Sydbank — Interim / Quarterly Report 2012

Mar 31, 2012

Sydbank

Interim Report – Q1 2012

Company Announcement No 11/2012
2 May 2012

INTERIM REPORT– Q1 2012
1/30

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Sydbank

Contents

Financial Review

• Group Financial Highlights 3
• Summary 4
• Financial Review 6

Financial Statements – Sydbank Group

• Income Statement 13
• Statement of Comprehensive Income 13
• Balance Sheet 14
• Financial Highlights – Quarterly 15
• Capital 16
• Cash Flow Statement 18
• Segment Statements 19
• Notes 20

Statement

• Management Statement 28

Supplementary Information 29

Appendix

• Core Income and Trading Income 2011-2012 – Quarterly 30

INTERIM REPORT– Q1 2012

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Sydbank

Group Financial Highlights

	Q1 2012	Q1 2011	Index 12/11	Full year 2011
Income statement (DKKm)
Core income	1,071	1,007	106	4,080
Trading income	109	91	120	167
Total income	1,180	1,098	107	4,247
Costs, core earnings	650	650	100	2,463
Core earnings before impairment	530	448	118	1,784
Impairment of loans and advances etc	297	250	119	1,195
Core earnings	233	198	118	589
Profit/(Loss) on investment portfolios	121	75	161	(15)
Profit before non-recurring items	354	273	130	574
Non-recurring items, net	-	-	-	(171)
Profit before contribution to industry solutions via the Deposit Guarantee Fund	354	273	130	403
Contribution to industry solutions via the Deposit Guarantee Fund	14	98	14	102
Profit before tax	340	175	194	301
Tax	85	44	193	113
Profit for the period	255	131	195	188
Balance sheet highlights (DKKbn)
Loans and advances at amortised cost	67.7	71.4	95	68.8
Loans and advances at fair value	5.8	9.3	62	7.7
Deposits and other debt	64.2	64.6	99	66.7
Bonds issued at amortised cost	9.5	11.2	85	7.5
Subordinated capital	2.1	2.3	91	2.1
Shareholders' equity	9.8	9.6	102	9.6
Total assets	147.6	140.6	105	153.4
Financial ratios per share (DKK per share of DKK 10)
EPS Basic **	3.5	1.8		2.6
EPS Diluted **	3.5	1.8		2.6
Share price at end of period	101.5	132.8		90.1
Book value	134.5	130.5		131.1
Share price/book value	0.75	1.02		0.69
Average number of shares outstanding (in millions)	73.2	73.5		73.2
Dividend	-	-		-
Other financial ratios and key figures
Solvency ratio	15.4	15.4		16.1
Core capital ratio	15.2	14.4		15.2
Pre-tax profit as % of average shareholders' equity **	3.5	1.8		3.1
Post-tax profit as % of average shareholders' equity **	2.6	1.4		2.0
Costs (core earnings) as % of core income	55.1	59.2		58.0
Interest rate risk	1.8	1.1		0.9
Foreign exchange position	5.7	4.5		1.6
Foreign exchange risk	0.2	0.0		0.1
Loans and advances relative to deposits *	0.9	1.0		0.9
Loans and advances relative to shareholders' equity *	6.9	7.5		7.2
Growth in loans and advances for the period *	(1.6)	(2.2)		(5.7)
Excess cover relative to statutory liquidity requirements	184.7	129.3		148.7
Total large exposures	28.6	23.9		26.3
Accumulated impairment ratio excl PCA	2.5	2.2		2.3
Impairment ratio for the period excl PCA **	0.35	0.30		1.50
Number of full-time staff at end of period	2,132	2,285	93	2,152

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.

INTERIM REPORT- Q1 2012

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Sydbank

Summary

The Sydbank Group has recorded a pre-tax profit of DKK 340m. The result is considered satisfactory 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 14.0% p.a. on average shareholders' equity.

• 6% rise in core income
• 20% rise in trading income
• New breakdown of core income and trading income
• Unchanged costs (core earnings)
• Increase in impairment charges for loans and advances of DKK 47m to DKK 297m
• Investment portfolio earnings of DKK 121m
• Negative readjustment of contribution to industry solutions of DKK 14m
• 5% reduction in bank loans and advances to DKK 67.7bn
• Unchanged level of deposits
• Core capital ratio of 15.2%

Income statement – Q1 (DKKm)	2012	2011
Core income	1,071	1,007
Trading income	109	91
Total income	1,180	1,098
Costs, core earnings	650	650
Core earnings before impairment	530	448
Impairment of loans and advances etc	297	250
Core earnings	233	198
Profit/(Loss) on investment portfolios	121	75
Profit before contribution to industry solutions via the Deposit Guarantee Fund	354	273
Contribution to industry solutions via the Deposit Guarantee Fund	14	98
Profit before tax	340	175
Tax	85	44
Profit for the period	255	131

Core earnings before impairment charges represent DKK 530m against DKK 448m for the first three months of 2011. The increase of DKK 82m consists of a rise in core income of DKK 64m and a rise in trading income of DKK 18m.

Core earnings before impairment charges are in line with our announcement in the 2011 Annual Report.

Impairment charges for loans and advances etc represent DKK 297m (Q1 2011: DKK 250m).

Investment portfolio earnings constitute DKK 121m and the readjustment of the contribution to industry solutions via the Deposit Guarantee Fund amounts to DKK 14m. Less a calculated tax charge of DKK 85m, profit for the period stands at DKK 255m.

Profit for the period equals a return on average shareholders' equity of 10.5% p.a. against 5.5% p.a. in 2011. Earnings per share stands at DKK 3.5 compared with DKK 1.8 in 2011.

INTERIM REPORT- Q1 2012

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Sydbank

Since year-end 2011, risk-weighted assets have increased by DKK 1.5bn to DKK 72.2bn.

The Group's solvency ratio stands at 15.4%, of which 15.2 percentage points are ascribable to core capital, compared with 16.1% and 15.2 percentage points, respectively, at end-2011. The core capital ratio excluding hybrid core capital stands at 13.5% (31 Dec 2011: 13.4%). The reduction in the solvency ratio is ascribable to the agreed prepayment of supplementary capital of EUR 100m and as a consequence only 25% thereof is included in the capital base at end-March 2012.

The Group's liquidity measured under the 10% statutory requirement constitutes 28.5% at 31 March 2012.

