Sydbank's Interim Report – First Half 2021

Earnings up by 20%

1H 2021 – highlights

Profit of DKK 645m equals a return on equity of 10.4% p.a. after tax.
Core income of DKK 2,193m is 20% higher compared to the same period in 2020.
Costs (core earnings) are 16% higher compared to the same period in 2020 and constitute DKK 1,647m.
Impairment charges for loans and advances represent an income of DKK 206m compared with an expense of DKK 42m in the same period in 2020.
Bank loans and advances constitute DKK 61.4bn an increase of DKK 1.2bn in 1H 2021.
Total credit intermediation amounts to DKK 168.9bn an increase of DKK 3.3bn in 1H 2021.
The CET1 ratio has declined by 1.1 percentage points compared to year-end 2020 and constitutes 17.7% excluding profit for the period.

We are undertaking a number of initiatives to strengthen:

Sydbank's position Denmark's corporate bank significant increase in awareness
our earnings via new terms and conditions for corporate deposits
our customer focus via a change in Sydbank's organisation
our engine room we will simplify processes for Sydbank's advisers.

Denmark's corporate bank – significant increase in awareness

Our targeted efforts to raise the awareness of Sydbank's strengths and competences in the corporate area have produced measurable results:

A significant increase in awareness
Many positive responses to the campaign
Influx of new customers
Increased business volume with existing customers.

The next stage of the campaign will focus on value creation and specific customer benefits. Sydbank – Denmark's corporate bank.

Adjusted terms and conditions for corporate deposits

Sydbank's deposit surplus set a new record at 30 June 2021. We will adjust the interest rate of corporate clients' deposit accounts from minus 0.75% to minus 0.95%, which is in line with developments in the marketplace.

Change in Sydbank's organisation

Sydbank will strengthen its position in the Private Banking and Retail Client segments. As a result the division Retail Clients & Private Banking will be split into 2 divisions. Consequently we will have a division for each of the customer segments: Corporate, Private Banking and Retail. This aims to clarify more fully the Bank's competences, strengths and value propositions for the individual customer.

In addition customer-facing areas will be anchored more firmly within the Group Executive Management. This will ensure greater customer focus throughout the Bank – starting at the Group Executive Management level.

We will simplify processes for Sydbank's advisers

We will continue to strengthen the Bank's engine room. Digitization and automation of tasks will be further accelerated via the introduction of a new portal concerning the handling of retail client cases. We work continuously to deliver faster and improve quality, to create easier and simpler processes for our employees and to build a more cost effective engine room to the benefit of the Bank's shareholders.

CEO Karen Frøsig comments on Sydbank's 1H result:

An earnings growth of 20% is strong and is the result of measures implemented, including the acquisition of Alm. Brand Bank which accounts for half of the growth in earnings.

Board chairman Lars Mikkelgaard-Jensen on Sydbank's capital position:

We acted very responsibly by cancelling the announced dividend distribution to our shareholders last year. I hope and expect that the authorities will allow the cancelled distribution to be effected later this year.

Outlook for 2021

Growth is projected in the Danish economy in 2021 and is expected to exceed the negative growth in 2020.
Total income is expected to rise sharply as a result of the acquisition of Alm. Brand Bank and measures implemented as regards deposits and fees.
Costs (core earnings) are projected to increase as a result of the acquisition of Alm. Brand Bank.
Impairment charges for 2021 are forecast to represent a net reversal in the region of DKK 250m.
Non-recurring costs are expected to be in the range of DKK 100-150m. The item consists of costs related to "A stronger bank", costs to establish a bank/insurance partnership as well as costs related to the integration of Alm. Brand Bank.
Profit after tax is expected to be in the range of DKK 1,150-1,350m.
The outlook is subject to uncertainty and depends among other things on financial market developments and macroeconomic factors.

Group Financial Highlights 5
Highlights 6
Financial Review – Performance in 1H 2021 9
Income Statement 18
Statement of Comprehensive Income 18
Balance Sheet 19
Financial Highlights – Quarterly 20
Financial Highlights – Half-yearly 21
Capital 22
Cash Flow Statement 24
Segment Reporting etc 25
Notes 27
Management Statement 45
Supplementary Information 46

Group Financial Highlights

	1H	1H	Index	Q2	Q2	Full year
	2021	2020	21/20	2021	2020	2020

Income statement (DKKm)
Core income	2,193	1,829	120	1,088	869	3,670
Trading income	141	116	122	68	109	278
Total income	2,334	1,945	120	1,156	978	3,948
Costs, core earnings	1,647	1,418	116	814	700	2,774
Core earnings before impairment	687	527	130	342	278	1,174
Impairment of loans and advances etc	(206)	42	-	(125)	(42)	47
Core earnings	893	485	184	467	320	1,127
Investment portfolio earnings	(19)	(33)	58	2	45	(31)
Profit before non-recurring items	874	452	193	469	365	1,096
Non-recurring items, net	(49)	(37)	132	(17)	(20)	(75)
Profit before tax	825	415	199	452	345	1,021
Tax	180	91	198	98	76	222
Profit for the period	645	324	199	354	269	799

Balance sheet highlights (DKKbn)
Loans and advances at amortised cost	61.4	55.5	111	61.4	55.5	60.2
Loans and advances at fair value	20.3	19.1	106	20.3	19.1	18.0
Deposits and other debt	98.1	84.2	117	98.1	84.2	95.9
Bonds issued at amortised cost	9.6	7.4	130	9.6	7.4	9.6
Subordinated capital	1.9	1.9	100	1.9	1.9	1.9
AT1 capital	0.8	0.8	100	0.8	0.8	0.8
Shareholders' equity	12.2	11.2	109	12.2	11.2	11.7
Total assets	169.8	150.4	113	169.8	150.4	165.8

Financial ratios per share (DKK per share of DKK 10)
Profit for the period	10.4	5.1		5.8	4.4	12.8
Share price at end of period	193.1	123.0		193.1	123.0	134.5
Book value	205.1	190.2		205.1	190.2	197.6
Share price/book value	0.94	0.65		0.94	0.65	0.68
Average number of shares outstanding (in millions)	59.3	59.1		59.3	59.0	60.4
Dividend per share	-	-		-	-	4.00

Other financial ratios and key figures
CET1 ratio	17.7	20.2		17.7	20.2	18.8
T1 capital ratio	19.1	22.0		19.1	22.0	20.4
Capital ratio	22.5	25.9		22.5	25.9	24.0
Pre-tax profit as % p.a. of average equity	13.4	7.1		14.7	12.1	8.6
Post-tax profit as % p.a. of average equity	10.4	5.4		11.4	9.3	6.6
Costs (core earnings) as % of total income	70.6	72.9		70.4	71.6	70.3
Return on assets (%)	0.4	0.2		0.4	0.2	0.51
Interest rate risk	1.7	0.9		1.7	0.9	1.6
Foreign exchange position	1.2	1.3		1.2	1.3	1.2
Foreign exchange risk	0.0	0.0		0.0	0.0	0.0
Liquidity, LCR (%)	235	232		235	232	210
Loans and advances relative to deposits	0.5	0.6		0.5	0.6	0.5
Loans and advances relative to equity	5.0	5.1		5.0	5.1	5.1
Growth in loans and advances during the period	1.9	(8.3)		(0.3)	(7.5)	(0.5)
Total large exposures	141	152		141	152	149
Accumulated impairment ratio	2.4	3.0		2.4	3.0	2.7
Impairment ratio for the period	(0.24)	0.06		(0.15)	(0.06)	0.10
Number of full-time staff at end of period	2,126	1,979	107	2,126	1,979	2,286

When calculating financial ratios AT1 capital is considered a liability regardless of the fact that it is accounted for as equity. Reference is made to financial ratio definitions in the 2020 Annual Report (page 118).

Highlights

Earnings up by 20%

The Sydbank Group recorded a pre-tax profit of DKK 825m for the first 6 months of 2021 compared with DKK 415m in the same period in 2020. The increase of DKK 410m is attributable in part to a rise in core income and income from impairment charges of DKK 206m in 2021 compared to an expense of DKK 42m in 2020.

Profit before tax equals a return of 13.4% p.a. on average equity.

Core income constitutes DKK 2,193m compared with DKK 1,829m in 2020 – an increase of DKK 364m, equivalent to 20%, of which 10% is attributable to the acquisition of Alm. Brand Bank. The increase is considerably higher compared with the expectations presented in the Interim Report for Q1 2021.

Trading income in 1H 2021 constitutes DKK 141m and is in line with the expectations presented in the 2020 Annual Report.

Total income amounts to DKK 2,334m, which is an increase of 20% compared to the same period in 2020.

Costs (core earnings) constituted DKK 1,647m in 1H 2021 – a rise of 16% compared to the same period in 2020. The increase is attributable to the acquisition of Alm. Brand Bank.

Impairment charges for loans and advances represent an income of DKK 206m compared with an expense of DKK 42m in the same period in 2020.

Core earnings constitute DKK 893m compared with DKK 485m in 2020 – an increase of DKK 408m.

Profit for the period amounts to DKK 645m compared with DKK 324m in 2020 – an increase of DKK 321m.

Sydbank's strategy for 2019-21: "A stronger bank"

We are building a stronger bank focusing on 3 themes:

Customer first
More Sydbank
Digitization.

Customer first lifts our customer focus to a new and higher level. The direct link between highly satisfied customers and a positive trend in the top line is the driving force behind the priority of this theme.

More Sydbank seeks to strengthen Sydbank's profile and visibility. We will make "Banking" more attractive to customers, employees and shareholders. We will create a more distinct identity and communicate our fundamental values more clearly.

Digitization is an investment in the customer meeting a bank – at every touch point – where focus is on the wishes, needs and expectations of the customer. It is an investment in our employees having even simpler and more efficient processes enabling them to spend their time on the customer. It is an investment in using the new technology that works to improve the customer's digital relationship with Sydbank. And it is an investment in ensuring that Sydbank remains a financially sound and well-run business.

The strategic focus represents the values from the Bank's underlying philosophy and its core story with 3 promises – to its customers, to its employees and to its shareholders. The goals thus also reflect the values of the underlying philosophy under the heading "Excellence and relationships create value" as well as our basic belief that dedicated employees make for satisfied customers and that these 2 factors combined are a condition for achieving a satisfactory return for the Bank's shareholders.

The strategic focus covers these areas:

Customer satisfaction
Employee engagement
Return on equity.

Customer satisfaction

Sydbank builds on long-term customer relationships. We strive for a positive trend in customer satisfaction. Sydbank's objective is to gain a top 3 ranking among the 6 largest Danish banks measured in terms of customer satisfaction in the corporate segment and the retail segment. In 2020 Sydbank achieved this objective.

Employee engagement

Sydbank considers excellent and committed employees to be its most important asset and aims to retain the present high level. Sydbank's objective is to be best in class in surveys conducted by Ennova. Sydbank carries out one comprehensive survey every other year and more condensed surveys during the period leading up to the next survey. Sydbank was best in class among financial institutions in Denmark in 2020.

Return on equity

Sydbank's objective is to achieve a top 3 ranking among the 6 largest Danish banks measured in terms of return on equity.

Sydbank – Denmark's corporate bank

Sydbank is the bank for the backbone of the Danish corporate sector. With a market share of more than 10% among small and medium-sized enterprises, Sydbank is Denmark's 3rd largest corporate bank.

Sydbank has a unique size. Sufficiently large and competent to match the professional expectations of businesses – yet sufficiently small to be attentive.

1H performance

Core income totals DKK 2,193m, which is DKK 364m higher than in 1H 2020. The development in core income is mainly attributable to the acquisition of Alm. Brand Bank as well as an increase in net interest etc, mortgage credit, commission and brokerage due to increased trading activity.

Trading income constituted DKK 141m in 1H 2021 compared with DKK 116m in the same period in 2020.

Total income represents DKK 2,334m, which is an increase of DKK 389m compared to the same period in 2020.

Costs (core earnings) constitute DKK 1,647m compared with DKK 1,418m in 2020 – an increase of DKK 229m as a result of the acquisition of Alm. Brand Bank.

The Group's impairment charges for loans and advances represent an income of DKK 206m compared with an expense of DKK 42m in 1H 2020.

Together the Group's position-taking and liquidity handling generated negative investment portfolio earnings of DKK 19m in 1H 2021 compared with negative earnings of DKK 33m a year ago.

