DGAP-Regulatory: Sydbank's Interim Report - First Half 2014

DGAP-Regulatory: Sydbank's Interim Report - First Half 2014

Sydbank A/S  / Half-yearly Results

20.08.2014 08:26

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Aabenraa, Denmark, 2014-08-20 08:26 CEST (GLOBE NEWSWIRE) --

Company Announcement No 11/2014,  20 August 2014

Sydbank's Interim Report - First Half 2014

Sydbank's plan to increase profitability is beginning to show results

CEO Karen Froesig comments on the interim financial statements:

'- The reasonable trend continues: Sydbank's loans and advances are on the
rise, income is growing in a highly competitive market and impairment charges
have fallen by 36%.' 

'- The plan to improve profitability in Sydbank is beginning to show results.
At the same time we have 

some of the market's most satisfied clients. We will continue to proceed as
planned to achieve lasting improvements in performance by increasing income by
DKK 200m, by lowering costs by DKK 200m and by remaining focused on credit

Half-year results - highlights

  -- Total income has risen by 3% to DKK 2,283m compared to the first six months
     of 2013. Deposits as well as loans and advances have gone up in 1H 2014.
  -- Sydbank continues to see an influx of new clients, both as regards retail
     clients, private banking clients and corporate clients.
  -- During 1H 2014 loans and advances have gone up by 1.6% in a market where
     competition for clients is very intense.
  -- Impairment charges for loans and advances have declined by 36%. 
  -- Costs (core earnings) have increased as a result of the acquisition of DiBa
  -- Profit before tax equals a return of 12% p.a. on average shareholders'

Progress was particularly remarkable in Q2 when Sydbank recorded its best
quarterly result in terms of core earnings in the last six years, namely DKK
370m. Impairment charges of DKK 111m for the quarter are at their lowest level
since the start of the financial crisis in Q3 2008. 

Revised outlook for 2014

Sydbank continues to project rising core income and trading income. A continued
rise in costs (core earnings) is anticipated - partly as a result of the
acquisition of DiBa Bank, and partly as a consequence of the activities
implemented. Expectations for impairment charges are lowered to DKK 700-800m
where the previously announced expectation was DKK 950-1,100m. Integration and
restructuring costs are still forecast to total around DKK 75m. 

Further information:

Joern Adam Moeller, Chief Investor Relations Officer, tel +45 74 37 24 56
Press: Mikkel Friis-Thomsen, Head of Communications, tel +45 29 12 36 64

Karen Froesig, CEO, and Bjarne Larsen, Deputy Group Chief Executive, will review
the Report today at 10.30 (CET) at a telewebcast for analysts, investors and
journalists. The telewebcast will be in Danish and may be attended via

Attendees, please call by 10.25 (CET). Danish attendees are invited to call 70
25 23 00 or 70 25 67 00. International attendees are invited to call +44 208
817 93 11. Please quote the following code: 5069 7751#

Click on, or paste the following link into your web browser, to view the
associated documents


News Source: NASDAQ OMX

20.08.2014 The DGAP Distribution Services include Regulatory Announcements,
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Language:           English
Company:            Sydbank A/S
ISIN:               DK0010311471
Category Code:      IR
TIDM:               0G6U
Sequence Number:    2193
Time of Receipt:    Aug 20, 2014 08:26:13
End of Announcement                             DGAP News-Service
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