Sydbank continued to record a satisfactory influx of clients in Q1.

The Group expects an unchanged decline in losses compared with 2011. Impairment charges for loans and advances are projected to stand at around DKK 1.4bn and will comprise increased impairment charges as a result of the new tightened impairment rules issued by the Danish FSA in particular in relation to loans secured on real property which will take effect as from Q2 2012. The Group considers these rules to be more cautious than the previous rules. Other things being equal the Group's solvency need at end-Q2 2012 will be reduced as a result of the increased impairment charges, which means that the Group's risk scenario remains unchanged.

The Group has decided to implement an interest margin increase of up to 1 percentage point on the loans covered by the tightened and more cautious impairment rules.

Otherwise the Group's expectations remain unchanged compared with the expectations announced in the 2011 Annual Report.

In light of the current economic prospects impairment charges are projected to decline to around 1% of bank loans and advances and guarantees in 2013.

INTERIM REPORT- Q1 2012
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Sydbank

Financial Review

New breakdown of core income and trading income

The breakdown of core income and trading income has been changed effective 1 January 2012. The principles behind the changed breakdown are described in detail under accounting policies. See page 30 for the breakdown according to the previous model and the current model.

Core income

Core income has risen by 6% to DKK 1,071m.

Core income – Q1 (DKKm)	2012	2011
Interest margins etc	719	668
Mortgage credit	58	43
Payment services	37	37
Remortgaging and loan fees	30	21
Commission and brokerage	76	97
Commission etc investment funds and pooled pension plans	77	64
Asset management	40	36
Custody account fees	17	17
Other income	17	24
Total	1,071	1,007

Despite a 5% decline in bank loans and advances compared with 2011 net interest has risen by DKK 51m due to the positive effects of the increases in interest margins implemented since August 2011.

Net income from the cooperation with Totalkredit represents DKK 45m (2011: DKK 36m) after a set-off of loss of DKK 6m (2011: DKK 3m). The cooperation with DLR Kredit has generated an income of DKK 12m (2011: DKK 6m). Total mortgage credit income amounts to DKK 58m (2011: DKK 43m).

Compared with 2011 remortgaging and loan fees have risen by DKK 9m and total DKK 30m. In conformity with the development in mortgage credit income the rise is ascribable to growing remortgaging activity and increased pricing in Q1 2012.

Due to the uncertain markets the volume of clients' currency and securities trading has gone down since Q1 2011. Commission and brokerage income amounts to DKK 76m and has declined by DKK 21m compared with 2011.

Commission etc concerning investment funds and pooled pension plans totals DKK 77m, equal to a rise of DKK 13m compared with 2011. This development can be ascribed to an influx of new private banking clients as well growing demand for Sydbank's pooled pension plan products.

The remaining income components are at the same level as in 2011.

Trading income

Trading income has grown by 20% – from DKK 91m in 2011 to DKK 109m in 2012. This favourable trend is primarily caused by increased activity and trading in the institutional market for Danish bonds generated in part by the rising remortgaging activity mentioned above.

Costs and depreciation

The Group's total costs and depreciation recorded DKK 666m, equal to a reduction of DKK 80m compared with Q1 2011. The decline is solely attributable to a decrease in non-recurring charges relating to the Deposit Guarantee Fund.

INTERIM REPORT- Q1 2012

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Sydbank

Costs and depreciation – Q1 (DKKm)	2012	2011
Staff costs	365	382
Other administrative expenses	253	345
Depreciation and impairment of property, plant and equipment	21	19
Other operating expenses	27	0
Total costs and depreciation	666	746
Distributed as follows:
Costs, core earnings	650	650
Costs, investment portfolio earnings	2	3
Non-recurring costs, industry solutions via the Deposit Guarantee Fund	14	93

Costs (core earnings) continue to represent DKK 650m. In Q1 2012 costs (core earnings) include a proportionate share of the Group's contribution to the credit institution department of the Deposit Guarantee Fund for 2012 in accordance with the amended statutory basis. The annual contribution has been fixed at 2.5‰ of the covered net deposits until the capital exceeds 1% of the covered deposits. The contribution for 2012 has been set off against the existing capital of the credit institution department of the Deposit Guarantee Fund. For 2012 this will involve payment of a gross amount of DKK 93m and DKK 49m after set-off of the Group's existing share of the capital, equal to a quarterly cost of approx DKK 12m. Costs (core earnings) for Q1 2011 did not include a comparable expense.

At the end of Q1 2012 the Group's staff numbered 2,132 (full-time equivalent) compared with 2,285 at 31 March 2011. As mentioned earlier, Sydbank has strengthened its German operations by taking over the private banking activities of Gries & Heissel Bankiers AG situated in Berlin and Wiesbaden as from 1 January 2012.

Core earnings before impairment of loans and advances

Core earnings before impairment of loans and advances represent DKK 530m – an increase of DKK 82m or 18% compared with one year ago.

Impairment of loans and advances etc

Impairment charges for loans and advances constitute DKK 297m (2011: DKK 250m). The impairment ratio represents 0.42% relative to bank loans and advances at 31 March 2012 and 0.38% relative to bank loans and advances and guarantees. Accumulated impairment and provisions amount to DKK 2,093m as of end-March 2012, a rise of DKK 257m compared with the beginning of the year.

INTERIM REPORT- Q1 2012
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Sydbank

Compared with 31 March 2011 impaired bank loans and advances before impairment charges have increased by DKK 449m to DKK 3,591m. Individually impaired bank loans and advances after impairment charges rose by DKK 188m during the same period. Impairment charges for individually impaired bank loans and advances represent 52.8% (end-March 2011: 52.0% and year-end 2011: 52.3%). Compared with 31 March 2011 defaulted bank loans and advances have gone down by DKK 360m to DKK 1,096m.

Individually impaired bank loans and advances (DKKm)	31 Mar 2012	31 Mar 2011
Non-defaulted bank loans and advances	2,495	1,786
Defaulted bank loans and advances	1,096	1,356
Impaired bank loans and advances	3,591	3,142
Impairment charges for bank loans and advances subject to individual impairment	1,896	1,635
Impaired bank loans and advances after impairment charges	1,695	1,507
Impaired bank loans and advances as % of bank loans and advances before impairment charges	5.1	4.3
Impairment charges as % of bank loans and advances before impairment charges	2.7	2.2
Impaired as % of impaired bank loans and advances	52.8	52.0

Core earnings

Core earnings represent DKK 233m compared with DKK 198m in 2011.