Non-recurring items represent an expense of DKK 49m compared with an expense of DKK 37m in 1H 2020. In 2021 the item consists of DKK 19m related to "A stronger bank" and DKK 30m related to the integration of Alm. Brand Bank. In 2020 the item consisted of costs of DKK 37m related to "A stronger bank".

Profit before tax for 1H 2021 amounts to DKK 825m compared with DKK 415m in the same period in 2020. Tax represents DKK 180m, equivalent to an effective tax rate of 21.8%. Profit for the period amounts to DKK 645m compared with DKK 324m in 2020.

Bank loans and advances

Bank loans and advances represented DKK 61.4bn at 30 June 2021 – an increase of DKK 5.9bn since 30 June 2020 and an increase of DKK 1.2bn since yearend 2020.

Bank loans and advances (DKKbn)	30 Jun 2021	31 Dec 2020	30 Jun 2020
Corporate clients	46.8	44.7	42.7
Retail clients	14.5	15.2	12.5
Public authorities	0.1	0.3	0.3
Total	61.4	60.2	55.5

Demand for loans is rising and at the same time competition for bank loans and advances is fierce. However the development in bank loans and advances should be compared to the favourable conditions in the real property market, which means that an increasing share of customers' total housing debt is financed by way of mortgage loans. Arranged mortgage loans – Totalkredit went up by DKK 2.5bn in the first 6 months of 2021.

Lending to corporate clients is affected for instance by the government's relief packages, which include deferral of VAT and tax payments. Loans and advances to corporate clients showed an increase of DKK 2.1bn in 1H 2021.

As a result of the uncertainty in connection with covid-19, many corporate clients have increased their credit facilities, which the Bank has accommodated in the form of increased credit commitments. During 1H 2021 corporate clients drew a further DKK 1.9bn under their credit facilities.

Credit facilities to corporate clients increased by DKK 4.0bn in 1H 2021 to DKK 88.5bn.

Credit facilities to corporate clients (DKKbn)	30 Jun 2021	31 Dec 2020	30 Jun 2020
Drawn facilities =
loans/advances before impairment charges	48.2	46.3	44.4
Undrawn facilities	40.3	38.2	35.8
Total	88.5	84.5	80.2

Credit intermediation

In addition to traditional bank loans and advances the Group arranges for mortgage loans from Totalkredit and DLR Kredit. The Group's total credit intermediation comprises bank loans and advances, mortgage-like loans funded by Totalkredit as well as mortgage loans arranged through Totalkredit and DLR Kredit. At 30 June 2021 credit intermediation totalled DKK 168.9bn – an increase of DKK 3.3bn compared to year-end 2020.

The change is attributable to a rise in bank loans and advances of DKK 1.2bn, a decline in funded mortgagelike loans of DKK 0.8bn and an increase in arranged mortgage loans of a total of DKK 2.9bn.

Total credit intermediation (DKKbn)	30 Jun 2021	31 Dec 2020	30 Jun 2020
Bank loans and advances	61.4	60.2	55.5
Funded mortgage-like loans	6.2	7.0	7.6
Arranged mortgage loans – Totalkredit Arranged mortgage loans –	88.2	85.7	66.8
DLR	13.1	12.7	11.3
Total	168.9	165.6	141.2

Outlook for 2021

Growth is projected in the Danish economy in 2021 and is expected to exceed the negative growth in 2020.

Total income is expected to rise sharply as a result of the acquisition of Alm. Brand Bank and measures implemented as regards deposits and fees.

Costs (core earnings) are projected to increase as a result of the acquisition of Alm. Brand Bank.

Impairment charges for 2021 are forecast to represent a net reversal in the region of DKK 250m.

Non-recurring costs are expected to be in the range of DKK 100-150m. The item consists of costs related to "A stronger bank", costs to establish a bank/insurance partnership as well as costs related to the integration of Alm. Brand Bank.

Profit after tax is expected to be in the range of DKK 1,150-1,350m.

In connection with the release of the 2020 Annual Report profit after tax was expected to be in the range of DKK 850-1,150m in 2021.

On 9 July 2021 the Bank adjusted upwards its expectations and now profit after tax is expected to be in the range of DKK 1,150-1,350m.

The outlook is subject to uncertainty and depends among other things on financial market developments and macroeconomic factors.

Sydbank's core story

Banking

Sydbank's mission is to be a bank that is close to its customers. We find solutions where they are – quickly and efficiently. We build on relationships between people. And we focus on what is important – banking and sound business. Banking – pure and simple.

Our bank

Rooted in Southern Jutland, Sydbank is a strong and independent nationwide bank operating on its own terms. For the backbone of the Danish corporate sector and for retail customers who value professional advice we are a bank for most people but not the same bank for everyone. Good old-fashioned attentiveness, new technology – we use what works. We know our customers and we are close to them providing advice tailored to their individual needs. Backed by the best business partners our competitive strength is increased. Our bank – excellence and relationships create value.

Sydbank

Our bank makes 3 promises – to our customers, to our employees and to our shareholders. You will know us for the value we create for our customers. You will know us for our belief that excellent and committed employees are our most important asset. And you will know us for always having a level of profitability that will enable us to remain an independent and resourceful bank. Sydbank – what can we do for you.

Financial Review – Performance in 1H 2021

The Sydbank Group has recorded a profit before tax of DKK 825m (1H 2020: DKK 415m).

Profit before tax equals a return of 13.4% p.a. on average equity.

Profit for the period after tax represents DKK 645m compared with DKK 324m in 2020.

Profit after tax equals a return of 10.4% p.a. on average equity.

Profit for 1H 2021 exceeds expectations at the beginning of the year.

The result is characterised by:

a rise in core income of DKK 364m to DKK 2,193m
an increase in trading income of DKK 25m
higher costs (core earnings) as a result of the acquisition of Alm. Brand Bank
impairment charges represent an income of DKK 206m, of which DKK 103m concerns mink farming
a rise in core earnings of DKK 408m to DKK 893m
negative investment portfolio earnings of DKK 19m
bank loans and advances of DKK 61.4bn (yearend 2020: DKK 60.2bn) – a rise of DKK 1.2bn
bank deposits of DKK 98.1bn (year-end 2020: DKK 95.9bn)
a CET1 ratio of 17.7% (year-end 2020: 18.8%)
an individual solvency need of 10.4% (year-end 2020: 10.8%).

Income statement – 1H (DKKm)	2021	2020
Core income	2,193	1,829
Trading income	141	116
Total income	2,334	1,945
Costs, core earnings	1,647	1,418
Core earnings before impairment	687	527
Impairment of loans and advances etc	(206)	42
Core earnings	893	485
Investment portfolio earnings	(19)	(33)
Profit before non-recurring items	874	452
Non-recurring items, net	(49)	(37)
Profit before tax	825	415
Tax	180	91
Profit for the period	645	324

Core income

Core income represents DKK 2,193m – an increase of DKK 364m compared with 2020.

Net interest has gone up by DKK 115m to DKK 865m compared to 2020. Net interest is positively affected by the acquisition of Alm. Brand Bank and the measures implemented as regards deposits.

Net income from the cooperation with Totalkredit represents DKK 277m (2020: DKK 233m) after a setoff of loss of DKK 6m (2020: DKK 4m). The cooperation with DLR Kredit has generated an income of DKK 70m (2020: DKK 66m). Total mortgage credit income represents DKK 348m – an increase of DKK 48m compared with 2020.

Commission and brokerage have risen by DKK 55m to DKK 241m compared to 2020. The rise is attributable to significant trading activity in 2021.

Asset management represents DKK 185m compared with DKK 139m in 2020.

The remaining income components have increased by DKK 100m, equal to a rise of 22%.

Core income – 1H (DKKm)	2021	2020
Net interest etc	865	750
Mortgage credit	348	300
Payment services	97	72
Remortgaging and loan fees	94	85
Commission and brokerage	241	186
Commission etc investment funds and pooled pension plans	171	139
Asset management	185	139
Custody account fees	49	39
Other operating income	143	119
Total	2,193	1,829

Trading income

Trading income rose by DKK 25m to DKK 141m in 1H 2021 compared with the same period in 2020.

The increase in income is mainly attributable to the fact that income in 1H 2020 was affected by negative market developments triggered by considerable uncertainty following the covid-19 outbreak.

1H 2021 as well as 1H 2020 have been characterised by brisk activity in financial markets.

Costs and depreciation

The Group's costs and depreciation total DKK 1,700m, equal to an increase of DKK 241m compared to the same period in 2020.

Costs and depreciation –1H (DKKm)	2021	2020
Staff costs	994	820
Other administrative expenses	632	580
Amortisation, depreciation and impairment of intangible assets and property, plant and equipment	59	47

Other operating expenses	15	12
Total costs and depreciation	1,700	1,459
Distributed as follows:
Costs, core earnings	1,647	1,418
Costs, investment portfolio earnings	4	4
Non-recurring costs	49	37

Costs (core earnings) represent DKK 1,647m compared with DKK 1,418m in 2020 – an increase of DKK 229m. The rise is attributable to the acquisition of Alm. Brand Bank where costs amounted to DKK 277m in 1H 2020.

At 30 June 2021 the Group's staff numbered 2,126 (full-time equivalent) compared with 1,979 at 30 June 2020 and 2,286 at 31 December 2020. In 1H 2021 the number of employees declined by 160, which is primarily attributable to the integration of Alm. Brand Bank.

Compared to year-end 2020 the number of branches has been reduced by 1, bringing the number of branches to 55 in Denmark and 3 in Germany at end-June 2021.

Core earnings before impairment

Core earnings before impairment charges for loans and advances represent DKK 687m – an increase of DKK 160m or 30% compared to the same period in 2020.

Impairment of loans and advances etc

Impairment charges for loans and advances represent an income of DKK 206m compared with an expense of DKK 42m in the same period in 2020.

The Group's impairment charges for loans and advances include a management estimate of DKK 325m (31 December 2020: DKK 325m) to cover the consequences of the covid-19 outbreak on the Group's lending portfolio. The estimate is based on a current assessment of the effects of covid-19 on the Group's

lending portfolio and the estimate may change in the coming quarters.

At 30 June 2021 Sydbank's unsecured loans and advances in the weakest rating categories (excluding agriculture) amounted to DKK 522m. These loans and advances are not subject to objective evidence of credit impairment but in the short term they are the most critical in terms of credit impairment due to covid-19. The impairment charges include a management estimate of DKK 125m to hedge the risk of these loans and advances, equal to 24%.

Furthermore impairment charges include a management estimate of DKK 200m to cover unforeseen events as regards the remaining part of the lending portfolio, the credit risk of which is satisfactory or normal.

The Group's total lending to the entertainment industry, retailers and small businesses is low.

Consequently management estimates as a result of covid-19 total DKK 325m (31 December 2020: DKK 325m).

The chart below shows impairment charges for loans and advances in the last 4 quarters as regards agriculture etc, trade, real property, other industries as well as retail clients.

The impairment ratio for the period relative to bank loans and advances and guarantees at 30 June 2021 represents minus 0.2%. At end-June 2021 accumulated impairment and provisions amounted to DKK 2,008m – a decline of DKK 221m compared to year-end 2020.

In 1H 2021 reported losses amounted to DKK 94m (1H 2020: DKK 175m). Of the reported losses an impairment charge of DKK 77m (1H 2020: DKK 140m) has previously been recorded.

Impairment charges are made for expected credit losses as regards all financial assets measured at amortised cost and similar provisions are made for expected credit losses as regards undrawn credit commitments and financial guarantees.

Impairment charges for expected credit losses depend on whether the credit risk of a financial asset has increased significantly since initial recognition and follow a 3-stage model. The portfolio in stage 3 acquired from Alm. Brand Bank is recognised under "credit impaired at initial recognition":

Stage 1 facilities with no significant increase in credit risk. The asset is written down by an amount equal to the expected credit loss as a result of the probability of default over the coming 12 months
Stage 2 facilities with a significant increase in credit risk. The asset is transferred to stage 2 and is written down by an amount equal to the expected credit loss over the life of the asset
Stage 3 facilities where the financial asset is in default or is otherwise credit impaired
Credit impaired at initial recognition (POCI) facilities which were credit impaired at the time of acquisition of Alm. Brand Bank. They are recognised on acquisition at the fair value of the debt acquired.

The Group's loans and advances and impairment charges at 30 June 2021 allocated to these stages are shown below.

