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Sydbank — Interim / Quarterly Report 2011
Mar 31, 2011
3387_10-q_2011-03-31_602da9f9-35ee-45b7-b1f8-4b0810a995a6.pdf
Interim / Quarterly Report
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Sydbank A/S / 1st Quarter Results
26.04.2011 14:04
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, 2011-04-26 14:03 CEST (GLOBE NEWSWIRE) --
Company Announcement No 08/2011 26 April 2011
Contents
Financial Review
Group Financial Highlights
3
Summary
4
Financial Review
6
Financial Statements - Sydbank Group
Income Statement
12
Statement of Comprehensive Income
12
Balance Sheet
13
Financial Highlights - Quarterly
14
Capital
15
Cash Flow Statement
17
Segment Statements
18
Notes
19
Statement
Management Statement
27
Supplementary Information
28
Group Financial Highlights
| Q1 | Q1 | Index | Full year | |
|---|---|---|---|---|
| 2011 | 2010 | 11/10 | 2010 | |
| Income statement (DKKm) | ||||
| Core income excl trading income | 799 | 829 | 96 | 3,304 |
| Trading income | 299 | 399 | 75 | 1,290 |
| Total core income | 1,098 | 1,228 | 89 | 4,594 |
| Costs, core earnings | 650 | 656 | 99 | 2,479 |
| Core earnings before impairment | 448 | 572 | 78 | 2,115 |
| Impairment of loans and advances etc | 250 | 323 | 77 | 1,400 |
| Core earnings | 198 | 249 | 80 | 715 |
| Profit on investment portfolios | 75 | 116 | 65 | 227 |
|---|---|---|---|---|
| Profit before contributions to deposit guarantee and PCA | 273 | 365 | 75 | 942 |
| Contributions to deposit guarantee and the Private Contingency Association (PCA) | 98 | 139 | 71 | 384 |
| Profit before tax | 175 | 226 | 77 | 558 |
| Tax | 44 | 57 | 77 | 147 |
| Profit for the period | 131 | 169 | 78 | 411 |
| Balance sheet highlights (DKKbn) | ||||
| --- | --- | --- | --- | --- |
| Loans and advances at amortised cost | 71.4 | 73.3 | 97 | 73.0 |
| Loans and advances at fair value | 9.3 | 7.4 | 126 | 10.7 |
| Deposits and other debt | 64.6 | 62.2 | 104 | 64.2 |
| Bonds issued at amortised cost | 11.2 | 8.6 | 130 | 11.2 |
| Subordinated capital | 2.3 | 3.1 | 74 | 2.3 |
| Shareholders' equity | 9.6 | 9.3 | 103 | 9.6 |
| Total assets | 140.6 | 149.0 | 94 | 150.8 |
| Financial ratios per share (DKK per share of DKK 10) | ||||
| --- | --- | --- | --- | --- |
| EPS Basic ** | 1.8 | 2.3 | 5.6 | |
| EPS Diluted ** | 1.8 | 2.3 | 5.6 | |
| Share price at end of period | 132.8 | 147.8 | 151.3 | |
| Book value | 130.5 | 126.5 | 129.8 | |
| Share price/book value | 1.02 | 1.17 | 1.17 | |
| Average number of shares outstanding (millions) | 73.5 | 73.7 | 73.5 | |
| Dividend per share | - | - | 1.0 | |
| Other financial ratios and key figures | ||||
| --- | --- | --- | --- | --- |
| Solvency ratio | 15.4 | 15.3 | 15.4 | |
| Core capital ratio | 14.4 | 13.1 | 14.3 | |
| Pre-tax profit as % of average shareholders' equity ** | 1.8 | 2.4 | 6.0 | |
| Post-tax profit as % of average shareholders' equity ** | 1.4 | 1.8 | 4.4 | |
| Costs (core earnings) as % of core income | 59.2 | 53.4 | 54.0 | |
| Interest rate risk | 1.1 | 1.0 | 1.5 | |
| Foreign exchange position | 4.5 | 2.8 | 1.2 | |
| Foreign exchange risk | 0.0 | 0.0 | 0.0 | |
| Loans and advances relative to deposits * | 1.0 | 1.1 | 1.0 | |
| Loans and advances relative to shareholders' equity * | 7.5 | 7.9 | 7.6 | |
| Growth in loans and advances for the period * | (2.2) | (1.7) | (2.0) | |
| Excess cover relative to statutory liquidity requirements | 129.3 | 121.1 | 106.3 | |
| Total large exposures | 23.9 | 13.6 | 54.4 | |
| Accumulated impairment ratio excl PCA | 2.2 | 2.1 | 2.0 | |
| Accumulated impairment ratio for the period excl PCA ** | 0.30 | 0.39 | 1.70 | |
| Number of full-time staff at end of period | 2,285 | 2,344 | 97 | 2,284 |
Financial ratios are prepared according to 'Recommendations & Financial Ratios 2010' published by the Danish Society of Financial Analysts.
- Financial ratios calculated on the basis of loans and advances at amortised cost.
** Quarterly ratios have not been converted to a full-year basis.
Summary
The Sydbank Group recorded a pre-tax profit of DKK 175m. The result, which is adversely affected by a provision for the Deposit Guarantee Fund in connection with the bankruptcy of Amagerbanken, is considered acceptable given the weak
growth in the economy. The development meets the expectations at the beginning of the year. Profit before tax equals a return of 7.3% p.a. on average shareholders' equity.
The Interim Report is characterised by:
- 4% decrease in core income excl trading income
- 25% decline in trading income
- Unchanged level of costs (core earnings)
- Decrease in impairment charges for loans and advances of DKK 73m to DKK 250m
- Profit on investment portfolios of DKK 75m
- Provision for deposit guarantee etc of DKK 98m
- 3% reduction in bank loans and advances to DKK 71.4bn
- 4% growth in deposits to DKK 64.6bn
- Core capital ratio of 14.4%
- Solvency ratio of 15.4%.
| Income statement - Q1 (DKKm) | 2011 | 2010 |
|---|---|---|
| Core income excl trading income | 799 | 829 |
| Trading income | 299 | 399 |
| Total core income | 1,098 | 1,228 |
| Costs, core earnings | 650 | 656 |
| Core earnings before impairment | 448 | 572 |
| Impairment of loans and advances etc | 250 | 323 |
| Core earnings | 198 | 249 |
| Profit on investment portfolios | 75 | 116 |
| Profit before contributions to deposit guarantee and PCA | 273 | 365 |
| Contributions to deposit guarantee and the Private Contingency Association (PCA) | 98 | 139 |
| Profit before tax | 175 | 226 |
| Tax | 44 | 57 |
| Profit for the period | 131 | 169 |
Core earnings before impairment represent DKK 448m against DKK 572m for the first three months of 2010. The reduction of DKK 124m consists of a decline in core income excl trading income of DKK 30m, a decrease in trading income of DKK 100m and a decline in costs (core earnings) of DKK 6m.
