Sydbank’s Interim Report – First Half 2024
H1 2024 – Highlights
For the first half of 2024, Sydbank reported a profit of DKK 1,624m, translating to a return on equity of 22.4% per annum after tax. Core income reached DKK 3,646m, marking an 8% increase compared to the same period last year. Trading income was recorded at DKK 153m, down from DKK 186m during the same timeframe last year. The costs associated with core earnings amounted to DKK 1,659m, up from DKK 1,600m a year earlier. Core earnings before impairment rose to DKK 2,140m, reflecting an 8% increase year-over-year. Impairment charges for loans and advances totaled DKK 24m. Additionally, bank loans and advances increased by DKK 4.7bn, representing a 6% rise since the end of last year. The CET1 ratio is currently at 17.7%, which is a decrease of 1.2 percentage points from year-end last year.
CEO Mark Luscombe shared his thoughts on the results:
We are pleased to report that our half-year performance is at a historically high level. We have successfully grown both core income and total income in the first half of the year, building on the record highs we achieved last year. While costs have risen by 4% compared to a year ago, our Bank has consistently prioritized efficiency improvements. As a result, the increase in costs has been less than the impact of the agreed overall pay rises and the abolition of Great Prayer Day. Profit for H1 2024 is 9% higher than last year, achieving a return on equity of 22.4%, which we consider highly satisfactory.
Mark Luscombe also commented on business volume trends:
We are delighted that our strong commitment to delivering valuable advice to our customers continues to enhance our business volume in bank loans and advances, deposits, and investments. In H1, bank loans and advances grew by DKK 4.7bn, and deposits have returned to the record levels we saw at the end of last year.
Board chairman Lars Mikkelgaard-Jensen added his perspective:
During these times of significant macroeconomic uncertainty, driven by a challenging geopolitical landscape, it is reassuring to see that our Bank remains well-capitalized and resilient. As of June 30, 2024, our CET1 ratio stands at 17.7%, which is 6.0 percentage points above the required capital levels. This indicates that Sydbank is exceptionally well-prepared to navigate these uncertain times and support our customers effectively.
Outlook for 2024
We anticipate moderate growth for the Danish economy. Profit after tax is expected to fall between DKK 2,800m and DKK 3,100m, assuming that Danmarks Nationalbank will reduce the interest rate on certificates of deposit by an additional 0.50 percentage points in 2024. Please note that this outlook carries some uncertainty and is influenced by developments in financial markets and macroeconomic factors, which may impact the level of impairment charges.
Additional Information
For further inquiries, please contact Jørn Adam Møller, Deputy Group Chief Executive, at +45 74 37 20 30 or Susanne Ingemann Faber, Press Manager, at +45 26 29 11 29.
Frequently Asked Questions
What were the main highlights of Sydbank’s H1 2024 report?
The report highlights 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 saw a 9% increase compared to the same period last year.
What is the CET1 ratio reported by Sydbank?
The CET1 ratio is currently at 17.7%, which exceeds the regulatory capital requirements.
What is the outlook for the Danish economy according to Sydbank?
Sydbank projects moderate growth for the Danish economy.
Who can be contacted for more information about the report?
For further information, you can reach out to Jørn Adam Møller at +45 74 37 20 30 or Susanne Ingemann Faber at +45 26 29 11 29.
