Sydbank Reports Record First Half Results for 2024
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Sydbank’s Interim Report – First Half 2024
H1 2024 – highlights
Profit for the period of DKK 1,624m equals a return on equity of 22.4% p.a. after tax. Core income of DKK 3,646m is 8% higher compared to the same period in the previous year. Trading income stands at DKK 153m compared to DKK 186m in the same period last year. Cost for core earnings reached DKK 1,659m, up from DKK 1,600m in the same period a year earlier. Core earnings before impairment reached DKK 2,140m, an 8% increase compared to the same period last year. Impairment charges for loans and advances represent an expense of DKK 24m. Bank loans and advances have risen by DKK 4.7bn, marking a 6% increase compared to year-end last year. The CET1 ratio stands at 17.7%, reflecting a decrease of 1.2 percentage points compared to year-end last year.
CEO Mark Luscombe comments on the result:
It is good news that our half-year performance is historically high. We have successfully increased core income and total income in the first half of the year from their all-time high levels last year. Costs have risen by 4% compared with a year ago, but the Bank has consistently focused on improving efficiency. The result is that the increase in costs is less than the effects of the agreed overall pay rises and the abolition of Great Prayer Day. Profit for H1 2024 outperforms profit a year ago by 9% and equals a return on equity of 22.4%, which is highly satisfactory.
Mark Luscombe also comments on developments in business volume:
We are pleased that our strong focus on providing value-creating advice to our customers continues to boost our business volume in bank loans and advances, deposits, and the investment area. Bank loans and advances increased by DKK 4.7bn in H1, and deposits returned to record levels seen at year-end last year.
Board chairman Lars Mikkelgaard-Jensen comments:
In times of significant macroeconomic uncertainty due to the challenging geopolitical landscape, it is reassuring that the Bank remains highly capitalised and resilient. As of 30 June 2024, the Bank’s CET1 ratio stands at 17.7%, which is 6.0 percentage points above the capital requirements, indicating that Sydbank is exceptionally well-prepared to navigate this uncertainty and support our customers.
Outlook for 2024
Moderate growth is projected for the Danish economy. Profit after tax is expected to range between DKK 2,800-3,100m, assuming that Danmarks Nationalbank will lower the rate of interest on certificates of deposit by a further 0.50 percentage points in 2024. The outlook is subject to uncertainty and is influenced by financial market developments and macroeconomic factors, which may affect the level of impairment charges.
Additional information
Jørn Adam Møller, Deputy Group Chief Executive, tel +45 74 37 20 30
Susanne Ingemann Faber, Press Manager, tel +45 26 29 11 29
Frequently Asked Questions
What were the main highlights of Sydbank’s H1 2024 report?
The highlights include a profit of DKK 1,624m, a return on equity of 22.4%, and an 8% increase in core income compared to the previous year.
How did the profits in H1 2024 compare to the prior year?
Profits in H1 2024 increased by 9% compared to the same period in the previous year.
What is the CET1 ratio reported by Sydbank?
The CET1 ratio currently stands at 17.7%, which is above the regulatory capital requirements.
What is the outlook for the Danish economy according to Sydbank?
Moderate growth is projected for the Danish economy.
Who can be contacted for more information about the report?
Jørn Adam Møller (tel +45 74 37 20 30) and Susanne Ingemann Faber (tel +45 26 29 11 29) are available for further inquiries.
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