Core earnings before impairment are in line with our announcement in the 2010 Annual Report.
Impairment charges for loans and advances etc represent DKK 250m (Q1 2010: DKK 323m).
Investment portfolio earnings constitute DKK 75m and the provision for the Deposit Guarantee Fund etc amounts to DKK 98m. Less a calculated tax charge of DKK 44m, profit for the period stands at DKK 131m.
Profit for the period equals a return on average shareholders' equity of 5.5% p.a. against 7.3% p.a. in 2010. Earnings per share stands at DKK 1.8 compared with DKK 2.3 in 2010.
Since year-end 2010, risk-weighted assets have increased by DKK 0.5bn to DKK 74.2bn.
Sydbank and 89 other banks are undergoing an EU-wide stress test conducted at the request of the European Banking Authority (EBA). The stress test includes more than 65% of bank assets within the EU. The results of the stress test are expected to be released in June 2011.
The Group's solvency ratio stands at 15.4%, of which 14.4 percentage points is ascribable to core capital, compared with 15.4% and 14.3 percentage points, respectively, at end-2010. The core capital ratio excluding hybrid core capital is unchanged at 12.7% compared with the beginning of the year.
The Group's liquidity measured under the 15% and 10% statutory requirements constitutes 35.9% and 21.7%, respectively, at 31 March 2011.
Sydbank's number of clients grew in the first three months - which is a highly satisfactory development.
The Group continues to project core earnings before impairment charges for loans and advances in the region of DKK 1.7-2.0bn in 2011 - unchanged compared with previous announcements.
Financial Review
Core income excl trading income
Total core income excl trading income declined by 4% to DKK 799m.
| Core income excl trading income - Q1 (DKKm) | 2011 | 2010 |
|---|---|---|
| Interest margins etc | 668 | 692 |
| Mortgage credit | 43 | 49 |
| Payment services | 37 | 40 |
| Remortgaging and loan fees | 21 | 23 |
|---|---|---|
| Other commission | 25 | 20 |
| Other operating income | 5 | 5 |
| Total | 799 | 829 |
Income from interest margins went down by DKK 24m due to a decline in bank loans and advances of 3% and a rise in deposits of 4% compared with 31 March 2010.
Net income from the cooperation with Totalkredit represents DKK 36m (2010: DKK 42m). Total mortgage credit income amounts to DKK 43m (2010: DKK 49m).
The remaining income components of core income excl trading income are unchanged compared with Q1 2010.
Trading income
Total trading income decreased by 25% - from DKK 399m in 2010 to DKK 299m in 2011.
The development must be seen in light of the fact that income in Q1 2010 was exceptionally high in a favourable market whereas income in Q1 2011 was adversely affected by lower trading activity.
| Trading income - Q1 (DKKm) | 2011 | 2010 |
|---|---|---|
| Bonds | 54 | 107 |
| Shares | 66 | 81 |
| Currency | 50 | 56 |
| Money market | 16 | 50 |
| Asset management | 113 | 105 |
| Total | 299 | 399 |
Costs and depreciation
The Group's total costs and depreciation recorded DKK 746m, which is unchanged compared with 2010. This includes DKK 3m which can be ascribed to investment portfolio earnings and DKK 93m for the provision for the Deposit Guarantee Fund. In Q1 2010 costs included a guarantee commission of DKK 86m to the Private Contingency Association.
| Costs and depreciation - Q1 (DKKm) | 2011 | 2010 |
|---|---|---|
| Staff costs | 382 | 377 |
| Other administrative expenses | 345 | 275 |
| Depreciation and impairment of property, plant and equipment | 19 | 23 |
| Other operating expenses | 0 | 70 |
| Total costs and depreciation | 746 | 745 |
| Distributed as follows: | ||
| Costs, core earnings | 650 | 656 |
| Costs, investment portfolio earnings | 3 | 3 |
| Costs, deposit guarantee and the Private Contingency Association | 93 | 86 |
Costs (core earnings) of DKK 650m decreased by DKK 6m compared with one year ago. At end-Q1 2011 the Group's staff numbered 2,285 (full-time equivalent) compared with 2,344 at 31 March 2010. In 2011 Sydbank has closed one small branch, bringing the number of branches to 101 in Denmark and unchanged three in Germany.
As part of the continuing expansion in Zealand two new branches have been/will be opened in Amager - in Amagerbrogade and in Dragor - as well as a new branch in Horsholm.
Core earnings before impairment of loans and advances
Core earnings before impairment of loans and advances represent DKK 448m - a decrease of DKK 124m or 22% compared with one year ago.
Impairment of loans and advances etc
Impairment charges for loans and advances constitute DKK 250m (2010: DKK 323m). The impairment ratio represents 0.35% relative to bank loans and advances at 31 March 2011 and 0.31% relative to bank loans and advances and guarantees. At end-March 2011 accumulated impairment and provisions amount to DKK 1,814m. A rise of DKK 51m compared with the beginning of the year.
Compared with 31 March 2010 impaired bank loans and advances before impairment charges went down by DKK 413m to DKK 3,142m. During the same period individually impaired bank loans and advances after impairment charges declined by DKK 440m. Impairment charges for bank loans and advances subject to individual impairment constitute 52.0% at 31 March 2011 compared with 45.2% one year ago and 51.8% at year-end 2010.
| Individually impaired bank loans and advances (DKKm) | 31 Mar 2011 | 31 Mar 2010 |
|---|---|---|
| Non-defaulted bank loans and advances | 1,786 | 1,815 |
| Defaulted bank loans and advances | 1,356 | 1,740 |
| Impaired bank loans and advances | 3,142 | 3,555 |
| Impairment charges for bank loans and advances subject to individual impairment | 1,635 | 1,608 |
| Impaired bank loans and advances after impairment charges | 1,507 | 1,947 |
| Impaired bank loans and advances as % of bank loans and advances before impairment charges | 4.3 | 4.7 |
| Impairment charges as % of bank loans and advances before impairment charges | 2.2 | 2.1 |
| Impaired as % of impaired bank loans and advances | 52.0 | 45.2 |
Core earnings
Core earnings represent DKK 198m compared with DKK 249m in 2010.
Investment portfolio earnings
Less funding charges and less related costs of DKK 3m, investment portfolio earnings constitute DKK 75m (2010: DKK 116m).