Investment portfolio earnings

Less funding charges and less related costs of DKK 2m, investment portfolio earnings constitute DKK 121m (2011: DKK 75m).

Contribution to industry solutions via the Deposit Guarantee Fund

In Q1 2012 a negative readjustment of DKK 14m was made concerning the industry solution in relation to Fjordbank Mors. The contribution totalled DKK 98m during the same period in 2011.

Profit for the period

Pre-tax profit represents DKK 340m. Less a calculated tax charge of DKK 85m, profit for the period stands at DKK 255m compared with DKK 131m in 2011.

Return

Profit for the period equals a return on average shareholders' equity of 10.5% p.a. against 5.5% p.a. in 2011. Earnings per share stands at DKK 3.5 compared with DKK 1.8 in 2011.

Q1 2012

Pre-tax profit for the quarter amounts to DKK 340m. Compared with Q4 2011 pre-tax profit shows:

• A rise in core income of DKK 11m.
• An increase in trading income of DKK 60m.
• A rise in costs (core earnings) of DKK 77m, corresponding to an unchanged seasonal level.
• A decrease in impairment charges for loans and advances of DKK 163m.
• Investment portfolio earnings of DKK 121m (Q4 2011: DKK 10m).
• No non-recurring items (Q4 2011: a negative DKK 25m).
• A negative readjustment of DKK 14m concerning the industry solution as regards Fjordbank Mors (Q4 2011: positive adjustment of DKK 34m).

Profit after tax amounts to DKK 255m.

INTERIM REPORT- Q1 2012

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Sydbank

Profit for the period (DKKm)	2012	2011
	Q1	Q4	Q3	Q2	Q1
Core income	1,071	1,060	1,032	981	1,007
Trading income	109	49	(16)	43	91
Total income	1,180	1,109	1,016	1,024	1,098
Costs, core earnings	650	573	587	653	650
Core earnings before impairment	530	536	429	371	448
Impairment of loans and advances etc	297	460	245	240	250
Core earnings	233	76	184	131	198
Profit/(Loss) on investment portfolios	121	10	(38)	(62)	75
Profit before non-recurring items	354	86	146	69	273
Non-recurring items, net	-	(25)	(146)	-	-
Profit before contribution to industry solutions via the Deposit Guarantee Fund	354	61	0	69	273
Contribution to industry solutions via the Deposit Guarantee Fund	14	(34)	(25)	63	98
Profit before tax	340	95	25	6	175
Tax	85	43	25	1	44
Profit for the period	255	52	0	5	131

Subsidiaries

The subsidiary bank, Sydbank (Schweiz) AG, which is being wound up, recorded a profit after tax of DKK 0m (2011: DKK 1m). Ejendomsselskabet recorded a profit after tax of DKK 1m, unchanged compared to 2011.

Balance sheet

The Group's total assets made up DKK 147.6bn at 31 March 2012 against DKK 153.4bn at year-end 2011.

Assets (DKKbn)	31 Mar 2012	31 Dec 2011
Amounts owed by credit institutions etc	8.0	9.5
Loans and advances at fair value (reverse transactions)	5.8	7.7
Loans and advances at amortised cost (bank loans and advances)	67.7	68.8
Securities and holdings etc	40.0	40.0
Assets related to pooled plans	8.9	8.6
Other assets etc	17.2	18.8
Total	147.6	153.4

The Group's bank loans and advances amount to DKK 67.7bn – a reduction of DKK 1.1bn compared with year-end 2011 and DKK 3.7bn compared with 31 March 2011. Corporate client lending has gone down in a market characterised by low investments and low activity.

Shareholders' equity and liabilities (DKKbn)	31 Mar 2012	31 Dec 2011
Amounts owed to credit institutions etc	35.1	38.8
Deposits and other debt	64.2	66.7
Deposits in pooled plans	8.9	8.6
Bonds issued	9.5	7.5
Other liabilities etc	17.7	19.8
Provisions	0.3	0.3
Subordinated capital	2.1	2.1
Shareholders' equity	9.8	9.6
Total	147.6	153.4

INTERIM REPORT- Q1 2012

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Sydbank

The Group's deposits make up DKK 64.2bn against DKK 66.7bn at year-end 2011 and DKK 64.6bn at end-March 2011. The development in deposits since the beginning of the year is ascribable to a decline in time deposits.

Capital

The Danish FSA has granted the Bank permission to prepay supplementary capital of EUR 100m. Prepayment was effected on 4 April 2012 after which date subordinated capital consists exclusively of hybrid Tier 1 capital of DKK 1,383m.

At end-Q1 2012 shareholders' equity constitutes DKK 9,836m – an increase of DKK 241m since year-end 2011. The change comprises additions from profit for the period of DKK 255m as well as disposals deriving from distribution of DKK 7m and net purchases of own shares of DKK 7m.

Risk-weighted assets	31 Mar 2012	31 Dec 2011
Credit risk	51.7	52.3
Market risk	12.1	10.3
Operational risk	8.4	8.1
Total	72.2	70.7

Since year-end 2011, risk-weighted assets have increased by DKK 1.5bn to DKK 72.2bn. The rise consists of a decrease in credit risk of DKK 0.6bn, a rise in market risk and operational risk of DKK 1.8bn and DKK 0.3bn, respectively. The decrease in credit risk is a consequence of the reduction in loans and advances and guarantees.

The development in the gross exposure by rating category at 31 March 2011, 31 December 2011 and 31 March 2012 appears below.

Gross exposures by rating category

Gross exposures consist of loans and advances, undrawn credit commitments, interest receivable, guarantees and counterparty risk on derivatives. The graph comprises exposures treated according to IRB. Exposures relating to clients in default are not included in the breakdown. Impairment charges for exposures have not been deducted from the exposures.

The development shows an overall unchanged level as regards rating categories 1-4. Furthermore migration from rating categories 5-8 to rating category 9 has taken place.

The Group's solvency ratio stands at $15.4\%$, of which 15.2 percentage points are ascribable to core capital, compared with $16.1\%$ and 15.2 percentage points, respectively, at end-2011. The core capital ratio excluding hybrid core capital stands at $13.5\%$ (31 Dec 2011: $13.4\%$). The reduction in the solvency ratio is

INTERIM REPORT- Q1 2012

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Sydbank

ascribable to the agreed prepayment of supplementary capital of EUR 100m and as a consequence only 25% thereof is included in the capital base at end-March 2012.

