Sydbank A/S releases its profit for Q1 2022 and...

Sydbank A/S releases its profit for Q1 2022 and revises upwards its expectations for profit for the year for 2022

        











Company Announcement No 16/2022

Peberlyk 4
6200 Aabenraa
Denmark



Tel +45 70 10 78 79
Fax +45 74 37 35 36



Sydbank A/S
CVR No DK 12626509, Aabenraa
sydbank.dk





25 April 2022  

Dear Sirs

Sydbank A/S release s its profit for Q1 2022 and revise s upwards its expectation s for profit for the year for 2022

As a result of a highly satisfactory start to 2022 with strong growth in bank loans and advances of DKK 4.6bn to DKK 71.6bn as well as a high level of activity, the expectation for profit for the year is revised upwards to be in the range of DKK 1,350-1,550m. In connection with the release of the 2021 Annual Report on 2 March 2022, we announced that we expected a profit after tax in the range of DKK 1,150-1,450m for 2022.
  
Income statement

DKKm

Q1
2022
Q1
2021
Index
22/21
Full year
2021
Core income 1,200 1,105 109 4,436
Trading income 100 73 137 291
Total income 1,300 1 , 178 110 4 , 727
Costs, core earnings 799 833 96 3,177
Core earnings before impairment 501 345 145 1 , 550
Impairment of loans and advances etc (61) (81) 75 (415)
Core earnings 562 426 132 1 , 965
Investment portfolio earnings (29) (21) 138 (21)
Profit before non-recurring items 533 405 132 1 , 944
Non-recurring items, net 37 (32) - (180)
Profit before tax 570 373 153 1 , 764
Tax 125 82 152 353
Profit for the period   445 291 153 1 , 411

Core income

DKKm

Q1
2022
Q1
2021
Index
22/21
Full year
2021
Net interest etc 492 434 113 1,776
Mortgage credit 183 176 104 693
Payment services 51 47 109 203
Remortgaging and loan fees 61 53 115 169
Commission and brokerage 130 134 97 470
Commission etc investment funds and pooled pension plans 82 83

99


340
Asset management 89 89 100 380
Custody account fees 33 25 132 115
Other operating income 79 64 123 290
Total 1,200 1,105 109 4,436

Impairment of loans and advances etc
As a result of the trend in customers’ financial circumstances, a net reversal of impairment charges of DKK 61m was recorded in Q1 2022. Impairment charges for 2022 are still expected to be at a low level. The management estimates from year-end 2021 remained unchanged at end-Q1 2022. This applies to the provision of DKK 325m related to covid-19 as well as to the provision of DKK 60m related to pig farming.

Non-recurring items, net
Non-recurring items in Q1 2022 total a net income of DKK 37m.

The item includes costs of DKK 12m related to the development of housing loan processes and DKK 2m related to the development of the bank/insurance partnership. In addition DKK 51m has been recognised as income as regards extraordinary realised capital gains from the lending portfolio acquired from Alm. Brand Bank.

Sydbank’s Interim Report – Q1 2022 will be released on 4 May 2022 as planned.

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

Attachment


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