The Group's interest rate risk comprises DKK 119m at 31 March 2011. Moreover the Group's exchange rate risk continues to be very low and its equity position remains modest.
Contributions to deposit guarantee/the Private Contingency Association
In connection with the bankruptcy of Amagerbanken a further provision of DKK 93m has been made to cover the Bank's expected contribution to the Deposit Guarantee Fund bringing the contribution to a total of DKK 110m at the end of Q1 2011. Finally an amount of DKK 5m has been charged to income, representing the Group's share of Amagerbanken's outstanding payment of the guarantee to the Private Contingency Association. In Q1 2010 the guarantee commission and provision concerning the Private Contingency Association constituted DKK 70m and DKK 52m, respectively, and the provision for the Deposit Guarantee Fund in connection with the bankruptcy of Capinordic Bank amounted to DKK 17m, or a total of DKK 139m.
Subsidiaries
The subsidiary bank, Sydbank (Schweiz) AG, which conducts private banking activities in St. Gallen, Switzerland, recorded a profit after tax of DKK 1m (2010: DKK 3m). Profit after tax of Ejendomsselskabet is unchanged at DKK 1m compared with 2010.
Profit for the period
Profit before tax amounts to DKK 175m. Less a calculated tax charge of DKK 44m, profit for the period stands at DKK 131m compared with DKK 169m in 2010.
Return
Profit for the period equals a return on average shareholders' equity of 5.5% p.a. against 7.3% p.a. in 2010. Earnings per share stands at DKK 1.8 compared with DKK 2.3 in 2010.
Q1 2011 compared with Q4 2010
Profit before tax rose by DKK 198m and reflected:
- A decrease in core income excl trading income of DKK 13m, ascribable in part to lower lending volume and mortgage credit income.
- An increase in trading income of DKK 60m, due to more normal interest rate conditions compared with Q4 2010.
- A rise in costs (core earnings) of DKK 40m, which corresponds to an unchanged seasonal level.
- A decline in impairment charges for loans and advances of DKK 206m as a result of the cautious assessment of impairment charges for Q4 2010.
- An increase in investment portfolio earnings from minus DKK 8m in the preceding quarter to DKK 75m.
- An additional provision for the Deposit Guarantee Fund etc of DKK 93m where the amount for Q4 2010 represented DKK 0.
| Profit for the period (DKKm) | 2011 | 2010 | |||
|---|---|---|---|---|---|
| Q1 | Q4 | Q3 | Q2 | Q1 | |
| Core income excl trading income | 799 | 812 | 832 | 831 | 829 |
| Trading income | 299 | 239 | 325 | 327 | 399 |
| Core income | 1,098 | 1,051 | 1,157 | 1,158 | 1,228 |
| Costs, core earnings | 650 | 610 | 588 | 625 | 656 |
| Core earnings before impairment | 448 | 441 | 569 | 533 | 572 |
| Impairment of loans and advances etc | 250 | 456 | 311 | 310 | 323 |
| Core earnings | 198 | (15) | 258 | 223 | 249 |
| Profit/(Loss) on investment portfolios | 75 | (8) | 111 | 8 | 116 |
| Profit before contributions to deposit guarantee and PCA | 273 | (23) | 369 | 231 | 365 |
| Contributions to deposit guarantee and the Private Contingency Association (PCA) | 98 | - | 123 | 122 | 139 |
| Profit before tax | 175 | (23) | 246 | 109 | 226 |
| Tax | 44 | 2 | 61 | 27 | 57 |
| Profit for the period | 131 | (25) | 185 | 82 | 169 |
Balance sheet
The Group's total assets made up DKK 140.6bn at 31 March 2011 against DKK 150.8bn at year-end 2010.
| Assets (DKKbn) | 31 Mar 2011 | 31 Dec 2010 |
|---|---|---|
| Amounts owed by credit institutions etc | 8.6 | 8.4 |
| Loans and advances at fair value (reverse transactions) | 9.3 | 10.7 |
| Loans and advances at amortised cost (bank loans and advances) | 71.4 | 73.0 |
| Securities and holdings etc | 33.4 | 37.2 |
| Assets related to pooled plans | 7.9 | 7.9 |
| Other assets etc | 10.0 | 13.6 |
| Total | 140.6 | 150.8 |
The Group's bank loans and advances total DKK 71.4bn - a decline of DKK 1.6bn compared with year-end 2010 and DKK 1.9bn compared with 31 March 2010.
| Shareholders' equity and liabilities (DKKbn) | 31 Mar 2011 | 31 Dec 2010 |
|---|---|---|
| Amounts owed to credit institutions etc | 33.3 | 40.2 |
| Deposits and other debt | 64.6 | 64.2 |
| Deposits in pooled plans | 7.9 | 7.9 |
| Bonds issued | 11.2 | 11.2 |
| Other liabilities etc | 11.4 | 15.1 |
| Provisions | 0.3 | 0.3 |
| Subordinated capital | 2.3 | 2.3 |
| Shareholders' equity | 9.6 | 9.6 |
| Total | 140.6 | 150.8 |
The Group's deposits make up DKK 64.6bn against DKK 64.2bn at year-end 2010 and DKK 62.2bn at end-March 2010.
Capital
At end-Q1 2011, shareholders' equity constitutes DKK 9,579m - an increase of DKK 25m since year-end 2010. The change comprises additions from dividends on own shares of DKK 4m and profit for the period of DKK 131m as well as disposals deriving from dividend distribution etc of DKK 84m and net purchase of own shares of DKK 26m.
Since year-end 2010, risk-weighted assets have increased by DKK 0.5bn to DKK 74.2bn. The increase consists of a decrease in credit risk of DKK 2.6bn, a rise in market risk and operational risk of DKK 2.4bn and DKK 0.7bn, respectively. The decrease in credit risk is ascribable to a decline in loans and advances and guarantees as well as a positive trend in the average rating of the exposures comprised by the IRB approach. The development in the distribution at 31 March 2010, 31 December 2010 and 31 March 2011 appears below.
The Group's solvency ratio stands at 15.4%, of which 14.4 percentage points is ascribable to core capital, compared with 15.4% and 14.3 percentage points, respectively, at end-2010. The core capital ratio excluding hybrid core capital is unchanged at 12.7%.
At 31 March 2011 the individual solvency need represented 9.6%, unchanged from 31 December 2010.
Sydbank and 89 other banks are undergoing an EU-wide stress test conducted at the request of the European Banking Authority (EBA). The stress test includes more than 65% of bank assets within the EU. The results of the stress test are expected to be released in June 2011.
Liquidity
The Group's liquidity measured under the 15% and 10% statutory requirements constitutes 35.9% and 21.7%, respectively, at 31 March 2011.
