Interim Report - First Half 2010 Contents Financial Review Group Financial Highlights 3 Summary 4 Financial Review 6 Financial Statements Income Statement 11 Statement of Comprehensive Income 11 Balance Sheet 12 Holdings in Subsidiaries and Associates etc 13 Group Financial Highlights - Quarterly 14 Group Financial Highlights - Half-yearly 15 Capital 16 Cash Flow Statement 18 Segment Statements 19 Notes 20 Management Statement 30 Supplementary Information 31 Group Financial Highlights 1H 1H Index Full year 2010 2009 10/09 2009 Income statement (DKKm) Core income excl trading income 1,660 1,641 101 3,320 Trading income 726 641 113 1,266 Total core income 2,386 2,282 105 4,586 Costs, core earnings 1,281 1,288 99 2,466 Core earnings before impairment 1,105 994 111 2,120 Impairment of loans and advances etc 633 565 112 1,195 Core earnings 472 429 110 925 Profit on investment portfolios 124 211 59 430 Profit before non-recurring items 596 640 93 1,355 Non-recurring items, net - - - 86 Profit before contribution to Private Contingency Association etc 596 640 93 1,441 Contribution to Private Contingency Association etc 261 214 122 443 Profit before tax 335 426 79 998 Tax 84 107 79 217 Profit for the period 251 319 79 781 Balance sheet highlights (DKKbn) Loans and advances at amortised cost 74.1 75.6 98 74.5 Loans and advances at fair value 6.6 12.9 51 12.9 Deposits and other debt 64.9 71.6 91 68.8 Bonds issued at amortised cost 8.6 10.1 85 8.6 Subordinated capital 3.1 3.5 89 3.1 Shareholders' equity 9.4 7.5 125 9.1 Total assets 154.4 160.1 96 157.8 Financial ratios per share (DKK per share of DKK 10) EPS Basic ** 3.4 5.0 11.7 EPS Diluted ** 3.4 5.0 11.7 Share price at end of period 124.8 122.3 133.8 Book value 127.5 116.2 124.1 Share price/book value 0.98 1.05 1.08 Average number of shares outstanding (millions) 73.7 63.6 66.9 Other financial ratios and key figures Solvency ratio 15.7 13.8 15.2 Core capital ratio 13.5 11.4 13.1 Pre-tax profit as % of average shareholders' equity ** 3.6 5.8 12.3 Post-tax profit as % of average shareholders' equity ** 2.7 4.4 9.6 Costs (core earnings) as % of core income 53.7 56.4 53.8 Interest rate risk 0.2 2.2 1.0 Foreign exchange position 1.5 3.4 1.1 Foreign exchange risk 0.0 0.1 0.0 Loans and advances relative to deposits * 1.0 1.0 1.0 Loans and advances relative to shareholders' equity * 7.9 10.1 8.2 Growth in loans and advances for the period * (0.6) (8.3) (9.6) Excess cover relative to statutory liquidity requirements 96.8 106.8 94.4 Total large exposures 0.0 34.6 17.2 Accumulated impairment ratio excl PCA ** 2.1 1.3 1.7 Impairment ratio for the period excl PCA ** 0.77 0.63 1.34 Number of full-time staff at end of period 2,323 2,414 96 2,369 Financial ratios prepared according to “Recommendations & Financial Ratios 2010” published by the Danish Society of Financial Analysts. * Financial ratios calculated on the basis of loans and advances at amortised cost. ** Half-year ratios have not been converted to a full-year basis. Summary Considering the ongoing difficult economic situation, profit before tax of DKK 335m for the first six months of 2010 is considered satisfactory. Pre-tax profit equals a return of 7.2% p.a. on average shareholders' equity. The Interim Report is characterised by: • 1% increase in core income excl trading income • 13% rise in trading income • Total core income of DKK 2,386m - an all-time high so far • Unchanged level of costs (core earnings) • Impairment of loans and advances of DKK 633m • Profit on investment portfolios of DKK 124m • Contribution of DKK 261m to the Private Contingency Association etc • 2% reduction in bank loans and advances to DKK 74.1bn • 9% decline in deposits to DKK 64.9bn • Core capital ratio of 13.5% • Solvency ratio of 15.7%. Income statement - 1H (DKKm) 2010 2009 Core income excl trading income 1,660 1,641 Trading income 726 641 Total core income 2,386 2,282 Costs, core earnings 1,281 1,288 Core earnings before impairment 1,105 994 Impairment of loans and advances etc 633 565 Core earnings 472 429 Profit on investment portfolios 124 211 Profit before contribution to Private Contingency