Sydbank — Audit Report / Information 2011

Jul 15, 2011

Sydbank A/S / Miscellaneous

15.07.2011 18:00

Dissemination of a UK Regulatory Announcement, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

Aabenraa, Denmark, 2011-07-15 18:00 CEST (GLOBE NEWSWIRE) -- Dear Sirs

2011 EU-wide stress test

Sydbank has participated in the 2011 EU-wide stress test conducted by the European Banking Authority (EBA) in cooperation with national authorities, the European Central Bank (ECB), the European Commission and the European Systemic Risk Board (ESRB). Danmarks Nationalbank and the Danish FSA participated as the national authorities from Denmark.

The stress test, carried out across 90 banks, seeks to assess the resilience of European banks, including their solvency, to severe shocks under hypothetical stress events.

Assumptions and methodology were established to assess banks' Core Tier 1 capital against a fixed minimum of 5%.

The stress test is based on the EBA common methodology and guidelines (eg constant balance sheet) as published in the EBA Methodological Note. The information relative to the baseline scenario is provided only for comparison purposes as regards the adverse scenario. Neither the result of the baseline scenario nor the result of the adverse scenario can in any way be construed as Sydbank's forecast or be directly compared to other information published by Sydbank.

Sydbank is pleased with the outcome of the EU-wide stress test and the Group's individual results indicating

• great resilience to adverse economic developments in 2011 and 2012
• no appreciable exposure to governments and banks in countries with increased risk
• a very robust capital structure.

Sydbank's Core Tier 1 capital ratio increases to 13.6% under the adverse scenario in 2012 compared with 12.4% at end-2010, equal to 8.6 percentage points above the fixed minimum of 5%.

Detailed results

The detailed results of the stress test under the baseline and adverse scenarios as well as information on banks' credit exposures and exposures to central and local governments are provided in the accompanying disclosure templates based on the common format provided by the EBA.

Macroeconomic scenarios

The stress test uses a baseline and an adverse scenario that covers the period 2011-2012. The baseline scenario is mainly based on the Autumn 2010 European Commission forecast but remains broadly in line with the currently expected economic development in the case of Denmark. The adverse scenario represents a significantly more negative economic development.

Further information

See more details on the scenarios, assumptions and methodology on the EBA website: www.eba.europa.eu/EU-wide-stress-testing/2011.aspx

Yours sincerely

---

Karen Froesig
Preben L. Hansen
CEO
Deputy Group Chief Executive

Contact
Karen Froesig, CEO
Tel +45 7437 2000

Encls:

EBA's disclosure templates

Click on, or paste the following link into your web browser, to view the associated documents

https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachment
Id=356212

News Source: NASDAQ OMX

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Language: English
Company: Sydbank A/S
Phone: DÄnemark
Fax:
E-mail:
Internet:
ISIN: DK0010311471
Category Code: MSC
LSE Ticker: 0G6U
Sequence Number: 838
Time of Receipt: Jul 15, 2011 18:00:02

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