Rating
Sydbank's rating - A1 (long-term debt), P-1 (short-term debt) and C+ (financial strength) - was maintained in Q1 2011 with a negative outlook for long-term debt.
Clients
Sydbank's number of clients grew in Q1 2011 - which is a highly satisfactory development.
Outlook for 2011
The Group continues to project core earnings before impairment charges for loans and advances in the region of DKK 1.7-2.0bn in 2011 - unchanged compared with previous announcements.
Income Statement - Sydbank Group
| Q1 | Q1 | Full year | ||
|---|---|---|---|---|
| DKKm | Note | 2011 | 2010 | 2010 |
Interest income
2 1,007 1,098 4,189
Interest expense 3 261 261 971
Net interest income 746 837 3,218
Dividends on shares 7 9 22
Fee and commission income 4 344 331 1,330
Fee and commission expense 50 40 184
Net interest and fee income 1,047 1,137 4,386
Market value adjustments 5 124 204 420
Other operating income 5 5 23
Staff costs and administrative expenses 6 727 652 2,353
Depreciation and impairment of property, plant and equipment 19 23 153
Other operating expenses 0 70 211
Impairment of loans and advances etc 8 255 376 1,556
Profit on holdings in associates and subsidiaries 0 1 2
Profit before tax 175 226 558
Tax 9 44 57 147
Profit for the period 131 169 411
EPS Basic (DKK) * 1.8 2.3 5.6
EPS Diluted (DKK) * 1.8 2.3 5.6
Dividend per share (DKK) 1.0
* Based on average number of shares outstanding, see page 15.
Statement of Comprehensive Income - Sydbank Group
Profit for the period 131 169 411
Other comprehensive income:
Translation of foreign entities (10) 8 40
Hedge of net investment in foreign entities 10 (8) (40)
Property revaluation - - (1)
Other comprehensive income after tax 0 0 (1)
Comprehensive income after tax 131 169 410
Balance Sheet - Sydbank Group
| 31 Mar | Full year | 31 Mar | ||
|---|---|---|---|---|
| DKKm | Note | 2011 | 2010 | 2010 |
| Assets | ||||
| Cash and balances on demand at central banks | 844 | 855 | 813 | |
| Amounts owed by credit institutions and central banks | 10 | 7,704 | 7,527 | 9,020 |
| Loans and advances at fair value | 9,324 | 10,724 | 7,388 | |
| Loans and advances at amortised cost | 71,447 | 73,028 | 73,277 | |
| Bonds at fair value | 31,578 | 35,021 | 35,745 | |
| Shares etc | 1,551 | 1,894 | 1,961 | |
| Holdings in associates etc | 306 | 307 | 310 | |
| Assets related to pooled plans | 7,920 | 7,923 | 7,154 | |
| Intangible assets | 12 | 13 | 13 | |
| Total land and buildings | 1,047 | 1,045 | 1,045 | |
| investment property | - | - | 2 | |
| owner-occupied property | 1,047 | 1,045 | 1,043 | |
| Other property, plant and equipment | 95 | 105 | 128 | |
| Current tax assets | 85 | 82 | 62 | |
| Deferred tax assets | 11 | 11 | 11 | |
| Assets held for sale | 1 | 1 | - | |
| Other assets | 11 | 8,662 | 12,256 | 12,024 |
| Prepayments | 63 | 51 | 61 | |
| Total assets | 140,650 | 150,843 | 149,012 | |
| Shareholders' equity and liabilities | ||||
| Amounts owed to credit institutions and central banks | 12 | 33,264 | 40,250 | 42,958 |
| Deposits and other debt | 13 | 64,609 | 64,161 | 62,178 |
| Deposits in pooled plans | 7,920 | 7,923 | 7,154 | |
| Bonds issued at amortised cost | 11,247 | 11,242 | 8,627 | |
| Current tax liabilities | 21 | 8 | 8 | |
| Other liabilities | 14 | 11,394 | 15,084 | 15,096 |
| Deferred income | 8 | 11 | 9 | |
| Total liabilities | 128,463 | 138,679 | 136,030 | |
| Provisions | 15 | 278 | 281 | 531 |
| Subordinated capital | 16 | 2,330 | 2,329 | 3,126 |
| Shareholders' equity: | ||||
| Share capital | 742 | 742 | 742 | |
| Revaluation reserves | 110 | 110 | 112 | |
| Other reserves: | ||||
| Reserves according to articles of association | 423 | 423 | 418 | |
| Other reserves | 26 | 26 | 33 | |
| Retained earnings | 8,278 | 8,169 | 8,020 | |
| Proposed dividend | - | 84 | - | |
| Total shareholders' equity | 9,579 | 9,554 | 9,325 | |
| Total shareholders' equity and liabilities | 140,650 | 150,843 | 149,012 |
Group Financial Highlights - Quarterly
| Q1 | Q4 | Q3 | Q2 | Q1 | Full year | |
|---|---|---|---|---|---|---|
| 2011 | 2010 | 2010 | 2010 | 2010 | 2010 | |
| Income statement (DKKm) | ||||||
| Core income excl trading income | 799 | 812 | 832 | 831 | 829 | 3,304 |
| Trading income | 299 | 239 | 325 | 327 | 399 | 1,290 |
| Total core income | 1,098 | 1,051 | 1,157 | 1,158 | 1,228 | 4,594 |
| Costs, core earnings | 650 | 610 | 588 | 625 | 656 | 2,479 |
| Core earnings before impairment | 448 | 441 | 569 | 533 | 572 | 2,115 |
| Impairment of loans and advances etc | 250 | 456 | 311 | 310 | 323 | 1,400 |
| Core earnings | 198 | (15) | 258 | 223 | 249 | 715 |
| Profit/(Loss) on investment portfolios | 75 | (8) | 111 | 8 | 116 | 227 |
| Profit before contributions to deposit guarantee and PCA | 273 | (23) | 369 | 231 | 365 | 942 |
| Contributions to deposit guarantee and the Private Contingency Association (PCA) | 98 | - | 123 | 122 | 139 | 384 |
| Profit before tax | 175 | (23) | 246 | 109 | 226 | 558 |
| Tax | 44 | 2 | 61 | 27 | 57 | 147 |
| Profit for the period | 131 | (25) | 185 | 82 | 169 | 411 |
| Balance sheet highlights (DKKbn) | ||||||
| Loans and advances at amortised cost | 71.4 | 73.0 | 73.6 | 74.1 | 73.3 | 73.0 |
| Loans and advances at fair value | 9.3 | 10.7 | 6.5 | 6.6 | 7.4 | 10.7 |
| Deposits and other debt | 64.6 | 64.2 | 61.5 | 64.9 | 62.2 | 64.2 |
| Bonds issued at amortised cost | 11.2 | 11.2 | 16.1 | 8.6 | 8.6 | 11.2 |
| Subordinated capital | 2.3 | 2.3 | 3.1 | 3.1 | 3.1 | 2.3 |
| Shareholders' equity | 9.6 | 9.6 | 9.5 | 9.4 | 9.3 | 9.6 |
| Total assets | 140.6 | 150.8 | 153.7 | 154.4 | 149.0 | 150.8 |
| Financial ratios per share (DKK per share of DKK 10) | ||||||
| EPS Basic | 1.8 | (0.3) | 2.5 | 1.1 | 2.3 | 5.6 |