Loans/advances and impairment charges – 30 Jun 2021
(DKKm)	Stage 1	Stage 2	Stage 3	POCI	Total
Loans/advances before impairment
charges Impairment	58,196	3,267	1,434		304 63,201
charges	440	660	739	-	1,839
Total loans/ advances	57,756	2,607	695		304 61,362

30 Jun 2021	Stage 1	Stage 2	Stage 3	POCI	Total
Impairment charges as % of bank loans/advances Share of bank loans/advances	0.8	20.2	51.5	-	2.9
before impairment charges (%) Share of bank loans/advances after	92.1	5.1	2.3	0.5	100.0
impairment charges (%)	94.1	4.3	1.1	0.5	100.0

Credit impaired bank loans and advances – stage 3 – represent 2.3% (year-end 2020: 3.1%) of total bank loans and advances before impairment charges and 1.1% (year-end 2020: 1.6%) of total bank loans and advances after impairment charges.

Impairment charges concerning credit impaired bank loans and advances as a percentage of credit impaired bank loans and advances at 30 June 2021 stand at 51.5% (year-end 2020: 49.3%).

Credit impaired bank loans and advances from the acquisition of Alm. Brand Bank – credit impaired at initial recognition – amount to 0.5% of total bank loans and advances before impairment charges and 0.5% of total bank loans and advances after impairment charges.

Core earnings

Core earnings represent DKK 893m – an increase of DKK 408m compared to the same period in 2020.

Investment portfolio earnings

Together the Group's position-taking and liquidity handling generated negative investment portfolio earnings of DKK 19m in 1H 2021 compared with negative earnings of DKK 33m a year ago.

The portfolio has been composed with the aim of making investment portfolio earnings neutral to interest rate changes.

Investment portfolio earnings – 1H (DKKm)	2021	2020
Position-taking	(9)	0
Liquidity generation and liquidity reserves	(12)	(26)
Strategic positions	6	(3)
Costs	(4)	(4)
Total	(19)	(33)

Non-recurring items, net

Non-recurring items represent an expense of DKK 49m compared with an expense of DKK 37m in 1H 2020.

In 2021 the item consists of costs of DKK 19m related to "A stronger bank" and DKK 30m related to the integration of Alm. Brand Bank.

In 2020 the item consisted of costs of DKK 33m related to "A stronger bank".

Profit for the period

Profit before tax amounts to DKK 825m (1H 2020: DKK 415m). Tax represents DKK 180m, equivalent to an effective tax rate of 21.8%. Profit for the period amounts to DKK 645m compared with DKK 324m in 2020.

Return

Profit for the period equals a return on average equity of 10.4% p.a. after tax against 5.4% p.a. in 1H 2020. Earnings per share stands at DKK 10.4 compared with DKK 5.1 in 2020.

Profit before tax for the quarter represents DKK 452m (Q1 2021: DKK 373m).

Compared to Q1 2021 profit before tax reflects:

a decline in core income of DKK 17m level remains high however
a decline in costs (core earnings) of DKK 19m
impairment charges for loans and advances represent an income of DKK 125m in Q2 and DKK 81m in Q1
an increase in core earnings of DKK 41m to DKK 467m
investment portfolio earnings of DKK 2m (Q1 2021: minus DKK 21m).

Profit for the period (DKKm)	Q2 2021	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Core income	1,088	1,105	959	882	869	960
Trading income	68	73	74	88	109	7
Total income	1,156	1,178	1,033	970	978	967
Costs, core earnings	814	833	728	628	700	718
Core earnings before impairment	342	345	305	342	278	249
Impairment of loans and advances etc	(125)	(81)	1	4	(42)	84
Core earnings	467	426	304	338	320	165
Investment portfolio earnings	2	(21)	2	0	45	(78)
Profit before non-recurring items	469	405	306	338	365	87
Non-recurring items, net	(17)	(32)	(20)	(18)	(20)	(17)
Profit before tax	452	373	286	320	345	70
Tax	98	82	60	71	76	15
Profit for the period	354	291	226	249	269	55

Subsidiaries

Profit after tax of the subsidiaries represents DKK 14m (1H 2020: DKK 8m). Sydbank has sold the subsidiary Alm. Brand Leasing A/S to Opendo A/S effective from 1 March 2021.

Total assets

The Group's total assets made up DKK 169.8bn at 30 June 2021 against DKK 165.8bn at year-end 2020.

Assets (DKKbn)	30 Jun 2021	31 Dec 2020
Amounts owed by credit institutions etc	21.7	17.2
Loans and advances at fair value (reverse transactions) Loans and advances at amortised cost	20.3	18.0
(bank loans and advances)	61.4	60.2
Securities and holdings etc	36.7	39.5
Assets related to pooled plans	20.8	19.8
Other assets etc	8.9	11.1
Total	169.8	165.8

The Group's bank loans and advances totalled DKK 61.4bn at end-June 2021 against DKK 60.2bn at yearend 2020 and DKK 55.5bn at end-June 2020.

Equity and liabilities (DKKbn)	30 Jun 2021	31 Dec 2020
Amounts owed to credit institutions etc	6.0	7.1
Deposits and other debt	98.1	95.9
Deposits in pooled plans	20.8	19.8
Bonds issued	9.6	9.6
Other liabilities etc	20.0	18.5
Provisions	0.4	0.5
Subordinated capital	1.9	1.9
Equity	13.0	12.5
Total	169.8	165.8

The Group's deposits make up DKK 98.1bn against DKK 95.9bn at year-end 2020 and DKK 84.2bn at end-June 2020.

Equity

At 30 June 2021 shareholders' equity constituted DKK 12,162m – an increase of DKK 450m since year-end 2020. The change comprises an addition from comprehensive income for the period of DKK 696m less distribution of DKK 248m and net purchases of own shares etc of DKK 2m.

Capital

REA (DKKbn)	30 Jun 2021	31 Dec 2020
Credit risk	38.2	33.3
Market risk	6.5	6.7
Operational risk	6.7	6.7
Other exposures incl CVA	6.4	7.3
Total	57.8	54.0

The risk exposure amount represents DKK 57.8bn (year-end 2020: DKK 54.0bn). The change is mainly attributable to an increase in credit risk of DKK 4.9bn as well as a decline in other exposures incl CVA and market risk of DKK 0.9bn and DKK 0.2bn respectively.

At 30 June 2021 the risk exposure amount shows a total increase of DKK 3.8bn, which is primarily attributable to the introduction of a new definition of default as from 1 January 2021.

The development in the gross exposure by rating category at 30 June 2021, 31 December 2020 and 30 June 2020 appears below.

The gross exposure by rating category shows a positive development with an increasing share in the 4 best rating categories and a falling share in the 5 poorest rating categories.

The gross exposure consists 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 of rating categories. Impairment charges for exposures have not been deducted from the exposure.

Solvency

Group (DKKm)	30 Jun 2021	31 Dec 2020
REA	57,799	54,040
CET1 capital	10,244	10,185
T1 capital	11,043	11,041
Total capital	13,003	12,952
CET1 ratio	17.7	18.8
T1 capital ratio	19.1	20.4
Capital ratio	22.5	24.0

The Group's capital ratio stands at 22.5%, of which the T1 capital ratio represents 19.1% compared with 24.0% and 20.4% respectively at year-end 2020. The CET1 ratio stands at 17.7% (31 December 2020: 18.8%).

Profit for the period is not included in the calculation of capital ratios at 30 June 2021.

The capital ratio declined by 1.5 percentage points in 1H due to the increase in the risk exposure amount.

At 30 June 2021 the individual solvency need represented 10.4% (31 December 2020: 10.8%).

The parent's capital ratio stands at 21.8%, of which the T1 capital ratio represents 18.5% compared with 22.7% and 19.4% respectively at year-end 2020. The CET1 ratio stands at 17.2% (31 December 2020: 17.9%).

Capital requirements

The Group's capital management is anchored in the Internal Capital Adequacy Assessment Process (ICAAP), a review conducted to identify risks and determine the individual solvency need.

At end-June 2021 the individual solvency need represented 10.4%. The solvency need consists of a minimum capital requirement of 8% under Pillar I and a capital add-on under Pillar II. Approximately 56% of

the solvency need must be covered by CET1 capital, equivalent to 5.9% of the risk exposure amount.

In addition to the solvency need the Group must meet a combined buffer requirement of 3.5% at 30 June 2021.

Capital and solvency and capital requirements (% of REA)	30 Jun 2021	Fully loaded*
Capital and solvency
CET1 ratio	17.7	17.6
Capital ratio	22.5	22.4
Capital requirements (incl buffers)**
Total capital requirement	13.9	14.9
CET1 capital requirement	9.4	10.4
- of which countercyclical capital buffer	0.0	1.0
- of which capital conservation buffer	2.5	2.5
- of which SIFI buffer	1.0	1.0
Excess capital
CET1 capital	8.3	7.2
Total capital	8.6	7.5

* Based on fully loaded requirements and the impact of IFRS 9.

** The total capital requirement consists of an individual solvency need and a combined buffer requirement. The fully loaded countercyclical capital buffer is based on the adopted requirement at 30 June 2021.

In June 2021 the Danish Minister for Industry, Business and Financial Affairs decided to reactivate the countercyclical capital buffer at a rate of 1.0% effective from 30 September 2022.

Market risk

At 30 June 2021 the Group's interest rate risk represented DKK 190m. The Group's exchange rate risk continues to be very low and its equity position modest.

Funding and liquidity

The guidelines for calculating the Liquidity Coverage Ratio (LCR) specify a run-off of exposures while taking into account counterparties, funding size, hedging and maturity. Consequently the most stable deposits are favoured relative to large deposits, in particular large deposits from businesses and financial counterparties.

The Group's LCR constituted 235% at 30 June 2021 (31 December 2020: 210%).

LCR (DKKbn)	30 Jun 2021	31 Dec 2020	30 Jun 2020
Total liquidity buffer	48.1	51.3	43.3
Net cash outflows	20.5	24.4	18.6
LCR (%)	235	210	232

The Group has met the LCR requirement throughout the period and as can be seen its excess cover continues to be significant at 30 June 2021.

Funding ratio (DKKbn)	30 Jun 2021	31 Dec 2020	30 Jun 2020
Equity and subordinated capital	14.8	14.4	13.9
Senior loans with maturities > 1 year	5.9	9.6	7.4
Stable deposits	88.0	87.6	78.7
Total stable funding	108.7	111.6	100.0
Bank loans and advances	61.4	60.2	55.5
Funding ratio (%)	177	185	180

The Group's stable funding exceeded the Group's loans and advances by DKK 47.3bn at 30 June 2021 (31 December 2020: DKK 51.4bn).

Rating

Moody's most recent ratings of Sydbank:

	Outlook:	Stable
	Long-term deposit:	A1
	Baseline Credit Assessment:	Baa1
	Senior unsecured:	A1

Short-term deposit: P-1.

Supervisory Diamond

The Supervisory Diamond sets up a number of benchmarks to indicate banking activities that initially should be regarded as involving a higher risk. Any breach of the Supervisory Diamond is subject to reactions by the Danish FSA. Sydbank complies with all the benchmarks of the Supervisory Diamond.

Supervisory Diamond benchmarks	30 Jun 2021	31 Dec 2020	30 Jun 2020
Sum of 20 largest exposures < 175%	141	149	152
Lending growth < 20% annually	11	(1)	(9)
Commercial property exposure < 25%	9	7	8
Funding ratio < 1	0.54	0.52	0.54
Excess liquidity coverage > 100%	257	232	254

Bank Recovery and Resolution Directive

The directive, including the bail-in provisions, was implemented in Danish law on 1 June 2015.

According to legislation each credit institution must meet a minimum requirement for own funds and eligible liabilities (MREL). In December 2020 the Danish FSA set the MREL for Sydbank at 25.1% of the risk exposure amount.

The Group's MREL is based on the risk exposure amount using a factor which has been set at the sum of twice the solvency need and once the SIFI buffer, the capital conservation buffer and the countercyclical capital buffer.

MREL – 30 Jun 2021 (%)	Capital requirements	MREL
Solvency need	10.4	20.9
SIFI buffer	1.0	1.0
Capital conservation buffer	2.5	2.5
Countercyclical capital
buffer	0.0	0.0
Total requirement (%)	13.9	24.4
Total requirement (DKKm)	8,034	14,084

At 30 June 2021 the Group met the MREL with an excess cover of DKK 2,771m.

The excess cover corresponds to an increase in the solvency need of 2.4 percentage points or an increase in the risk exposure amount of DKK 11,300m.

One of the Group's NPS issues of EUR 500m has a maturity of less than 1 year and cannot be included.

