Sydbank — Earnings Release 2015

Oct 27, 2015

News Details

UK Regulatory | 27 October 2015 10:52

Sydbank’s Interim Report – Q1-Q3 2015

Sydbank A/S / 3rd Quarter Results

27-Oct-2015 / 10:52 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group
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The issuer is solely responsible for the content of this announcement.

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Aabenraa, Denmark, 2015-10-27 10:52 CET (GLOBE NEWSWIRE) --
Sydbank delivers solid performance - growth in lending for seventh consecutive
quarter

On the back of solid Q1-Q3 financial statements Sydbank today presents a new
3-year strategy plan to secure that the positive trend since the beginning of
2014 continues. The strategy is called Blue growth and aims to realise a return
on shareholders' equity of a minimum of 12%.

CEO Karen Froesig comments:

-- We have delivered a solid Q1-Q3 performance and we are pleased. We have
recorded growth in lending for the seventh quarter in a row but we are
particularly pleased to note that impairment charges continue the
favourable trend that we have seen since the beginning of 2014.

On Sydbank's new 3-year strategy plan she comments:

-- Blue growth is an ambitious strategy to ensure that Sydbank continues the
positive development we are experiencing. On the basis of our high customer
satisfaction we aim to provide high-quality, sound and profitable banking
with customers at the centre. Blue growth articulates Sydbank's way of
running a bank, namely in a profitable, down-to-earth, simple and
cooperative manner.

She elaborates:

-- We are a large national bank - but with the proximity, speed and
flexibility of a local bank. We believe that we can provide the best of
both worlds - giving our customers the flexibility they seek through
digital solutions while at the same time offering competent advice in
connection with big decisions such as buying a house or setting up a
pension scheme. We aim to develop in line with customer needs and we see
digital solutions as a natural part of our relationship with customers.

Blue growth - financial targets for the period 2016-2018

-- Realise a return on shareholders' equity of a minimum of 12% after tax or
be in the top 3 of the 6 largest banks
-- Maintain top 3 ranking among the 6 largest banks in terms of customer
satisfaction
-- Increase core income by a minimum of DKK 50m each year
-- Reduce costs by DKK 50m annually - in 2015 prices
-- Average impairment charges of a maximum of 50 basis points during one
economic cycle.
--

Q1-Q3 results - highlights

-- Profit of DKK 832m, equal to a return on shareholders' equity of 9.8% p.a.
after tax.
-- Core income of DKK 3,289m - an increase of 2% compared with Q1-Q3 2014.
This is a historically high income.
-- Total income of DKK 3,456m - up 1% compared to the same period in 2014.
-- Impairment charges for loans and advances represent DKK 272m and have
declined by 51% compared with Q1-Q3 2014.
-- Bank loans and advances have risen by DKK 3.9bn, equal to 5.8% in 2015.
-- The Common Equity Tier 1 capital ratio has climbed by 0.5 percentage points
in Q1-Q3 2015 and constitutes 14.4%.
-- Tier 2 capital worth EUR 100m has been issued.
-- A share buy-back programme of DKK 500m was commenced on 13 April 2015.

Outlook for 2015

Sydbank projects limited positive economic growth in 2015. Furthermore we
expect:

-- Unchanged core income relative to income for 2014 due to continued fierce
competition and the negative interest rate environment and despite an
increase in bank loans and advances.
-- Uchanged trading income relative to income for 2014 but dependent on
financial market developments.
-- Unchanged costs (core earnings) - despite the general pay rises agreed for
the financial sector of 1.75% and a payroll tax increase of 0.80%.
-- Significantly lower impairment charges in 2015.

Projections for core income and costs (core earnings) are exclusive of the
effect of the acquisition of Sydinvest Administration A/S as of 31 March 2015,
which is expected to result in an increase in both items of approximately DKK
50m.

Additional information

Joern AdInIIam Moeller, CFO, tel +45 74 37 24 00

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

Karen Froesig, CEO, Bjarne Larsen, Deputy Group Chief Executive, and Joern Adam
Moeller, CFO, will present the Q1-Q3 Report today at 13.00 (CET) at a
teleconference. The teleconference will be held in Danish and may be attended
via www.sydbank.dk/audiocast.

Attendees, please call by 12.55 (CET). Danish attendees are invited to call 70
22 35 00. International attendees are invited to call +44 207 57 21 187. Please
quote the following code: 61807336#

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News Source: NASDAQ OMX

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27-Oct-2015 The EQS Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap.de/ukreg

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Language: English
Company: Sydbank A/S

                Dänemark

ISIN: DK0010311471
Category Code: QRT
TIDM: 0G6U
Sequence Number: 2881
Time of Receipt: 27-Oct-2015 / 10:52 CET/CEST

End of Announcement EQS News Service

405679 27-Oct-2015