| EPS Diluted | 1.8 | 1.1 | 2.5 | 1.1 | 2.3 | 5.6 |
| Share price at end of period | 132.8 | 151.3 | 127.4 | 124.8 | 147.8 | 151.3 |
| Book value | 130.5 | 129.8 | 130.1 | 127.5 | 126.5 | 129.8 |
| Share price/book value | 1.02 | 1.17 | 0.98 | 0.98 | 1.17 | 1.17 |
| Average number of shares outstanding (millions) | 73.5 | 73.5 | 73.4 | 73.7 | 73.7 | 73.5 |
| Dividend per share | - | 1.0 | - | - | - | 1.0 |
Other financial ratios and key figures
| Solvency ratio | 15.4 | 15.4 | 16.1 | 15.7 | 15.3 | 15.4 |
|---|---|---|---|---|---|---|
| Core capital ratio | 14.4 | 14.3 | 14.1 | 13.5 | 13.1 | 14.3 |
| Pre-tax profit as % of average shareholders' equity | 1.8 | (0.2) | 2.6 | 1.2 | 2.4 | 6.0 |
| Post-tax profit as % of average shareholders' equity | 1.4 | (0.3) | 2.0 | 0.9 | 1.8 | 4.4 |
| Costs (core earnings) as % of core income | 59.2 | 58.0 | 50.9 | 54.0 | 53.4 | 54.0 |
| Interest rate risk | 1.1 | 1.5 | 0.4 | 0.2 | 1.0 | 1.5 |
| Foreign exchange position | 4.5 | 1.2 | 1.4 | 1.5 | 2.8 | 1.2 |
| Foreign exchange risk | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Loans and advances relative to deposits * | 1.0 | 1.0 | 1.1 | 1.0 | 1.1 | 1.0 |
| Loans and advances relative to shareholders' equity * | 7.5 | 7.6 | 7.7 | 7.9 | 7.9 | 7.6 |
| Growth in loans and advances for the period * | (2.2) | (0.8) | (0.7) | 1.1 | (1.7) | (2.0) |
| Excess cover relative to statutory liquidity requirements | 129.3 | 106.3 | 126.3 | 96.8 | 121.1 | 106.3 |
| Total large exposures | 23.9 | 54.4 | 19.6 | 0.0 | 13.6 | 54.4 |
| Accumulated impairment ratio | 2.2 | 2.0 | 2.4 | 2.1 | 2.1 | 2.0 |
| Impairment ratio for the period | 0.30 | 0.40 | 0.38 | 0.38 | 0.39 | 1.70 |
| Number of full-time staff at end of period | 2,285 | 2,284 | 2,303 | 2,323 | 2,344 | 2,284 |
Financial ratios are prepared according to 'Recommendations & Financial Ratios 2010' published by the Danish Society of Financial Analysts.
- Financial ratios calculated on the basis of loans and advances at amortised cost.
** Quarterly ratios have not been converted to a full-year basis.
Capital - Sydbank Group
| Reserve for | |||||||
|---|---|---|---|---|---|---|---|
| DKKm | Share capital | Re- valuation reserves | Reserve s acc to article s of association | net revaluation according to equity method | Retained earnings | Proposed dividend etc | Total |
| Shareholders' equity at 1 Jan 2011 | 742 | 110 | 423 | 26 | 8,169 | 84 | 9,554 |
| Changes in equity in 2011 | |||||||
| Purchase of own shares | - | - | - | - | (973) | - | (973) |
| Sale of own shares | - | - | - | - | 947 | - | 947 |
| Adopted dividend etc | - | - | - | - | - | (84) | (84) |
| Dividends, own shares | - | - | - | - | 4 | - | 4 |
| Comprehensive income for the period | - | - | - | - | 131 | - | 131 |
Capital - Sydbank Group
| 31 Mar | 31 Dec | 31 Mar | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
| Solvency | |||
| Solvency ratio | 15.4 | 15.4 | 15.3 |
| Core capital ratio | 14.4 | 14.3 | 13.1 |
| Capital base after deductions | |||
| Shareholders' equity | 9,579 | 9,554 | 9,325 |
| Revaluation reserves | (110) | (110) | (112) |
| Proposed dividend | - | (84) | - |
| Intangible assets and capitalised tax assets | (23) | (24) | (25) |
| Core capital (excluding hybrid core capital) | 9,446 | 9,336 | 9,188 |
| Total changes in equity at 1 Jan 2010 | 742 | 110 | 423 |
| --- | --- | --- | --- |
| Shareholders' equity at 1 Jan 2010 | 742 | 112 | 418 |
| Changes in equity in 2010 | |||
| Purchase of own shares | - | - | - |
| Sale of own shares | - | - | - |
| Comprehensive income for the period | - | - | - |
| Total changes in equity | - | - | - |
| Shareholders' equity at 31 Mar 2010 | 742 | 112 | 418 |
| Shareholders' equity | 742,499,990 | 742,499,990 | 742,499,990 |
| --- | --- | --- | --- |
| Revaluation reserves | 73,421,876 | 73,588,089 | 73,737,003 |
| Average number of shares outstanding (number) | 73,451,336 | 73,522,284 | 73,661,441 |
Cash Flow Statement - Sydbank Group
| Q1 | Full year | Q1 | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
| Operating activities | |||
| Pre-tax profit for the period | 175 | 558 | 226 |
| Taxes paid | (46) | (187) | (81) |
| Adjustment of non-cash operating items | 271 | 1,519 | 451 |
| Cash flows from working capital | 2,044 | (8,344) | (3,481) |
| Cash flows from operating activities | 2,444 | (6,454) | (2,885) |
| Investing activities | |||
| Purchase and sale of holdings in associates | 1 | (4) | 0 |
| Purchase and sale of property, plant and equipment | (10) | (119) | (11) |
| Cash flows from investing activities | (9) | (123) | (11) |
Financing activities
Purchase and sale of own holdings (22) 26 38
Dividend etc (84) -
Segment Statements - Sydbank Group
| DKKm | Banking | Sydbank Markets | Treasury | Other | Total |
|---|---|---|---|---|---|
| Business segments Q1 2011 | |||||
| Core income excl trading income | 775 | 24 | - | - | 799 |
| Trading income | 193 | 106 | - | - | 299 |
| Core income | 968 | 130 | - | - | 1,098 |
| Costs and depreciation | 549 | 86 | 3 | 15 | 653 |
| Impairment of loans and advances etc | 251 | (1) | - | - | 250 |
| Core earnings | 168 | 45 | (3) | (15) | 195 |
| Investment portfolio income | - | - | 69 | 9 | 78 |
| Profit before contributions to deposit guarantee and PCA | 168 | 45 | 66 | (6) | 273 |
| Contributions to deposit guarantee and the Private Contingency Association (PCA) | - | - | - | 98 | 98 |
| Profit before tax | 168 | 45 | 66 | (104) | 175 |
| DKKm | Banking | Sydbank Markets | Treasury | Other | Total |
| Business segments Q1 2010 | |||||
| Core income excl trading income | 835 | (6) | - | - | 829 |
| Trading income | 197 | 202 | - | - | 399 |
