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Company Announcement No 18/2022
4 May 2022
Sydbank’s Interim Report – Q1 2022
Significant boost in profitability
Q1 2022 – highlights
Profit for the period of DKK 445m equals a return on equity of 14.1% p.a. after tax
Core income of DKK 1,200m is 9% higher compared to the same period in 2021
Impairment charges for loans and advances etc represent an income of DKK 61m
Bank loans and advances have risen by DKK 4.6bn, equal to an increase of 7% compared to year-end 2021
Total credit intermediation has increased by DKK 5.1bn, equal to an increase of 3% compared to year-end 2021
A share buyback of DKK 425m was commenced on 7 March 2022
The CET1 ratio has declined by 1.4pp compared to year-end 2021 and constitutes 16.5% excluding profit for the period. When including 50% of profit for the period, the CET1 ratio stands at 16.9%
CEO Karen Frøsig comments on Sydbank’s Q1 result:
It is highly satisfactory that the Bank has achieved a significant boost in its profitability. This is due to the effects of our targeted efforts to increase income and reduce costs. At the same time lending continues to grow at a high pace. Loans and advances have gone up by DKK 4.6bn in Q1 and by DKK 10.2bn – equal to 17% – during the most recent 3 quarters.
Board chairman Lars Mikkelgaard-Jensen comments on the launch of the new 3-year strategy plan:
The results in Q1 represent a highly satisfactory beginning to the new strategy period. The development is consistent with our ambition to grow our business and to deliver even greater value to customers and shareholders.
Karen Frøsig elaborates:
- The themes in our new strategy “Growing our business” will guide us and ensure that we can meet the strategy’s goals of a stronger competitive position. We will focus on the customer and be the workplace for some of our industry’s most skilled and dedicated employees.
Outlook for 2022
Growth is projected in the Danish economy in 2022
Core income is expected to be higher than in 2021
Costs (core earnings) are projected to be lower than in 2021
Impairment charges for 2022 are forecast to be at a low level
Profit after tax is expected to be in the range of DKK 1,350-1,550m
The outlook for 2022 is subject to uncertainty and depends on financial market developments and macroeconomic factors
Jørn Adam Møller, Deputy Group Chief Executive, tel +45 74 37 20 30
Susanne Ingemann Faber, Press Manager, tel +45 26 29 11 29