At 31 March 2012 the individual solvency need represents 9.4% – unchanged compared to 31 December 2011.

Interest rate risk

At 31 March 2012 the Group's interest rate risk stands at DKK 196m. The Group's exchange rate risk continues to be very low and its equity position modest.

Liquidity

The Group's liquidity measured under the 10% statutory requirement constitutes 28.5% at 31 March 2012.

Moody's 12-month curve shows that the Group is able to withstand a situation in which access to capital markets is cut off for a period exceeding 12 months.

In February 2012 the Group issued a 2-yr senior loan of EUR 500m. The decrease in the Group's liquidity after five months can be ascribed to the repayment of existing senior loans of EUR 0.8bn in September 2012.

Rating

On 19 May 2011 Moody's assigned the following ratings to Sydbank:

Long-term debt: A2

Short-term debt: P-1

Bank financial strength: C

On 16 February 2012 Moody's announced that Sydbank's long-term debt, short-term debt and bank financial strength had been changed from "stable outlook" to "review for downgrade".

Clients

Sydbank continued to record a satisfactory influx of clients in Q1 2012.

Outlook for 2012

The Group expects an unchanged decline in losses compared with 2011. Impairment charges for loans and advances are projected to stand at around DKK 1.4bn and will comprise increased impairment charges as a result of the new tightened impairment rules issued by the Danish FSA in particular in relation to loans secured on real property which will take effect as from Q2 2012. The Group considers these rules to be more cautious than the previous rules. Other things being equal the Group's solvency need at end-Q2 2012 will be reduced as a result of the increased impairment charges, which means that the Group's risk scenario remains unchanged.

INTERIM REPORT- Q1 2012

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Sydbank

The Group has decided to implement an interest margin increase of up to 1 percentage point on the loans covered by the tightened and more cautious impairment rules.

Otherwise the Group's expectations remain unchanged compared with the expectations announced in the 2011 Annual Report.

In light of the current economic prospects impairment charges are projected to decline to around 1% of bank loans and advances and guarantees in 2013.

INTERIM REPORT- Q1 2012
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Sydbank

Income Statement – the Group

DKKm	Note	Q1 2012	Q1 2011	Full year 2011
Interest income	2	1,046	1,007	4,363
Interest expense	3	259	261	1,235
Net interest income		787	746	3,128
Dividends on shares		2	7	28
Fee and commission income	4	351	344	1,304
Fee and commission expense		49	50	219
Net interest and fee income		1,091	1,047	4,241
Value adjustments	5	204	124	(26)
Other operating income		5	5	48
Staff costs and administrative expenses	6	618	727	2,463
Depreciation and impairment of property, plant and equipment		21	19	122
Other operating expenses		27	0	102
Impairment of loans and advances etc	8	297	255	1,198
Profit on holdings in associates and subsidiaries		3	0	(77)
Profit before tax		340	175	301
Tax	9	85	44	113
Profit for the period		255	131	188
EPS Basic (DKK) *		3.5	1.8	2.6
EPS Diluted (DKK) *		3.5	1.8	2.6
Proposed dividend per share (DKK)		-	-	-

• Based on average number of shares outstanding, see page 16.

Statement of Comprehensive Income – the Group

Profit for the period	255	131	188
Other comprehensive income:
Translation of foreign entities	2	(10)	6
Hedge of net investment in foreign entities	(2)	10	(6)
Property revaluation	-	-	(13)
Other comprehensive income after tax	0	0	(13)
Comprehensive income after tax	255	131	175

INTERIM REPORT– Q1 2012

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Sydbank

Balance Sheet – the Group

DKKm	Note	31 Mar 2012	Full year 2011	31 Mar 2011
Assets
Cash and balances on demand at central banks		706	939	844
Amounts owed by credit institutions and central banks	10	7,307	8,526	7,704
Loans and advances at fair value		5,831	7,658	9,324
Loans and advances at amortised cost		67,727	68,847	71,447
Bonds at fair value		38,493	38,622	31,578
Shares etc		1,333	1,281	1,551
Holdings in associates etc		191	192	306
Assets related to pooled plans		8,880	8,553	7,920
Intangible assets		11	12	12
Total land and buildings		1,012	1,015	1,047
investment property		-	-	-
owner-occupied property		1,012	1,015	1,047
Other property, plant and equipment		77	85	95
Current tax assets		4	13	85
Deferred tax assets		5	5	11
Assets held for sale		1	1	1
Other assets	11	15,945	17,641	8,662
Prepayments		62	51	63
Total assets		147,585	153,441	140,650
Shareholders’ equity and liabilities
Amounts owed to credit institutions and central banks	12	35,115	38,767	33,264
Deposits and other debt	13	64,169	66,724	64,609
Deposits in pooled plans		8,885	8,557	7,920
Bonds issued at amortised cost		9,514	7,500	11,247
Current tax liabilities		56	-	21
Other liabilities	14	17,606	19,911	11,394
Deferred income		4	6	8
Total debt		135,349	141,465	128,463
Provisions	15	273	256	278
Subordinated capital	16	2,127	2,125	2,330
Shareholders’ equity:
Share capital		742	742	742
Revaluation reserves		95	95	110
Other reserves:
Reserves according to articles of association		425	425	423
Other reserves		26	26	26
Retained profit		8,548	8,300	8,278
Proposed dividend		-	7	-
Total shareholders’ equity		9,836	9,595	9,579
Total shareholders’ equity and liabilities		147,585	153,441	140,650