Association etc 596 640 Contribution to Private Contingency Association etc 261 214 Profit before tax 335 426 Tax 84 107 Profit for the period 251 319 Core earnings before impairment represent DKK 1,105m against DKK 994m in 1H 2009. The increase of DKK 111m consists of a rise in core income excl trading income of DKK 19m, an increase in trading income of DKK 85m and a decline of DKK 7m in costs (core earnings). Core earnings before impairment are in the upper end of the range as announced in the Interim Report for Q1 2010. Impairment of loans and advances etc represents DKK 633m (1H 2009: DKK 565m). Profit on investment portfolios amounts to DKK 124m and the expense to the Private Contingency Association etc totals DKK 261m. Less a calculated tax charge of DKK 84m, profit for the period stands at DKK 251m. Profit for the period equals a return on average shareholders' equity of 5.4% p.a. compared with 8.8% p.a. in 2009. Earnings per share stands at DKK 3.4 compared with DKK 5.0 in 2009. The Group's solvency ratio stands at 15.7%, including a core capital ratio of 13.5 percentage points compared with 15.2% and 13.1 percentage points, respectively, at end-2009. Since the beginning of the year the core capital ratio excluding hybrid core capital has risen from 11.5% to 11.9%. The Group's liquidity measured under the 15% and 10% statutory requirements constitutes 33.8% and 19.7%, respectively, at 30 June 2010. In 1H the number of Sydbank clients grew - a highly satisfactory trend. The influx of new clients has doubled compared with previously. The rise in the number of clients in 1H is equivalent to just under 2%. The Group continues to project core earnings before impairment of loans and advances in the region of DKK 1.9-2.1bn in 2010 - unchanged compared with previous announcements. Financial Review Core income excl trading income Total core income excl trading income grew by 1% to DKK 1,660m. Core income excl trading income - 1H (DKKm) 2010 2009 Interest margins etc 1,381 1,378 Mortgage credit 110 109 Payment services 73 75 Remortgaging and loan fees 44 40 Other commission 42 28 Other operating income 10 11 Total 1,660 1,641 Due to a decline in bank loans and advances of 2% and in deposits of 9% compared with one year ago, income from interest margins etc continues to show significant robustness with a slight increase of DKK 3m to DKK 1,381m. After a set-off of DKK 4m - triggered by a loss as regards the share guaranteed by Sydbank in connection with the Totalkredit mortgage credit cooperation - net income totals DKK 86m (2009: DKK 74m). The cooperation with DLR Kredit has generated an income of DKK 19m (2009: DKK 31m). Total mortgage credit income represents DKK 110m (2009: DKK 109m). The remaining income components of core income excl trading income have gone up by a total of 10% compared with 1H 2009. Trading income Total trading income rose by 13% - from DKK 641m in 2009 to DKK 726m in 2010. The Group has seen a favourable development in demand from clients. Retail as well as institutional segments have performed satisfactorily and the high level of income in Q1 was maintained in these segments. The uncertainty surrounding Southern European countries in Q2 has had an adverse impact on trading portfolio income. The Group has not had positions in any of the Southern European bond markets. Trading income - 1H (DKKm) 2010 2009 Bonds 180 155 Shares 147 125 Foreign exchange 121 134 Money market 73 93 Asset management 205 134 Total 726 641 Costs and depreciation The Group's total costs and depreciation recorded DKK 1,443m (2009: DKK 1,423m). DKK 5m is ascribable to investment portfolio earnings and DKK 157m (2009: DKK 130m) to the Private Contingency Association etc. ? Costs and depreciation - 1H (DKKm) 2010 2009 Staff costs 744 753 Other administrative expenses 512 484 Depreciation and impairment of property, plant and equipment 46 57 Other operating expenses 141 129 Total costs and depreciation 1,443 1,423 Distributed as follows: Costs, core earnings 1,281 1,288 Costs, investment portfolio earnings 5 5 Costs, guarantee commission to the Private Contingency Association