodities etc.)
48 Total GAR assets 49 Assets not covered for GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	8.043	198	0	0	29
50 Central governments and Supranational issuers
51 Central banks exposure
52 Trading book 53 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	8.043	198	0	0	29
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees	0	0	0	0	0	0	0	0	0	0	0	0	4	0	0	0	0
55 Assets under management	0	0	0	0	0	0	0	0	0	0	0	0	47	93	0	4	57
56 Of which debt securities 57 Of which equity instruments	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	29 18	69 23	0 0	3 1	40 17

Template 1 – Assets for the calculation of GAR – CapEx

		31.12.2024
						Climate Change Mitigation			Climate Change Adaptation			Water and marine resources
					(CCM)				(CCA)				(WTR)
						Of which towards taxonomy			Of which towards taxonomy				Of which towards taxonomy
					relevant sectors (Taxonomy-eligible)				relevant sectors (Taxonomy-eligible)				relevant sectors (Taxonomy-eligible)
					Of which					Of which				Of which
	(DKK million)					environmentally				environmentally				environmentally
					sustainable					sustainable				sustainable
						(Taxonomy-aligned)				(Taxonomy-aligned)				Taxonomy-aligned)
					Of which	Of	Of			Of which	Of			Of which	Of
					Use of	which	which			Use of	which			Use of	which
		Total gross			Pro	transi	ena			Pro	ena			Pro	ena
		carrying amount			ceeds	tional	bling			ceeds	bling			ceeds	bling
	GAR - Covered assets in both numerator
	and denominator 1 Loans and advances, debt securities and
	equity instruments not HfT eligible for
	GAR calculation	52.498 7.243		621	0	3	64	1	0	0	0	0	0	0	0
	2 Financial undertakings	39.393	506	35	0	3	1	0	0	0	0	0	0	0	0
3 4	Credit institutions Loans and advances	3.191 954	400 400	35 35	0 0	3 3	1 1	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
5	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6	Equity instruments	2.237	0	0							0	0	0		0
7	Other financial corporations	36.202	106	0	0	0	0	0	0	0	0	0	0	0	0
8	of which investment firms	30.536	0	0	0	0	0	0	0	0	0	0	0	0	0
9	Loans and advances	29.875	0	0	0	0	0	0	0	0	0	0	0	0	0
10 11	Debt securities, including UoP Equity instruments	- 661	0	0	0	0	0	0	0	0	0 0	0 0	0 0	0	0 0
12	of which management companies	184	0	0	0	0	0	0	0	0	0	0	0	0	0
13	Loans and advances	184	0	0	0	0	0	0	0	0	0	0	0	0	0
14	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15	Equity instruments	0	0	0							0	0	0		0
16 17	of which insurance undertakings Loans and advances	5.483 5.483	106 106	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
18	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19	Equity instruments	0	0	0		0	0	0	0		0	0	0		0
	20 Non-financial undertakings	193	91	64	0	0	64	0	0	0	0	0	0	0	0
21	Loans and advances	193	91	64	0	0	64	0	0	0	0	0	0	0	0
22 23	Debt securities, including UoP Equity instruments	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0
	24 Households	12.911 6.646		523	0	0	0	0	0	0	0
	25 of which loans collateralised by residential
	immovable property		5.619 5.619	523	0	0	0	0	0	0	0
26	of which building renovation loans	0	0	0	0	0	0	0	0	0	0
27	of which motor vehicle loans 28 Local governments financing	0	2.186 1.027 0	0 0	0 0	0 0	0 0	0	0	0	0	0	0	0	0
29	Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30	Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	31 Collateral obtained by taking possession:
	residential and commercial immovable
	properties 32 Assets excluded from the numerator for GAR	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	calculation (covered in the denominator)	70.170
	33 Financial and Non-financial undertakings	61.541
	34 SMEs and NFCs (other than SMEs) not subject
	to NFRD disclosure obligations	61.541
35 36	Loans and advances of which loans collateralised by	61.528
	commercial immovable property	0
37	of which building renovation loans	0
38	Debt securities	0
39	Equity instruments	14
	40 Non-EU country counterparties not subject to NFRD disclosure obligations	0
41	Loans and advances	0
42	Debt securities	0
43	Equity instruments	0
	44 Derivatives	3.689
	45 On demand interbank loans 46 Cash and cash-related assets	561 171
	47 Other categories of assets
	(e.g. Goodwill, commodities etc.)	4.208
	48 Total GAR assets	122.668 7.243		621	0	3	64	1	0	0	0	0	0	0	0
	49 Assets not covered for GAR calculation	73.018
	50 Central governments and Supranational issuers	1.183
51	Central banks exposure	13.928
52	Trading book	57.907
	53 Total assets	195.686 7.243		621	0	3	64	1	0	0	0	0	0	0	0
	Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations
	54 Financial guarantees 55 Assets under management	13 78.215 1.949	2	- 947	- -	- 108	- 458	- 99	- 33	- -	- 8	- 24	- 12	- -	- -
56	Of which debt securities	41.513	942	494	-	79	208	37	33	-	8	21	12	-	-
57	Of which equity instruments	36.224 1.007		453	-	29	250	62	-	-	-	4	-	-	-

	Circular economy
		(CE)				Pollution (PPC)				(BIO)	Biodiversity and Ecosystems		TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
			Of which towards taxonomy			Of which towards taxonomy					Of which towards taxonomy		Of which towards taxonomy
			relevant sectors			relevant sectors				relevant sectors					relevant sectors
			(Taxonomy-eligible) Of which			(Taxonomy-eligible)	Of which				(Taxonomy-eligible) Of which				(Taxonomy-eligible) Of which
(DKK million)			environmentally				environmentally				environmentally				environmentally
			sustainable (Taxonomy-aligned)				sustainable Taxonomy-aligned)				sustainable (Taxonomy-aligned)				sustainable (Taxonomy-aligned)
			Of				Of				Of				Of
			which	Of			which	Of			which	Of			which	Of	Of
			Use of Pro	which ena			Use of Pro	which ena			Use of Pro	which ena			Use of Pro	which transi	which ena
			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
GAR - Covered assets in both numerator and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation 2 Financial undertakings	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	7.244 506	621 35	0 0	3 3	64 1
3 Credit institutions	0	0	0	0	0	0	0	0	0	0	0	0	401	35	0	3	1
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	401	35	0	3	1
5 Debt securities, including UoP 6 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0	0	0	0	0 0	0 0	0 0	0 0	0	0 0
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	106	0	0	0	0
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
9 Loans and advances 10 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
11 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances 14 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
16 of which insurance undertakings	0	0	0	0	0	0	0	0	0	0	0	0	106	0	0	0	0
17 Loans and advances 18 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	106 0	0 0	0 0	0 0	0 0
19 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	92	64	0	0	64
21 Loans and advances 22 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	92 0	64 0	0 0	0 0	64 0
23 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
24 Households													6.646	523	0	0	0
25 of which loans collateralised by residential immovable property													5.619	523	0	0	0
26 of which building renovation loans													0	0	0	0	0
27 of which motor vehicle loans													1.027	0	0	0	0
28 Local governments financing 29 Housing financing	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession: residential and commercial immovable
properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Assets excluded from the numerator for GAR
calculation (covered in the denominator) 33 Financial and Non-financial undertakings
34 SMEs and NFCs (other than SMEs) not subject
to NFRD disclosure obligations
35 Loans and advances 36 of which loans collateralised by
commercial immovable property
37 of which building renovation loans
38 Debt securities 39 Equity instruments
40 Non-EU country counterparties not subject to
NFRD disclosure obligations
41 Loans and advances 42 Debt securities
43 Equity instruments
44 Derivatives 45 On demand interbank loans
46 Cash and cash-related assets
47 Other categories of assets
(e.g. Goodwill, commodities etc.) 48 Total GAR assets	0	0	0	0	0	0	0	0	0	0	0	0	7.244	621	0	3	64
49 Assets not covered for GAR calculation
50 Central governments and Supranational
issuers 51 Central banks exposure
52 Trading book
53 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	7.244	621	0	3	64
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees	-	-	-	-	-	-	-	-	-	-	-	-	2	-	-	-	-
55 Assets under management	149	4	-	-	65	4	-	4	4	-	-	-	3.444	1.003	-	108	474
56 Of which debt securities 57 Of which equity instruments	33 116	- 4	- -	- -	29 36	4 -	- -	4 -	- 4	- -	- -	- -	1.416 2.029	540 464	- -	79 29	224 250

Template 1 – Assets for the calculation of GAR – CapEx

		31.12.2023
						Climate Change Mitigation			Climate Change Adaptation			Water and marine resources
					(CCM)				(CCA)			(WTR)
						Of which towards taxonomy			Of which towards taxonomy			Of which towards taxonomy relevant sectors
					relevant sectors				relevant sectors
					(Taxonomy-eligible) Of which				(Taxonomy-eligible)	Of which				(Taxonomy-eligible) Of which
	(DKK million)					environmentally				environmentally				environmentally
					sustainable					sustainable				sustainable
						(Taxonomy-aligned)				(Taxonomy-aligned)				Taxonomy-aligned)
					Of					Of				Of
					which	Of	Of			which	Of			which	Of
					Use of	which	which			Use of	which			Use of	which
		Total gross			Pro	transi	ena			Pro	ena			Pro	ena
		carrying amount			ceeds	tional	bling			ceeds	bling			ceeds	bling
	GAR - Covered assets in both numerator
	and denominator 1 Loans and advances, debt securities and
	equity instruments not HfT eligible for
	GAR calculation	44.173 5.618		196	0	0	27	0	0	0	0	0	0	0	0
	2 Financial undertakings	30.808	0	0	0	0	0	0	0	0	0	0	0	0	0
3	Credit institutions	3.304	0	0	0	0	0	0	0	0	0	0	0	0	0
4	Loans and advances	1.005	0	0	0	0	0	0	0	0	0	0	0	0	0
5	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6	Equity instruments	2.299	0	0											0
7	Other financial corporations	27.504	0	0	0	0	0	0	0	0	0	0	0	0	0
8	of which investment firms	23.584	0	0	0	0	0	0	0	0	0	0	0	0	0
9 10	Loans and advances Debt securities, including UoP	22.986 -	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
11	Equity instruments	598	0	0		0	0	0	0		0	0	0		0
12	of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0	0
13	Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0
14	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15	Equity instruments	0	0	0		0	0	0	0						0
16	of which insurance undertakings	3.920	0	0	0	0	0	0	0	0	0	0	0	0	0
17	Loans and advances	3.920	0	0	0	0	0	0	0	0	0	0	0	0	0
18	Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19	Equity instruments	0	0	0		0	0	0	0		0	0	0		0
	20 Non-financial undertakings	82	29	27	0	0	27	0	0	0	0	0	0	0	0
21	Loans and advances	82	29	27	0	0	27	0	0	0	0	0	0	0	0
22 23	Debt securities, including UoP Equity instruments	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0
	24 Households	13.283 5.589		169	0	0	0	0	0	0	0
	25 of which loans collateralised by residential
	immovable property		5.298 5.298	169	0	0	0	0	0	0	0
26	of which building renovation loans	-	-	0	0	0	0	0	0	0	0
27	of which motor vehicle loans	1.809	291	0	0	0	0
	28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29	Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30	Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	31 Collateral obtained by taking possession: residential and commercial immovable
	properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0
	32 Assets excluded from the numerator for GAR
	calculation (covered in the denominator)	62.216
	33 Financial and Non-financial undertakings	53.381
	34 SMEs and NFCs (other than SMEs) not subject
	to NFRD disclosure obligations	53.381
35	Loans and advances	53.354
36	of which loans collateralised by
37	commercial immovable property of which building renovation loans	0 0
38	Debt securities	0
39	Equity instruments	27
	40 Non-EU country counterparties not subject to
	NFRD disclosure obligations	0
41	Loans and advances	0
42	Debt securities	0
43	Equity instruments	0
	44 Derivatives	4.721
	45 On demand interbank loans	381
	46 Cash and cash-related assets 47 Other categories of assets	200
	(e.g. Goodwill, commodities etc.)	3.533
	48 Total GAR assets	106.389 5.618		196	-	-	27	-	-	-	-	-	-	-	-
	49 Assets not covered for GAR calculation	78.713
	50 Central governments and Supranational
	issuers	1.524
51	Central banks exposure	20.329
52	Trading book	56.859
	53 Total assets	185.101 5.618		196	-	-	27	-	-	-	-	-	-	-	-
	Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees	8.001	-	-	-	-	-	-	-	-	-	-	-	-	-
	55 Assets under management	17.007	46	119		5	65	-	9		1
56	Of which debt securities	13.461	29	81		3	44	-	8		1
57	Of which equity instruments	3.546	17	38		2	21	-	0		0