INTERIM REPORT- Q1 2012

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Sydbank

Group Financial Highlights – Quarterly

	Q1 2012	Q4 2011	Q3 2011	Q2 2011	Q1 2011	Full year 2011
Income statement (DKKm)
Core income	1,071	1,060	1,032	981	1,007	4,080
Trading income	109	49	(16)	43	91	167
Total income	1,180	1,109	1,016	1,024	1,098	4,247
Costs, core earnings	650	573	587	653	650	2,463
Core earnings before impairment	530	536	429	371	448	1,784
Impairment of loans and advances etc	297	460	245	240	250	1,195
Core earnings	233	76	184	131	198	589
Profit/(Loss) on investment portfolios	121	10	(38)	(62)	75	(15)
Profit before non-recurring items	354	86	146	69	273	574
Non-recurring items, net	-	(25)	(146)	-	-	(171)
Profit before contribution to industry solutions via the Deposit Guarantee Fund	354	61	0	69	273	403
Contribution to industry solutions via the Deposit Guarantee Fund	14	(34)	(25)	63	98	102
Profit before tax	340	95	25	6	175	301
Tax	85	43	25	1	44	113
Profit for the period	255	52	0	5	131	188
Balance sheet highlights (DKKbn)
Loans and advances at amortised cost	67.7	68.8	70.0	71.9	71.4	68.8
Loans and advances at fair value	5.8	7.7	6.4	12.0	9.3	7.7
Deposits and other debt	64.2	66.7	65.0	67.4	64.6	66.7
Bonds issued at amortised cost	9.5	7.5	7.5	7.5	11.2	7.5
Subordinated capital	2.1	2.1	2.3	2.3	2.3	2.1
Shareholders' equity	9.8	9.6	9.5	9.5	9.6	9.6
Total assets	147.6	153.4	143.9	145.7	140.6	153.4
Financial ratios per share (DKK per share of DKK 10)
EPS Basic **	3.5	0.7	0.0	0.1	1.8	2.6
EPS Diluted **	3.5	0.7	0.0	0.1	1.8	2.6
Share price at end of period	101.5	90.1	99.0	114.8	132.8	90.1
Book value	134.5	131.1	130.5	128.6	130.5	131.1
Share price/book value	0.75	0.69	0.76	0.89	1.02	0.69
Average number of shares outstanding (in millions)	73.2	73.2	73.1	73.4	73.4	73.2
Dividend	-	-	-	-	-	-
Other financial ratios and key figures
Solvency ratio	15.4	16.1	15.7	15.1	15.4	16.1
Core capital ratio	15.2	15.2	14.7	14.1	14.4	15.2
Pre-tax profit as % of average shareholders' equity **	3.5	1	0.3	0.1	1.8	3.1
Post-tax profit as % of average shareholders' equity **	2.6	0.5	0.0	0.1	1.4	2.0
Costs (core earnings) as % of core income	55.1	51.7	57.8	63.8	59.2	58.0
Interest rate risk	1.8	1.0	0.7	0.9	1.1	0.9
Foreign exchange position	5.7	1.6	1.8	2.7	4.5	1.6
Foreign exchange risk	0.2	0.1	0.1	0.0	0.0	0.1
Loans and advances relative to deposits *	0.9	0.9	1.0	1.0	1.0	0.9
Loans and advances relative to shareholders' equity *	6.9	7.2	7.3	7.5	7.5	7.2
Growth in loans and advances for the period *	(1.6)	(1.7)	(2.6)	0.6	(2.2)	(5.7)
Excess cover relative to statutory liquidity requirements	184.7	148.7	115.3	99.5	110.3	148.7
Total large exposures	28.6	26.3	24.2	34.6	23.9	26.3
Accumulated impairment ratio excl PCA	2.5	2.3	2.1	2.0	2.2	2.3
Impairment ratio for the period excl PCA **	0.35	0.60	0.31	0.28	0.30	1.50
Number of full-time staff at end of period	2,132	2,152	2,270	2,274	2,285	2,152

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.

INTERIM REPORT- Q1 2012

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Sydbank

Capital – the Group

DKKm	Share capital	Revaluation reserves	Reserves acc to articles of association*	Reserve for net reval. acc to equity method	Retained profit	Proposed dividend etc	Total
Shareholders' equity at 1 Jan 2012	742	95	425	26	8,300	7	9,595
Profit for the period	-	-	-	-	255	-	255
Other comprehensive income
Translation of foreign entities	-	-	-	-	2	-	2
Hedge of net investment in foreign entities	-	-	-	-	(2)	-	(2)
Total other comprehensive income	-	-	-	-	-	-	-
Comprehensive income for the period	0	0	0	0	255	-	255
Transactions with owners
Purchase of own shares	-	-	-	-	(233)	-	(233)
Sale of own shares	-	-	-	-	226	-	226
Adopted dividend etc	-	-	-	-	-	(7)	(7)
Dividend, own shares	-	-	-	-	-	-	0
Total transactions with owners	-	-	-	-	(7)	(7)	(14)
Shareholders' equity at 31 Mar 2012	742	95	425	26	8,548	-	9,836
Shareholders' equity at 1 Jan 2011	742	110	423	26	8,169	84	9,554
Profit for the period	-	-	-	-	131	-	131
Other comprehensive income
Translation of foreign entities	-	-	-	-	(10)	-	(10)
Hedge of net investment in foreign entities	-	-	-	-	10	-	10
Total other comprehensive income	-	-	-	-	-	-	-
Comprehensive income for the period	0	0	0	0	131	-	131
Transactions with owners
Purchase of own shares	-	-	-	-	(973)	-	(973)
Sale of own shares	-	-	-	-	947	-	947
Adopted dividend etc	-	-	-	-	-	(84)	(84)
Dividend, own shares	-	-	-	-	4	-	4
Total transactions with owners	-	-	-	-	(22)	(84)	(106)
Shareholders' equity at 31 Mar 2011	742	110	423	26	8,278	-	9,579
				Q1	Full year		Q1
The Sydbank share				2012	2011		2011
Share capital (DKK)				742,499,990	742,499,990		742,499,990
Shares issued (number)				74,249,999	74,249,999		74,249,999
Shares outstanding at end of period (number)				73,125,710	73,192,644		73,421,876
Average number of shares outstanding (number)				73,197,965	73,246,496		73,451,336

• Reserves according to articles of association are identical to the restricted savings bank reserve in accordance with Article 4 of the Articles of Association.

The Bank has only one class of shares as all shares carry the same rights.