etc 157 130 Costs (core earnings) of DKK 1,281m decreased by DKK 7m compared with one year ago. At end-1H 2010 the Group's staff numbered 2,323 (full-time equivalent) compared with 2,414 at 30 June 2009. Five small branches were closed in 2010, bringing the number of branches to 105 in Denmark and unchanged three in Germany. Core earnings before impairment of loans and advances Core earnings before impairment of loans and advances represent DKK 1,105m - an increase of DKK 111m or 11% compared with one year ago. Impairment of loans and advances etc Impairment of loans and advances constitutes DKK 633m (2009: DKK 565m). As at 30 June 2010 the impairment ratio (excl the provision for the Private Contingency Association) relative to bank loans and advances represents 0.83% and 0.72% relative to bank loans and advances and guarantees. At end-June accumulated impairment and provisions (excl the provision of DKK 325m for the Private Contingency Association) amount to DKK 1,767m, a rise of DKK 209m compared with the beginning of the year. Core earnings Core earnings represent DKK 472m compared with DKK 429m in 2009. Investment portfolio earnings Less funding charges and less related costs of DKK 5m, investment portfolios generated a profit of DKK 124m (2009: DKK 211m). The Group's interest rate risk comprises DKK 19m at 30 June 2010. The Group's exchange rate risk continues to be very low and its equity position is modest. Contribution to the Private Contingency Association etc Guarantee commission and the provision for the guarantee to the Private Contingency Association amount to DKK 141m and DKK 104m, respectively, totalling DKK 245m for the first six months of 2010. In addition DKK 16m has been charged to income to cover the expected additional minimum payment to the credit institution department (“Pengeinstitutafdelingen”) under the Guarantee Fund for Depositors and Investors for the purpose of restoring the liquid resources of the Fund's capital following the bankruptcy of Capinordic Bank. Subsidiaries The subsidiary bank, Sydbank (Schweiz) AG, which conducts private banking activities in St. Gallen, Switzerland, recorded a profit after tax of DKK 4m (2009: loss of DKK 6m). Ejendomsselskabet recorded a profit after tax of DKK 1m (2009: loss of DKK 1m). Profit for the period Profit before tax amounts to DKK 335m. Less a calculated tax charge of DKK 84m, profit for the period stands at DKK 251m compared with DKK 319m in 2009. ? Return Return on average shareholders' equity represents 5.4% p.a. against 8.8% p.a. in 2009. Earnings per share stands at DKK 3.4 compared with DKK 5.0 in 2009. Q2 compared with Q1 • Core income excl trading income rose by DKK 2m. • Trading income decreased by 18%. • Costs (core earnings) declined by 5%. • Impairment of loans and advances etc fell by 4%. • Profit on investment portfolios decreased from DKK 116m to DKK 8m. • Contribution to the Private Contingency Association etc declined by 12%. Profit for the period (DKKm) 2010 2009 Q2 Q1 Q4 Q3 Q2 Q1 Core income excl trading income 831 829 849 830 819 822 Trading income 327 399 296 329 369 272 Core income 1,158 1,228 1,145 1,159 1,188 1,094 Costs, core earnings 625 656 592 586 629 659 Core earnings before impairment 533 572 553 573 559 435 Impairment of loans and advances etc 310 323 346 284 295 270 Core earnings 223 249 207 289 264 165 Profit on investment portfolios 8 116 69 150 139 72 Profit before non-recurring items 231 365 276 439 403 237 Non-recurring items, net - - 86 - - - Profit before contribution to PCA etc 231 365 362 439 403 237 Contribution to Private Contingency Association etc 122 139 116 113 142 72 Profit before tax 109 226 246 326 261 165 Tax 27 57 29 81 66 41 Profit for the period 82 169 217 245 195 124 After tax, profit for Q2 amounts to DKK 82m compared with DKK 169m in Q1. Balance sheet The Group's total assets made up DKK 154.4bn at 30 June 2010 against DKK 157.8bn at year-end 2009. Assets (DKKbn) 30 Jun 2010 31 Dec 2009 Amounts owed by credit institutions etc 18.3 14.5 Loans and advances at fair value (reverse transactions) 6.6 12.9 Loans and advances at amortised cost (bank loans and advances) 74.1 74.5 Securities and holdings etc 33.2 38.5 Assets related to pooled plans 7.4 6.7 Other assets etc 14.8 10.7 Total 154.4 157.8 The Group's bank loans and advances total DKK 74.1bn - a decline of DKK 0.4bn compared with year-end 2009 and 2% compared with 30 June 2009. ? Shareholders' equity and liabilities (DKKbn) 30 Jun 2010 31 Dec 2009 Amounts owed to credit institutions etc 42.9 45.4 Deposits and other debt 64.9 68.8 Deposits in pooled plans 7.4 6.7 Bonds issued 8.6 8.6 Other liabilities etc 17.5 15.6 Provisions 0.6 0.5 Subordinated capital 3.1 3.1 Shareholders' equity 9.4 9.1 Total 154.4 157.8 The Group's deposits make up DKK 64.9bn against DKK 68.8bn at year-end 2009 and DKK 71.6bn at end-June 2009. The decline in deposits is predominantly ascribable to time deposits. Capital The Danish Financial Supervisory Authority has granted the Bank permission to prepay supplementary capital of EUR 108m, equivalent to DKK 800m in October 2010. At end-1H 2010, shareholders' equity constitutes DKK 9,366m - an increase of DKK 248m since year-end 2009. The change appears as net purchase of own shares of DKK 3m and profit for the period of DKK 251m. Since year-end 2009, risk-weighted items have decreased by DKK 0.1bn to DKK 77.8bn. The Group's solvency ratio stands at 15.7%, including a core capital ratio of 13.5 percentage points compared with 15.2% and 13.1 percentage points, respectively, at end-2009. During the same period the core capital ratio excluding hybrid core capital rose from 11.5% to 11.9%. The solvency need is determined on the basis of the regulatory requirement of 8.0%. For precautionary reasons, an estimated buffer of one percentage point has been added to the regulatory requirement and the Group's solvency need at 30 June 2010 remains unchanged at 9%. The Committee of European Banking Supervisors (CEBS) included Sydbank in the group of 91 banks from the EU covered by the stress test. The stress test uses three distinct macroeconomic scenarios. The scenarios do not express the current or expected trend in the economy but are designed to assess the resilience of the banking sector against an unexpected deterioration of macroeconomic conditions. The CEBS has set the limit for passing the stress test at a core capital ratio of 6%. In the most adverse scenario Sydbank's core capital ratio at end-2011 is calculated at 13.2%. Sydbank is pleased with the outcome of the EU-wide stress test and the Group's individual results indicating • great resilience to adverse economic developments in the period 2010-2011 • insignificant exposure to rising interest rates on government bonds and • sufficient Tier 1 capital and capital base. The outcome of the EU-wide stress test appears from Company Announcement No 06/10. Liquidity The Group's liquidity measured under the 15% and 10% statutory requirements constitutes 33.8% and 19.7%, respectively, at 30 June 2010. ? Rating Sydbank's rating - A1 (long-term debt), P-1 (short-term debt) and C+ (financial strength) - was maintained in 1H. Regulation Efforts to expand and tighten the regulation and supervision of banks are conducted nationally as well as internationally. The EU Commission and the Basel Committee are working on new and stricter requirements concerning liquidity, capital definitions, leverage ratios, impairment charges etc (CRD IV). Via participation in working groups under the Danish Bankers' Association etc and in international quantitative impact studies (QIS) Sydbank is closely monitoring the developments in the scope and content of any future requirements and consequently it becomes possible for the Bank to affect the content. Expiry of the government guarantee On 1 June 2010 the Danish parliament passed legislation on the management of distressed banks after the expiry of the general government guarantee on 30 September 2010. Under the new scheme distressed banks will be allowed to transfer continuing assets at their net realisable value to the Financial Stability Company. Any additional losses incurred on the resale of the assets are guaranteed by a new unit of the Guarantee Fund for