(DKK million)		Circular economy (CE) Of which towards taxonomy relevant sectors (Taxonomy-eligible)	Of which environmentally sustainable (Taxonomy-aligned) Of which Use of Pro ceeds	Of which ena bling		Pollution (PPC) relevant sectors	Of which towards taxonomy (Taxonomy-eligible) Of which environmentally sustainable Taxonomy-aligned) Of which Use of Pro ceeds	Of which ena bling		(BIO) relevant sectors (Taxonomy-eligible)	Biodiversity and Ecosystems Of which towards taxonomy Of which environmentally sustainable (Taxonomy-aligned) Of which Use of Pro ceeds	Of which ena bling		Of which towards taxonomy	TOTAL relevant sectors (Taxonomy-eligible) Of which environmentally sustainable Of which Use of Pro ceeds	(CCM + CCA + WTR + CE + PPC + BIO) (Taxonomy-aligned) Of which transi tional	Of which ena bling
GAR - Covered assets in both numerator and denominator
1 Loans and advances, debt securities and equity instruments not HfT eligible for
GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	8.045	196	0	0	29
2 Financial undertakings 3 Credit institutions	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	2.425 1.214	0 0	0 0	0 0	0 0
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	360	0	0	0	0
5 Debt securities, including UoP 6 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	- 854	0 0	0 0	0	0 0
7 Other financial corporations 8 of which investment firms	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	1.211 0	0 0	0 0	0 0	0 0
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
10 Debt securities, including UoP 11 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances 14 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0
16 of which insurance undertakings 17 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	1.211 1.211	0 0	0 0	0 0	0 0
18 Debt securities, including UoP 19 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	31	27	0	0	27
21 Loans and advances 22 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	31 0	27 0	0 0	0 0	27 0
23 Equity instruments 24 Households	0 0	0 0	0	0 0	0	0		0	0	0		0	0 5.589	0 169	0 0	0	0 0
25 of which loans collateralised by residential
immovable property 26 of which building renovation loans	0 0	0 0	0 0	0 0									5.298 0	169 0	0 0	0 0	0 0
27 of which motor vehicle loans													291	0	0	0	0
28 Local governments financing 29 Housing financing	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
30 Other local government financing 31 Collateral obtained by taking possession:	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
residential and commercial immovable
properties 32 Assets excluded from the numerator for GAR	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
calculation (covered in the denominator)
33 Financial and Non-financial undertakings 34 SMEs and NFCs (other than SMEs) not subject to NFRD disclosure obligations
35 Loans and advances 36 of which loans collateralised by commercial immovable property
37 of which building renovation loans
38 Debt securities 39 Equity instruments
40 Non-EU country counterparties not subject to NFRD disclosure obligations
41 Loans and advances
42 Debt securities 43 Equity instruments
44 Derivatives
45 On demand interbank loans 46 Cash and cash-related assets
47 Other categories of assets
(e.g. Goodwill, commodities etc.) 48 Total GAR assets	-	-	-	-	-	-	-	-	-	-	-	-	8.045	196	-	-	29
49 Assets not covered for GAR calculation 50 Central governments and Supranational
issuers
51 Central banks exposure 52 Trading book
53 Total assets	-	-	-	-	-	-	-	-	-	-	-	-	8.045	196	-	-	29
Off-balance sheet exposures - Undertakings subject to NFRD disclosure obligations 54 Financial guarantees	-	-	-	-	-	-	-	-	-	-	-	-	4	-	-	-	-
55 Assets under management 56 Of which debt securities													46 29	128 89		5 3	67 45
57 Of which equity instruments													17	38		2	22

Template 2 – GAR sector information – Turnover

			Climate Change Mitigation (CCM)				Climate Change Adaptation (CCA)			Water and marine resources (WTR)
Breakdown by sector			Non-Financial corporates (Subject to NFRD)	SMEs and other NFC not subject to NFRD			Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD		Non-Financial corporates (Subject to NFRD)	SMEs and other NFC not subject to NFRD
		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount
	- NACE 4 digits level (code and label)
		(DKK million)	Of which environ mentally sustain able (CCM)	(DKK million)	Of which environ mentally sustain able (CCM)	(DKK million)	Of which environ mentally sustain able (CCA)	(DKK million)	Of which environ mentally sustain able (CCA)	(DKK million)	Of which environ mentally sustain able (WTR)	(DKK million)	Of which environ mentally sustain able (WTR)
1	M72.19	66	65			0	0			0	0
2	G46.90	5	0			0	0			0	0
3	C11.07	114	0			0	0			0	0
4	G46.74	0	0			0	0			0	0
5	M70.10	9	0			0	0			0	0

Template 2 – GAR sector information – CapEx

			Climate Change Mitigation (CCM)				Climate Change Adaptation (CCA)			Water and marine resources (WTR)
Breakdown by sector - NACE 4 digits level (code and label)			Non-Financial corporates (Subject to NFRD)	SMEs and other NFC not subject to NFRD			Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD		Non-Financial corporates (Subject to NFRD)	SMEs and other NFC not subject to NFRD
		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount
		(DKK million)	Of which environ mentally sustain able (CCM)	(DKK million)	Of which environ mentally sustain able (CCM)	(DKK million)	Of which environ mentally sustain able (CCA)	(DKK million)	Of which environ mentally sustain able (CCA)	(DKK million)	Of which environ mentally sustain able (WTR)	(DKK million)	Of which environ mentally sustain able (WTR)
1	M72.19	66	64			0	0			0	0
2	G46.90	5	0			0	0			0	0
3	C11.07	114	0			0	0			0	0
4	G46.74	0	0			0	0			0	0
5	M70.10	9	0			0	0			0	0

			Circular economy (CE)					Pollution (PPC)			Biodiversity and Ecosystems (BIO)			TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
		Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD		Non-Financial corporates (Subject to NFRD)			SMEs and other NFC not subject to NFRD	Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD		Non-Financial corporates (Subject to NFRD)			SMEs and other NFC not subject to NFRD
Breakdown by sector - NACE 4 digits level (code and label)		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount
		(DKK million)	Of which environ mentally sustaina ble (CE)	(DKK million)	Of which environ mentally sustaina ble (CE)	(DKK million)	Of which environ mentally sustaina ble (PPC)	(DKK million)	Of which environ mentally sustaina ble (PPC)	(DKK million)	Of which environ mentally sustaina ble (BIO)	(DKK million)	Of which environ mentally sustaina ble (BIO)	(DKK million)	Of which environ mentally sustaina ble (CCM + CCA + WTR + CE + PPC + BIO)	(DKK million)	Of which environ mentally sustaina ble (CCM + CCA + WTR + CE + PPC + BIO)
1	M72.19	0	0			0	0			0	0			66	65
2	G46.90	0	0			0	0			0	0			5	0
3	C11.07	0	0			0	0			0	0			114	0
4	G46.74	0	0			0	0			0	0			0	0
5	M70.10	0	0			0	0			0	0			9	0

			Circular economy (CE)				Pollution (PPC)				Biodiversity and Ecosystems (BIO)			TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
Breakdown by sector - NACE 4 digits level (code and label)			Non-Financial corporates (Subject to NFRD)	SMEs and other NFC not subject to NFRD			Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD		Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD	Non-Financial corporates (Subject to NFRD)		SMEs and other NFC not subject to NFRD
		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount		[Gross] carrying amount
		(DKK million)	Of which environ mentally sustaina ble (CE)	(DKK million)	Of which environ mentally sustaina ble (CE)	(DKK million)	Of which environ mentally sustaina ble (PPC)	(DKK million)	Of which environ mentally sustaina ble (PPC)	(DKK million)	Of which environ mentally sustaina ble (BIO)	(DKK million)	Of which environ mentally sustaina ble (BIO)	(DKK million)	Of which environ mentally sustaina ble (CCM + CCA + WTR + CE + PPC + BIO)	(DKK million)	Of which environ mentally sustaina ble (CCM + CCA + WTR + CE + PPC + BIO)
1	M72.19	0	0			0	0			0	0			66	64
2	G46.90	0	0			0	0			0	0			5	0
3	C11.07	0	0			0	0			0	0			114	0
4	G46.74	0	0			0	0			0	0			0	0
5	M70.10	0	0			0	0			0	0			9	0

Template 3 – GAR KPI stock – Turnover

	31.12.2024
			Climate Change Mitigation							Water and marine resources
			(CCM)					Climate Change Adaptation (CCA)		(WTR)

		Proportion of total covered assets funding Proportion of total covered assets taxonomy relevant sectors funding taxonomy relevant								Proportion of total covered assets
											funding taxonomy relevant
			(Taxonomy-eligible)					sectors (Taxonomy-eligible)				sectors (Taxonomy-eligible)
% (compared to total covered								Proportion of total				Proportion of total
assets in the denominator)			Proportion of total covered					covered assets				covered assets
		assets funding taxonomy relevant sectors						funding taxonomy relevant sectors				funding taxonomy relevant sectors
			(Taxonomy-aligned)					(Taxonomy-aligned)				(Taxonomy-aligned)
			Of					Of				Of
			which	Of	Of			which	Of			which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
			ceeds	tional	bling			ceeds	bling			ceeds	bling
GAR - Covered assets in both numerator
and denominator 1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation	5,9	0,5	0	0,0	0,1	0,1	0,0	0	0	0	0	0	0
2 Financial undertakings	0,4	0,1	0	0,0	0,0	0,1	0,0	0	0	0	0	0	0
3 Credit institutions	0,3	0,0	0	0,0	0,0	0	0	0	0	0	0	0	0
4 Loans and advances	0,3	0,0	0	0,0	0	0	0	0	0	0	0	0	0
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0	0		0	0	0		0
7 Other financial corporations	0,1	0,0	0	0	0,0	0,1	0,0	0	0	0	0	0	0
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
10 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
11 Equity instruments	0	0		0	0	0	0		0	0	0		0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
14 Debt securities, including UoP 15 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0
16 of which insurance undertakings	0,1	0,0	0	0	0,0	0,1	0,0	0	0	0	0	0	0
17 Loans and advances	0,1	0,0	0	0	0,0	0,1	0,0	0	0	0	0	0	0
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0	0		0	0	0		0
20 Non-financial undertakings	0,1	0,1	0	0	0,1	0	0	0	0	0	0	0	0
21 Loans and advances	0,1	0,1	0	0	0,1	0	0	0	0	0	0	0	0
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments	0	0		0	0	0	0		0	0	0		0
24 Households	5,4	0,4	0	0	0	0	0	0	0
25 of which loans collateralised by residential
immovable property	4,6	0,4	0	0	0	0	0	0	0
26 of which building renovation loans	0	0	0	0	0	0	0	0	0
27 of which motor vehicle loans	0,8	0	0	0	0
28 Local governments financing 29 Housing financing	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable
properties	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	5,9	0,5	0	0,0	0,1	0,1	0,0	0	0	0	0	0	0