Excess cover – MREL (DKKm)
Total capital	13,003
NPS issues with maturity exceeding 1 year	5,874
Cover of combined buffer requirement	(2,022)

Total own funds and eligible liabilities	16,855
MREL	14,084
Excess cover	2,771

The establishment of a resolution fund is underway. Credit institutions must make contributions to the fund according to their relative size and risk in Denmark. The resolution fund must be established and have assets at its disposal equal to at least 1% of the covered deposits of all Danish credit institutions by 31 December 2024.

The Group's contribution to the resolution fund for 2021 is expected to represent DKK 25m.

Leverage ratio

The CRR/CRD IV rules require credit institutions to calculate, report, monitor and disclose their leverage ratio, which is defined as T1 capital as a percentage of total exposure. The European Commission's proposal for a revision of CRR includes a proposal to introduce a minimum leverage ratio requirement of 3%.

The Group's leverage ratio constituted 5.6% at 30 June 2021 (year-end 2020: 6.1%) taking into account the transitional rules.

Assuming fully loaded T1 capital under CRR/CRD IV without any refinancing of non-eligible AT1 capital,

the leverage ratio would represent 5.6% (year-end 2020: 6.1%).

The introduction of a minimum leverage ratio requirement is not expected to be of significance to the Group.

IFRS 9 – transitional arrangement

To counter an unintended impact on regulatory capital and hence banks' possibilities of supporting lending, a transitional arrangement has been adopted so that any adverse impact from the new impairment model will be phased in over a period. As a result of covid-19 the arrangement has been prolonged until 2024. Sydbank uses the transitional arrangement.

Basel IV

On 7 December 2017 the Basel Committee on Banking Supervision (BCBS) published its recommendations for a number of changes to the calculation of the capital requirements for credit institutions. These recommendations, also known as Basel IV, propose among other things to constrain the use of internal models and introduce a permanent floor for the risk exposure amount.

The recommendations are expected to have a limited impact on the Group's capital.

The recommendations must be implemented in the EU before they apply to Danish credit institutions. The Group is following developments closely. At present the extent of changes in relation to the Basel Committee's recommendations when implemented into EU regulation is unknown. The effective date is expected to be 1 January 2023 on which date the floor requirement is also expected to be implemented, starting at 50% and gradually increasing until finally reaching 72.5% on 1 January 2028.

New definition of default

As of 1 January 2021 new rules regarding the definition of default entered into force which involve a broadening of the concept – and consequently more defaults.

The Group is developing new models for retail clients and corporate clients and will incorporate the new definition of default in these models. As a result a significant consequential effect of the new default definition – lower LGD – will be introduced at the same time.

Exposures affected by covid-19

The following exposures are considered to be the most affected by covid-19:

Severely impacted industries
Weak corporate clients
Small corporate clients.

Severely impacted industries

Mainly businesses within the following industries are considered to be severely impacted by covid-19:

Sea and air transport
Specialised retailers, exclusive of cars
Hotels, restaurants and entertainment.

Loans and advances to these industries represented DKK 1.9bn at 30 June 2021, equivalent to 3.1% of total loans and advances of DKK 61.4bn.

Weak corporate clients

Customers who were already weak before the coronavirus crisis – corresponding to rating categories 7, 8, 9 and default – will be even more challenged during times of crisis.

Impairment charges are recorded on a regular basis on all customers subject to objective evidence of credit impairment and as a result these customers are given individual focus.

Loans and advances to weak corporate clients without objective evidence of credit impairment (excluding agriculture) total DKK 0.6bn. After deduction of collateral received of DKK 0.1bn, unsecured loans and advances represent DKK 0.5bn.

Small corporate clients

By experience the smallest businesses are often less robust.

Loans and advances to the smallest businesses – with a balance sheet total of less than DKK 5m – represented DKK 0.9bn at 30 June 2021, equivalent to 1.5% of total loans and advances of DKK 61.4bn.

Income Statement

		Sydbank Group		Sydbank A/S
		1H	1H	1H	1H
DKKm	Note	2021	2020	2021	2020

Interest income calculated using the effective interest method		1,037	922	1,040	925
Other interest income		156	119	156	119
Interest income	2	1,193	1,041	1,196	1,044
Interest expense	3	232	236	230	236
Net interest income		961	805	966	808
Dividends on shares		20	24	20	24
Fee and commission income	4	1,313	1,097	1,238	1,028
Fee and commission expense		154	153	136	133
Net interest and fee income		2,140	1,773	2,088	1,727

Market value adjustments	5	162	131	162	131
Other operating income		14	8	15	9
Staff costs and administrative expenses	6	1,626	1,400	1,600	1,372
Amortisation, depreciation and impairment of intangible
assets and property, plant and equipment		59	47	59	46
Other operating expenses	8	15	12	15	12
Impairment of loans and advances etc	9	(205)	42	(205)	42
Profit/(Loss) on holdings in associates and subsidiaries	10	4	4	18	12
Profit before tax		825	415	814	407
Tax	11	180	91	175	86
Profit for the period		645	324	639	321

Distribution of profit for the period
Shareholders of Sydbank A/S				619	302
Holders of AT1 capital				20	19
Total amount to be allocated				639	321

Interest paid to holders of AT1 capital				20	19
Transfer to equity				619	302
Total amount allocated				639	321
EPS Basic for the period (DKK)*		10.4	5.1	10.4	5.1
EPS Diluted for the period (DKK)*		10.4	5.1	10.4	5.1
Dividend per share (DKK)		-	-	-	-
* Calculated on the basis of average number of shares outstanding, see page 22.
Statement of Comprehensive Income

Profit for the period		645	324	639	321
Other comprehensive income
Items that may be reclassified to the income statement:
Translation of foreign entities		-	4	-	4
Hedge of net investment in foreign entities		-	(4)	-	(4)
Items that may not be reclassified to the income statement:
Property revaluation		-	-	-	-
Value adjustment of certain strategic shares		77	0	77	0
Other comprehensive income after tax		77	0	77	0

Comprehensive income for the period		722	324	716	321

Balance Sheet

			Sydbank Group	Sydbank A/S
		30 Jun	31 Dec	30 Jun	31 Dec
DKKm	Note	2021	2020	2021	2020

Assets
Cash and balances on demand at central banks		5,674	2,806	5,674	2,806
Amounts owed by credit institutions and central banks	12	16,070	14,428	16,070	14,428
Loans and advances at fair value		20,280	17,961	20,280	17,961
Loans and advances at amortised cost	13	61,362	60,229	61,804	61,429
Bonds at fair value		33,997	36,942	33,997	36,942
Shares etc		2,551	2,409	2,551	2,409
Holdings in associates etc		181	173	181	173
Holdings in subsidiaries etc		-	-	2,229	3,425
Assets related to pooled plans		20,786	19,773	20,786	19,773
Intangible assets		424	445	424	445
Owner-occupied property		1,112	1,079	895	846
Owner-occupied property (leasing)		85	101	85	101
Total land and buildings		1,197	1,180	980	947
Other property, plant and equipment		61	70	61	70
Current tax assets		493	147	505	155
Deferred tax assets		21	20	14	14
Assets in temporary possession		1	971	1	2
Other assets	14	6,674	8,170	6,272	7,768
Prepayments		76	76	75	76
Total assets		169,848	165,800	171,904	168,823

Equity and liabilities
Amounts owed to credit institutions and central banks	15	6,054	7,093	6,054	7,093
Deposits and other debt	16	98,064	95,919	100,313	99,165
Deposits in pooled plans		20,786	19,773	20,786	19,773
Liabilities temporarily acquired		-	88	-	-
Bonds issued at amortised cost		9,589	9,563	9,589	9,563
Other liabilities	17	20,033	18,465	19,880	18,367
Deferred income		10	7	10	7
Total liabilities		154,536	150,908	156,632	153,968

Provisions	18	497	529	496	529
Subordinated capital	19	1,857	1,857	1,857	1,857
Equity:
Share capital		597	597	597	597
Revaluation reserves		104	104	104	104
Other reserves:
Reserves according to articles of association		425	425	425	425
Reserve for net revaluation according to equity method		2	2	2	2
Retained earnings		11,034	10,336	11,034	10,336
Proposed dividend etc		-	248	-	248
Shareholders of Sydbank A/S		12,162	11,712	12,162	11,712

Holders of AT1 capital		757	757	757	757
Minority shareholders		39	37	-	-
Total equity		12,958	12,506	12,919	12,469
Total equity and liabilities		169,848	165,800	171,904	168,823

						Sydbank Group
	Q2	Q1	Q4	Q3	Q2	Q1
	2021	2021	2020	2020	2020	2020
Income statement (DKKm)
Core income	1,088	1,105	959	882	869	960
Trading income	68	73	74	88	109	7
Total income	1,156	1,178	1,033	970	978	967
Costs, core earnings	814	833	728	628	700	718
Core earnings before impairment	342	345	305	342	278	249
Impairment of loans and advances etc	(125)	(81)	1	4	(42)	84
Core earnings	467	426	304	338	320	165
Investment portfolio earnings	2	(21)	2	0	45	(78)
Profit before non-recurring items	469	405	306	338	365	87
Non-recurring items, net	(17)	(32)	(20)	(18)	(20)	(17)
Profit before tax	452	373	286	320	345	70
Tax	98	82	60	71	76	15
Profit for the period	354	291	226	249	269	55

Balance sheet highlights (DKKbn)
Loans and advances at amortised cost	61.4	61.5	60.2	56.0	55.5	60.0
Loans and advances at fair value	20.3	18.2	18.0	16.1	19.1	19.6
Deposits and other debt	98.1	93.0	95.9	82.9	84.2	82.2
Bonds issued at amortised cost	9.6	9.6	9.6	7.4	7.4	7.4
Subordinated capital	1.9	1.9	1.9	1.9	1.9	1.9
AT1 capital Shareholders' equity	0.8 12.2	0.8 11.8	0.8 11.7	0.8 11.5	0.8 11.2	0.8 11.0
Total assets	169.8	164.8	165.8	151.1	150.4	150.2

Financial ratios per share (DKK per share of DKK 10)
Profit for the period	5.8	4.7	3.7	4.0	4.4	0.7
Share price at end of period	193.1	170.9	134.5	99.6	123.0	96.1
Book value	205.1	198.5	197.6	194.2	190.2	185.8
Share price/book value	0.94	0.86	0.68	0.51	0.65	0.52
Average number of shares outstanding (in millions) Dividend per share	59.3 -	59.3 -	59.3 4.00	58.6 -	59.0 -	59.2 -

Other financial ratios and key figures
CET1 ratio	17.7	18.1	18.8	20.1	20.2	19.0
T1 capital ratio	19.1	19.5	20.4	21.8	22.0	20.6
Capital ratio	22.5	23.0	24.0	25.6	25.9	24.3
Pre-tax profit as % p.a. of average equity	14.7	12.3	9.5	10.9	12.1	2.1
Post-tax profit as % p.a. of average equity Costs (core earnings) as % of total income	11.4 70.4	9.5 70.7	7.4 70.3	8.4 64.7	9.3 71.6	1.6 74.3
Return on assets (%)	0.4	0.2	0.1	0.2	0.2	0.0
Interest rate risk	1.7	1.2	1.6	1.0	0.9	0.6
Foreign exchange position	1.2	2.0	1.2	2.0	1.3	2.3
Foreign exchange risk	0.0	0.0	0.0	0.0	0.0	0.0
Liquidity, LCR (%)	235	211	210	231	232	196
Loans and advances relative to deposits	0.5	0.6	0.5	0.6	0.6	0.6
Loans and advances relative to equity	5.0	5.2	5.1	5.1	5.1	5.5
Growth in loans and advances during the period	(0.3)	2.1	7.6	0.8	(7.5)	(0.9)
Total large exposures	141	151	149	153	152	139
Accumulated impairment ratio Impairment ratio for the period	2.4 (0.15)	2.6 (0.10)	2.7 0.00	2.8 0.01	3.0 (0.06)	2.7 0.10
Number of full-time staff at end of period	2,126	2,166	2,286	1,983	1,979	2,004

					Sydbank Group
	1H	1H	1H	1H	1H
	2021	2020	2019	2018	2017
Income statement (DKKm)

