Sydbank CEO Eyes $1.8 Billion in Extra Capital for Acquisitions

Sydbank A/S (SYDB), which reported today core Tier 1 capital of 14.4 percent, has reserves enough to take on another 10 billion kroner ($1.8 billion) in risk-weighted assets through acquisitions, Chief Executive Officer Karen Froesig said.

“We are open for participation in consolidation,” Froesig said by phone. “We want growth whether it’s organic or through consolidation.”

Sydbank reported a second-quarter net income of 247 million kroner as investment income climbed by a factor of almost 40. Aside from that “very strong” performance, results “disappointed,” Thomas Hovard, head of credit research at Danske Bank A/S (DANSKE), said in an investor note. Shares fell by as much as 7.2 percent in Copenhagen trading, and declined 2.3 percent to 138.20 kroner at 2:22 p.m. local time.

To contact the reporter on this story: Frances Schwartzkopff in Copenhagen at fschwartzko1@bloomberg.net

To contact the editor responsible for this story: Tasneem Brogger at tbrogger@bloomberg.net

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