	Circular economy (CE)					Pollution (PPC)				Biodiversity and Ecosystems (BIO)				TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
% (compared to total covered assets in the denominator)	Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Of Use of which ena				Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Of Use of which			Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Of Use of which					Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Of Of Use of which which				Propor tion of total
			Pro ceeds	bling			Pro ceeds	ena bling			Pro ceeds	ena bling			Pro ceeds	transi tional	ena bling	assets covered
GAR - Covered assets in both numerator
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	5,9	0,5	0	0,0	0,1	26,8
2 Financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,5	0,1	0	0,0	0,0	20,1
3 Credit institutions	0	0	0	0	0	0	0	0	0	0	0	0	0,3	0,0	0	0,0	0,0	1,6
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,3	0,0	0	0,0	0,0	0,5
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	1,1
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,0	0	0	0,0	18,5
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	15,6
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	15,3
10 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
11 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0,3
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0,1
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0,1
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments 16 of which insurance undertakings	0 0	0 0	0	0 0	0 0	0 0		0 0	0 0	0 0	0	0 0	0 0,1	0 0,0	0 0	0	0 0,0	0 2,8
17 Loans and advances	0	0	0	0	0	0		0	0	0	0	0	0,1	0,0	0	0	0,0	2,8
18 Debt securities, including UoP	0	0	0	0	0	0		0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,1	0	0	0,1	0,1
21 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,1	0	0	0,1	0,1
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
24 Households	0	0	0	0									5,4	0,4	0	0	0	6,6
25 of which loans collateralised by residential
immovable property	0	0	0	0									4,6	0,4	0	0	0	2,9
26 of which building renovation loans 27 of which motor vehicle loans	0	0	0	0									0 0,8	0 0	0 0	0 0	0 0	0 1,1
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable
properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	5,9	0,5	0	0,0	0,1	62,7

Template 3 – GAR KPI stock – Turnover

	31.12.2023
		Climate Change Mitigation									Water and marine resources
			(CCM)					Climate Change Adaptation (CCA)			(WTR)

		Proportion of total covered assets funding						Proportion of total covered assets		Proportion of total covered assets
	taxonomy relevant sectors							funding taxonomy relevant		funding taxonomy relevant
	(Taxonomy-eligible)							sectors (Taxonomy-eligible)			sectors (Taxonomy-eligible)
%								Proportion of total				Proportion of total
(compared to total covered				Proportion of total covered				covered assets				covered assets
assets in the denominator)				assets funding taxonomy				funding taxonomy				funding taxonomy
			relevant sectors					relevant sectors				relevant sectors
				(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)
			Of which	Of	Of			Of which	Of			Of which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
			ceeds	tional	bling			ceeds	bling			ceeds	bling
GAR - Covered assets in both numerator
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation	5,3	0,2	0	0	0,0	0	0	0	0	0	0	0	0
2 Financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0
3 Credit institutions	0	0	0	0	0	0	0	0	0	0	0	0	0
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0	0		0	0	0		0
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	0
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
10 Debt securities, including UoP 11 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments	0	0		0	0	0	0		0	0	0		0
16 of which insurance undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0
17 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0	0		0	0	0		0
20 Non-financial undertakings	0,0	0,0	0	0	0,0	0	0	0	0	0	0	0	0
21 Loans and advances	0,0	0,0	0	0	0,0	0	0	0	0	0	0	0	0
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments	0	0		0	0	0	0		0	0	0		0
24 Households	5,3	0,2	0	0	0	0	0	0	0
25 of which loans collateralised by residential
immovable property	5,0	0,2	0	0	0	0	0	0	0
26 of which building renovation loans	0	0	0	0	0	0	0	0	0
27 of which motor vehicle loans	0,3	0	0	0	0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable
properties 32 Total assets	0 5,3	0 0,2	0 0	0 0	0 0,0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0

	Circular economy (CE)					Pollution (PPC)				Biodiversity and Ecosystems (BIO)				TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
% (compared to total covered assets in the denominator)		relevant sectors	Proportion of total covered assets funding taxonomy (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which		relevant sectors	Proportion of total covered assets funding taxonomy (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which		relevant sectors (Taxonomy-eligible)	Proportion of total covered assets funding taxonomy Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which		Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)	Of which Use of	Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which	Of which	Propor tion of total
			Pro	ena			Pro	ena			Pro	ena			Pro	transi	ena	assets
GAR - Covered assets in both numerator			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling	covered
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	7,6	0	0	0	0,0	23,9
2 Financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	2,3	0	0	0	0	16,6
3 Credit institutions	0	0	0	0	0	0	0	0	0	0	0	0	1,1	0	0	0	0	1,8
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,3	0	0	0	0	0,5
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0		0	0	0		0	0,8	0	0		0	1,2
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	1,1	0	0	0	0	14,9
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	12,7
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	12,4
10 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
11 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0,3
12 of which management companies 13 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
16 of which insurance undertakings	0	0	0	0	0	0	0	0	0	0	0	0	1,1	0	0	0	0	2,1
17 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	1,1	0	0	0	0	2,1
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,0	0,0	0	0	0,0	0,0
21 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,0	0,0	0	0	0,0	0,0
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
24 Households 25 of which loans collateralised by residential	0	0	0	0									5,3	0,2	0	0	0	7,2
immovable property	0	0	0	0									5,0	0,2	0	0	0	2,9
26 of which building renovation loans	0	0	0	0									0	0	0	0	0	0
27 of which motor vehicle loans													0,3	0	0	0	0	1,0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable
properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	7,6	0,2	0	0	0,0	57,5

Template 3 – GAR KPI stock – CapEx

	31.12.2024
		Climate Change Mitigation										Water and marine resources
			(CCM)					Climate Change Adaptation (CCA)		(WTR)

	Proportion of total covered assets funding				Proportion of total covered assets		Proportion of total covered assets
	taxonomy relevant sectors (Taxonomy-eligible)							funding taxonomy relevant		funding taxonomy relevant sectors (Taxonomy-eligible)
%								sectors (Taxonomy-eligible) Proportion of total				Proportion of total
(compared to total covered				Proportion of total covered				covered assets				covered assets
assets in the denominator)				assets funding taxonomy				funding taxonomy				funding taxonomy
			relevant sectors					relevant sectors				relevant sectors
				(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)
			Of					Of				Of
			which	Of	Of			which	Of			which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
GAR - Covered assets in both numerator			ceeds	tional	bling			ceeds	bling			ceeds	bling
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation	5,9	0,5	0	0,0	0,1	0,0	0	0	0	0	0	0	0
2 Financial undertakings	0,4	0,0	0	0,0	0,0	0,0	0	0	0	0	0	0	0
3 Credit institutions	0,3	0,0	0	0,0	0,0	0,0	0	0	0	0	0	0	0
4 Loans and advances	0,3	0,0	0	0,0	0,0	0,0	0	0	0	0	0	0	0
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0	0		0	0	0		0
7 Other financial corporations	0,1	0	0	0	0	0	0	0	0	0	0	-	0
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	-	0
9 Loans and advances 10 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	- -	0 0
11 Equity instruments	0	0		0	0	0	0		0	0	0		0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	-	0
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	-	0
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	-	0
15 Equity instruments	0	0		0	0	0	0		0	0	0		0
16 of which insurance undertakings	0,1	0	0	0	0	0	0	0	0	0	0	-	0
17 Loans and advances	0,1	0	0	0	0	0	0	0	0	0	0	-	0
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	-	0
19 Equity instruments	0	0		0	0	0	0		0	0	0		0
20 Non-financial undertakings	0,1	0,1	0	0	0,1	0,0	0	0	0	0	0	0	0
21 Loans and advances 22 Debt securities, including UoP	0,1 0	0,1 0	0 0	0 0	0,1 0	0,0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
23 Equity instruments	0	0		0	0	0	0		0	0	0		0
24 Households	5,4	0,4	0	0	0	0	0	0	0
25 of which loans collateralised by residential
immovable property	4,6	0,4	0	0	0	0	0	0	0
26 of which building renovation loans	0	0	0	0	0	0	0	0	0
27 of which motor vehicle loans	0,8	0	0	0	0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable properties	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	5,9	0,5	0	0,0	0,1	0,0	0	0	0	0	0	0	0

(CE) (PPC) (BIO) (CCM + CCA + WTR + CE + PPC + BIO) Proportion of total covered Proportion of total covered Proportion of total covered assets funding taxonomy assets funding taxonomy assets funding taxonomy Proportion of total covered assets relevant sectors relevant sectors relevant sectors funding taxonomy relevant sectors (Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible) % Proportion of total Proportion of total Proportion of total (compared to total covered covered assets covered assets covered assets assets in the denominator) funding taxonomy funding taxonomy funding taxonomy relevant sectors relevant sectors relevant sectors (Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned) Of Of Of Of which Of which Of which Of which Use of which Use of which Use of which Use of Pro ena Pro ena Pro ena Pro ceeds bling ceeds bling ceeds bling ceeds
	Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Propor Of Of tion of which which total transi ena assets
	tional bling covered
GAR - Covered assets in both numerator and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation 0 0 0 0 0 0 0 0 0 0 0 0 5,9 0,5	0 0,0 0,1 26,8
2 Financial undertakings 0 0 0 0 0 0 0 0 0 0 0 0 0,4 0,0	0 0,0 0,0 20,1
3 Credit institutions 0 0 0 0 0 0 0 0 0 0 0 0 0,3 0,0	0 0,0 0,0 1,6
4 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0,3 0,0	0 0,0 0,0 0,5
5 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0
6 Equity instruments 0 0 0 0 0 0 0 0 0 0 0	0 0 1,1
7 Other financial corporations 0 0 0 0 0 0 0 0 0 0 0 0 0,1 0	0 0 0 18,5
8 of which investment firms 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 15,6
9 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 15,3
10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0
11 Equity instruments 0 0 0 0 0 0 0 0 - 0 0	0 0 0,3
12 of which management companies 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0,1
13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0,1
14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 15 Equity instruments 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0 0 0 0
16 of which insurance undertakings 0 0 0 0 0 0 0 0 0 0 0 0 0,1 0	0 0 0 2,8
17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0,1 0	0 0 0 2,8
18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0
19 Equity instruments 0 0 0 0 0 0 0 0 0 0 0	0 0 0
20 Non-financial undertakings 0 0 0 0 0 0 0 0 0 0 0 0 0,1 0,1	0 0 0,1 0,1
21 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0,1 0,1	0 0 0,1 0,1
22 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0
23 Equity instruments 0 0 0 0 0 0 0 0 0 0 0	0 0 0
24 Households 0 0 0 0 5,4 0,4	0 0 0 6,6
25 of which loans collateralised by residential
immovable property 0 0 0 0 4,6 0,4	0 0 0 2,9
26 of which building renovation loans 0 0 0 0 0 0	0 0 0 0
27 of which motor vehicle loans 0,8 0	0 0 0 1,1
28 Local governments financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 29 Housing financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0 0 0 0 0
30 Other local government financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0 0 0 0
31 Collateral obtained by taking possession:
residential and commercial immovable
properties 0 0 0 0 0 0 0 0 0 0 0 0 0 0
32 Total assets 0 0 0 0 0 0 0 0 0 0 0 0 5,9 0,5	0 0 0 0

