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Sydbank Capital/Financing Update 2011

Dec 8, 2011

3387_iss_2011-12-08_5176e468-a158-435f-8b6b-a3af08a2a10c.pdf

Capital/Financing Update

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Sydbank

NASDAQ OMX Copenhagen London Stock Exchange Bourse de Luxembourg Other stakeholders

Company Announcement No 18/11

Peberlyk 4 · PO Box 1038 DK-6200 Aabenraa

Tel +45 74 37 37 37 Fax +45 74 37 35 36

sydbank.dk SWIFT SYBKDK22

Sydbank A/S CVR No DK 12626509, Aabenraa

8 December 2011

Dear Sirs

EU-wide capital test

Sydbank and other major banks from EU countries have participated in a capital test on 30 September 2011 conducted at the request of the European Banking Authority (EBA). The purpose of the capital test was to establish the European bank sector's potential need for recapitalisation.

In order to pass the test banks must post a Core Tier 1 capital of a minimum of 9%, which has been fixed by the EBA. Sydbank's Core Tier 1 capital ratio measured in the test constitutes 12.8%. Sydbank is therefore 3.8 percentage points above the EBA's minimum requirement and does not require further capital to meet the fixed minimum requirement.

Sydbank has a very solid capital structure and the bank has no exposure to government bonds with bad credit ratings.

Yours sincerely

Karen Frøsig CEO

Preben L. Hansen Deputy Group Chief Executive

Composition of capital as of 30 September 2011 (CRD3 rules)

Sydbank

DK010

Name of the bank

Total of items as defined by Article 57 (i), (m), (n) (o) and (p) of Directive 2006/48/EC
and deducted from original own funds (COREP lines from 1.3.1 to 1.3.5 included in line COREP line 1.3.7 included in line 1.3.T1* (50% securitisation exposures in the banking
and trading book subject to 1250% risk weight; Art. 57 (r) of Directive 2006/48/EC) Net amount included in T1 own funds (COREP line 1.1.4.1a + COREP lines from
1.1.2.2***01 to 1.1.2.2***05 + COREP line 1.1.5.2a (negative amount)) not subscribed Please report the prudential filter as a positive number if the AFS revaluation reserve Common equity + Existing government support measures included in T1 other than provide a positive number if the book value is larger than the fair value of sovereign
assets. Please provide a negative number if the book value is smaller than the fair COREP CA 1.1 - hybrid instruments and government support measures other than As defined by Article 57 (q) of Directive 2006/48/EC (COREP line 1.3.8 included in Difference between the book value and the fair value at the reference date. Please 9%RWA-(Core Tier 1 including existing government support measures-Sovereign for sovereign assets is negative. Please report the prudetnial filter as a negative number if the AFS revaluation reserve is positive. If the bank does not apply a %RWA-Core Tier 1 including existing government support measures; if >0. COREP CA 1.4 = COREP CA 1.1 + COREP CA 1.3.T1* (negative amount) Prudential filters for regulatory capital (COREP line 1.1.2.6.06) References to COREP reporting Sum of Prudential filter and valuation. If negative it is set to 0 Net amount included in T1 own funds (COREP line 1.1.5.1) prudential filter on AFS sovereign assets, please fill in zero Paid up ordinary shares subscribed by government capital buffer for exposures in EEA); if >0. COREP CA 1.1.1 + COREP line 1.1.2. COREP CA 1.3.T1* (negative amount) ralue of the sovereign assets. by government proinary shares $1.3.71^{}$ yrainary $3.71$ 12.78% 12.78% 14.69% $0.00\%$ 0.00% $0.00\%$ $ber 201$ $\frac{1}{1}$
$\frac{430}{9.733}$ $22$ ä $\overline{\phantom{a}}$ $\overline{\bullet}$ ā 1,281 -37 1,244 186 $.283$ 1,244 A) Common equity before deductions (Original own funds without hybrid instruments and
government support measures other than ordinary shares) (+) Of which: (-) securitisation exposures not included in RWA according with CRD3 (2) H) Difference between the book value and the fair value of sovereign assets (Bonds and Of which: (-) IRB provision shortfall and IRB equity expected loss amounts (before tax) B) Deductions from common equity (Elements deducted from original own funds) (-) G) Prudential filter (AFS sovereign assets in EEA as of 30th September 2011) (-/+) Ter 1 Capital (E+F) (Total original own funds for general solvency purposes) -oans and advances) in the HTM and Loans & Receivables portfolios (3). Of which: (-) intangibles assets (including goodwill)
Of which: (-/+) adjustment to valuation differences in other AFS assets E) Core Tier 1 including existing government support measures (C+D) Of which: RWA add-on for CRD III as of end September 2011(2) Of which: (-) deductions of participations and subordinated claims RWA as of end September 2011 including add-on for CRD3 (2) Shortfall to 9% before application sovereign capital buffer werall Shortfall after including sovereign capital buffer ordinary shares subscribed by government F) Hybrid instruments not subscribed by government D) Other Existing government support measures (+) Sovereign capital buffer for exposures in EEA (G+H) Of which: (+) eligible capital and reserves Capital position CRD3 rules C) Common equity (A+B) overeign Capital buffer is and definit Of which:

