Company Announcement No 02/2021
2 March 2021
Sydbank’s 2020 Annual Report
Sydbank ended 2020 with a satisfactory profit. In 2021 profit is expected to be higher than in 2020
Sydbank’s 2020 financial statements show a profit before tax of DKK 1,021m compared to DKK 1,081m in 2019. The decrease of DKK 60m is primarily attributable to impairment charges for loans and advances which represent an expense of DKK 47m compared to an income of DKK 97m in 2019. Profit before tax equals a return of 8.6% p.a. on average equity.
Profit for the year after tax represents DKK 799m against DKK 853m in 2019, equal to a return on average equity of 6.6%. At the beginning of 2020 profit after tax was projected to be in the range of DKK 700-1,000m.
CEO Karen Frøsig comments on the year’s results:
- It is good news that after a challenging year affected by Covid-19 we can deliver a profit at the very top of the most recently announced range of DKK 700-800m and also achieve our objective of a top 3 ranking among the largest banks measured in terms of return on equity.
- As a result of the acquisition of Alm. Brand Bank, total credit intermediation has risen sharply by more than DKK 20bn. The acquisition shows that Sydbank wishes to acquire and merge with banks with Sydbank as the continuing bank. It also shows that we are interested in visionary partnerships that create value for customers and partners.
Karen Frøsig comments on banking in Covid-19 times:
- Covid-19 has turned the world upside down. Our employees have been extremely flexible and have succeeded in providing advice to customers during a difficult time. It is particularly gratifying to see that our customers acknowledge that Sydbank has been excellent at setting up online meetings and ensuring their quality.
- I am pleased that so far Sydbank’s customers have handled the coronavirus crisis well. For
reasons of prudence the management estimate related to Covid-19 was raised by DKK 100m in Q4 2020 and now totals DKK 325m. Despite this increase impairment charges only represented an expense of DKK 1m in Q4 2020.
Board chairman Lars Mikkelgaard-Jensen comments:
- After a year when the dividend was cancelled and the share buyback programme was terminated prematurely, it is positive that we can distribute dividend to our shareholders again, which represents 30% of profit for the year. At the same time the acquisition of Alm. Brank Bank creates long-term value for shareholders as profit before tax in 2022 is projected to increase by around DKK 200m. After the acquisition of Alm. Brand Bank and a dividend distribution of DKK 238m the Bank will continue to be well capitalised.
2020 highlights
Outlook for 2021
Additional information
Jørn Adam Møller, Deputy Group Chief Executive, tel +45 74 37 20 30
Louise Degn-Ovesen, Executive Vice president, Communications, tel +45 61 20 48 04
Attachments