| Core income | 1,032 | 196 | - | - | 1,228 |
| Costs and depreciation | 555 | 89 | 3 | 12 | 659 |
|---|---|---|---|---|---|
| Impairment of loans and advances etc | 323 | - | - | - | 323 |
| Core earnings | 154 | 107 | (3) | (12) | 246 |
| Investment portfolio income | - | - | 113 | 6 | 119 |
| Profit before contributions to deposit guarantee and PCA | 154 | 107 | 110 | (6) | 365 |
| Contributions to deposit guarantee and the Private Contingency Association (PCA) | - | - | - | 139 | 139 |
| Profit before tax | 154 | 107 | 110 | (145) | 226 |
Notes - Sydbank Group
Note 1
Accounting policies
The Interim Report has been prepared in accordance with IAS 34 'Interim Financial Reporting' as adopted by the EU and in compliance with additional Danish disclosure requirements for interim reports. As a result of the use of IAS 34, the presentation is less complete compared with the presentation of an annual report and the measurement principles are in compliance with IFRS.
The accounting policies are consistent with those adopted in the 2010 Annual Report, to which reference is made.
The 2010 Annual Report provides a comprehensive description of the accounting policies applied.
The measurement of certain assets and liabilities requires managerial estimates as to how future events will affect the value of such assets and liabilities. The significant estimates made by the management in the use of the Group's accounting policies and the inherent considerable uncertainty of such estimates used in the preparation of the condensed interim report are identical to those used in the preparation of the annual report as at 31 December 2010.
The Group's significant risks and the external elements which may affect the Group are described in detail in the 2010 Annual Report.
Notes - Sydbank Group
| Q1 | Q1 | Full year | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
Note 2
| Interest income | |||
|---|---|---|---|
| Reverse transactions with credit institutions and central banks | 4 | 8 | 23 |
| Amounts owed by credit institutions and central banks | 20 | 20 | 96 |
| Reverse loans and advances | 18 | 26 | 79 |
| Loans and advances and other amounts owed | 759 | 803 | 3,157 |
| Bonds | 196 | 214 | 752 |
| Derivatives | 0 | 26 | 68 |
| Other interest income | 10 | 1 | 14 |
| Total | 1,007 | 1,098 | 4,189 |
Note 3
| Interest expense | |||
|---|---|---|---|
| Repo transactions with credit institutions and central banks | 31 | 35 | 110 |
| Credit institutions and central banks | 38 | 48 | 191 |
| Repo deposits | 0 | 1 | 2 |
| Deposits and other debt | 126 | 142 | 481 |
| Bonds issued | 51 | 19 | 125 |
| Subordinated capital | 14 | 16 | 61 |
| Other interest expense | 1 | 0 | 1 |
| Total | 261 | 261 | 971 |
Note 4
| Fee and commission income | |||
|---|---|---|---|
| Securities trading and custody accounts | 198 | 183 | 748 |
| Payment services | 53 | 47 | 199 |
| Loan fees | 20 | 24 | 95 |
| Guarantee commission | 26 | 29 | 116 |
| Other fees and commission | 47 | 48 | 172 |
| Total | 344 | 331 | 1,330 |
Note 5
| Market value adjustments | |||
|---|---|---|---|
| Other loans and advances and amounts owed at fair value | 1 | 0 | 0 |
| Bonds | (114) | 215 | 302 |
| Shares etc | (23) | 100 | 81 |
| Investment property | - | - | 0 |
| Currency | 45 | 68 | 238 |
|---|---|---|---|
| Total derivatives | 215 | (179) | (207) |
| Assets related to pooled plans | 130 | 260 | 459 |
| Deposits in pooled plans | (130) | (260) | (459) |
| Other assets/liabilities | 0 | 0 | 6 |
| Total | 124 | 204 | 420 |
Notes - Sydbank Group
| Q1 | Q1 | Full year | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
Note 6
Staff costs and administrative expenses
Salaries and emoluments to:
Group Executive Management 3 3 21
Board of Directors 1 1 4
Shareholders' Committee 1 1 2
Total 5 5 27
Staff costs:
Wages and salaries 310 308 1,187
Pensions 35 34 131
Social security contributions 4 3 15
Payroll tax etc 28 27 93
Total 377 372 1,426
Other administrative expenses:
IT 128 125 513
Rent etc 34 31 145
Marketing and entertainment expenses 18 18 84
Other expenses 72 84 141
Deposit Guarantee Fund 93 17 17
Total 345 275 900
Total 727 652 2,353
Note 7
Staff
Average number of staff (full-time equivalent) 2,326 2,396 2,364
Notes - Sydbank Group
| Q1 | Q1 | Full year | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
| Note 8 | |||
| Impairment of loans and advances recognised in the income statement | |||
| Impairment and provisions | 240 | 330 | 709 |
| Write-offs | 31 | 53 | 880 |
| Recovered from debt previously written off | 16 | 7 | 33 |
| Impairment of loans and advances etc | 255 | 376 | 1,556 |
| Impairment and provisions at end of period | |||
| Individual impairment and provisions | 1,652 | 1,903 | 1,597 |
| Collective impairment and provisions | 162 | 136 | 166 |
| Impairment and provisions at end of period | 1,814 | 2,039 | 1,763 |
| Individual impairment of loans and advances and provisions for guarantees | |||
| Impairment and provisions at 1 Jan | 1,597 | 1,637 | 1,637 |
| Exchange rate adjustment | 0 | 1 | 7 |
| Impairment and provisions during the period | 251 | 339 | 705 |
| Other movements | - | 94 | 94 |
| Write-offs covered by impairment and provisions | 196 | 168 | 846 |
| Impairment and provisions at end of period | 1,652 | 1,903 | 1,597 |
| Individual impairment of loans and advances | 1,635 | 1,608 | 1,565 |
| Individual provisions for guarantees | 17 | 295 | 32 |
| Impairment and provisions at end of period | 1,652 | 1,903 | 1,597 |
| Collective impairment of loans and advances and provisions for guarantees | |||
| Impairment and provisions at 1 Jan | 166 | 141 | 141 |
| Impairment and provisions during the period | (4) | (5) | 25 |