(1) The amount is already included in the computation of the eligible capital and reserves and it is provided separately for information purposes.
(2) According with CRD3 it can include also 50% securitisation exposures in

Exposures to sovereigne (central, regional and local governments) in EEA, as of 30 September 2011, min EUR
Neme of the bank: DK010

í
í
۱
î
Fair value of Cash
flow and fair value
hedging contracts on
AFS sovereign
asses
asses
$\circ$ $\circ$ $\circ$
0
popopopopo
$\circ$
000000
PP
$\circ$
þ
$\circ \circ \circ$
pp
0 0
$\circ \circ \circ$
0000
000000 0
b
þ
lo lo
b
lo lo
AFS exercite
$AFS$ sovereign assets
(gross the fair value of
Ceas the fair value of
Ceas he hedging
contracts)
( $\langle \mu, \mu \rangle$ , $\vert n \rangle$
$\circ$
$\circ$
lo lo
k
$\circ$
ю
lo lo
ю
b
b
۰l٥
þ
٥ю
b
0 0 0
olo
þ
∘∣∘
∣b∣o
Prudential filter
$AFS$ sovereign assets
(including the fair
veluding the fair
veluding fair of the hedging
fair of the hedging
contracts)
( $v_1$ ), (i)
þþ
ppp
ko ko
$\circ$
b
a c
k
þ
þ
00
b
pp
Þ
Provisions and
write-off on
Sovereign assets
(bans, advances
and debt securities)
Memo Item Nominal Value
Debt securities
In HTM and Loans
and Receivables
l⊳lo
ppp
$\circ$
þ
olo
$\circ \circ$
∍kok
b
þ
ю
b
k
b
INDIRECT SOVEREIGN
EXPOSURES (3)
(on and off balance sheet)
Net position at fair values
(Denvalives with positive fair
value + Denvatives with
negative fair value)
000
b
þ
PP
۰þ
þ
Þ
þ
þ
olo
þ
þ
ю
ю
O
Þ
þ
Þ
k
$\circ$
Þ
þ
Þ
þ
P
Þ
Þ
ppp
۱P
lo lo
ola
p
DIRECT SOVEREIGN
EXPOSURES IN

DERIVATIVES (1)
Net position at fair values
(Derivatives with positive fair
value + Derivatives with
negative fair value)
99999
00
pppp
ppp
$\circ$
ppp
юK
þ
ppp
юþ
0 p
$\circ$
opp
ЮF
þ
0000
$\circ \circ \circ$
$\circ \circ \circ$
0 0 0
ppppppp
P pp
oop
þр
debt to
aign
of which: Financial assets
held for trading (2)
00000000
이이이이이이아
이이어
$\circ$ $\circ$ $\circ$
0 0 0 0 0 0 0 00000000
HET DRECT POSITIONS
Ignoss of provisions and write-off exposures (long) net of cash short position of so-
Ignoss of provisions and write-off exposures (long) net of cash short position of so-
of which: Financial assets
designated at fair value
through profit or loss
(FVO)
0 0 0
이어이
$\circ$
아이아이
$\circ$ $\circ$
0 0 0
ooooo
$\circ$
o o o o o o
$\circ$ o $\circ$ o $\circ$
0 0 0 0 0 0 0
00000000
00000000
이어
이이이이아
of which: Available for
sale financial assets
(AFS)
0 0 0 0 0 0 0
00000000
0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 오리위에의 시설
0 0 0 0 0 0 0
000000
olo
$\circ$
lololololok
of which: loans and
advances in the HTM
and Loans and
receivables portfolios
$\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
00000
$\circ$
00
00000000
이이어