Template 3 – GAR KPI stock – CapEx

Climate Change Mitigation Water and marine resources (CCM) Climate Change Adaptation (CCA) (WTR) Proportion of total covered assets funding Proportion of total covered assets Proportion of total covered assets taxonomy relevant sectors funding taxonomy relevant funding taxonomy relevant (Taxonomy-eligible) sectors (Taxonomy-eligible) sectors (Taxonomy-eligible) % Proportion of total Proportion of total (compared to total covered Proportion of total covered covered assets covered assets assets in the denominator) assets funding taxonomy funding taxonomy funding taxonomy relevant sectors relevant sectors relevant sectors (Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned) Of Of Of which Of Of which Of which Of Use of which which Use of which Use of which Pro transi ena Pro ena Pro ena ceeds tional bling ceeds bling ceeds bling GAR - Covered assets in both numerator and denominator 1 Loans and advances, debt securities and equity instruments not HfT eligible for GAR calculation 5,3 0,2 0 0 0,0 0 0 0 0 0 0 0 0 2 Financial undertakings 0 0 0 0 0 0 0 0 0 0 0 0 0 3 Credit institutions 0 0 0 0 0 0 0 0 0 0 0 0 0 4 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 5 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 6 Equity instruments 0 0 0 0 0 7 Other financial corporations 0 0 0 0 0 0 0 0 0 0 0 0 0 8 of which investment firms 0 0 0 0 0 0 0 0 0 0 0 0 0 9 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 11 Equity instruments 0 0 0 0 0 12 of which management companies 0 0 0 0 0 0 0 0 0 0 0 0 0 13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 15 Equity instruments 0 0 0 0 0 16 of which insurance undertakings 0 0 0 0 0 0 0 0 0 0 0 0 0 17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 19 Equity instruments 0 0 0 0 0 0 0 0 0 20 Non-financial undertakings 0,0 0,0 0 0 0,0 0 0 0 0 0 0 0 0 21 Loans and advances 0,0 0,0 0 0 0,0 0 0 0 0 0 0 0 0 22 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 23 Equity instruments 0 0 0 0 0 0 0 0 0 24 Households 5,3 0,2 0 0 0 0 0 0 0 25 of which loans collateralised by residential immovable property 5,0 0,2 0 0 0 0 0 0 0 26 of which building renovation loans 0 0 0 0 0 0 0 0 0 27 of which motor vehicle loans 0,3 0 0 0 0 28 Local governments financing 0 0 0 0 0 0 0 0 0 0 0 0 0 29 Housing financing 0 0 0 0 0 0 0 0 0 0 0 0 0 30 Other local government financing 0 0 0 0 0 0 0 0 0 0 0 0 0 31 Collateral obtained by taking possession: residential and commercial immovable properties 0 0 0 0 0 0 0 0 0 0 0 0 0 32 Total assets 5,3 0,2 0,0	31.12.2023

Proportion of total covered Proportion of total covered Proportion of total covered assets funding taxonomy assets funding taxonomy assets funding taxonomy Proportion of total covered assets relevant sectors relevant sectors relevant sectors funding taxonomy relevant sectors (Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible) (Taxonomy-eligible) % Proportion of total Proportion of total Proportion of total (compared to total covered covered assets covered assets covered assets Proportion of total covered	assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which transi	Of which	Propor tion of total
assets in the denominator) funding taxonomy funding taxonomy funding taxonomy relevant sectors relevant sectors relevant sectors (Taxonomy-aligned) (Taxonomy-aligned) (Taxonomy-aligned) Of Of Of Of which Of which Of which Of which Use of which Use of which Use of which Use of Pro ena Pro ena Pro ena Pro ceeds bling ceeds bling ceeds bling ceeds	tional	ena bling	assets covered
GAR - Covered assets in both numerator
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation 0 0 0 0 0 0 0 0 0 0 0 0 7,6 0,2 0	0	0,0	23,9
2 Financial undertakings 0 0 0 0 0 0 0 0 0 0 0 0 2,3 0 0	0	0	16,6
3 Credit institutions 0 0 0 0 0 0 0 0 0 0 0 0 1,1 0 0	0	0	1,8
4 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0,3 0 0	0	0	0,5
5 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
6 Equity instruments 0 0 0 0 0,8 0 0		0	1,2
7 Other financial corporations 0 0 0 0 0 0 0 0 0 0 0 0 1,1 0 0	0	0	14,9
8 of which investment firms 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	12,7
9 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	12,4
10 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
11 Equity instruments 0 0 0 0 0 0 0		0	0,3
12 of which management companies 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
13 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
14 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
15 Equity instruments 0 0 0 0 0 0 0 16 of which insurance undertakings 0 0 0 0 0 0 0 0 0 0 0 0 1,1 0 0	0	0	0 2,1
17 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 1,1 0 0	0	0	2,1
18 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
19 Equity instruments 0 0 0 0 0 0 0			0
20 Non-financial undertakings 0 0 0 0 0 0 0 0 0 0 0 0 0,0 0,0 0	0	0,0	0,0
21 Loans and advances 0 0 0 0 0 0 0 0 0 0 0 0 0,0 0,0 0	0	0,0	0,0
22 Debt securities, including UoP 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
23 Equity instruments 0 0 0 0 0 0 0 0 0 0 0 0			0
24 Households 0 0 0 0 5,3 0,2 0	0	0	7,2
25 of which loans collateralised by residential
immovable property 0 0 0 0 5,0 0,2 0	0	0	2,9
26 of which building renovation loans 0 0 0 0 0 0 0	0	0	0
27 of which motor vehicle loans 0,3 0 0	0	0	1,0
28 Local governments financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
29 Housing financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
30 Other local government financing 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
31 Collateral obtained by taking possession: residential and commercial immovable
properties 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	0	0	0
32 Total assets 7,6 0,2		0,0	57,5

Template 4 – GAR KPI flow – Turnover

	31.12.2024
		Climate Change Mitigation										Water and marine resources
			(CCM)					Climate Change Adaptation (CCA)		(WTR)
%		Proportion of total covered assets funding Proportion of total covered assets taxonomy relevant sectors funding taxonomy relevant (Taxonomy-eligible) sectors (Taxonomy-eligible)								Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)
(compared to total covered								Proportion of total				Proportion of total
assets in the denominator)				Proportion of total covered assets funding taxonomy				covered assets funding taxonomy				covered assets funding taxonomy
			relevant sectors					relevant sectors				relevant sectors
				(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)
			Of					Of				Of
			which	Of	Of			which	Of			which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
GAR - Covered assets in both numerator			ceeds	tional	bling			ceeds	bling			ceeds	bling
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation	8,5	0,8	0	0,0	0,1	0,2	0,1	0	0	0	0	0	0
2 Financial undertakings	1,6	0,2	0	0,0	0,0	0,2	0,1	0	0	0	0	0	0
3 Credit institutions	1,3	0,1	0	0,0	0,0	0	0	0	0	0	0	0	0
4 Loans and advances	1,3	0,1	0	0,0	0,0	0	0	0	0	0	0	0	0
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0	0		0	0	0		0
7 Other financial corporations	0,3	0,1	0	0	0,0	0,2	0,1	0	0	0	0	0	0
8 of which investment firms 9 Loans and advances	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
10 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
11 Equity instruments	0	0		0	0	0	0		0	0	0		0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments	0	0		0	0	0	0		0	0	0		0
16 of which insurance undertakings	0,3	0,1	0	0	0,0	0,2	0,1	0	0	0	0	0	0
17 Loans and advances	0,3	0,1	0	0	0,0	0,2	0,1	0	0	0	0	0	0
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0	0		0	0	0		0
20 Non-financial undertakings 21 Loans and advances	0,1 0,1	0,1 0,1	0 0	0 0	0,1 0,1	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments	0	0		0	0	0	0		0	0	0		0
24 Households	6,9	0,5	0	0	0	0	0	0	0
25 of which loans collateralised by residential
immovable property	4,5	0,5	0	0	0	0	0	0	0
26 of which building renovation loans	0	0	0	0	0	0	0	0	0
27 of which motor vehicle loans	2,4	0	0	0	0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession: residential and commercial immovable
properties	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	8,5	0,8	0	0,0	0,1	0,2	0,1	0	0	0	0	0	0

		Circular economy (CE)				Pollution (PPC)				Biodiversity and Ecosystems (BIO)			TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
% (compared to total covered assets in the denominator)	Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Of					relevant sectors	Proportion of total covered assets funding taxonomy (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which	Of		Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)	Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which	Of		Proportion of total covered assets funding taxonomy relevant sectors	(Taxonomy-eligible) relevant sectors Of which	Proportion of total covered assets funding taxonomy (Taxonomy-aligned) Of	Of	Pro portion
			Use of Pro	which ena			Use of Pro	which ena			Use of Pro	which ena			Use of Pro	which transi	which ena	of new assets
GAR - Covered assets in both numerator			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling	covered
and denominator
1 Loans and advances, debt securities and equity instruments not HfT eligible for
GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	8,7	0,9	0	0,0	0,1	100,0
2 Financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	1,8	0,3	0	0,0	0,0	87,8
3 Credit institutions	0	0	0	0	0	0	0	0	0	0	0	0	1,3	0,1	0	0,0	0,0	2,9
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	1,3	0,1	0	0,0	0,0	2,9
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	0,5	0,2	0	0	0,0	84,9
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	69,0
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	69,0
10 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
11 Equity instruments 12 of which management companies	0 0	0 0	0	0 0	0 0	0 0	0	0	0	0	0	0 0	0 0	0 0	0 0	0	0 0	0 0,2
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0,2
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		-	0
16 of which insurance undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,5	0,2	0	0	0,0	15,7
17 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,5	0,2	0	0	0,0	15,7
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,1	0	0	0,1	0,1
21 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,1	0	0	0,1	0,1
22 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
23 Equity instruments 24 Households	0 0	0 0	0	0 0	0	0		0	0	0		0	0 6,9	0 0,5	0 0	0	0 0	0 12,1
25 of which loans collateralised by residential
immovable property	0	0	0	0									4,5	0,5	0	0	0	4,5
26 of which building renovation loans	0	0	0	0									0	0	0	0	0	0
27 of which motor vehicle loans													2,4	0	0	0	0	3,0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	8,7	0,9	0	0,0	0,1	100,0

Template 4 – GAR KPI flow – CapEx

	31.12.202
		Climate Change Mitigation										Water and marine resources
			(CCM)					Climate Change Adaptation (CCA)		(WTR)

		Proportion of total covered assets funding						Proportion of total covered assets		Proportion of total covered assets
	taxonomy relevant sectors				funding taxonomy relevant		funding taxonomy relevant
%			(Taxonomy-eligible)					sectors (Taxonomy-eligible)		sectors (Taxonomy-eligible)
(compared to total covered								Proportion of total				Proportion of total
assets in the denominator)				Proportion of total covered assets funding taxonomy				covered assets funding taxonomy				covered assets funding taxonomy
			relevant sectors					relevant sectors				relevant sectors
				(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)
			Of					Of				Of
			which	Of	Of			which	Of			which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
GAR - Covered assets in both numerator			ceeds	tional	bling			ceeds	bling			ceeds	bling
and denominator
1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation	8,5	0,8	0	0,0	0,1	0,2	0,1	0	0	0	0	0	0
2 Financial undertakings	1,6	0,2	0	0,0	0,0	0,2	0,1	0	0,0	0	0	0	0
3 Credit institutions	1,2	0,1	0	0,0	0,0	0,0	0	0	0	0	0	0	0
4 Loans and advances	1,2	0,1	0	0,0	0,0	0,0	0	0	0	0	0	0	0
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0	0		0	0	0		0
7 Other financial corporations	0,3	0,1	0	0	0,0	0,2	0,1	0	0,0	0	0	0	0
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0
9 Loans and advances 10 Debt securities, including UoP	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
11 Equity instruments	0	0		0	0	0	0		0	0	0		0
12 of which management companies	0	0	0	0	0	0	0	0	0	0	0	0	0
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments	0	0		0	0	0	0		0	0	0		0
16 of which insurance undertakings	0,3	0,1	0	0	0,0	0,2	0,1	0	0,0	0	0	0	0
17 Loans and advances	0,3	0,1	0	0	0,0	0,2	0,1	0	0,0	0	0	0	0
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0	0		0	0	0		0
20 Non-financial undertakings	0,1	0,1	0	0	0,1	0,0	0	0	0	0	0	0	0
21 Loans and advances 22 Debt securities, including UoP	0,1 0	0,1 0	0 0	0 0	0,1 0	0,0 0	0 0	0 0	0 0	0 0	0 0	0 0	0 0
23 Equity instruments	0	0		0	0	0	0		0	0	0		0
24 Households	6,9	0,5	0	0	0	0	0	0	0
25 of which loans collateralised by residential
immovable property	4,5	0,5	0	0	0	0	0	0	0
26 of which building renovation loans	0	0	0	0	0	0	0	0	0
27 of which motor vehicle loans	2,4	0	0	0	0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable properties	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	8,5	0,8	0	0,0	0,1	0,2	0,1	0	0	0	0	0	0

