Sydbank — Earnings Release 2021

Jan 14, 2022

GROUP EXECUTIVE MANAGEMENT

Sydbank

Peberyk 4
6200 Aabenraa
Denmark
Tel +45 74 37 37 37
Fax +45 74 37 35 36
Sydbank A/S
CVR No DK 12626509, Aabenraa
sydbank.dk

Company Announcement No 01/2022

14 January 2022

Dear Sirs

Sydbank A/S to clarify its expectations for profit for 2021 and to announce its expectations for 2022

Profit for 2021

Sydbank expects a profit after tax of approx DKK 1,400m for 2021.

In October 2021 Sydbank adjusted upwards its expectations regarding profit after tax for 2021 as a whole to be in the range of DKK 1,300-1,450m.

Q4 2021 has been characterised by continued:
- lending growth
- tight cost control
- favourable developments in customers' financial circumstances.

Moreover an additional DKK 117m has been recognised as an expense, equivalent to the remaining part of the capitalised costs concerning a new capital market platform of which the joint development at Bankdata was completed in 2021.

As a result of the positive trend in customers' financial circumstances, a net reversal of impairment charges of DKK 104m was recorded in Q4 2021. Consequently impairment charges for 2021 as a whole represent a net reversal totalling DKK 415m. The management estimate related to covid-19 of DKK 325m from 2020 was unchanged at end-Q4 2021.

Outlook for 2022

A positive economic trend is projected to continue in 2022 and as a result impairment charges are projected to remain low.

Profit after tax is expected to be in the range of DKK 1,150-1,450m.

Sydbank's Annual Report for 2021 will be released on 2 March 2022 as planned.

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Additional information

Jørn Adam Møller, Deputy Group Chief Executive, tel +45 74 37 20 30
Susanne Ingemann Faber, Press Officer, tel +45 26 29 11 29

Yours sincerely

Karen Frøsig
CEO

Jørn Adam Møller
Deputy Group Chief Executive