INTERIM REPORT- Q1 2012

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Sydbank

Capital – the Group

DKKm	31 Mar 2012	31 Dec 2011	31 Mar 2011
Solvency
Solvency ratio	15.4	16.1	15.4
Core capital ratio	15.2	15.2	14.4
Capital base after deductions
Shareholders' equity	9,836	9,595	9,579
Revaluation reserves	(95)	(95)	(110)
Proposed dividend	-	(7)	-
Intangible assets and capitalised tax assets	(16)	(17)	(23)
Core capital (excl hybrid core capital)	9,725	9,476	9,446
Hybrid core capital	1,383	1,382	1,385
50% of holdings > 10%	(3)	(4)	(157)
50% of total holdings etc > 10%	(135)	(148)	0
Core capital (incl hybrid core capital) after deductions	10,970	10,706	10,674
Subordinated loan capital	186	743	945
Revaluation reserves	95	95	110
Capital base before deductions	11,251	11,544	11,729
50% of holdings > 10%	(3)	(4)	(157)
50% of total holdings etc > 10%	(135)	(148)	-
Holdings in associates	-	-	(120)
Capital base after deductions	11,113	11,392	11,452
Credit risk	51,715	52,303	55,391
Market risk	12,120	10,288	10,741
Operational risk	8,373	8,068	8,071
Risk-weighted assets	72,208	70,659	74,203
Capital requirement under Pillar I	5,777	5,653	5,936

INTERIM REPORT– Q1 2012

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Sydbank

Cash Flow Statement – the Group

	Q1	Full year	Q1
DKKm	2012	2011	2011
Operating activities
Pre-tax profit for the period	340	301	175
Taxes paid	(21)	(60)	(46)
Adjustment for non-cash operating items	332	1,380	271
Cash flows from working capital	(3,523)	5,129	2,044
Cash flows from operating activities	(2,872)	6,750	2,444
Investing activities
Purchase and sale of holdings in associates	4	35	1
Purchase and sale of property, plant and equipment	(10)	(83)	(10)
Cash flows from investing activities	(6)	(48)	(9)
Financing activities
Purchase and sale of own holdings	(7)	(47)	(22)
Dividend etc	(7)	(84)	(84)
Raising of subordinated capital	2	(204)	1
Issue of bonds	2,015	(3,742)	5
Cash flows from financing activities	2,003	(4,077)	(100)
Cash flows for the period	(875)	2,625	2,335
Cash equivalent positions at 1 Jan	5,320	2,695	2,695
Cash flows for the period	(875)	2,625	2,335
Total cash equivalent positions at end of period	4,445	5,320	5,030

INTERIM REPORT- Q1 2012
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Sydbank

Segment Statements – the Group

DKKm	Asset Banking Management		Sydbank Markets	Treasury	Other	Total
Business segments – Q1 2012
Core income	1,008	42	21	-	-	1,071
Trading income	-	-	109	-	-	109
Total income	1,008	42	130	-	-	1,180
Costs, core earnings	588	13	35	-	14	650
Impairment of loans and advances etc	297	-	-	-	-	297
Core earnings	123	29	95	-	(14)	233
Profit/(Loss) on investment portfolios	-	-	-	114	7	121
Profit before non-recurring items	123	29	95	114	(7)	354
Non-recurring items, net	-	-	-	-	-	-
Profit before contribution to industry solutions via the Deposit Guarantee Fund	123	29	95	114	(7)	354
Contribution to industry solutions via the Deposit Guarantee Fund	-	-	-	-	14	14
Profit before tax	123	29	95	114	(21)	340
DKKm	Asset Banking Management		Sydbank Markets	Treasury	Other	Total
---	---	---	---	---	---	---
Business segments – Q1 2011
Core income	938	38	31	-	-	1,007
Trading income	-	-	91	-	-	91
Total income	938	38	122	-	-	1,098
Costs, core earnings	573	17	45	-	15	650
Impairment of loans and advances etc	251	-	(1)	-	-	250
Core earnings	114	21	78	-	(15)	198
Profit/(Loss) on investment portfolios	-	-	-	66	9	75
Profit before non-recurring items	114	21	78	66	(6)	273
Non-recurring items, net	-	-	-	-	-	-
Profit before contribution to industry solutions via the Deposit Guarantee Fund	114	21	78	66	(6)	273
Contribution to industry solutions via the Deposit Guarantee Fund	-	-	-	-	98	98
Profit before tax	114	21	78	66	(104)	175

INTERIM REPORT– Q1 2012

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Sydbank

Notes – the 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 Group has changed the components of the performance measures applied in its internal financial management.

Previously income was split into core income excluding trading income and trading income on the basis of products and activities.

The new performance measures, core income and trading income, are mainly based on client affiliation and as a consequence trading income only comprises income from clients affiliated with Sydbank Markets as well as income from flows, market-making and related position-taking.

Core income comprises income from clients serviced by the Group's broad branch network and investment centres, including commission, investment fund commission, custody account fees and asset management.

The Bank's segment statements are divided into the following: Banking, Asset Management, Sydbank Markets, Treasury and Other.

Asset Management primarily comprises the Bank's advisory-related income from clients and investment funds.

Sydbank Markets comprises trading income as well as a share of the income from clients with decentralised affiliation, calculated on the basis of the market price thereof. The share represents the payment by Banking for Sydbank Markets facilities, including advisory services and administration.

Treasury continues to comprise the Group's return on positions handled by Treasury, including liquidity allocation.

Overall these internal performance measures give a nuanced picture of Group income.

Comparative figures have been restated accordingly.

Apart from the above the accounting policies are consistent with those adopted in the 2011 Annual Report, to which reference is made.

The 2011 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 2011.

The Group's significant risks and the external elements which may affect the Group are described in greater detail in the 2011 Annual Report.

INTERIM REPORT– Q1 2012
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Sydbank

Notes – the Group

DKKm	Q1 2012	Q1 2011	Full year 2011
Note 2
Interest income
Reverse transactions with credit institutions and central banks	(1)	4	26
Amounts owed by credit institutions and central banks	18	20	85
Reverse loans and advances	12	18	89
Loans and advances and other amounts owed	819	759	3,274
Bonds	206	196	858
Derivatives	(9)	0	26
Other interest income	1	10	5
Total	1,046	1,007	4,363
Note 3
Interest expense
Repo transactions with credit institutions and central banks	5	31	136
Credit institutions and central banks	47	38	199
Repo deposits	25	0	2
Deposits and other debt	113	126	633
Bonds issued	56	51	201
Subordinated capital	13	14	62
Other interest expense	0	1	2
Total	259	261	1,235
Note 4
Fee and commission income
Securities trading and custody accounts	188	198	721
Payment services	55	53	217
Loan fees	30	20	85
Guarantee commission	25	26	107
Other fees and commission	53	47	174
Total	351	344	1,304
Note 5
Value adjustments
Other loans and advances and amounts owed at fair value	1	1	2
Bonds	91	(114)	336
Shares etc	37	(23)	(129)
Investment property	-	-	0
Currency	38	45	205
Total derivatives	37	215	(441)
Assets related to pooled plans	222	130	(63)
Deposits in pooled plans	(222)	(130)	65
Other assets/liabilities	0	0	(1)
Total	204	124	(26)