Core income	2,193	1,829	1,805	2,040	2,093
Trading income	141	116	136	100	139
Total income	2,334	1,945	1,941	2,140	2,232
Costs, core earnings	1,647	1,418	1,429	1,397	1,369
Core earnings before impairment	687	527	512	743	863
Impairment of loans and advances etc	(206)	42	(34)	(57)	(9)
Core earnings	893	485	546	800	872
Investment portfolio earnings	(19)	(33)	(28)	(78)	187
Profit before non-recurring items	874	452	518	722	1,059
Non-recurring items, net	(49)	(37)	(39)	92	(12)
Profit before tax	825	415	479	814	1,047
Tax	180	91	90	146	231
Profit for the period	645	324	389	668	816

Balance sheet highlights (DKKbn)
Loans and advances at amortised cost	61.4	55.5	60.9	62.5	70.6
Loans and advances at fair value Deposits and other debt	20.3 98.1	19.1 84.2	7.0 89.1	6.1 84.1	7.4 84.7
Bonds issued at amortised cost	9.6	7.4	7.4	-	3.7
Subordinated capital	1.9	1.9	1.9	1.9	1.3
AT1 capital	0.8	0.8	0.8	0.8	-
Shareholders' equity	12.2	11.2	10.7	11.3	11.5
Total assets	169.8	150.4	152.1	136.1	140.1

Financial ratios per share (DKK per share of DKK 10)
Profit for the period	10.4	5.1	6.0	10.0	11.8
Share price at end of period	193.1	123.0	125.1	219.4	245.4
Book value	205.1	190.2	176.1	173.1	169.0
Share price/book value	0.94	0.65	0.71	1.27	1.45
Average number of shares outstanding (in millions)	59.3	59.1	61.0	66.5	69.1
Dividend per share	-	-	-	-	-
Other financial ratios and key figures
CET1 ratio	17.7	20.2	16.6	15.5	15.6
T1 capital ratio	19.1	22.0	18.3	17.2	16.1
Capital ratio	22.5	25.9	21.6	20.4	18.1
Pre-tax profit as % p.a. of average equity	13.4	7.1	8.7	14.3	18.2
Post-tax profit as % p.a. of average equity	10.4	5.4	7.0	11.7	14.2
Costs (core earnings) as % of total income	70.6	72.9	73.6	65.3	61.3
Return on assets (%)	0.4	0.2	0.3	0.5	0.6
Interest rate risk	1.7	0.9	1.3	1.6	0.7
Foreign exchange position	1.2	1.3	1.6	3.6	3.9
Foreign exchange risk	0.0	0.0	0.0	0.0	0.1
Liquidity, LCR (%)	235	232	207	154	225
Loans and advances relative to deposits	0.5	0.6	0.6	0.6	0.7
Loans and advances relative to equity	5.0	5.1	5.8	5.5	6.1
Growth in loans and advances during the period	1.9	(8.3)	(0.2)	(2.8)	(8.6)
Total large exposures	141	152	149	146	150
Accumulated impairment ratio	2.4	3.0	3.4	3.6	3.6
Impairment ratio for the period Number of full-time staff at end of period	(0.24) 2,126	0.06 1,979	(0.04) 2,069	(0.07) 2,102	(0.01) 2,092

Capital

			Reserves	Reserve for			Share			Sydbank Group
			acc to	net			holders
		Revalu ation	articles of assoc	revaluation acc to equity	Retained	Proposed dividend	of Sydbank	AT1	Minority share	Total
DKKm	Share capital	reserves	iation*	method	earnings	etc	A/S	capital**	holders	equity

Equity at 1 Jan 2021	597	104	425	2	10,336	248	11,712	757	37	12,506
Profit for the period					619		619	20	6	645
Other comprehensive income					77		77			77
Comprehensive income for the
period	-	-	-	-	696	-	696	20	6	722
Transactions with owners
Purchase of own shares					(604)		(604)			(604)
Sale of own shares					604		604			604
Interest paid on AT1 capital							-	(19)		(19)
Exchange rate adjustment					1		1	(1)		-
Dividend etc paid						(248)	(248)		(7)	(255)
Dividend, own shares					1		1			1
Sale of holdings in subsidiaries							-		3	3
Total transactions with owners	-	-	-	-	2	(248)	(246)	(20)	(4)	(270)
Equity at 30 Jun 2021	597	104	425	2	11,034	-	12,162	757	39	12,958

Equity at 1 Jan 2020	618	116	425	4	9,451	352	10,966	760	38	11,764

Profit for the period					302		302	19	3	324
Other comprehensive income Comprehensive income for the					0		0			0
period	-	-	-	-	302	-	302	19	3	324
Transactions with owners
Purchase of own shares					(442)		(442)			(442)
Sale of own shares					419		419			419
Interest paid on AT1 capital							-	(20)		(20)
Exchange rate adjustment					1		1	(1)		-
Cancelled dividend, own shares					345	(345)	-			-
Dividend paid						(7)	(7)		(5)	(12)
Purchase of holdings in subsidiaries							-		(2)	(2)
Total transactions with owners	-	-	-	-	323	(352)	(29)	(21)	(7)	(57)
Equity at 30 Jun 2020	618	116	425	4	10,076	-	11,239	758	34	12,031

* Reserves according to the articles of association equal the undistributable savings bank reserve in accordance with Article 4 of the Articles of Association.

** AT1 capital has no maturity date. Payment of interest and repayment of principal are voluntary. Therefore AT1 capital is accounted for as equity. In May 2018 Sydbank issued EUR 100m with optional redemption on 28 August 2025. The issue carries interest at the Mid-Swap Rate + a margin of 4.62%, a total of 5.25%. Under the issue the loan will be written down if the CET1 ratio of Sydbank A/S or the Sydbank Group drops below 7%.

The Sydbank share	30 Jun 2021	31 Dec 2020	30 Jun 2020

Share capital (DKK)	596,763,200	596,763,200	617,540,000
Shares issued (number)	59,676,320	59,676,320	61,754,000
Shares outstanding at end of period (number)	59,290,464	59,286,316	59,079,658
Average number of shares outstanding (number)	59,290,954	59,034,373	59,143,101

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

Capital

	Sydbank Group
	30 Jun	31 Dec	30 Jun
DKKm	2021	2020	2020

Solvency
CET1 ratio	17.7	18.8	20.2
T1 capital ratio	19.1	20.4	22.0
Capital ratio	22.5	24.0	25.9
Total capital
Equity, shareholders of Sydbank A/S	12,162	11,712	11,239
Not including profit for the period	(639)	-	(323)
Prudent valuation	(88)	(85)	(75)
Actual or contingent obligations to purchase own shares	(8)	(10)	(8)

Proposed dividend	-	(248)	-
Intangible assets and capitalised deferred tax assets	(383)	(420)	(204)
Significant investments in financial sector	(884)	(882)	(714)
Transitional arrangement IFRS 9	84	118	118
CET1 capital	10,244	10,185	10,033
AT1 capital – equity	744	744	745
AT1 capital – debt	55	112	112
T1 capital	11,043	11,041	10,890
T2 capital	1,801	1,745	1,748
Difference between expected losses and impairment for accounting purposes	159	166	176
Total capital	13,003	12,952	12,814
Credit risk*	38,156	33,355	31,628
Market risk	6,538	6,675	4,836
Operational risk	6,708	6,708	7,171
Other exposures incl CVA	6,397	7,302	5,929
REA	57,799	54,040	49,564

Pillar I capital requirement	4,624	4,323	3,965

* Credit risk
Corporate clients, IRB	26,023	21,811	22,921
Retail clients, IRB	5,817	5,798	6,336
Corporate clients, STD	1,422	460	273
Retail clients, STD	3,545	3,476	937
Credit institutions etc	1,349	1,810	1,161
Total	38,156	33,355	31,628

Cash Flow Statement

	Sydbank Group
	1H	Full year	1H
DKKm	2021	2020	2020

Operating activities
Pre-tax profit for the period	825	1,021	415
Taxes paid	(547)	(174)	(66)
Adjustment for non-cash operating items:
Profit/(Loss) on holdings in associates	0	3	0
Amortisation and depreciation of intangible assets and property, plant and equipment	59	109	47
Impairment of loans and advances/guarantees	(205)	47	42
Other non-cash operating items	(32)	65	(15)
	100	1,071	423
Changes in working capital:
Credit institutions and central banks	(5,687)	(1,512)	(7,760)
Trading portfolio	2,804	(558)	9,588
Other financial instruments at fair value	187	(33)	74
Loans and advances	(3,248)	(842)	(1,452)
Deposits	2,146	1,718	(56)
Other assets/liabilities	3,858	187	1,811
Cash flows from operating activities	160	31	2,628

Investing activities
Purchase of holdings in associates	(8)	(29)	-
Sale of holdings in associates	-	-	-
Acquisition of Alm. Brand Bank	-	(1,897)	-
Purchase of holdings in subsidiaries	3	(2)	(2)
Sale of holdings in subsidiaries	-	-	-
Purchase of property, plant and equipment	(46)	(110)	(15)
Sale of property, plant and equipment	(1)	11	0
Cash flows from investing activities	(52)	(2,027)	(17)

Financing activities
Purchase and sale of own holdings	1	(2)	(24)
Dividends etc	(247)	(7)	(7)
Issue of bonds	-	2,133	-
Cash flows from financing activities	(246)	2,124	(31)

Cash flows for the period	(138)	128	2,580

Cash and cash equivalents at 1 Jan	6,881	6,753	6,753
Cash flows for the period	(138)	128	2,580
Cash and cash equivalents at end of period	6,743	6,881	9,333
Cash and cash equivalents at end of period
Cash and balances on demand at central banks	5,674	2,806	2,344

Fully secured cash and cash equivalent balances on demand with
credit institutions and insurance companies	1,069	1,016	1,150
Unencumbered certificates of deposit	-	3,059	5,839
Cash and cash equivalents at end of period	6,743	6,881	9,333

Segment Reporting etc

						Sydbank Group
DKKm	Banking	Asset Management	Sydbank Markets	Treasury	Other	Total

Operating segments
1H 2021
Core income	1,964	172	57	-	-	2,193
Trading income	-	-	141	-	-	141
Total income	1,964	172	198	-	-	2,334
Costs, core earnings	1,457	69	83	-	38	1,647
Impairment of loans and advances etc	(206)	-	-	-	-	(206)
Core earnings	713	103	115	-	(38)	893
Investment portfolio earnings	6	-	-	(25)	-	(19)
Profit before non-recurring items	719	103	115	(25)	(38)	874
Non-recurring items, net	(49)	-	-	-	-	(49)
Profit before tax	670	103	115	(25)	(38)	825


1H 2020
Core income	1,644	139	46	-	-	1,829
Trading income	-	-	116	-	-	116
Total income	1,644	139	162	-	-	1,945
Costs, core earnings	1,255	57	79	-	27	1,418
Impairment of loans and advances etc	42	-	-	-	-	42
Core earnings	347	82	83	-	(27)	485
Investment portfolio earnings	(3)	-	-	(30)	-	(33)
Profit before non-recurring items	344	82	83	(30)	(27)	452
Non-recurring items, net	(37)	-	-	-	-	(37)
Profit before tax	307	82	83	(30)	(27)	415

Operating segments

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

Banking serves all types of retail and corporate clients.

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 decentral 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 comprises the Group's return on positions handled by Treasury, including liquidity allocation.

Other includes non-recurring items, costs to the Group Executive Management etc as well as return on strategic shareholdings that are not allocated to Banking or Sydbank Markets.

Inter-segment transactions are settled on an arm's length basis. Centrally incurred costs are allocated to the business units in accordance with their estimated proportionate share of overall activities.

Excess liquidity is settled primarily at short-term money market rates whereas other balances are settled on an arm's length basis.

Segment Reporting etc

	Sydbank Group
DKKm	Core income	Trading income	Costs, core earnings	Impair ment of loans/ advances etc	Core earn ings	Invest ment port folio earn ings	Non recurring items, net	Profit before tax
Correlation between the Group's performance measures and
the income statement according to IFRS
1H 2021
Net interest and fee income	2,010	116			2,126	14		2,140
Market value adjustments	165	25		1	191	(29)		162
Other operating income	14				14			14
Income	2,189	141	-	1	2,331	(15)	-	2,316
Staff costs and administrative expenses			(1,573)		(1,573)	(4)	(49)	(1,626)
Amortisation, depreciation and
impairment of intangible assets and property, plant and equipment			(59)		(59)			(59)
Other operating expenses			(15)		(15)			(15)
Impairment of loans and advances etc				205	205			205
Profit/(Loss) on holdings in
associates and subsidiaries	4				4			4
Profit before tax	2,193	141	(1,647)	206	893	(19)	(49)	825


1H 2020
Net interest and fee income	1,686	122			1,808	(35)		1,773
Market value adjustments Other operating income	131 8	(6)		0	125 8	6		131 8
Income	1,825	116	-	0	1,941	(29)	-	1,912
Staff costs and administrative
expenses			(1,359)		(1,359)	(4)	(37)	(1,400)
Amortisation, depreciation and impairment of intangible assets
and property, plant and equipment			(47)		(47)			(47)
Other operating expenses			(12)		(12)			(12)
Impairment of loans and advances etc				(42)	(42)			(42)
Profit/(Loss) on holdings in
associates and subsidiaries Profit before tax	4 1,829	116	(1,418)	(42)	4 485	(33)	(37)	4 415

The Sydbank Group's internal financial reporting is not made on the basis of products and services. Reference is made to notes 2 and 4 for the distribution of interest income as well as fee and commission income.