	Circular economy (CE)					Pollution (PPC)			Biodiversity and Ecosystems (BIO)			TOTAL (CCM + CCA + WTR + CE + PPC + BIO)
% (compared to total covered assets in the denominator)		relevant sectors (Taxonomy-eligible)	Proportion of total covered assets funding taxonomy Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which		relevant sectors	Proportion of total covered assets funding taxonomy (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which		Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible)	Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which			Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-eligible) Proportion of total covered assets funding taxonomy relevant sectors (Taxonomy-aligned) Of which Use of	Of which	Of which	Pro portion of new
			Pro ceeds	ena bling			Pro ceeds	ena bling			Pro ceeds	ena bling			Pro ceeds	transi tional	ena bling	assets covered
GAR - Covered assets in both numerator
and denominator 1 Loans and advances, debt securities and
equity instruments not HfT eligible for
GAR calculation	0	0	0	0	0	0	0	0	0	0	0	0	8,8	0,9	0	0,0	0,1	100,0
2 Financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	1,8	0,3	0	0,0	0,0	87,8
3 Credit institutions	0	0	0	0	0	0	0	0	0	0	0	0	1,2	0,1	0	0,0	0,0	2,9
4 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	1,2	0,1	0	0,0	0,0	2,9
5 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
6 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
7 Other financial corporations	0	0	0	0	0	0	0	0	0	0	0	0	0,6	0,2	0	0,0	0,0	84,9
8 of which investment firms	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	69,0
9 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	69,0
10 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
11 Equity instruments 12 of which management companies	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0,2
13 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0,2
14 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
15 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
16 of which insurance undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,6	0,2	0	0	0,0	15,7
17 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,6	0,2	0	0	0,0	15,7
18 Debt securities, including UoP	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
19 Equity instruments	0	0		0	0	0		0	0	0		0	0	0	0		0	0
20 Non-financial undertakings	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,1	0	0	0,1	0,1
21 Loans and advances	0	0	0	0	0	0	0	0	0	0	0	0	0,1	0,1	0	0	0,1	0,1
22 Debt securities, including UoP 23 Equity instruments	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0	0 0	0 0	0 0	0 0	0	0 0	0 0
24 Households	0	0	0	0									6,9	0,5	0	0	0	12,1
25 of which loans collateralised by residential
immovable property	0	0	0	0									4,5	0,5	0	0	0	4,5
26 of which building renovation loans	0	0	0	0									0	0	0	0	0	0
27 of which motor vehicle loans													2,4	0	0	0	0	3,0
28 Local governments financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
29 Housing financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
30 Other local government financing	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
31 Collateral obtained by taking possession:
residential and commercial immovable properties	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
32 Total assets	0	0	0	0	0	0	0	0	0	0	0	0	8,8	0,9	0	0,0	0,1	100,0

Template 5 – KPI off-balance sheet exposures – Stock – Turnover

Template 5 – KPI off-balance sheet exposures – Stock – CapEx

	31.12.2024
			Climate Change Mitigation				Climate Change Adaptation			Water and marine resources
			(CCM)					(CCA)		(WTR)
							Proportion of total covered			Proportion of total covered
			Proportion of total covered assets				assets funding taxonomy			assets funding taxonomy
			funding taxonomy relevant sectors					relevant sectors		relevant sectors
			(Taxonomy-eligible)				(Taxonomy-eligible)			(Taxonomy-eligible)
%						Proportion of total						Proportion of total
(compared to total covered			Proportion of total covered					covered assets funding				covered assets funding
assets in the denominator)			assets funding taxonomy					taxonomy relevant			taxonomy relevant sectors
			relevant sectors					sectors
			(Taxonomy-aligned)					(Taxonomy-aligned)			(Taxonomy-aligned)
			Of					Of				Of
			which	Of	Of			which	Of			which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
			ceeds	tional	bling			ceeds	bling			ceeds	bling
1 Financial guarantees (FinGuar KPI)	17,4	0	0	0	0	0	0	0	0	0	0	0	0
2 Assets under management (AuM KPI)	2,5	1,2	0	0,1	0,6	0,1	0,0	0	0,0	0,0	0,0	0	0

	Circular economy					Pollution			Biodiversity and Ecosystems			TOTAL
		(CE)					(PPC)				(BIO)		(CCM + CCA + WTR + CE + PPC + BIO)
		Proportion of total covered			Proportion of total covered
	assets funding taxonomy						assets funding taxonomy		Proportion of total covered as				Proportion of total covered assets
		relevant sectors		relevant sectors				sets funding taxonomy relevant				funding taxonomy relevant sectors
		(Taxonomy-eligible)					(Taxonomy-eligible)		sectors (Taxonomy-eligible)				(Taxonomy-eligible)
%			Proportion of total				Proportion of total				Proportion of total
(compared to total covered		covered assets funding				covered assets funding					covered assets funding				Proportion of total covered
assets in the denominator)			taxonomy relevant				taxonomy relevant				taxonomy relevant				assets funding taxonomy
			sectors				sectors				sectors				relevant sectors
			(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)
			Of				Of				Of				Of
			which	Of			which	Of			which	Of			which	Of	Of
			Use of	which			Use of	which			Use of	which			Use of	which	which
			Pro	ena			Pro	ena			Pro	ena			Pro	transi	ena
			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
1 Financial guarantees (FinGuar KPI)	0	0	0	0	0	0	0	0	0	0	0	0	17,4	0	0	0	0
2 Assets under management (AuM KPI)	0,3	0,0	0	0,0	0,1	0,0	0	0,0	0,0	0	0	0	4,1	1,0	0	0,1	0,5

	Circular economy					Pollution			Biodiversity and Ecosystems			TOTAL
		(CE)			(PPC)				(BIO)				(CCM + CCA + WTR + CE + PPC + BIO)
		Proportion of total covered					Proportion of total covered
		assets funding taxonomy		assets funding taxonomy				Proportion of total covered as				Proportion of total covered assets
		relevant sectors		relevant sectors				sets funding taxonomy relevant				funding taxonomy relevant sectors
		(Taxonomy-eligible)					(Taxonomy-eligible)		sectors (Taxonomy-eligible)				(Taxonomy-eligible)
%			Proportion of total				Proportion of total				Proportion of total
(compared to total covered		covered assets funding				covered assets funding					covered assets funding					Proportion of total covered
assets in the denominator)			taxonomy relevant				taxonomy relevant				taxonomy relevant					assets funding taxonomy
			sectors				sectors				sectors					relevant sectors
			(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)					(Taxonomy-aligned)
			Of				Of				Of				Of
			which	Of			which	Of			which	Of			which	Of	Of
			Use of	which			Use of	which			Use of	which			Use of	which	which
			Pro	ena			Pro	ena			Pro	ena			Pro	transi	ena
			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
1 Financial guarantees (FinGuar KPI)	0	0	0	0	0	0	0	0	0	0	0	0	17,4	0	0	0	0
2 Assets under management (AuM KPI)	0,2	0,0	0	-	0,1	0,0	0	0,0	0,0	0	0	0	4,4	1,3	0	0,1	0,6

Template 5 – KPI off-balance sheet exposures – Flow – Turnover

Template 5 – KPI off-balance sheet exposures – Flow – CapEx

	31.12.2024
			Climate Change Mitigation					Climate Change Adaptation		Water and marine resources
			(CCM)			(CCA)				(WTR)
								Proportion of total covered		Proportion of total covered
			Proportion of total covered assets					assets funding taxonomy		assets funding taxonomy
			funding taxonomy relevant sectors					relevant sectors		relevant sectors
			(Taxonomy-eligible)					(Taxonomy-eligible)		(Taxonomy-eligible)
%								Proportion of total				Proportion of total
(compared to total covered	Proportion of total covered							covered assets funding				covered assets funding
assets in the denominator)			assets funding taxonomy					taxonomy relevant				taxonomy relevant sectors
				relevant sectors		sectors (Taxonomy-aligned)
			(Taxonomy-aligned)							(Taxonomy-aligned)
			Of					Of				Of
			which	Of	Of			which	Of			which	Of
			Use of	which	which			Use of	which			Use of	which
			Pro	transi	ena			Pro	ena			Pro	ena
			ceeds	tional	bling			ceeds	bling			ceeds	bling
1 Financial guarantees (FinGuar KPI)	22,0	0	0	0	0	0	0	0	0	0	0	0	0
2 Assets under management (AuM KPI)	10,5	2,2	0	0,2	0,7	0,3	0,1	0	0,0	0,0	0	0	0

		Circular economy					Pollution			Biodiversity and Ecosystems			TOTAL
		(CE)			(PPC)				(BIO)				(CCM + CCA + WTR + CE + PPC + BIO)
		Proportion of total covered				Proportion of total covered
		assets funding taxonomy			assets funding taxonomy				Proportion of total covered as				Proportion of total covered assets
	relevant sectors				relevant sectors				sets funding taxonomy relevant				funding taxonomy relevant sectors
		(Taxonomy-eligible)			(Taxonomy-eligible)				sectors (Taxonomy-eligible)				(Taxonomy-eligible)
%			Proportion of total				Proportion of total				Proportion of total
(compared to total covered		covered assets funding taxonomy relevant			covered assets funding					covered assets funding			Proportion of total covered
assets in the denominator)							taxonomy relevant				taxonomy relevant				assets funding taxonomy
			sectors				sectors				sectors				relevant sectors
			(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)
			Of				Of				Of				Of
			which	Of			which	Of			which	Of			which	Of	Of
			Use of	which			Use of	which			Use of	which			Use of	which	which
			Pro	ena			Pro	ena			Pro	ena			Pro	transi	ena
			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
1 Financial guarantees (FinGuar KPI)	0	0	0	0	0	0	0	0	0	0	0	0	22,0	0	0	0	0
2 Assets under management (AuM KPI)	0,3	0,0	0	0,0	0,1	0	0	0	0	0	0	0	12,7	1,9	0	0,1	0,5

		Circular economy					Pollution				Biodiversity and Ecosystems				TOTAL
		(CE)				(PPC)			(BIO)				(CCM + CCA + WTR + CE + PPC + BIO)
		Proportion of total covered					Proportion of total covered
		assets funding taxonomy					assets funding taxonomy		Proportion of total covered as				Proportion of total covered assets
		relevant sectors				relevant sectors		sets funding taxonomy relevant				funding taxonomy relevant sectors
		(Taxonomy-eligible)					(Taxonomy-eligible)				sectors (Taxonomy-eligible)				(Taxonomy-eligible)
%			Proportion of total				Proportion of total				Proportion of total
(compared to total covered		covered assets funding					covered assets funding				covered assets funding					Proportion of total covered
assets in the denominator)			taxonomy relevant				taxonomy relevant				taxonomy relevant					assets funding taxonomy
			sectors				sectors				sectors					relevant sectors
			(Taxonomy-aligned)				(Taxonomy-aligned)				(Taxonomy-aligned)					(Taxonomy-aligned)
			Of				Of				Of				Of
			which	Of			which	Of			which	Of			which	Of	Of
			Use of	which			Use of	which			Use of	which			Use of	which	which
			Pro	ena			Pro	ena			Pro	ena			Pro	transi	ena
			ceeds	bling			ceeds	bling			ceeds	bling			ceeds	tional	bling
1 Financial guarantees (FinGuar KPI)	0	0	0	0	0	0	0	0	0	0	0	0	22,0	0	0	0	0
2 Assets under management (AuM KPI)	0,2	0	0	0	0,1	0	0	0	0	0	0	0	12,7	2,3	0	0,2	0,7