INTERIM REPORT- Q1 2012

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Sydbank

Notes – the Group

DKKm	Q1 2012	Q1 2011	Full year 2011
Note 6
Staff costs and administrative expenses
Salaries and emoluments to:
Executive management	3	3	17
Board of Directors	1	1	4
Shareholders' Committee	1	1	2
Total	5	5	23
Staff costs:
Wages and salaries	296	310	1,249
Pensions	32	35	139
Social security contributions	4	4	17
Payroll tax etc	28	28	99
Total	360	377	1,504
Other administrative expenses:
IT	129	128	526
Rent etc	32	34	165
Marketing and entertainment expenses	17	18	85
Other expenses	75	165	160
Total	253	345	936
Total	618	727	2,463
Note 7
Staff
Average number of staff (full-time equivalent)	2,182	2,326	2,294

INTERIM REPORT– Q1 2012

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Sydbank

Notes – the Group

	Q1	Q1	Full year
DKKm	2012	2011	2011
Note 8
Impairment of loans and advances recognised in the income statement
Impairment and provisions	308	240	681
Write-offs	19	31	559
Recovered from debt previously written off	30	16	42
Impairment of loans and advances etc	297	255	1,198
Impairment and provisions at end of period
Individual impairment and provisions	1,924	1,652	1,669
Collective impairment and provisions	169	162	167
Impairment and provisions at end of period	2,093	1,814	1,836
Individual impairment of loans and advances and provisions for guarantees
Impairment and provisions at 1 Jan	1,669	1,597	1,597
Exchange rate adjustment	0	0	0
Impairment and provisions during the period	318	251	709
Other movements	-	-	0
Write-offs covered by impairment and provisions	63	196	637
Impairment and provisions at end of period	1,924	1,652	1,669
Individual impairment of loans and advances	1,896	1,635	1,644
Individual provisions for guarantees	28	17	25
Impairment and provisions at end of period	1,924	1,652	1,669
Collective impairment of loans and advances and provisions for guarantees
Impairment and provisions at 1 Jan	167	166	166
Impairment and provisions during the period	2	(4)	1
Impairment and provisions at end of period	169	162	167
Sum of loans and advances and amounts owed
subject to collective impairment and provisions	13,986	11,604	14,504
Collective impairment and provisions	169	162	167
Loans and advances and amounts owed after collective impairment and provisions	13,817	11,442	14,337
Individual impairment of loans and advances subject to objective evidence of impairment
Balance before impairment of individually assessed loans and advances	3,591	3,142	3,141
Impairment of individually assessed loans and advances	1,896	1,635	1,644
Balance after impairment of individually assessed loans and advances	1,695	1,507	1,497
Interest added concerning individually and collectively impaired loans and advances represents	220	228	881
Note 9
Effective tax rate
Current tax rate of Sydbank	25.0	25.0	25.0
Permanent differences	-	-	11.2
Adjustment of prior year tax charges	-	-	1.3
Effective tax rate	25.0	25.0	37.5

INTERIM REPORT- Q1 2012

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Sydbank

Notes – the Group

	31 Mar	31 Dec	31 Mar
DKKm	2012	2011	2011
Note 10
Amounts owed by credit institutions and central banks
Amounts owed at notice by central banks	2,000	2,992	1,365
Amounts owed by credit institutions	3,797	1,994	3,902
Reverse transactions	1,510	3,540	2,437
Total	7,307	8,526	7,704
Note 11
Other assets
Positive market value of derivatives etc	12,996	13,875	7,154
Sundry debtors	304	272	248
Interest and commission receivable	464	582	410
Cash collateral provided, CSA agreements	2,176	2,912	845
Other assets	5	0	5
Total	15,945	17,641	8,662
Note 12
Amounts owed to credit institutions and central banks
Amounts owed to central banks	843	3,164	3,747
Amounts owed to credit institutions	17,031	15,212	17,682
Repo transactions	17,241	20,391	11,835
Total	35,115	38,767	33,264
Note 13
Deposits and other debt
On demand	42,631	40,499	38,411
At notice	434	442	584
Time deposits	15,939	20,360	20,806
Special categories of deposits	5,165	5,423	4,808
Repo transactions	-	-	-
Total	64,169	66,724	64,609
Note 14
Other liabilities
Negative market value of derivatives etc	13,098	14,110	6,507
Sundry creditors	1,388	1,421	1,518
Negative portfolio, reverse transactions	2,374	3,847	2,774
Interest and commission etc	146	103	139
Cash collateral received, CSA agreements	600	429	453
Other liabilities	0	1	3
Total	17,606	19,911	11,394

INTERIM REPORT– Q1 2012

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Sydbank

Notes – the Group

DKKm	31 Mar 2012	31 Dec 2011	31 Mar 2011

Note 15

Provisions

Provisions for pensions and similar obligations 3 3 4
Provisions for deferred tax 202 202 225
Provisions for guarantees 28 25 17
Other provisions * 40 26 32

Total 273 256 278

• Other provisions mainly concern provisions for onerous contracts and legal actions.

Note 16

Subordinated capital

Interest rate	Note	Nominal (m)		Maturity
Repaid loans				-	-	200
1.90 (floating)	1)	Bond loan	EUR 100	04.04.15	744	743
Total supplementary capital				744	743	945
2.27 (floating)	2)	Bond loan	EUR 100	Perpetual	740	739
2.81 (floating)	3)	Bond loan	EUR 75	Perpetual	558	558
6.36 (fixed)	4)	Bond loan	DKK 85	Perpetual	85	85
Total hybrid core capital				1,383	1,382	1,385
				2,127	2,125	2,330

1) Redeemed on 4 April 2012.
2) Optional redemption from 25 April 2017 after which the interest rate will be fixed at 2.10% above 3-month EURIBOR.
3) Optional redemption from 24 November 2014 after which the interest rate will remain unchanged.
4) Optional redemption from 14 May 2017 after which the interest rate will be fixed at 1.75% above 3-month CIBOR.