Note 1

Accounting policies

The interim report covers the period from 1 January to 30 June 2021 and is prepared in compliance with IAS 34 "Interim Financial Reporting" as adopted by the EU and in compliance with Danish disclosure requirements for interim reports of listed financial companies. As a result of the use of IAS 34, the presentation is less complete compared with the presentation of an annual report and the recognition and measurement principles are in compliance with IFRS.

The accounting policies are consistent with those adopted in the 2020 Annual Report, to which reference is made.

The 2020 Annual Report provides a comprehensive description of the accounting policies applied.

Accounting estimates and judgements

The measurement of certain assets and liabilities requires that management makes accounting estimates as to how future events will affect the value of such assets, liabilities, income and costs. Actual results may deviate from such estimates.

The significant estimates made by management in the use of the Group's accounting policies and the inherent considerable uncertainty of such estimates used in the preparation of the interim report are identical to those used in the preparation of the 2020 Annual Report.

Impairment of loans and advances and provisions for guarantees and undrawn credit commitments are made to take into account the expected losses on conclusion as well as any credit impairment after initial recognition. The determination of impairment charges for expected losses is subject to a number of estimates, including which loans and advances or portfolios of loans and advances are subject to credit impairment as well as calculation of expected losses.

Assessing the degree of credit impairment of exposures involves a number of estimates which may be subject to uncertainty.

To a large extent the determination of expected losses at exposure level is based on risk registrations, models and past experience but it also involves a number of estimates of risks and expected developments in the individual exposure, including the future ability to pay and the value of collateral which in particular comprises mortgages on property. During periods of uncertain economic trends or significant demographic or structural changes uncertainty is greater. This is reflected in the need for management adjustments that by their nature are subject to uncertainty.

The Group's models to calculate impairment of exposures in stages 1 and 2 include expectations as to economic developments. The outlook is based on estimates of the probability of different outcomes of economic growth. The outlook results in a determination of the probability of the scenarios baseline, upturn and downturn. At 30 June 2021 the probability of the downturn scenario was fixed at 95% (2020: 95%).

Impairment of exposures in stage 3 and the weakest part of stage 2 is based on individual assessments which include expectations of future changes in collateral value etc.

In addition to the calculated impairment charges management estimates whether special impairment charges as regards severely impacted industries or customer segments etc are needed.

At 30 June 2021 a collective impairment charge of DKK 325m (31 December 2020: DKK 325m) was recognised to cover losses as a result of the economic consequences of covid-19 and therefore the estimate may change in the coming quarters.

The Group's significant risks and the external elements which may affect the Group are described in greater detail in the 2020 Annual Report.

		Sydbank Group	Sydbank A/S
	1H	1H	1H	1H
DKKm	2021	2020	2021	2020

Note 2
Interest income calculated using the effective interest method
Amounts owed by credit institutions and central banks	7	12	8	12
Loans and advances and other amounts owed	811	781	813	784
Other interest income	1	4	1	4
Interest on amounts owed to credit institutions*	6	0	6	0
Interest on deposits*	212	125	212	125
Total	1,037	922	1,040	925
Other interest income Repo transactions with credit institutions and central banks and repo deposits* Bonds Total derivatives comprising: Foreign exchange contracts Interest rate contracts Total	16 69 71 15 56 156	16 54 49 2 47 119	16 69 71 15 56 156	16 54 49 2 47 119
Total interest income	1,193	1,041	1,196	1,044
* Negative interest expense
Fair value, designated at initial recognition Fair value, held for trading	16 140	16 103	16 140	16 103
Assets recognised at amortised cost	1,037	922	1,040	925
Total	1,193	1,041	1,196	1,044

The Group's cash resources are primarily placed in Danish mortgage bonds. The interest rate risk concerning these positions has been reduced via derivatives. As a result the Group's external income statement is affected in terms of interest income and the market value adjustment of bonds and derivatives. The same applies to the Group's position-taking as regards bonds as well as shares. The breakdown by income statement item does not disclose income independently and consequently these items must be regarded as one as they are in "Segment reporting" as well as in the Group's financial review, which also takes funding of the positions into account.

		Sydbank Group	Sydbank A/S
	1H	1H	1H	1H
DKKm	2021	2020	2021	2020

Note 3
Interest expense
Reverse transactions with credit institutions and central banks and
reverse loans and advances*	48	60	48	60
Amounts owed to credit institutions and central banks	5	4	5	4
Deposits and other debt	52	60	50	60
Bonds*	8	5	8	5
Bonds issued	64	55	64	55
Interest on amounts owed by credit institutions and central banks*	41	38	41	38
Subordinated capital	12	13	12	13
Other interest expense	2	1	2	1
Total	232	236	230	236
* Negative interest income
Fair value, designated at initial recognition	48	60	48	60
Fair value, held for trading	8	5	8	5
Liabilities recognised at amortised cost	176	171	174	171
Total	232	236	230	236

Note 4
Fee and commission income
Securities trading and custody accounts	457	375	382	306
Advisory fee, asset management	204	150	204	150
Payment services	142	135	142	135
Loan fees	110	96	110	96
Guarantee commission	78	73	78	73
Income concerning funded mortgage-like loans	46	62	46	62
Other fees and commission	276	206	276	206
Total fee and commission income	1,313	1,097	1,238	1,028
Fee expense, asset management	5	5	5	5
Other fee and commission expense	149	148	131	128
Total fee and commission expense	154	153	136	133
Net fee and commission income	1,159	944	1,102	895

Except for guarantee commission recognised according to IFRS 9, fee and commission income is recognised according to IFRS 15. The set-off of loss concerning arranged mortgage loans represented DKK 6m in 1H 2021 (1H 2020: DKK 4m) and has been deducted from commission received which is included under other fees and commission.

		Sydbank Group	Sydbank A/S
	1H	1H	1H	1H
DKKm	2021	2020	2021	2020

Note 5
Market value adjustments
Other loans and advances and amounts owed at fair value	13	1	13	1
Bonds	(77)	(42)	(77)	(42)
Shares etc	85	52	85	52
Foreign exchange	98	82	98	82
Total derivatives	43	38	43	38
Assets related to pooled plans	1,094	(918)	1,094	(918)
Deposits in pooled plans	(1,094)	918	(1,094)	918
Other assets/liabilities	0	0	0	0
Total	162	131	162	131

Note 6
Staff costs and administrative expenses
Salaries and remuneration:
Group Executive Management	11	9	11	9
Board of Directors	3	3	3	3
Shareholders' Committee	2	2	2	2
Total	16	14	16	14
Staff costs:
Wages and salaries	788	645	767	625
Pensions	79	62	77	59
Social security contributions	8	8	8	8
Payroll tax	103	91	101	88
Total	978	806	953	780

Other administrative expenses:
IT	427	374	422	369
Rent etc	38	46	44	53
Marketing and entertainment expenses	29	28	27	25
Other costs	138	132	138	131
Total	632	580	631	578
	1,626	1,400	1,600	1,372

Staff

Average number of staff (full-time equivalent)	2,202	2,028	2,125	1,958

	Sydbank Group			Sydbank A/S
	1H	1H	1H	1H
DKKm	2021	2020	2021	2020


Note 8
Other operating expenses
Contribution to the Resolution Fund	15	12	15	12

Other expenses	-	0	-	0
Total	15	12	15	12

Note 9
Impairment of loans and advances recognised in the income statement
Impairment and provisions	(162)	56	(162)	56
Write-offs	17	35	17	35
Recovered from debt previously written off	60	49	60	49

Impairment of loans and advances etc	(205)	42	(205)	42
Impairment and provisions at end of period (allowance account)
Stage 1	357	154	357	154
Stage 2	520	521	520	521
Stage 3	806	1,283	963	1,440
Management estimates	325	225	325	225
Impairment and provisions at end of period	2,008	2,183	2,165	2,340

Impairment and provisions
Impairment and provisions at 1 Jan	2,229	2,244	2,386	2,401
New impairment charges and provisions during the period, net	(144)	79	(144)	79
Impairment charges previously recorded, now finally written off	77	140	77	140
Impairment and provisions at end of period	2,008	2,183	2,165	2,340

Impairment charges for loans and advances	1,839	2,016	1,996	2,173
Provisions for undrawn credit commitments	61	50	61	50
Provisions for guarantees	108	117	108	117
Impairment and provisions at end of period	2,008	2,183	2,165	2,340

Losses recognised for the period constitute DKK 94m. As regards losses recognised for the period a legal claim of DKK 51m has been upheld. As regards losses recognised a legal claim of DKK 440m has been upheld at year-end 2020.

	Sydbank Group
					Impairment of
				Impairment	loans and advances
		Loans/advances		charges		etc for	Loss for the
		and guarantees		and provisions		the period		period
	30 Jun	31 Dec	30 Jun	31 Dec	1H	1H	1H	1H
DKKm	2021	2020	2021	2020	2021	2020	2021	2020

Note 9 – continued
Loans and advances and guarantees as well as impairment charges for loans and advances etc by industry
Agriculture, hunting, forestry and fisheries	3,744	3,728	266	413	(158)	(178)	19	29
Pig farming	791	798	37	45	1	(83)	8	0
Cattle farming	1,038	960	120	134	(25)	(47)	10	22
Crop production	813	889	37	63	(32)	(34)	1	2
Other agriculture	1,102	1,081	72	171	(102)	(14)	0	5
Manufacturing and extraction of raw
materials	9,480	9,446	305	317	(39)	94	2	27
Energy supply etc	2,686	2,924	21	18	3	4	0	0
Building and construction	4,982	4,589	164	133	31	31	1	11
Trade	13,074	11,930	329	397	(24)	125	42	67
Transportation, hotels and restaurants	3,227	2,979	90	74	7	18	0	3
Information and communication	706	699	13	6	5	(4)	0	0
Finance and insurance	6,505	5,869	79	85	0	1	2	7
Real property	5,957	5,748	109	152	(35)	(17)	11	1
Leasing of commercial property	2,443	2,191	73	105	(29)	(1)	7	0
Leasing of residential property Housing associations and cooperative housing	961	953	17	28	(7)	(12)	4	0
associations	1,510	1,028	13	8	5	1	0	0
Purchase, development and sale on own account	953	1,488	4	9	(4)	(6)	0	1
Other related to real property	90	88	2	2	0	1	0	0
Other industries	3,940	3,725	130	112	13	23	0	1
Total corporate	54,301	51,637	1,506	1,707	(197)	97	77	146
Public authorities	54	37	-	-	-	-	-	-
Retail	30,673	30,081	502	522	(8)	(55)	17	29
Total	85,028	81,755	2,008	2,229	(205)	42	94	175

	Sydbank Group	Sydbank A/S
	1H	1H	1H	1H
DKKm	2021	2020	2021	2020

Note 10
Profit/(Loss) on holdings in associates and subsidiaries
Profit/(Loss) on holdings in associates etc	4	4	4	4
Profit/(Loss) on holdings in subsidiaries etc	-	-	14	8
Total	4	4	18	12

Note 11
Effective tax rate
Current tax rate of Sydbank	22.0	22.0	22.0	22.0
Permanent differences	0.0	0.0	0.0	(0.8)
Adjustment of prior year tax charges	(0.2)	0.0	(0.5)	0.0
Effective tax rate	21.8	22.0	21.5	21.2

	Sydbank Group	Sydbank A/S
	30 Jun	31 Dec	30 Jun	31 Dec
DKKm	2021	2020	2021	2020

Note 12
Amounts owed by credit institutions and central banks
Amounts owed at notice by central banks	8,923	10,288	8,923	10,288
Amounts owed by credit institutions	7,147	4,140	7,147	4,140
Total	16,070	14,428	16,070	14,428
Of which reverse transactions	3,566	2,835	3,566	2,835