Qualitative disclosures for asset managers, credit institutions, investment firms and insurance and reinsurance undertakings

At 31 December 2024

The disclosure of quantitative KPIs shall be accompanied by the following qualitative information to support the financial undertakings' explanations and markets' understanding of these KPIs:

1	Contextual information in support of the quantitative indicators including the scope of assets and activities covered by the KPIs, information on data sources and limitation;	Sydbank publishes a consolidated annual report and sustainability report. The reporting of taxonomy-aligned economic activities includes the Sydbank group (see note on group holdings and enterprises). Sydbank publishes weighted KPIs for financial subsidiaries including Sydbank, Syd Fund Management and Coop Bank. The reporting of taxonomy-aligned economic activities is conducted in accordance with Commission Delegated Regulation (EU) 2021/2178 and related Annexes V and VI, which specify the content of reporting by credit institutions. The reporting is based on Sydbank's reporting in accordance with Commission Implementing Regulation (EU) 2021/451 (FINREP), the Bank's home loans and car loans to retail clients, investment activities and publicly available taxonomy reporting from corporate clients and financial counterparties subject to taxonomy reporting. The statement for retail clients is based on home loans collateralised by residential property. The statement regarding the proportion of home loans differentiates between properties constructed before and after 31 December 2020, which is in compliance with the technical screening criteria of the Taxonomy Regulation. Retail loans to finance cars are considered taxonomy-el igible if the agreement is entered into after 31 December 2021, cf section 1.2.1.3.(ii) of Annex V to the Delegated Regulation. Sydbank's investment activities are found on the Bank's balance sheet and off the Bank's balance sheet. On-balance sheet investment activities, including the Bank's pooled plans, are accounted for in the trading portfolio and are therefore not included in GAR. Off-balance sheet investment activities, accounted for under 'assets under management', consist of discretionary portfolio management products, the investment fund Coop Opsparing, and the investment fund Sydinvest managed by Syd Fund Management. Exposures towards exchange traded funds and funds outside of Sydinvest as well as purchase orders made during the financial year 2024 in the Bank's discretionary port folio management products and in the investment fund Coop Opsparing are not part of the reporting of flow, i.e. new purchases for investment activities conducted over the course of the financial year. Sydbank's GAR is at a relatively low level for the 2023 financial year. This is attributable in part to limitations in accessing documentation and data. Sydbank's primary customer segment is SMEs, which implies that a large proportion of Sydbank's corporate clients are not included in the calculation. The reporting in accordance with the Taxonomy Regulation has shed light on the importance of the Bank's continued work to ensure and improve ESG-data for the purpose of qualifying future lending and investment activities as environmentally sustainable in accordance with the Taxonomy.
2	Explanations of the nature and objectives of Taxono my-aligned economic activities and the evolution of the Taxonomy-aligned economic activities over time, starting from the second year of implementation, distinguishing between business-related and methodological and data-related elements	The total GAR for Sydbank for the financial year 2024 is 0,5%. Compared to the financial year 2023, where Sydbank reported GAR for the first time, GAR is at a higher level this year. The development is mainly driven by more granulated data for the Bank's lending activities to private owner-occupied dwellings, as well as more extensive reporting from corporate clients and financial counterparties subject to taxonomy reporting. In addition to the reporting of GAR Sydbank has set targets for lending, investment and own operations. The purpose of the targets is to bring down Sydbank's CO2e-emissions for scope 1, 2 and 3. Read more about these targets in the section "E – Environmental information ".
3	Description of the compliance with Regulation (EU) 2020/852 in the financial undertaking's business strategy, product design processes and engagement with clients and counterparties;	Sydbank has this year published its new strategy for the period 2025-2027. ESG is one of five components of Sydbank's strategy with a focus on integrating ESG in the Bank's core business with the purpose to ensure long-term value creation and a strong reputation. To do so, Sydbank will invest responsibly to contribute to a sustainable develop ment of society, integrate ESG meaningfully in the customer dialogue, expand accessible ESG-data in the assessment of ESG-related risks in credit assessments and support the financing of the green transition by offering green lending products. The green lending products must follow the criteria spelled out in the Bank's Green Bond Framework. Sydbank has updated its Green Bond Framework this year with the ambition on ensuring alignment to the technical screening criteria of the Taxonomy. The Bank's green lending products is not aligned with the classification system of the Taxonomy as the Bank has not assessed the 'do no significant harm' criteria. These criteria require a high level of documentation, which Sydbank will not pass on to our customers yet. It is Sydbank's ambition that the Bank's financial advisers are equipped to engage in dialogue with customers about the sustainable transition. Sydbank's corporate financial advisers are required for instance to have a dialogue with customers about ESG issues and decide on an ESG score for the customer as regards new loan applications. When offering investment advice and hedging risk, Sydbank takes into account customers' preferences as to whether a proportion of the investment is taxonomy-aligned under the Taxonomy Regulation.
4	For credit institutions that are not required to disclose quantitative information for trading exposures, qualitative information on the alignment of trading portfolios with Regulation (EU) 2020/852, including overall composition, trends observed, objectives and policy;	Sydbank is required to disclose quantitative information about trading exposures pursuant to Article 94(1) of Regula tion 575/2013 on prudential requirements for credit institutions and investment firms.
5	"Additional or complementary information in support of the financial undertaking's strategies and the weight of the financing of Taxono my-aligned economic activities in their overall activity."	The weighted KPIs for Sydbank's financial subsidiaries are presented in the table below. The weighted KPIs are calcu lated based on the total assets of the individual subsidiaries. There are no assets in accordance with the EU taxonomy classification system in the subsidiaries Coop Bank and Syd Fund Management.
			Total assets (mio kr.)	Proportion of total asstes (pct.)	KPI turnover based (pct.)	KPI CapEx based (pct.)	KPI turnover based weighted (pct.)	KPI CapEx based weighted (pct.)
		Sydbank (solo)	190.452	98	0,56	0,51	0,55	0,50
		Coop Bank	3.513	2	0	0	0	0
		Syd Fund Management	206	0	0	0	0	0
		Total	194.171	100
		Average KPI					0,55	0,50

Template 1 – Nuclear and fossil gas related activities

At 31 December 2024
Nuclear energy related activities
1	"The undertaking carries out, funds or has exposures to research, development, demonstration and deployment of innovative electricity generation facilities that produce energy from nuclear processes with minimal waste from the fuel cycle."	No
2	"The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear installations to produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen prod"	No
3	"The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that produce electricity or process heat, including for the purposes of district heating or industrial processes such as hydrogen production from nuclear energy, as well as their safety upgrades."	No
Fossil gas realted activities
4	"The undertaking carries out, funds or has exposures to construction or operation of electricity generation facilities that produce electricity using fossil gaseous fuels."	No
5	"The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of combined heat/cool and power generation facilities using fossil gaseous fuels."	No

6 "The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat generation facilities that produce heat/cool using fossil gaseous fuels" No

Management Statement

Today we have reviewed and approved the Annual Report of Sydbank A/S for the financial year 1 January - 31 December 2024.

The consolidated financial statements are prepared in accordance with International Financial Reporting Standards as adopted by the EU, and the Bank's financial statements are prepared in accordance with the legislative requirements, including the Danish Financial Business Act. Furthermore the consolidated financial statements are prepared in compliance with Danish disclosure requirements for listed financial companies.

In our opinion, the consolidated financial statements and the parent company financial statements give a true and fair view of the Group's and the Bank's assets, equity and liabilities and financial position at 31 December 2024 and of the results of the Group's and the parent company's operations and consolidated cash flows for 2024.

In our opinion, the management's review includes a true and fair account of developments in the Group's and the Bank's operations and financial matters as well as a description of the most significant risks and elements of uncertainty which may affect the Group and the Bank.

Moreover sustainability reporting, which forms part of the management's review, has, in all material respects, been prepared in accordance with part 13 of the Danish Financial Business Act and the rules issued pursuant thereto, including the fact that the European Sustainability Reporting Standards (ESRS) are complied with, and that the process conducted by management to identify the information reported in the sustainability reporting is in accordance with the description in the materiality assessment and that the information in the sustainability reporting's environmental section is in compliance with Article 8 of the Taxonomy Regulation (Regulation (EU) 2020/852 of the European Parliament and of the Council).

2024 is the year of the first implementation of sustainability reporting in accordance with part 13 of the Danish Financial Business Act as regards ESRS requirements. It is expected that more clear guidance and practice in various areas will be issued in the years ahead. Furthermore sustainability reporting includes forward-looking statements based on published assumptions as to events that may occur in future and any future actions on the part of the Bank. The actual results are likely to be different as future events often do not occur as expected.

In our opinion, the Annual Report of Sydbank A/S for the financial year 1 January to 31 December 2024, identified as "Sydbank-2024-12-31-da.zip", has, in all material respects, been prepared in accordance with the ESEF Regulation.

We propose that the Annual Report be submitted for adoption by the AGM.

Aabenraa, 26 February 2025

Group Executive Management
Mark Luscombe (CEO)	Jørn Adam Møller	Stig Westergaard
Board of Directors
Lars Mikkelgaard-Jensen (Chairman)	Ellen Trane Nørby (Vice-Chairman)	Janne Moltke-Leth
Susanne Schou	Gitte Poulsen	Jon Stefansson
Henrik Hoffmann	Søren Holm	Carsten Andersen
Jarl Oxlund	Jørn Krogh Sørensen	Pia Wrang

Auditor's Report

Independent Auditor's Report

To the shareholders of Sydbank A/S

Auditor's Report on the Financial Statements

Opinion

In our opinion, the Consolidated Financial Statements give a true and fair view of the financial position of the Group at 31 December 2024 and of the results of the Group's operations and cash flows for the financial year 1 January - 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Business Act.

Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the financial position of the Bank at 31 December 2024, and of the results of the Bank operations and cash flows for the financial year 1 January to 31 December 2024 in accordance with the Danish Financial Business Act.

Our opinion is consistent with our Auditor's Long-form Report to the Audit Committee and the Board of Directors.

What we have audited

The Consolidated Financial Statements of Sydbank A/S for the financial year 1 January to 31 December 2024 comprise income statement and statement of comprehensive income, balance sheet, statement of changes in equity, cash flow statement and notes, including a summary of significant accounting policies.

The Parent Company Financial Statements of Sydbank A/S for the financial year 1 January to 31 December 2024 comprise income statement and statement of comprehensive income, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies.

They are collectively referred to as "the Financial Statements".

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) and the additional requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

To the best of our knowledge, no prohibited non-audit services as referred to in Article 5(1) of Regulation (EU) No 537/2014 have been provided.

Appointment

We were first appointed auditors of Sydbank A/S on 25 March 2021 for the financial year 2021. We have been reappointed annually by shareholder resolution for a total period of uninterrupted engagement of four years including the financial year 2024.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matter

Loan impairment charges

Loans and advances are measured at amortised cost less impairment charges.

Impairment of loans and advances constitutes Management's best estimate of expected losses on loans and advances at the balance sheet date. We refer to note 1 to the Financial Statements for a detailed description of the accounting policies applied.

