Company Announcement No 13/2015
29 Aprii 2015

Sydbank's lnterim Report - 01 2015 Historically high income- good start to the year

GEO Karen Fmsig comments on the interim financial statements:
We have had a good start to 2015 and we are very pleased. lt has now been a year since we launched our pian to increase profitability at Sydbank. The entire organisation has made a targeted effort to im­ plement the pian since then and the 01 results show a Sydbank with a solid and high earnings capac­ ity.
Our total income in 01 amounted to DKK 1,233m, which is an increase of 6% compared with 01 2014. This is a historically high income far Sydbank and a sign that the continued high activity in the Bank to­ gether with lower impairment charges are the key to creating lasting profitability improvements.
Chairman of Sydbank's Board of Directors Torben Nielsen, former Centrai Bank Governar, says:
When we presented the 2014 Annual Report we announced that Sydbank would issue Tier 2 capitai and that it might be possible to initiate a share buy-back programme. lt is very gratifying to be able to say that we have implemented a successful issue of Tier 2 capitai worth EUR 1OOm and that we have commenced our share buy-back programme.
01 - highlights
• Profit of DKK 304m. This is equal to a return on shareholders' equity of 10.9%.
• Total income of DKK 1,233m. This is an increase of 6% compared with 01 2014. A historically high income.
• lmpairment charges far loans and advances represent DKK 116m and have declined by 64% compared with 01 2014.
• Bank loans and advances have risen by DKK 2.1bn, equal to 3.2%, in 01 2015.
• The Common Equity Tier 1 capitai ratio has climbed by 0.7% in 01 2015 and constitutes 14.6%.
• Tier 2 capitai worth EUR 1OOm has been issued.
A share buy-back programme of DKK 500m was commenced on 13 Aprii 2015.
Outlook far 2015
Sydbank projects very limited positive economie growth in 2015. Furthermore we expect:
• Slightly rising core income due in part to a slight increase in bank loans and advances resulting !rom the measures implemented and despite continued fierce competition. The longer the negative interest rate en­ vironment lasts, the greater the uncertainty of the projection.
• lncreasing trading income relative to income far 2014 but dependent an financial market developments.
• Unchanged costs (core earnings)- in spite of the generai pay rises agreed far the financial sector of 1.75%
and a payroll tax increase of 0.80%.
• Lower impairment charges in 2015. The uncertainty surrounding price developments in the agricultural sector may however affect impairment charges.
Projections far core income and costs (core earnings) are exclusive of the effect of the acquisition of Sydinvest Administration A/S as of 31 March 2015, which is expected to result in an increase in both items of approxi­ mately DKK 50m.

Additional information

Jmn Adam M0ller, Chief lnvestor Relations Officer, tel +45 74 37 24 56

Mikkel Friis-Thomsen, Head of Communications, tel +45 29 12 36 64

Karen Fmsig, CEO, Bjame Larsen, Oeputy Group Chief Executive, and J0m Adam M01/er, Chief Jnvestor Rela­ tions Officer, wi/1 present the Q1 Report today at 10.00 (CET) at a teleconferece. The teleconference will be held in Oanish and may be attended via www.svdbank.dk/audiocast.

Attendees, please cali by 09.55 (CET). Danish attendees are invited to cali 70 22 35 00. lntemational attendees are invited to cali +44 207 57 21 187. P/ease quote the following code: 3164 4051#

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