					Sydbank Group
				Credit impaired	30 Jun	31 Dec
				at initial	2021	2020
DKKm	Stage 1	Stage 2	Stage 3	recognition	Total	Total

Note 13
Loans and advances, guarantees and allowance account by stage
Loans and advances before impairment charges	58,196	3,267	1,434	304	63,201	62,278
Guarantees	21,174	409	154	90	21,827	19,477
Total loans and advances and guarantees	79,370	3,676	1,588	394	85,028	81,755
%	93.3	4.3	1.9	0.5	100.0	100.0

Impairment charges for loans and advances	440	660	739		1,839	2,049
Provisions for undrawn credit commitments	35	20	6		61	55
Provisions for guarantees	20	27	61		108	125
Total allowance account	495	707	806	-	2,008	2,229

Allowance account at 1 Jan	512	680	1,037		2,229	2,244
New impairment charges and provisions during the period, net	(17)	27	(154)		(144)	24
Additions concerning portfolio acquired						200
Impairment charges previously recorded, now
finally written off	-	-	(77)		(77)	(239)
Total allowance account at end of period	495	707	806	-	2,008	2,229

Impairment charges as % of loans and advances	0.8	20.2	51.5		2.9	3.3
Provisions as % of guarantees	0.1	6.6	39.6		0.5	0.6
Allowance account as % of loans and advances and guarantees	0.6	19.2	50.8		2.4	2.7


Loans and advances before impairment charges Impairment charges for loans and advances	58,196 440	3,267 660	1,434 739	304 -	63,201 1,839	62,278 2,049

Loans and advances after impairment charges	57,756	2,607	695	304	61,362	60,229
%	94.1	4.3	1.1	0.5	100.0	100.0

						Sydbank Group
DKKm	Stage 1	Stage 2	Stage 3	Credit impaired at initial recognition	30 Jun 2021 Total	31 Dec 2020 Total

Note 13 – continued
Loans and advances before impairment charges
Rating category
1	5,479	2			5,481	5,299
2	15,755	2			15,757	16,565
3	17,779	13			17,792	16,033
4	9,176	26			9,202	7,996
5	3,350	600			3,950	4,648
6	1,788	477			2,265	1,827
7	56	190			246	578
8		552			552	394
9		1,357			1,357	2,765
Default		5	1,358		1,363	615
NR/STD	4,813	43	76	304	5,236	5,558
Total	58,196	3,267	1,434	304	63,201	62,278

Impairment charges for loans and advances

Total	440	660	739	1,839	2,049
NR/STD	180	8	45	233	240
Default			694	694	343
9		369		369	965
8		149		149	95
7	3	45		48	102
6	27	41		68	52
5	32	47		79	74
4	85	1		86	71
3	45			45	39
2	67			67	67
1	1			1	1
Rating category

Loans and advances after impairment charges

Total	57,756	2,607	695	304	61,362	60,229
NR/STD	4,633	35	31	304	5,003	5,318
Default		5	664		669	272
9		988			988	1,800
8		403			403	299
7	53	145			198	476
6	1,761	436			2,197	1,775
5	3,318	553			3,871	4,574
4	9,091	25			9,116	7,925
3	17,734	13			17,747	15,994
2	15,688	2			15,690	16,498
1	5,478	2			5,480	5,298
Rating category

Notes 31 Mar 2019

				Credit		Sydbank Group
				impaired at	30 Jun	31 Dec
				initial	2021	2020
DKKm	Stage 1	Stage 2	Stage 3	recognition	Total	Total

Note 13 – continued
Loans and advances before impairment charges
1 Jan	56,621	3,440	1,916	301	62,278	62,616

Transfers between stages
Additions concerning portfolio acquired						4,306
Transferred to stage 1	715	(585)	(130)
Transferred to stage 2	(650)	866	(216)
Transferred to stage 3	(34)	(210)	244
New exposures	8,636	168	78		8,882	14,286
Redeemed exposures	(6,858)	(336)	(263)		(7,457)	(12,299)
Changes in balances	(234)	(76)	(104)	3	(411)	(6,203)
Write-offs			(91)		(91)	(428)
End of period	58,196	3,267	1,434	304	63,201	62,278


,Impairment of loans and advances
1 Jan	466	639	944		2,049	2,062

Transfers between stages
Additions concerning portfolio acquired						191
Transferred to stage 1	158	(104)	(54)
Transferred to stage 2	(8)	84	(76)
Transferred to stage 3	0	(57)	57

New exposures	50	67	37		154	373
Redeemed exposures	(75)	(46)	(115)		(236)	(262)
Changes in balances	(151)	77	23		(51)	(79)
Write-offs			(77)		(77)	(236)
End of period	440	660	739		1,839	2,049

Loans and advances after impairment charges
1 Jan	56,155	2,801	972	301	60,229	60,554

Transfers between stages
Additions concerning portfolio acquired						4,115
Transferred to stage 1	557	(481)	(76)
Transferred to stage 2	(642)	782	(140)
Transferred to stage 3	(34)	(153)	187

New exposures	8,586	101	41		8,728	13,913
Redeemed exposures	(6,783)	(290)	(148)		(7,221)	(12,037)
Changes in balances	(83)	(153)	(127)	3	(360)	(6,124)
Write-offs			(14)		(14)	(192)
End of period	57,756	2,607	695	304	61,362	60,229

		Sydbank Group		Sydbank A/S
	30 Jun	31 Dec	30 Jun	31 Dec
DKKm	2021	2020	2021	2020

Note 14
Other assets
Positive market value of derivatives etc	3,804	4,762	3,804	4,762
Sundry debtors	1,063	1,198	661	796
Interest and commission receivable	118	167	118	167
Cash collateral provided, CSA agreements	1,689	2,043	1,689	2,043
Other assets	0	0	0	0
Total	6,674	8,170	6,272	7,768
Note 15
Amounts owed to credit institutions and central banks
Amounts owed to central banks	2	13	2	13
Amounts owed to credit institutions	6,052	7,080	6,052	7,080
Total	6,054	7,093	6,054	7,093
Of which repo transactions	3,414	2,483	3,414	2,483
Note 16
Deposits and other debt
On demand	88,667	87,338	90,916	90,585
At notice	219	252	219	252
Time deposits	5,189	3,732	5,189	3,731
Special categories of deposits	3,989	4,597	3,989	4,597
Total	98,064	95,919	100,313	99,165
Of which repo transactions	5,054	3,456	5,054	3,456
Note 17
Other liabilities
Negative market value of derivatives etc	3,935	4,884	3,935	4,884
Sundry creditors	4,756	4,735	4,603	4,637
Negative portfolio, reverse transactions	10,614	7,941	10,614	7,941
Lease liability	86	106	86	106
Interest and commission etc	73	83	73	83
Cash collateral received, CSA agreements	569	716	569	716
Total	20,033	18,465	19,880	18,367

	Sydbank Group			Sydbank A/S
	30 Jun	31 Dec	30 Jun	31 Dec
DKKm	2021	2020	2021	2020
Note 18
Provisions
Provisions for pensions and similar obligations	2	6	2	6
Provisions for deferred tax	306	306	306	306
Provisions for guarantees	125	161	125	161
Other provisions*	64	56	63	56
Total	497	529	496	529

* Other provisions mainly concern provisions

for onerous contracts and legal actions.

Note 19

Subordinated capital

Interest rate	Note		Nominal (m)	Maturity
2.125 (fixed)	1)	Bond loan	EUR 100	11 Mar 2027	743	743	743	743
1.314 (floating)	2)	Bond loan	EUR 75	2 Nov 2029	556	556	556	556
0.393 (floating)	3)	Bond loan	EUR 75	Perpetual	558	558	558	558
Total T2 capital					1,857	1,857	1,857	1,857
Total subordinated capital					1,857	1,857	1,857	1,857
1) Optional redemption from 11 March 2022 after which the interest rate will be fixed at 1.72% above 5Y Mid-Swap.
2) Optional redemption from 2 November 2024 after which the interest rate will be fixed at 1.85% above 3M EURIBOR.
3) The interest rate follows the 10Y Mid-Swap plus a margin of 0.2%.
Costs relating to the raising and redemption of subordinated capital					0	0	0	0
Note 20 Contingent liabilities and other obligating agreements
Contingent liabilities
Financial guarantees					6,003	5,054	6,003	5,054
Mortgage finance guarantees					6,312	5,135	6,312	5,135
Funded mortgage-like loan guarantees					1,000	1,197	1,000	1,197
Registration and remortgaging guarantees					6,243	6,157	6,243	6,157
Other contingent liabilities					2,269	1,934	2,269	1,934
Total					21,827	19,477	21,827	19,477
Other obligating agreements Irrevocable credit commitments					976	1,369	976	1,369
Other liabilities*					12	8	75	75
Total					988	1,377	1,051	1,444

* Of which intra-group liabilities in relation to rented premises					-	-	63	66

		Sydbank Group		Sydbank A/S
	30 Jun	31 Dec	30 Jun	31 Dec
DKKm	2021	2020	2021	2020

Note 20 – continued

Totalkredit loans arranged for by Sydbank are comprised by an agreed right of set-off against future current commission which Totalkredit may invoke in the event of losses on the loans arranged.

Sydbank does not expect that this set-off will have a significant effect on Sydbank's financial position.

As a result of the Bank's membership of Bankdata, the Bank will be obligated to pay an exit charge in the event of exit.

As a result of the statutory participation in the deposit guarantee scheme, the industry paid an annual contribution of 2.5‰ of covered net deposits until the Banking Department's capital exceeded 1% of total covered net deposits, which was reached at yearend 2015. The Banking Department will cover the direct losses in connection with the winding-up of distressed financial institutions under Bank Package III and Bank Package IV which are attributable to covered net deposits. Any losses as a result of the final winding-up will be covered by the Guarantee Fund via the Winding-up and Restructuring Department as regards which Sydbank is currently liable for 7.1% of any losses.

As a result of the statutory participation in the resolution financing arrangement (the Resolution Fund), credit institutions pay an annual contribution over a 10-year period to reach a target funding level totalling 1% of covered deposits. Credit institutions must make contributions to the fund according to their relative size and risk in Denmark. Sydbank expects that contributions will total approximately DKK 200m over a 10-year period.

The Group is party to legal actions. These legal 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 effect on the financial position of the Group.

Note 21

Collateral

At 30 June 2021 the Group had deposited as collateral securities at a market value of DKK 20m with Danish and foreign exchanges and clearing centres etc in connection with margin calls and securities settlements etc. In addition the Group has provided cash collateral in connection with CSA agreements of DKK 1,689m and deposited as collateral securities at a market value of DKK 39m.

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. Counterparties are entitled to sell the securities or deposit them as collateral for other loans.

In connection with reverse transactions, which involve purchasing securities to be resold at a later date, the Group is entitled to sell the securities 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.

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".

Assets sold as part of repo transactions Bonds at fair value	8,472	5,930	8,472	5,930
Assets purchased as part of reverse transactions Bonds at fair value	24,190	21,029	24,190	21,029

				Sydbank Group
	1H	1H	Index	31 Dec
DKKm	2021	2020	21/20	2020

Note 22

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 1H 2021. Reference is made to the Group's 2020 Annual Report for a detailed description of related party transactions.

Note 23

Reporting events occurring after the balance sheet date

After the expiry of 1H no matters of significant impact on the financial position of the Sydbank Group have occurred.

Note 24

Large shareholders

Silchester International Investors LLP, London, owns more than 10.0% of the total share capital of Sydbank A/S.