| Impairment and provisions at end of period | 162 | 136 | 166 |
Sum of loans and advances and amounts owed
| subject to collective impairment and provisions | 11,604 | 20,993 | 12,231 |
|---|---|---|---|
| Collective impairment and provisions | 162 | 136 | 166 |
| Loans and advances and amounts owed after collective impairment and provisions | 11,442 | 20,857 | 12,065 |
| Individual impairment of loans and advances subject to objective evidence of impairment | |||
| Balance before impairment of individually assessed loans and advances | 3,142 | 3,555 | 3,020 |
| Impairment of individually assessed loans and advances | 1,635 | 1,608 | 1,565 |
| Balance after impairment of individually assessed loans and advances | 1,507 | 1,947 | 1,455 |
Note 9
Effective tax rate
| Current tax rate of Sydbank | 25.0 | 25.0 | 25.0 |
|---|---|---|---|
| Permanent differences | - | - | 2.3 |
| Adjustment of prior year tax charges | - | - | (0.9) |
| Effective tax rate | 25.0 | 25.0 | 26.4 |
Notes - Sydbank Group
| 31 Mar | 31 Dec | 31 Mar | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
Note 10
Amounts owed by credit institutions and central banks
| Amounts owed at notice by central banks | 1,365 | 215 | - |
|---|---|---|---|
| Amounts owed by credit institutions | 3,902 | 5,063 | 5,786 |
| Reverse transactions | 2,437 | 2,249 | 3,234 |
| Total | 7,704 | 7,527 | 9,020 |
Note 11
Other assets
| Positive market value of derivatives etc | 7,154 | 9,363 | 10,108 |
|---|---|---|---|
| Sundry debtors | 248 | 263 | 351 |
| Interest and commission receivable | 410 | 563 | 450 |
| Collateral provided, CSA agreements | 845 | 2,066 | 1,113 |
| Other assets | 5 | 1 | 2 |
| Total | 8,662 | 12,256 | 12,024 |
Note 12
Amounts owed to credit institutions and central banks
| Amounts owed to central banks | 3,747 | 2,700 | 2,626 |
|---|---|---|---|
| Amounts owed to credit institutions | 17,682 | 18,864 | 25,760 |
| Repo transactions | 11,835 | 18,686 | 14,572 |
| Total | 33,264 | 40,250 | 42,958 |
Note 13
| Deposits and other debt | |||
|---|---|---|---|
| On demand | 38,411 | 38,357 | 39,722 |
| At notice | 584 | 603 | 678 |
| Time deposits | 20,806 | 19,923 | 15,727 |
| Special categories of deposits | 4,808 | 5,278 | 5,531 |
| Repo transactions | - | - | 520 |
| Total | 64,609 | 64,161 | 62,178 |
Note 14
| Other liabilities | |||
|---|---|---|---|
| Negative market value of derivatives etc | 6,507 | 9,138 | 9,373 |
| Sundry creditors | 1,518 | 1,886 | 1,208 |
| Negative portfolio, reverse transactions | 2,774 | 3,437 | 4,187 |
| Interest and commission etc | 139 | 97 | 134 |
| Collateral received, CSA agreements | 453 | 520 | 191 |
| Other liabilities | 3 | 6 | 3 |
| Total | 11,394 | 15,084 | 15,096 |
Notes - Sydbank Group
| 31 Mar | 31 Dec | 31 Mar | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
Note 15
| Provisions | |||
|---|---|---|---|
| Provisions for pensions and similar obligations | 4 | 4 | 3 |
| Provisions for deferred tax | 225 | 225 | 209 |
| Provisions for guarantees * | 17 | 32 | 295 |
| Other provisions | 32 | 20 | 24 |
| Total | 278 | 281 | 531 |
| * Of which the Private Contingency Association | - | - | 272 |
Note 16
Subordinated capital
Interest rate
Nominal (m)
Maturity
| Repaid loans | - | - | 800 | ||||
|---|---|---|---|---|---|---|---|
| 2.60 (floating) | Bond loan | DKK 200 | 14.11.14 | 200 | 200 | 200 | |
| 1.36 (floating) | Bond loan | EUR 100 | 04.04.15 | 745 | 745 | 744 | |
| Total supplementary capital | 945 | 945 | 1,744 | ||||
| 2.13 (floating) | Bond loan | EUR 100 | Perpetual | 741 | 740 | 739 | |
| 3.24 (floating) | Bond loan | EUR 75 | Perpetual | 559 | 559 | 558 | |
| 6.36 (fixed) | Bond loan | DKK 85 | Perpetual | 85 | 85 | 85 | |
| Total hybrid core capital | 1,385 | 1,384 | 1,382 | ||||
| Total | 2,330 | 2,329 | 3,126 |
Note 17
Contingent liabilities and other obligating agreements
| Contingent liabilities | |||
|---|---|---|---|
| Financial guarantees | 3,361 | 3,037 | 2,900 |
| Mortgage finance guarantees | 707 | 1,628 | 2,646 |
| Registration and remortgaging guarantees | 2,772 | 3,643 | 5,236 |
| Loss guarantee/guarantee, the Private Contingency Association | - | - | 479 |
| Other contingent liabilities | 1,387 | 1,443 | 1,488 |
| Total | 8,227 | 9,751 | 12,749 |
| Other obligating agreements | |||
| Irrevocable credit commitments | 98 | 99 | 7 |
| Other liabilities | 51 | 51 | 58 |
| Total | 149 | 150 | 65 |
Notes - Sydbank Group
Note 17 - continued
In February 2008 a group of minority shareholders ('Foreningen af Minoritetsaktionaerer i bankTrelleborg') filed a class action against Fonden for
bankTrelleborg, Sydbank and the Danish FSA. The lawsuit concerns the legality of the compulsory redemption and the pricing of the shares in connection with the compulsory redemption. The shares were priced by appraisers in accordance with section 144 (4) of the Danish Financial Business Act. In late summer 2008 Fonden for bankTrelleborg paid the difference to the minority shareholders. On 7 December 2010 the Eastern High Court ruled that the compulsory redemption was not legal as the conditions of section 144 of the Danish Financial Business Act had not been met. However the Eastern High Court did not find that the minority shareholders had suffered a loss exceeding the consideration they had already received in connection with the compulsory redemption. Consequently the court did not sustain the claim of the minority shareholders for payment of additional consideration. The minority shareholders have filed an appeal with the Supreme Court and have at the same time applied for free legal aid. Oral proceedings have been scheduled for early January 2012.
