Sydbank — Earnings Release 2015

Oct 27, 2015

Sydbank A/S / 3rd Quarter Results 27-Oct-2015 / 10:52 CET/CEST Dissemination of a RegulatoryAnnouncement, transmitted by EQS Group AG. The issuer is solely responsible for the content of this announcement. ------------------------------------------------------------

--------- 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 withQ1-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 withQ1-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 inQ1-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 SydinvestAdministrationA/S as of 31 March 2015, which is expected to result in an increase in both items of approximately DKK 50m. Additional information JoernAdInIIam 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, DeputyGroup Chief Executive, and JoernAdam 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# Click on, or paste the following link into your web browser, to view the associated documents https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=534571 https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=534570 News Source: NASDAQ OMX --------------------------------------------------------------------- 27-Oct-2015 The EQS Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap.de/ukreg ------------------------------------

--------------------------------- 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 ofAnnouncement EQS News Service --------------------------------------------------------------------- 405679 27-Oct-2015