Note 25

Core income
Net interest etc	865	750	115	1,476
Mortgage credit*	348	300	116	607
Payment services	97	72	135	152
Remortgaging and loan fees	94	85	111	172
Commission and brokerage	241	186	130	372
Commission etc investment funds and pooled pension plans	171	139	123	278
Asset management	185	139	133	288
Custody account fees	49	39	126	88
Other operating income	143	119	120	237
Total	2,193	1,829	120	3,670

* Mortgage credit
Totalkredit cooperation	283	237	119	493
Totalkredit, set-off of loss	6	4	150	13
Totalkredit cooperation, net	277	233	119	480
DLR Kredit	70	66	106	126
Other mortgage credit income	1	1	100	1
Total	348	300	116	607

					Sydbank Group 30 Jun 2021
DKKm	Mandatory fair value (trading portfolio)	Fair value option	FVOCI	Total fair value	AMC

Note 26
Fair value disclosure Financial instruments are included in the balance sheet either at fair value or at amortised cost. The table below breaks down financial instruments by valuation technique.
Financial assets
Cash and balances on demand at central banks				-	5,674
Amounts owed by credit institutions and central banks	3,566			3,566	12,504
Loans and advances at fair value Loans and advances at amortised cost	20,280			20,280 -	- 61,362
Bonds at fair value	15,696	18,301		33,997	-
Shares etc	197	2,110	244	2,551	-
Assets related to pooled plans		20,786		20,786	-
Land and buildings			1,197	1,197	-
Other assets	3,836	25		3,861	2,813
Total	43,575	41,222	1,441	86,238	82,353
Undrawn credit facilities				-	55,566
Maximum credit risk,
collateral not considered	43,575	41,222	1,441	86,238	137,919
Financial liabilities
Amounts owed to credit institutions and central banks	3,414			3,414	2,640
Deposits and other debt	5,054			5,054	93,010
Deposits in pooled plans		20,786		20,786	-
Bonds issued at amortised cost				-	9,589
Other liabilities	14,552			14,552	639
Subordinated capital				-	1,857
Total	23,020	20,786	0	43,806	107,735

					Sydbank Group
DKKm	Mandatory fair value (trading portfolio)	Fair value option	FVOCI	Total fair value	31 Dec 2020 AMC

Note 26 – continued
Financial assets
Cash and balances on demand at central banks				-	2,806
Amounts owed by credit institutions and central banks	2,835			2,835	11,593
Loans and advances at fair value	17,961			17,961	-
Loans and advances at amortised cost				-	60,229
Bonds at fair value	20,536	16,406		36,942	-
Shares etc	147	2,117	145	2,409	-
Assets related to pooled plans		19,773		19,773	-
Land and buildings			1,180	1,180	-
Other assets	4,817	45		4,862	2,110
Total	46,296	38,341	1,325	85,962	76,738
Undrawn credit facilities				-	51,967
Maximum credit risk,
collateral not considered	46,296	38,341	1,325	85,962	128,705
Financial liabilities
Amounts owed to credit institutions and central banks	2,483			2,483	4,610
Deposits and other debt	3,456			3,456	92,463
Deposits in pooled plans		19,773		19,773	-
Bonds issued at amortised cost				-	9,563
Other liabilities	12,828			12,828	797
Subordinated capital				-	1,857
Total	18,767	19,773	-	38,540	109,290

To take into account changes in credit risk concerning derivatives with positive fair value, an adjustment is made – CVA. CVA is a function of the risk of counterparty default (PD), the expected positive exposure and the loss ratio in the event of default. PD is determined on the basis of the Group's credit models – default probability in 12 months. PD beyond 12 months is adjusted on the basis of market data of exposures with a similar PD level. At 30 June 2021 CVA constituted DKK 17m compared to DKK 19m at year-end 2020.

Client margins recognised in connection with derivatives are amortised over the life of the transaction. At 30 June 2021 client margins presently not recognised as income totalled DKK 19m compared to DKK 21m at year-end 2020.

Financial instruments recognised at fair value

Measurement of financial instruments is based on quoted prices from an active market, on generally accepted valuation models with observable market data or on available data that only to a limited extent are observable market data.

Measurement of financial instruments for which prices are quoted in an active market or which is based on generally accepted valuation models with observable market data is not subject to significant estimates.

As regards financial instruments where measurement is based on available data that only to a limited extent are observable market data, measurement is subject to estimates. Such financial instruments appear from the column unobservable inputs below and include primarily unlisted shares, including shares in DLR Kredit A/S.

The fair value of unlisted shares and other holdings is calculated on the basis of available information on trades etc – including to a very significant extent on shareholders' agreements based on book value. To an insignificant extent fair value is calculated on the basis of expected cash flows.

A 10% change in the calculated market value of financial assets measured on the basis of unobservable inputs will affect profit before tax by DKK 327m (31 December 2020: DKK 327m).

					Sydbank Group
	Quoted		Unobserv able	Total fair	Carrying
DKKm	prices	Observable inputs	inputs	value	amount

Note 26 – continued
30 Jun 2021
Financial assets
Amounts owed by credit institutions and central banks		3,566		3,566	3,566
Loans and advances at fair value		20,280		20,280	20,280
Bonds at fair value		33,997		33,997	33,997
Shares etc	420	54	2,077	2,551	2,551
Assets related to pooled plans	13,802	6,984		20,786	20,786
Land and buildings			1,197	1,197	1,197
Other assets	265	3,596		3,861	3,861
Total	14,487	68,477	3,274	86,238	86,238
Financial liabilities
Amounts owed to credit institutions and central banks		3,414		3,414	3,414
Deposits and other debt		5,054		5,054	5,054
Deposits in pooled plans		20,786		20,786	20,786
Other liabilities	236	14,316		14,552	14,552
Total	236	43,570	-	43,806	43,806
31 Dec 2020
Financial assets
Amounts owed by credit institutions and central banks		2,835		2,835	2,835
Loans and advances at fair value		17,961		17,961	17,961
Bonds at fair value		36,942		36,942	36,942
Shares etc	298	19	2,092	2,409	2,409
Assets related to pooled plans	8,785	10,988		19,773	19,773
Land and buildings			1,180	1,180	1,180
Other assets	442	4,420		4,862	4,862
Total	9,525	73,165	3,272	85,962	85,962
Financial liabilities
Amounts owed to credit institutions and central banks		2,483		2,483	2,483
Deposits and other debt		3,456		3,456	3,456
Deposits in pooled plans		19,773		19,773	19,773
Other liabilities	403	12,425		12,828	12,828
Total	403	38,137	-	38,540	38,540
					Sydbank Group
			30 Jun	31 Dec	30 Jun
DKKm			2021	2020	2020
Assets measured on the basis of unobservable inputs
Carrying amount at 1 Jan			2,092	1,863	1,863
Additions			37	157	3
Disposals			113	46	11
Market value adjustment			61	118	53
Carrying amount at end of period			2,077	2,092	1,908
Recognised in profit for the period
Dividend			17	18	18
Market value adjustment			61	117	53
Total			78	135	71

	Sydbank Group		Sydbank A/S
	30 Jun	31 Dec	30 Jun	31 Dec
DKKm	2021	2020	2021	2020

Note 27
Leverage ratio
Leverage ratio exposures
Total assets	169,848	165,800	171,904	168,823
Of which pooled assets	(20,786)	(19,773)	(20,786)	(19,773)
Correction derivatives etc	15,024	5,878	15,024	5,878
Guarantees etc	21,827	19,477	21,827	19,479
Undrawn credit commitments etc	11,177	10,449	11,198	10,465
Other adjustments	(831)	(1,310)	(824)	(1,256)
Total	196,259	180,521	198,343	183,615

T1 capital – current (transitional rules)	11,043	11,041	11,059	11,074
T1 capital – fully loaded	10,987	10,930	11,003	10,963
Leverage ratio (%) – current (transitional rules)	5.6	6.1	5.6	6.0
Leverage ratio (%) – fully loaded	5.6	6.1	5.5	6.0

						Sydbank Group
30 Jun 2021	Activity		Share capital (m)	Equity (DKKm)	Profit/ (Loss) (DKKm)	Ownership share (%)

Note 28
Group holdings and enterprises
Sydbank A/S		DKK	597
Consolidated subsidiaries
Syd ABB A/S	Invt & admin.	DKK	1,021	97	(3)	100
Ejendomsselskabet AB ApS in liquidation,
Copenhagen	Real property	DKK	1	14	0	100
Ejendomsselskabet af 1. juni 1986 A/S, Aabenraa	Real property	DKK	11	16	4	100
Syd Administration A/S, Aabenraa	Invt & admin.	DKK	300	2,031	1	100
Syd Fund Management A/S, Aabenraa	Administration	DKK	100	118	18	67
Held for sale
Green Team Group A/S, Sønder Omme*	Wholesale	DKK	101	33	26	100
Holdings in associates
Foreningen Bankdata, Fredericia*	IT	DKK	472	476	(55)	36
Komplementarselskabet Core Property
Management A/S, Copenhagen*	Real property	DKK	1	16	2	20
Core Property Management P/S,
Copenhagen*	Real property	DKK	5	63	32	20

* Financial information according to the companies' most recently published annual reports (2020).

Management Statement

We have reviewed and approved the Interim Report – First Half 2021 of Sydbank A/S.

The consolidated interim financial statements are prepared in accordance with IAS 34 "Interim Financial Reporting" as adopted by the EU. Furthermore the interim financial statements (of the parent company) are prepared in compliance with Danish disclosure requirements for interim reports of listed financial companies. Furthermore the consolidated financial statements are prepared in compliance with Danish disclosure requirements for listed financial companies.

The Interim Report has not been audited or reviewed.

In our opinion the interim financial statements give a true and fair view of the Group's and the parent company's assets, equity and liabilities and financial position at 30 June 2021 and of the results of the Group's and the parent company's operations and consolidated cash flows for the period 1 January – 30 June 2021.

Moreover it is our opinion that the management's review includes a fair review of the developments in the Group's and the parent company's operations and financial position as well as a description of the most significant risks and elements of uncertainty which may affect the Group and the parent company.

Aabenraa, 25 August 2021

Group Executive Management
Karen Frøsig CEO	Henning Dam	Bjarne Larsen
Jørn Adam Møller
Board of Directors
Lars Mikkelgaard-Jensen Chairman	Jacob Chr. Nielsen Vice-Chairman	Carsten Andersen
Henrik Hoffmann	Søren Holm	Kim Holmer
Janne Moltke-Leth	Jarl Oxlund	Gitte Poulsen
Susanne Schou	Jon Stefansson	Jørn Krogh Sørensen

Supplementary Information

Financial calendar

In 2021 and 2022 the Group's preliminary announcement of financial statements will be released as follows:

Interim Report Q1-Q3 2021 27 October 2021
Announcement of the 2021 Financial Statements 2 March 2022
Annual General Meeting 2022 24 March 2022
Interim Report Q1 2022 4 May 2022
Interim Report First Half 2022 24 August 2022
Interim Report Q1-Q3 2022 2 November 2022

Sydbank contacts

Karen Frøsig, CEO Tel +45 74 37 20 00

Jørn Adam Møller, Deputy Group Chief Executive Tel +45 74 37 20 30

Address

Sydbank A/S Peberlyk 4 6200 Aabenraa, Denmark 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 2020 Annual Report at www.sydbank.com.

AI assistant

Sydbank — Interim / Quarterly Report 2021

3387_ir_2021-08-25_b6f2e4eb-7c4b-4b55-b781-ef607cd78e6e.pdf

Sydbank's Interim Report – First Half 2021

Earnings up by 20%

1H 2021 – highlights

We are undertaking a number of initiatives to strengthen:

Denmark's corporate bank – significant increase in awareness

Adjusted terms and conditions for corporate deposits

Change in Sydbank's organisation

We will simplify processes for Sydbank's advisers

Outlook for 2021

Group Financial Highlights

Highlights

Earnings up by 20%

Sydbank's strategy for 2019-21: "A stronger bank"

Customer satisfaction

Employee engagement

Return on equity

Sydbank – Denmark's corporate bank

1H performance

Bank loans and advances

Credit intermediation

Outlook for 2021

Sydbank's core story

Banking

Our bank

Sydbank

Financial Review – Performance in 1H 2021

Core income

Trading income

Costs and depreciation

Core earnings before impairment

Impairment of loans and advances etc

Core earnings

Investment portfolio earnings

Non-recurring items, net

Profit for the period

Return

Subsidiaries

Total assets

Equity

Capital

Solvency

Capital requirements

Market risk

Funding and liquidity

Rating

Supervisory Diamond

Bank Recovery and Resolution Directive

Leverage ratio

IFRS 9 – transitional arrangement

Basel IV

New definition of default

Exposures affected by covid-19

Severely impacted industries

Weak corporate clients

Small corporate clients

Income Statement

Balance Sheet

Capital

Cash Flow Statement

Segment Reporting etc

Operating segments

Segment Reporting etc

Note 1

Accounting policies

Accounting estimates and judgements

Staff

Impairment charges for loans and advances

Loans and advances after impairment charges

Notes 31 Mar 2019

Note 19

Subordinated capital

Note 20 – continued

Note 21

Collateral

Note 22

Related parties

Note 23

Sydbank Interim / Quarterly Report 2021