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 Frøsig 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 quality.”
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 Bank.
- Profit before tax equals a return of 12% p.a. on average shareholders’ equity.
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:
Jørn Adam Møller, Chief Investor Relations Officer, tel +45 74 37 24 56
Press: Mikkel Friis-Thomsen, Head of Communications, tel +45 29 12 36 64
Karen Frøsig, 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 www.sydbank.dk/audiocast .
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#