o
$\frac{1}{2}$
0000
이어
$\circ$
$\circ$ o
o o o
۰þ
00000000
GROSS DIRECT LONG EXPOSURES (accounting
value gross of provisions) 10
oooooooo
$\overline{\phantom{a}}$
아이아이아이
00000000 00000000
Country
Residual Maturity
Belgium
Austria
Bulgaria Czech Republic
Cyprus
Denmark
Estonia
Finland
France
최뇌직원학회회 발치회원회학회 발치회원회학회 발치회원회학회 발치회원회학회 발치회원회학회 발치회원회학 발치회원회원회원 발치회원회
Fair value of Cash
flow and fair value
hedging contracts on
AFS sovereign
asses
$\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ b b ю
AFS score
(gross the fair value of
(gross the fair value of
Cars the fair value of
value hedging
contracts)
contracts)
۰þ
00
þ
þ ۱≂ ۱۰
þ
þ ю
ю
þ Þ
Prudential filter
AFS sovereign assets
(including the fair
value as fair
value hedging
fair value hedging
contracts)
( $\langle \nu \rangle$ [4]
lo lo k
юю
Þ
Þ
ю
∤৽ P
'∣⊳l∘
۱۹
Provisions and
write-off on
Sovereign assets
(loans, advances
and debt ascurities)
Memo Item Nominal Value
Debt securities
in HTM and Loans
and Receivables
0000
lo lo

ю
þ Þ þ
ю
Þ
þ þ
INDIRECT SOVEREIGN
EXPOSURES (3)
(on and off balance sheet)
Net position at fair values
(Derivatives with positive fair
value + Derivatives with
magative fair value)
OOKOBRO8OOOOOO юþ þ
ю
PP
۱Þ
þ
þ ю þ
∞∣∾
lo lo
k
þ
DIRECT SOVEREIGN
EXPOSURES IN

