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DGAP-Regulatory: Announcement of the 2013 Financial Statements

DGAP-Regulatory: Announcement of the 2013 Financial Statements

Sydbank A/S  / Annual Financial Report

19.02.2014 08:27

Dissemination of a Regulatory Announcement, transmitted by
DGAP - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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Aabenraa, Denmark, 2014-02-19 08:27 CET (GLOBE NEWSWIRE) --
The Sydbank Group posted a profit after tax of DKK 187m in 2013. The result is
unsatisfactory due to the previously announced extraordinary impairment charges
for loans and advances in Q4 2013, resulting in a loss of DKK 282m for the
quarter. The year's core income and costs are on a par with expectations. 

As a consequence of the extraordinary impairment charges in Q4 2013, the Group
has implemented measures to improve governance in credit granting. The risk
management function has been separated as an independent central unit with
higher staffing, the central and decentralised credit organisation has been
strengthened and a number of procedures and systems are being tightened. 

During the year the Group saw a substantial influx of new retail and corporate
clients, the majority of whom concern DiBa Bank. Growth in the client portfolio
is satisfactory in an otherwise competitive market and the portfolio of retail
and corporate clients provides scope for growth in business volume. 

Based on the Group's good liquidity and high solvency, a capital policy has
been adopted that better supports the Group's growth strategy and at the same
time takes into account Sydbank's status as a SIFI as well as forthcoming
regulations. The targets for the years ahead are a common equity Tier 1 capital
ratio of 12% compared with 13.4% now as well as a solvency ratio of around 15%
compared with 15.7% now. 

As from 2014 a new dividend policy will contribute to creating long-term
shareholder value. The objective is to distribute 30-50% of the year's profit
after tax while taking into account growth plans and capital policy.
Distribution will be effected via dividends and/or via share buybacks. 

For 2014 the Group expects higher earnings as a result of lower impairment
charges for loans and advances, a rise in core income, an increase in trading
income and synergies from DiBa Bank.

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News Source: NASDAQ OMX



19.02.2014 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:           English
Company:            Sydbank A/S
                    
                     
                    Dänemark
Phone:              
Fax:                
E-mail:             
Internet:           
ISIN:               DK0010311471
Category Code:      ACS
TIDM:               0G6U
Sequence Number:    1915
Time of Receipt:    Feb 19, 2014 08:26:59
 
End of Announcement                             DGAP News-Service
 
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