As a consequence of the macroeconomic condition...

Nasdaq Copenhagen A/S London Stock Exchange Bourse de Luxembourg Other stakeholders   Company Announcement No 10/2020	Peberlyk 4 6200 Aabenraa, Denmark   Tel [phone] Fax [phone]   Sydbank A/S CVR No DK 12626509, Aabenraa sydbank.dk
17 March 2020

Dear Sirs

As a consequence of the macroeconomic conditions Sydbank A/S expects a lower result for 2020 and the expectations for the year’s result are suspended. In addition the Bank’s share buyback programme is terminated

Outlook for 2020 is suspended
As a consequence of covid-19 it is expected that the macroeconomic conditions will deteriorate and may have an adverse impact on the Bank’s financial results for 2020. Moreover the financial markets are affected by considerable volatility which may have a negative impact on the Bank’s trading income.

The Bank’s total capital and its liquidity position remain strong with a significant excess cover relative to the statutory requirements.

In Denmark we have not previously faced a similar situation and as the Bank is not at present able to forecast the economic impact of covid-19 it has been decided to suspend its outlook for the results for 2020 (previously profit for the year after tax was expected to be in the range of DKK 700-1,000m). In connection with the release of the Bank’s Interim Report for Q1 2020 we expect that we will be able to give an update as regards the Bank’s financial outlook for the year’s result.

Share buyback programme to stop
On 26 February 2020 Sydbank announced a share buyback programme of DKK 250m. The share buyback programme was scheduled to end no later than on 30 September 2020. Today the share buyback programme will be terminated as the Bank’s Board of Directors for reasons of prudence does not wish to continue with the programme as the  economic impact of covid-19 is uncertain.

Under the programme 279,000 own shares have been repurchased as at today at a transaction value of DKK 31,324,580.

Annual General Meeting
The Bank’s AGM on 19 March 2020 at 3.00pm will be postponed.

Yours sincerely
                         
Karen Frøsig                                    Bjarne Larsen
CEO                                                 Deputy Group Chief Executive

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• FM 10 UK