DERIVATIVES (1)
Net position at fair values
(Derivatives with positive fair
value + Derivatives with
negative fair value)
0000000000 $\circ \circ \circ \circ \circ$
0
00000
OOOOOOO 0000000 00 00000 0 $\circ \circ \circ$
ppp
Þ
000
$\sim$
$\circ$ $\circ$ $\circ$
lo la
$\circ$
debt to
reign
which: Financial asset
held for trading (2)
$\overline{\sigma}$
00000000 0000000
of which: Financial assets
designated at fair value
through profit or loss
(FVO)
00000000 0000000 00 0000000 00000000 00000000 이어어어어어
NET DRECT POSITIONS
Ignass of provisions and write-off exposures (long) net of cash ahort position of son
Other counterparties only where there is maturity matching) $^{11}$
of which: Available for
sale financial assets
(AFS)
○ ○ ○ ○ ○ ○ 00000000 이이이이아
0 0
00000000 $\circ$ 0 0 0 0 0 0 0000
$\circ$
이어
이이어
이어
$\circ$ $\circ$
이이
이어
이이
$\circ$
이이이이ㅇ
0 0 0 0
$\vert$ o $\vert$
이이이아
이이이이
$\circ \circ$
0 0
이이이어
0 0 0
o∣o
00000
$\circ$ $\circ$
0000
이이아
o o o o o o c 이이이이이아
$\circ$
0 0 0 0 0 0
of which: loans and
advances in the HTM
and Loans and
receivables portfolios
0 0 0 0 $\circ$ $\circ$ $\circ$ $\circ$
$\circ \circ$
o o o o o 00000000 00000000 00000000 olololololo 0000000 $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
$\circ$
ololololol ol
GROSS DIRECT LONG EXPOSURES (accounting
value gross of provisions) (1)
- 0
dolo lo
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$ 00000000 00000000 0 0 0 0 0 0
Country Germany Greece (5) Hungary Iceland Ireland ttaly Latvia Liechtenstein Lithuania Luxembourg
Residual Maturity · 복더워워워링현트뵘더워워워힝햪트뵘쉬워워킹회햗트뵘쉬워워헤햑트뵘쉬워워헝헝트뵘쉬워워이화트뵘쉬워이 보여 아이 그 사이 아이 그 사이 그 사이 그 사이 사이 있습니다 아이 그 사이 그 사이 그 사이 그 사
Fair value of Cash
flow and fair value
hedging contracts on
AFS sovereign
assets
$\circ$ ⋗∣⇔∣ $\circ$ $\circ$ $\circ$ $\circ$
þ
ю
POOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO o o o o o o b
k
lo lo
$\circ$
$\mathsf{b}$
o o o
$AES$ according
$BFS$ according assets
(gross the fair value of
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\frac{1}{2}$
$\$
b
lo lo
k
ю
0 0
b∣∘
k
000
۱Þ þ
۱۶
þ
Prudential filter
AFS sovereign assets
(preluding the fair
value hedging
air value hedging
fair value hedging
contracts)
( $(vA)$ 14 )
pppp k
¦∣o o
ю
оþ
Þ
Provisions and
write-off on
Sovereign assets
(bans, advances
and debt securities)
Memo Item Nominal Value
Debt securities
In HTM and Loans
and Receivables
ppppp ю ю
þ
þ b
INDIRECT SOVEREIGN
EXPOSURES(3)
(on and off balance sheet)
Net position at fair values
(Derivatives with positive fair
value + Derivatives with
negative fair value)
٥þ
PPP
lo lo
0 0 0 0
Þ
0 0
pppp
O
$\triangleright$
Þ
$\triangleright$
ю
þ
ю
$\triangleright$
ololo
P
lo lo
lo lo
o
pppp
$\circ$

b
olok
DIRECT SOVEREIGN
EXPOSURES IN
DERIVATIVES (1)
Net position at fair values
(Derivatives with positive fair
value + Derivatives with
negative fair value)
∥∘∣∘∣∘∣∘∣∘∣ $\circ$ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 pppppppppppp $\sim$ 00000 þ
þ
$\circ$ $\circ$
$\circ \circ \circ$
>lololo
rereign debt to of which: Financial ass
held for trading (2)
0 0 0 0 0 0 0 00000000 00000000000000000000000000000 000000
o∣o
0000000 00 000 $\circ \circ \circ$ 00000
NET DRECT POSITIONS
Ignoss of provisions and write-off exposures (long) net of cash short position of so
Ignoss of provisions and write-off exposures (long) net of cash short position of so
of which: Financial assets
designated at fair value
through profit or loss
0 0 0 0 0 0 0 $\circ$ $\circ$ $\circ$ $\circ$ 이아 아아아아
$\circ$
이야이 olololo ol ololololololo 000000000000 o o o 0000000
of which: Available for
sale financial assets
(AFS)
∥∘∣∘∣∘∣∘∣∘∣∘∣
0 0
o o o o c
$\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ 00000000 00000000 00000000 000000000 00000000 00000000 $ $ o $ $ o $ $ o $ $ o
$\circ$ o $\circ$
$\circ \circ \circ \circ \circ \circ \circ$
of which: loans and
advances in the HTM
and Loans and
receivables portfolios
$\circ$
o o o o c
$\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
$\circ$
$ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0$ 0000000 00000000 이어어어어 $\circ$
0 0 0
$\circ$ $\circ$
0 0 0 0
$\circ \circ \circ$
$\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$
GROSS DIRECT LONG EXPOSURES (accounting
value gross of provisions) (1)
$\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ $\circ$ ololololololo o lololololololo lolololol 00000000 0 0
$\circ$ $\circ$ $\circ$ $\circ$
0 0 0 0 0 0 0 이이이이이이야
Country Matta Netherlands Norvay Poland Portugal Romania Slovakia Slovenia Spain Sweden
Residual Maturity ' খন্যখণ্ড আৰু খন্যখন আৰু খন্যখন আৰু আৰু আৰু আৰু আৰু আৰু আৰু আৰু আৰু আৰু
Fair value of Cash
flow and fair value
ö
(gross the fair value of
AFS sovereign asset
Reserve
AFS sovereign assets
(including the fair
Prudential filter
Provisions and
write-off on
0 c
Memo Item In HTM and Loans
Debt securities
and Receivables
Nominal Value
portfollos
s
(on and off balance sheet)
INDIRECT SOVEREIGN
EXPOSURES (3)
Derivatives with positive fair
Net position at fair values
value + Derivatives with
negative fair value)
66.37
DIRECT SOVEREIGN
DERIVATIVES (1)
EXPOSURES IN
(Derivatives with positive fair
Net position at fair values
value + Derivatives with
negative fair value)
off exposures (long) net of cash short position of sovereign debt to of which: Financial assets
held for trading (2)
o ٥ DA
other counterparties only where there is maturity matching) (1)
NET DIRECT POSITIONS
designated at fair value
of which: Financial assets
through profit or loss
(FVO)
$\circ$ c ۰ c ć
of which: Available for
sale financial assets
(MFS)
$\sim$ $^{\circ}$ $\sim$ $\overline{\phantom{a}}$
C
$\circ$
$\circ$ O a 420
GROSS DIRECT LONG EXPOSURES (accounting (gross of provisions and write
value gross of provisions) (1)
advances in the HTM
of which: Joans and
receivables portfolios
and Loans and
$\circ$ $\circ$ c 438
O O 167
Country United Kingdom TOTAL EEA 30
Residual Maturity 3M $\overline{Y}$ $\geq$ $\frac{37}{56}$ $\frac{167}{161}$