As a result of the geopolitical and macroeconomic situation, which entails a risk of economic slowdown, Management has recognised a significant increase in loan impairment charges by way of an accounting estimate ("management estimate"). The impact of the geopolitical and macroeconomic situation on the Bank's customers is largely undetermined, which implies that the estimation uncertainty related to the calculation of the indication of impairment is increased.

Independent Auditor's Report

Since accounting estimates are inherently complex and subjective, and thus subject to considerable estimation uncertainty, loan impairment charges constitute a central focus area.

The following areas are central to the calculation of loan impairment charges:

Determination of credit classification.
Model-based impairment charges in stages 1 and 2, including Management's determination of model variables adapted to the Bank's loan portfolio.
The Bank's procedures to ensure completeness of the registration of credit-impaired loans (stage 3) or loans with significant increase in credit risk (stage 2).
Most significant assumptions and estimates applied by Management in the calculations of impairment charges, including principles for the assessment of various outcomes of the customer's financial position (scenarios) and for the assessment of collateral value of, for example, properties included in the calculations of impairment.
Management's assessment of expected credit losses at the balance sheet date as a result of possible changes in conditions which are not included in the model-based calculations or individually assessed impairment charges (Management's judgement), including in particular the impact of the geopolitical and macroeconomic development on the Bank's customers.

We refer to note 2 'Accounting estimates and judgements', note 14 'Loan impairment charges, etc.' and note 18 'Loans and advances' to the Financial Statements describing factors that may affect the impairment of loans and advances.

How our audit addressed the key audit matter

We reviewed and assessed the impairment charges recognised in the income statement for 2024 and in the balance sheet at 31 December 2024.

We carried out risk assessment procedures to gain an understanding of IT systems, business practices and relevant controls relating to the calculation of loan impairment charges. We assessed whether the controls have been designed and implemented to effectively address the risk of material misstatement. Selected controls, which we planned to rely on, were tested to check whether they had been carried out on a consistent basis.

We assessed the impairment model applied by the Bank. This included assessing and testing the Bank's determination of model variables and calculation of model-based impairment charges in stages 1 and 2.

We reviewed and assessed the Bank's validation of the methods applied for the calculation of expected credit losses as well as the procedures designed to ensure that credit-impaired loans in stage 3 and underperforming loans in stage 2 are identified and recorded on a timely basis.

We assessed and tested the principles applied by the Bank for the determination of impairment scenarios and for the measurement of collateral value of, for example, properties included in the calculations of impairment of credit-impaired loans and advances, and loans and advances that are significantly underperforming (underperforming stage 2 loans).

We tested a sample of credit-impaired loans in stage 3 and underperforming loans in stage 2 by testing the calculations of impairment charges and applied data to underlying documentation.

We tested a sample of other loans by making an assessment of stage and credit classification. This included samples of large loans as well as loans with generally increased exposure.

We reviewed and challenged the material assumptions underlying Management's estimates of expected credit losses not included in the model-based calculations or individually assessed impairment charges based on our knowledge of the portfolio, the sectors and current market conditions. We focussed specifically on the Bank's calculation of management estimates for hedging of expected credit losses as a result of the geopolitical and macroeconomic situation. We assessed whether the factors which may affect loan impairment charges had been disclosed appropriately.

Statement on Management's Review

Management is responsible for Management's Review.. Our opinion on the Financial Statements does not cover Management's Review, and, as part of our audit, we do not express any form of assurance conclusion thereon.

In connection with our audit of the Financial Statements, our responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the Financial Statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated.

Moreover, it is our responsibility to consider whether Management's Review provides the information required under

Auditor's Report

Independent Auditor's Report

the Danish Financial Business Act. This does not include the requirements of chapter 13 of the Danish Financial Business Act regarding the sustainability statement, which is covered by a separate limited assurance report to that effect.

Based on the work we have performed, in our view, Management's Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Business Act, except from the requirements of chapter 13 of the said Act on the sustainability statement, see above. We did not identify any material misstatement in Management's Review.

Management's responsibilities for the Financial Statements

Management is responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Danish Financial Business Act, and for the preparation of parent company financial statements that give a true and fair view in accordance with the Danish Financial Business Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the Financial Statements, Management is responsible for assessing the Group's and the Bank's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liquidate the Group or the Bank or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

As part of an audit in accordance with ISAs and the addi-

tional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Bank's internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management.
Conclude on the appropriateness of Management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Bank's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Group and the Bank to cease to continue as a going concern.
Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.
Plan and perform the audit to obtain sufficient appropriate audit evidence regarding the consolidated financial information of the entities or business units to be used as a basis for expressing an opinion on the Consolidated Financial Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Independent Auditor's Report

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, safeguards in place or measures taken to eliminate threats.

Based on the matters communicated with those charged with governance, we determine those matters that were of the most significance in our audit of the Financial Statements for the current period, and which thus constitute key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter.

Report on compliance with the ESEF Regulation

As part of our audit of the Financial Statements of Sydbank A/S, we have performed procedures for the purpose of expressing an opinion as to whether the Annual Report for the financial year 1 January to 31 December 2024, with the file name Sydbank-2024-12-31-da.zip, has been prepared in accordance with the Commission Delegated Regulation (EU) 2019/815 on the single electronic reporting format (the ESEF Regulation), which requires the preparation of an annual report in XHTML format and with iXBRL mark-up of the Consolidated Financial Statements, including notes. Management is responsible for preparing an annual report in compliance with the ESEF Regulation, including:

• Preparation of an annual report in XHTML format. • Selection and use of appropriate iXBRL tags, including extensions to the ESEF taxonomy and anchoring to taxonomy elements, for financial information requiring mark-up, and making estimates where necessary.

Ensuring consistency between iXBRL marked-up data and the humanly-readable consolidated financial statements.
For such internal control as Management determines is necessary to enable the preparation of an annual report in compliance with the ESEF Regulation.

Based on the evidence obtained, our responsibility is to obtain reasonable assurance whether the Annual Report, in all material respects, has been prepared in accordance with the ESEF Regulation, and to express an opinion. The nature, scope and timing of the procedures selected are based on the auditor's professional judgement, including an assessment of the risk of material deviations from ESEF Regulation requirements, whether due to fraud or error. The procedures include:

Verifying whether the Annual Report has been prepared in XHTML format.
Gaining an understanding of the Bank's iXBRL mark-up process and of the internal control relating to the mark-up process.
Assessment of the completeness of the iXBRL mark-up of the Consolidated Financial Statements, including notes.
Assessment of whether the use of iXBRL elements from the ESEF taxonomy and the Bank's creation of extensions to the taxonomy are appropriate when relevant elements of the ESEF taxonomy have not been identified.
Assessment of the anchoring of extensions to elements of the ESEF taxonomy.
Reconciliation of iXBRL marked-up data to the audited Consolidated Financial Statements.

In our opinion, the Annual Report of Sydbank A/S for the financial year 1 January to 31 December 2024, with the file name Sydbank-2024-12-31-da.zip, has, in all material respects, been prepared in accordance with the ESEF Regulation.

Herning, 26 February 2025

PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab CVR no 33 77 12 31

Per Rolf Larssen

State Authorised Public Accountant mne24822

Sustainability Statement

Independent auditor's limited assurance report on the Sustainability Statement

To the stakeholders of Sydbank A/S

Limited assurance conclusion

We have conducted a limited assurance engagement on the sustainability statement of Sydbank A/S (the "Group") included in the Financial Review (the "Sustainability Statement"), page 43-79, for the financial year 1 January – 31 December 2024.

Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Sustainability Statement is not prepared, in all material respects, in accordance with the Danish Financial Business Act, including:

compliance with the European Sustainability Reporting Standards (ESRS), including that the process carried out by the management to identify the information reported in the Sustainability Statement (the "Process") is in accordance with the description set out in "Process of double materiality assessment and
compliance of the disclosures in "Reporting under Taxonomy Regulation" of the Sustainability Statement with Article 8 of EU Regulation 2020/852 (the "Taxonomy Regulation").

Basis for conclusion

We conducted our limited assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000 (Revised), Assurance engagements other than audits or reviews of historical financial information ("ISAE 3000 (Revised)") and the additional requirements applicable in Denmark.

The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance that would have been obtained had a reasonable assurance engagement been performed.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our conclusion. Our responsibilities under this standard are further described in the Auditor's responsibilities for the assurance engagement section of our report.

Our independence and quality management

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code.

Our firm applies International Standard on Quality Management 1, which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Management's responsibilities for the Sustainability Statement

Management is responsible for designing and implementing a process to identify the information reported in the Sustainability Statement in accordance with the ESRS and for disclosing this Process as included in "Process of double materiality assessment" of the Sustainability Statement. This responsibility includes:

understanding the context in which the Group's activities and business relationships take place and developing an understanding of its affected stakeholders;
the identification of the actual and potential impacts (both negative and positive) related to sustainability matters, as well as risks and opportunities that affect, or could reasonably be expected to affect, the Group's financial position, financial performance, cash flows, access to finance or cost of capital over the short-, medium-, or long-term;
the assessment of the materiality of the identified impacts, risks and opportunities related to sustainability matters by selecting and applying appropriate thresholds; and
making assumptions that are reasonable in the circumstances.

Management is further responsible for the preparation of the Sustainability Statement, which includes the information identified by the Process, in accordance with the Danish Financial Business Act, including:

compliance with the ESRS;
preparing the disclosures as included in "Reporting under Taxonomy Regulation" of the Sustainability Statement, in compliance with Article 8 of the Taxonomy Regulation;
designing, implementing and maintaining such internal control that management determines is necessary to ena-

Independent auditor's limited assurance report on the Sustainability Statement

ble the preparation of the Sustainability Statement that is free from material misstatement, whether due to fraud or error; and

• the selection and application of appropriate sustainability reporting methods and making assumptions and estimates that are reasonable in the circumstances.

Inherent limitations in preparing the Sustainability Statement

In reporting forward-looking information in accordance with ESRS, management is required to prepare the forward-looking information on the basis of disclosed assumptions about events that may occur in the future and possible future actions by the Group. Actual outcomes are likely to be different since anticipated events frequently do not occur as expected.

Auditor's responsibilities for the assurance engagement

Our responsibility is to plan and perform the assurance engagement to obtain limited assurance about whether the Sustainability Statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance report that includes our conclusion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence decisions of users taken on the basis of the Sustainability Statement as a whole.

As part of a limited assurance engagement in accordance with ISAE 3000 (Revised) we exercise professional judgement and maintain professional scepticism throughout the engagement.

Our responsibilities in respect of the Process include:

Obtaining an understanding of the Process, but not for the purpose of providing a conclusion on the effectiveness of the Process, including the outcome of the Process;
Considering whether the information identified addresses the applicable disclosure requirements of the ESRS; and
Designing and performing procedures to evaluate whether the Process is consistent with the Group's description of its Process, as disclosed in "Process of double materiality assessment".

Our other responsibilities in respect of the Sustainability Statement include:

Identifying where material misstatements are likely to arise, whether due to fraud or error; and
Designing and performing procedures responsive to

disclosures in the Sustainability Statement where material misstatements are likely to arise. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Summary of the work performed

EA limited assurance engagement involves performing procedures to obtain evidence about the Sustainability Statement. The nature, timing and extent of procedures selected depend on professional judgement, including the identification of disclosures where material misstatements are likely to arise, whether due to fraud or error, in the Sustainability Statement.

In conducting our limited assurance engagement, with respect to the Process, we:

Obtained an understanding of the Process by performing inquiries to understand the sources of the information used by management; and reviewing the Group's internal documentation of its Process; and
Evaluated whether the evidence obtained from our procedures about the Process implemented by the Group was consistent with the description of the Process set out in "Process of double materiality assessment" .