Moreover, in 2009 the group of minority shareholders - by three named shareholders - filed an action against Sydbank regarding an inadequate prospectus in connection with the conversion of sparTrelleborg to bankTrelleborg. Exchange of pleadings is still ongoing and oral proceedings have been scheduled for end-February 2012.
On 21 January 2011 two class action claims were filed with the City Court of Copenhagen against Sydbank A/S. Both claims concern a potential responsibility over a prospectus regarding bankTrelleborg, now Sydbank A/S, in connection with the conversion of sparTrelleborg to bankTrelleborg in Q2 2007.
In addition, the Group is party to a number of legal actions. These actions are under continuous review and the necessary provisions made are based on an assessment of the risk of loss. Pending legal actions are not expected to have any significant impact on the financial position of the Group.
Note 18
Repo and reverse transactions
In connection with repo transactions, which involve selling securities to be repurchased at a later date, the securities remain on the balance sheet, and consideration received is recognised as a debt. Repo transaction securities are treated as assets provided as collateral for liabilities. At 31 March 2011 the fair value of such securities stood at DKK 11,727m.
In connection with reverse transactions, which involve purchasing securities to be resold at a later date, the Group is entitled to sell or deposit them as collateral for other loans. The securities are not recognised in the balance sheet and consideration paid is recognised as a receivable. At 31 March 2011 the fair value of such securities stood at DKK 11,596m.
Assets received as collateral in connection with reverse transactions may be sold to a third party. In such cases a negative portfolio may arise as a result of the accounting rules. This is recognised under 'Other liabilities'.
Note 19
Collateral
As of 31 March 2011 the Group had deposited as collateral securities at a market value of DKK 4,792m with Danish and foreign exchanges and clearing centres etc in connection with margin calls and securities settlements etc.
Note 20
Related parties
Sydbank is the bank of a number of related parties. Transactions with related parties are settled on an arm's length basis.
No unusual transactions took place with related parties in Q1 2011. Reference is made to the Group's 2010 Annual Report for a detailed description of related party transactions.
Note 21
Reporting events occurring after the balance sheet date
After the expiry of Q1, no matters of significant impact on the financial position of the Sydbank Group have occurred.
Notes - Sydbank Group
| Q1 | Q1 | Full year | |
|---|---|---|---|
| DKKm | 2011 | 2010 | 2010 |
Note 22
Large shareholders
Nykredit A/S, Copenhagen has announced that it owns at least 5% of
Sydbank's share capital.
Note 23
Core income
| Core income excl trading income | |||
|---|---|---|---|
| Interest margins etc | 668 | 692 | 2,757 |
| Mortgage credit | 43 | 49 | 210 |
| Payment services | 37 | 40 | 153 |
| Remortgaging and loan fees | 21 | 23 | 90 |
| Other commission | 25 | 20 | 71 |
| Other operating income | 5 | 5 | 23 |
| Total | 799 | 829 | 3,304 |
Mortgage credit
| Totalkredit cooperation | 39 | 43 | 184 |
|---|---|---|---|
| Totalkredit, set-off of loss | 3 | 1 | 17 |
| Totalkredit cooperation, net | 36 | 42 | 167 |
| DLR Kredit | 6 | 4 | 34 |
| Other mortgage credit income | 1 | 3 | 9 |
| Total | 43 | 49 | 210 |
| Trading income | |||
| --- | --- | --- | --- |
| Bonds | 54 | 107 | 273 |
| Shares | 66 | 81 | 273 |
| Currency | 50 | 56 | 217 |
| Money market | 16 | 50 | 107 |
| Asset management | 113 | 105 | 420 |
| Total | 299 | 399 | 1,290 |
Management Statement
Today we have reviewed and approved the Interim Report - Q1 2011 of Sydbank A/S.
The Interim Report for Q1 2011 has been prepared in accordance with IAS 34 as adopted by the EU. Furthermore, the interim report has been prepared in compliance with additional Danish disclosure requirements for interim reports of listed financial companies. The interim report has not been audited or reviewed.
In our opinion the accounting policies applied are appropriate and the interim report gives a true and fair view of the Group's assets, shareholders' equity and liabilities and financial position at 31 March 2011 and of the results of the Group's operations and consolidated cash flows for the accounting period 1 January- ? 31 March 2011 as well as a description of the most significant risks and elements of uncertainty which may affect the Group.
Aabenraa, 26 April 2011
Group Executive Management
Karen Frosig
Hansen
(CEO)
Present
Allan Norholm
Preferred
Preben L.
Board of Directors
Anders Thoustrup
Kasprzak
(Chairman)
(Vice-Chairman)
Svend Erik Busk
Hanni Toosbuy
Claus Christensen
Peder Damgaard
Harry Max Friedrichsen
Erik Bank Lauridsen
Paulsen
Steen Tophoj
Sven Rosenmeyer
Jan Uldahl-Jensen
Margrethe Weber
Supplementary Information
Financial calendar
In 2011 the Group's preliminary announcement of financial statements will be released as follows:
-
Interim Report - First Half 2011
16 August 2011 -
Interim Report - Q1-Q3 2011
25 October 2011
Sydbank contacts
Karen Frosig, CEO
Tel +45 74 37 20 00
Mogens Sandbaek, CFO
Tel +45 74 37 24 00
Niels Mollegaard, Group Executive Vice President
Tel +45 74 37 20 50
Address
Sydbank A/S
Peberlyk 4
DK-6200 Aabenraa
Tel +45 74 37 37 37
CVR No DK 12626509
Relevant links
sydbank.dk
sydbank.com
For further information reference is made to Sydbank's 2010 Annual Report at sydbank.com.
News Source: NASDAQ OMX
26.04.2011 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
Language: English
Company: Sydbank A/S
Denmark
Phone:
Fax:
E-mail:
Internet:
ISIN: DK0010311471
Category Code: QRF
LSE Ticker: 0G6U
Sequence Number: 778
Time of Receipt: Apr 26, 2011 14:03:57
End of Announcement
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