ikits and definitions
(3) The state and overcome to certal, regional and Leagues and the media between the state of the contents with function and a counterparticles.
(3) The state and the state of the state of the far the

Name of the bank: DK010 Sydbank
(in million Euro)
Rules at the end of September CRD 3 rules
Total RWA (1) 9,733
9,721
RWA for credit risk 7,412
7,412
RWA Securitisation and re-securitisations ı
j
RWA Other credit risk 7,412
7,412
RWA for market risk 1,236
1,224
RWA operational risk 1,085
1,085
Transitional floors (2)
RWA Other
Notes and definitions

Composition of RWA as of 30 September 2011

(1) The RWA calculated according to CRD III can be based on models that have not yet been approved by the National Supervisory Authority.

(2) All IRB/AMA banks in the exercise have applied transitional floor which assess the impact 80% of the Basel 1 requirements.
However, wide divergences in national approaches to the floors means that two main approaches h

option2

CDS and other contract Sovereign exposures (central, regional and local governments) in EEA towards other counterparties, as of 30 September 2011, min EUR

Name of the bank: DK010 Sydbank

Credit default swaps (CDS) and other contracts (1)
Bank is protection seller Bank is protection buyer
Country (2) Notional amount
outstanding
(3)
Notional amounts
outstanding
(3)
Austria ×, u,
Belgium $\overline{a}$
Bulgaria
Cyprus
Czech Republic ä, L.
Denmark ٠
Estonia - L.
Finland ä,
France
Germany ÷
Greece
Hungary 19 19
Iceland ÷ -
Ireland ٠ ÷
Italy 4 4
Latvia
Liechtenstein $\overline{a}$ ٠
Lithuania ٠ Ξ
Luxembourg ٠ -
Malta ä. ω
Netherlands ä, ۷
Norway
Poland 4 4
Portugal $\overline{\phantom{0}}$
Romania ٠
Slovakia ٠ ۰
Slovenia
Spain
Sweden ۰
United Kingdom ۰ ÷

(1) It includes credit derivatives and other credit risk transfer contracts/instruments that irrespective of the denomination respresent indirect exposures (as protection seller/buyer) on sovereign risk (reference entity)

(2) The country identifies the reference entity single name of the CDS and other contracts.

(3) Notional amounts outstanding: Nominal or notional amounts outstanding are defined as the gross nominal or notional value of all contracts concluded and not yet settled on the reporting date. For contracts with variable nominal or notional principal amounts, the basis for reporting is the nominal or notional principal amounts at the time of reporting.