In conducting our limited assurance engagement, with respect to the Sustainability Statement, we:

Obtained an understanding of the Group's reporting processes relevant to the preparation of its Sustainability Statement [including the consolidation processes] by obtaining an understanding of the Group's control environment, processes and information systems relevant to the preparation of the Sustainability Statement but not evaluating the design of particular control activities, obtaining evidence about their implementation or testing their operating effectiveness;
Evaluated whether the information identified by the Process is included in the Sustainability Statement;
Evaluated whether the structure and the presentation of the Sustainability Statement are in accordance with the ESRS;
Performed inquiries of relevant personnel and analytical procedures on selected information in the Sustainability Statement;
Performed substantive assurance procedures on selected information in the Sustainability Statement;
Where applicable, compared disclosures in the Sustainability Statement with the corresponding disclosures in the

Sustainability Statement

Independent auditor's limited assurance report on the Sustainability Statement

financial statements and Financial Review;

Evaluated the methods, assumptions and data for developing estimates and forward-looking information;
Obtained an understanding of the Group's process to identify taxonomy-eligible and taxonomy-aligned economic activities and the corresponding disclosures in the Sustainability Statement[.][; and]

Other Matter

The comparative figures in the Sustainability Statement tables and graphs on pages 55-58 are not covered by the scope of the assurance engagement. Our conclusion is not modified in relation to this limitation on scope.

Herning, 26 February 2025

PricewaterhouseCoopers

Statsautoriseret Revisionspartnerselskab CVR No. 33 77 12 31

Per Rolf Larssen

statsautoriseret revisor mne24822

Board of Directors

Chairman Lars Mikkelgaard-Jensen Former CEO and managing director Born: 5 August 1954 Gender: Male Education: MSc (Economics) Elected to Board of Directors: 2015 Expiry of current term of office: 2025 Independent: Yes

Vice-Chairman Ellen Trane Nørby Deputy mayor, professional board member and independent consultant Born: 1 February 1980 Gender: Female Education: MA (history of art) Elected to Board of Directors: 2023 Expiry of current term of office: 2025 Independent: Yes

Committee memberships:

Member of Digitization Committee and Nomination Committee

Directorships and other offices:

M.J. Grønbech Ejendomme A/S, board member M.J. Grønbech & Sønner Holding A/S, board member

Specific competences:

IT and digitization, robotics, management, strategy and business development, and macro economics

Committee memberships: Member of Audit Committee

Directorships and other offices:

Naviair, board member

Projekt Zero-fonden, board member DANVA Dansk Vand- og Spildevandsforening, chairman SONFOR Holding A/S, chairman SONFOR Varme A/S, chairman SONFOR Vedvarende Energi A/S, chairman SONFOR Resort Varme A/S, chairman SONFOR Deponi A/S, chairman SONFOR Spildevand A/S, chairman SONFOR Genbrug & Affald A/S, chairman SONFOR Vand A/S, chairman SONFOR Service A/S, chairman Sønderborg Lufthavn A/S, board member Sønderborg Kommune, second deputy mayor

Specific competences:

ESG and governance, macro economics, management and strategy, organisation, communication and marketing

Board member Janne Moltke-Leth CEO Born: 4 August 1966 Gender: Female Education: MSc in Business, Language and Culture; Graduate Diploma in Organisation Elected to Board of Directors: 2016 Expiry of current term of office: 2025 Independent: Yes

Board member Susanne Schou Professional board member Born: 24 April1964 Gender: Female Education: – Elected to Board of Directors: 2018 Expiry of current term of office: 2025 Independent: Yes

Committee memberships:

Chairman of Nomination Committee and member of Risk Committee

Directorships and other offices:

Bruun Rasmussen Kunstauktioner A/S, CEO Royal Greenland A/S, board member Svenske Duni AB, board member

Specific competences:

Management, strategy and business development, marketing and communication, flow analysis, sales and distribution, ESG

Committee memberships:

Chairman of Digitization Committee and member of Nomination Committee

Directorships and other offices:

Swienty A/S, board member Sydbank Fonden, board member

Specific competences:

Business development, change management, strategy development, digitization and HR

Board of Directors

Board member Gitte Poulsen Executive Manager Born: 5 August 1967 Gender: Female Education: Shipping Agent, Graduate Diploma in Business Administration Elected to Board of Directors: 2019 Expiry of current term of office: 2025 Independent: Yes

Board member Jon Stefansson Attorney Born: 27 June 1973 Gender: Male Education: Attorney Elected to Board of Directors: 2019 Expiry of current term of office: 2025 Independent: Yes

Committee memberships:

Chairman of Remuneration Committee and member of Audit Committee

Directorships and other offices:

Gitte Poulsen Holding 2019 ApS, executive manager Gitte Poulsen Holding 2022 ApS, executive manager Ejendomsselskabet af 29.06.2006 A/S, chairman Herning Folkeblads Fond, board member Gitte Poulsen Holding ApS, executive manager KP Invest Herning A/S, board member KP Invest Finans III A/S, chairman KP Invest Finans II A/S, chairman KP Invest Finans I A/S, chairman Selskabet af 1. september 2022 ApS, chairman

Specific competences:

Management, strategy and business development, financial management and accounting

Committee memberships:

Member of Risk Committee and Remuneration Committee

Directorships and other offices:

Michael Nissen Holding ApS, chairman P. Christensen A/S, chairman Moravia Invest A/S, chairman P. Christensen Ejendomme A/S, chairman P. Christensen Mobility A/S, chairman Andersen Partners Advokatpartnerselskab, board member Kai D Fonden, chairman P. Christensen, Odense, Holding A/S, chairman

Specific competences:

Compliance/law, management, strategy and business development

Board member Henrik Hoffmann Former head of credits Born: 15 August 1958 Gender: Male Education: Banking, Graduate Diploma in Foreign Trade Elected to Board of Directors: 2020 Expiry of current term of office: 2025 Independent: Yes

Board member Søren Holm Former group executive Born: 15 November 1956 Gender: Male Education: MSc (Economics) Elected to Board of Directors: 2020 Expiry of current term of office: 2025 Independent: Yes

Committee memberships: Chairman of Risk Committee

Directorships and other offices:

Accunia Fondsmæglerselskab A/S, board member ACM Forvaltning A/S, board member Kapitalforeningen Accunia Invest, board member

Specific competences:

Financial business management, risk management, credit management, finance, strategy and business development

Committee memberships:

Chairman of Audit Committee and member of Digitization Committee

Directorships and other offices: –

Specific competences:

Financial business management, strategy and business development, financial management, accounting and auditing, risk management, credit management, Treasury, issuance of securities and capital management, ESG and governance

Board of Directors

Board member Carsten Andersen Account Manager, Corporate Clients Born: 3 September 1984 Gender: Male Education: Academy Profession (AP) Degree in Financial Advice – banking, trained estate agent, Graduate Diploma in Business Administration Elected to Board of Directors: 2018 Expiry of current term of office: 2026 Independent: No Elected by the employees

Board member Jarl Oxlund Chairman of Sydbank Kreds Born: 29 April 1967 Gender: Male Education: Banking, Graduate Diploma in Business Administration, MPO (Master of Organisational Psychology) Elected to Board of Directors: 2014 Expiry of current term of office: 2026 Independent: No Elected by the employees

Committee memberships:

Member of Audit Committee

Directorships and other offices:

Sundeved Vælgerforening, board member Venstres Kommuneforening in Sønderborg, board member Venstres Kredsbestyrelse in Sønderborg Kommune, association representative

Specific competences:

Credit granting, finance, economics and accounting

Committee memberships:

Member of Digitization Committee

Directorships and other offices:

Financial Services Union in Denmark, member of executive council Sydbank Kreds/Financial Services Union in Denmark, chairman of Sydbank Kreds

Specific competences:

Accounting, banking products, credit risks and organisation

Board member Jørn Krogh Sørensen Head of Credits Born: 16 October 1965 Gender: Male Education: Banking, Graduate Diploma in Business Administration, FU Master in Leadership Elected to Board of Directors: 2018 Expiry of current term of office: 2026 Independent: No Elected by the employees

Committee memberships: Member of Remuneration Committee

Directorships and other offices: –

Specific competences:

Lending, finance, risk management, accounting and management

Board member Pia Wrang Executive Vice President Born: 2 January 1971 Gender: Female Education: Certified Financial Adviser – Wealth Adviser, Government taxation study programme, Trainee – A.P. Møller-Mærsk Elected to Board of Directors: 2022 Expiry of current term of office: 2026 Independent: No Elected by the employees

Committee memberships: Member of Risk Committee

Directorships and other offices: –

Specific competences:

Lending, tax, accounting, banking products and concept development

Group Executive Management

CEO Mark Luscombe Born: 18 May 1969 Gender: Male Group Executive Management member since: 2024 CEO: 2024

Deputy Group Chief Executive Jørn Adam Møller Born: 31 July 1966 Gender: Male Group Executive Management member since: 2019

Directorships:

Sydbank Fonden, board member Ejendomsselskabet af 1. juni 1986 A/S, chairman National Banks in Denmark, chairman Syd Administration A/S, chairman Foreningen Bankdata, vice-chairman Finance Denmark, board member PRAS A/S, board member BI Holding A/S, board member Coop Bank A/S, board member Oeconforeningen, board member

Directorships:

Syd Administration A/S, executive manager and board member Ejendomsselskabet af 1. juni 1986 A/S, executive manager and board member Coop Bank A/S, chairman Bokis A/S, board member Letpension Forsikringsformidling A/S, board member

Deputy Group Chief Executive Stig Westergaard Born: 9 September 1967 Gender: Male Group Executive Management member since: 2023

Directorships:

Syd Administration A/S, vice-chairman Ejendomsselskabet af 1. juni 1986 A/S, board member Coop Bank A/S, board member DLR Kredit A/S, board member

Organisation

Sydbank A/S Peberlyk 4 6200 Aabenraa

Tel +45 74 37 37 37 sydbank.com [email protected]

Denmark CVR No DK 12626509

210 Annual Report 2024

AI Terminal

Sydbank

3387_10-k_2025-02-26_66c9e187-9f24-4925-8ebb-c81e4ad94741.pdf

Sydbank Group Annual Report 2024

Preface

Highly satisfactory profit thanks to all-time high core income

Outlook 2025

2024 highlights

Contents

Financial Review

Sustainability Reporting

Financial Statements

Management, Organisation etc

2,762 Profit for the year DKKm

Group Financial Highlights

Summary

Highly satisfactory profit thanks to all-time high core income

Acquisition of Coop Bank A/S

Bigger Sydbank – new 3-year strategy plan

Bigger Sydbank centres on 5 themes:

Bigger and efficient – profitable growth

Summary

Customer satisfaction

Return on equity

Employee engagement

Results for 2024

SIFI

Capital targets

Proposed dividend for 2024

Share buyback in 2025

Outlook for 2025

Performance in 2024

2024

Q4

Income statement

Core income

Core income

Trading income

Costs and depreciation

Costs and depreciation

Core earnings before impairment of loans and advances

Impairment of loans and advances etc

Management estimates

Impairment charges for the year by industry

Performance in 2024

Bank loans and advances and impairment charges

Core earnings

Investment portfolio earnings

Investment portfolio earnings

Non-recurring items, net

Profit for the year

Other comprehensive income

Return

Sydbank – the parent

Subsidiaries

Group – Q4 2024

Performance in 2024

Quarterly results

Total assets

Assets

Bank loans and advances

Credit facilities to corporate clients

Equity and liabilities

Credit intermediation

Total credit intermediation

The Sydbank share

Share capital

Equity

Capital

Risk exposure amount

Risk exposure amount

Performance in 2024

Retail

Corporate

Solvency

Solvency of the parent

Capital policy

Dividend policy

Subordinated debt and MREL requirements

Requirements and excess cover