Note 17

Contingent liabilities and other obligating agreements

Contingent liabilities

Financial guarantees	3,164	2,937	2,933
Mortgage finance guarantees	1,719	1,514	1,135
Registration and remortgaging guarantees	2,234	2,639	2,772
Other contingent liabilities	1,226	1,181	1,387
Total	8,343	8,271	8,227

Other obligating agreements

Irrevocable credit commitments	293	490	98
Other liabilities	87	68	49
Total	380	558	147

INTERIM REPORT- Q1 2012

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Sydbank

Notes – the Group

Note 17 – continued

In February 2008 a group of minority shareholders (“Foreningen af Minoritetsaktionærer i bankTrelleborg”) filed a class action against Fonden for bankTrelleborg, Sydbank and the Danish FSA. The lawsuit concerns the legality of the compulsory redemption in accordance with section 144 of the Danish Financial Business Act as well as the pricing of the shares in connection with the compulsory redemption. In December 2010 the Eastern High Court ruled that the compulsory redemption was not legal as the conditions (70% requirement according to 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. This judgment was upheld by the Supreme Court on 27 January 2012.

Moreover, in 2009 the group of minority shareholders – by three named shareholders – filed an action against bankTrelleborg, now Sydbank, regarding an inadequate prospectus in connection with the conversion of sparTrelleborg to bankTrelleborg in Q2 2007. Judgment will be pronounced on 2 May 2012.

On 21 January 2011 two new class action claims were filed with the City Court of Copenhagen against Sydbank A/S concerning the acquisition of bankTrelleborg. Both claims concern a potential prospectus liability regarding bankTrelleborg, now Sydbank A/S, in connection with the conversion of sparTrelleborg to bankTrelleborg in Q2 2007, ie before the bank was acquired by Sydbank.

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 2012, the fair value of such securities stood at DKK 17,172m.

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 2012, the fair value of such securities stood at DKK 8,640m.

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 2012 the Group has deposited as collateral securities at a market value of DKK 800m 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 2012. Reference is made to the Group’s 2011 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.

INTERIM REPORT– Q1 2012
26 / 30

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Sydbank

Notes – the Group

DKKm	Q1 2012	Q1 2011	Full year 2011

Note 22

Large shareholders

Silchester International Investors LLP owns more than 10% and Nykredit A/S owns more than 5% of Sydbank’s share capital.

Note 23

Core income

Interest margins etc	719	668	2,799
Mortgage credit	58	43	188
Payment services	37	37	156
Remortgaging and loan fees	30	21	86
Commission and brokerage	76	97	353
Commission etc investment funds and pooled pension plans	77	64	235
Asset management	40	36	143
Custody account fees	17	17	70
Other income	17	24	50
Total	1,071	1,007	4,080

Mortgage credit

Totalkredit cooperation	51	39	170
Totalkredit, set-off of loss	6	3	20
Totalkredit cooperation, net	45	36	150
DLR Kredit	12	6	34
Other mortgage credit income	1	1	4
Total	58	43	188

INTERIM REPORT– Q1 2012

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Sydbank

Management Statement

Today we have reviewed and approved the Interim Report – Q1 2012 of Sydbank A/S.

The Interim Report for Q1 2012 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 2012 and of the results of the Group's operations and consolidated cash flows for the accounting period 1 January – 31 March 2012 as well as a description of the most significant risks and elements of uncertainty which may affect the Group.

Aabenraa, 2 May 2012

Group Executive Management

Karen Frøsig
(CEO)
Preben L. Hansen
Finn Boel Pedersen

Board of Directors

Anders Thoustrup
(Chairman)
Hanni Toosbuy Kasprzak
(Vice-Chairman)
Svend Erik Busk

Claus Christensen
Peder Damgaard
Harry Max Friedrichsen

Erik Bank Lauridsen
Steen Tophøj
Jan Uldahl-Jensen

Margrethe Weber

INTERIM REPORT– Q1 2012
28 / 30

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Sydbank

Supplementary Information

Financial calendar

In 2012 the Group's preliminary announcement of financial statements will be released as follows:

• Interim Report – First Half 2012
  22 August 2012 (expected to be published before 9am)
• Interim Report – Q1-Q3 2012
  30 October 2012

Contacts

Karen Frøsig, CEO
Tel: +45 74 37 20 00

Mogens Sandbæk, CFO
Tel: +45 74 37 24 00

Niels Møllegaard, 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 2011 Annual Report at sydbank.com.

INTERIM REPORT– Q1 2012

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Sydbank

Appendix

Core Income and Trading Income 2011-2012 – Quarterly

Breakdown of core income and trading income, current model

(DKKm)	Q1 2012	Q4 2011	Q3 2011	Q2 2011	Q1 2011	Full year 2011
Core income
Interest margins etc	719	736	730	665	668	2,799
Mortgage credit	58	57	44	44	43	188
Payment services	37	41	40	38	37	156
Remortgaging and loan fees	30	24	21	20	21	86
Commission and brokerage	76	84	89	83	97	353
Commission etc investment funds and pooled pension plans	77	65	48	58	64	235
Asset management	40	26	39	42	36	143
Custody account fees	17	17	16	20	17	70
Other income	17	10	5	11	24	50
Total	1,071	1,060	1,032	981	1,007	4,080
Trading income	109	49	(16)	43	91	167
Total income	1,180	1,109	1,016	1,024	1,098	4,247

Breakdown of core income and trading income, previous model

(DKKm)	Q1 2012	Q4 2011	Q3 2011	Q2 2011	Q1 2011	Full year 2011
Core income excl trading income
Interest margins etc	719	736	730	665	668	2,799
Mortgage credit	58	57	44	44	43	188
Payment services	37	41	40	38	37	156
Remortgaging and loan fees	30	24	21	20	21	86
Other commission	18	13	13	16	25	67
Other operating income	5	9	4	6	5	24
Total	867	880	852	789	799	3,320
Trading income
Bonds	82	50	35	29	54	168
Shares	53	39	35	42	66	182
Currency	40	44	57	42	50	193
Money market	15	0	(55)	6	16	(33)
Asset management	123	96	92	116	113	417
Total	313	229	164	235	299	927
Total core income	1,180	1,109	1,016	1,024	1,098	4,247

INTERIM REPORT- Q1 2012