Depositors and Investors. The capital of the new unit derives from guarantee commitments from the sector totalling DKK 3.2bn. Losses on these commitments will be covered by the sector. After 1 October 2010 the Bank's payment of guarantee commission as well as its commitment to cover the losses of distressed banks will cease, an expected total of DKK 367m for the first nine months. Clients In 1H the number of Sydbank clients grew - a highly satisfactory trend. The influx of new clients has doubled compared with previously. The rise in the number of clients in 1H is equivalent to just under 2%. Outlook for 2010 The Group continues to project core earnings before impairment of loans and advances in the region of DKK 1.9-2.1bn in 2010 - unchanged compared with previous announcements.? Income Statement Sydbank Group Sydbank A/S 1H 1H 1H 1H DKKm Note 2010 2009 2010 2009 Interest income 2 2,149 3,262 2,144 3,262 Interest expense 3 484 1,569 485 1,571 Net interest income 1,665 1,693 1,659 1,691 Dividends on shares 16 31 16 31 Fee and commission income 4 668 529 648 518 Fee and commission expense 93 82 93 81 Net interest and fee income 2,256 2,171 2,230 2,159 Market value adjustments 5 245 297 240 295 Other operating income 10 11 10 11 Staff costs and administrative expenses 6 1,256 1,237 1,232 1,218 Depreciation and impairment of property, plant and equipment 46 57 44 55 Other operating expenses 141 129 141 129 Impairment of loans and advances etc 8 737 650 737 650 Profit on holdings in associates and subsidiaries 9 4 20 9 13 Profit before tax 335 426 335 426 Tax 10 84 107 84 107 Profit for the period 251 319 251 319 EPS Basic (DKK) * 3.4 5.0 EPS Diluted (DKK) * 3.4 5.0 Dividend per share (DKK) - - * Based on average number of shares outstanding, see page 16. Statement of Comprehensive Income Profit for the period 251 319 251 319 Other comprehensive income Translation of foreign entities 25 (4) 25 (4) Hedge of net investment in foreign entities (25) 4 (25) 4 Other comprehensive income for the period 0 0 0 0 Comprehensive income for the period 251 319 251 319 Balance Sheet Sydbank Group Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm Note 2010 2009 2010 2009 Assets Cash and balances on demand at central banks 1,771 862 1,757 849 Amounts owed by credit institutions and central banks 11 16,550 13,637 16,947 13,942 Loans and advances at fair value 6,580 12,930 6,580 12,930 Loans and advances at amortised cost 74,102 74,544 73,383 73,998 Bonds at fair value 31,255 36,642 31,255 36,642 Shares etc 1,679 1,552 1,679 1,552 Holdings in associates etc 309 310 309 310 Holdings in subsidiaries etc - - 255 225 Assets related to pooled plans 7,338 6,735 7,338 6,735 Intangible assets 13 14 13 14 Total land and buildings 1,044 1,046 827 828 investment property 2 2 2 2 owner-occupied property 1,042 1,044 825 826 Other property, plant and equipment 124 139 117 132 Current tax assets 40 32 40 32 Deferred tax assets 12 11 7 7 Other assets 12 13,541 9,316 13,539 9,313 Prepayments 61 51 59 51 Total assets 154,419 157,821 154,105 157,560 Shareholders' equity and liabilities Amounts owed to credit institutions and central banks 13 42,926 45,406 43,273 45,460 Deposits and other debt 14 64,937 68,780 64,289 68,479 Deposits in pooled plans 7,338 6,735 7,339 6,735 Bonds issued at amortised cost 8,633 8,622 8,633 8,622 Current tax liabilities 9 8 9 8 Other liabilities 15 17,492 15,524 17,482 15,513 Deferred income 9 27 9 27 Total liabilities 141,344 145,102 141,034 144,844 Provisions 16 581 477 577 474 Subordinated capital 17 3,128 3,124 3,128 3,124 Shareholders' equity: Share capital 742 742 742 742 Revaluation reserves 112 112 112 112 Other reserves: Reserves according to articles of association 418 418 418 418 Reserve for net revaluation according to the equity method 33 33 33 33 Retained earnings 8,061 7,813 8,061 7,813 Total shareholders' equity 9,366 9,118 9,366 9,118 Total shareholders' equity and liabilities 154,419 157,821 154,105 157,560 Holdings in Subsidiaries and Associates etc 30 June 2010 Sydbank Group Ownership Shareholders' Total Total DKKm Activity share (%) equity assets liabilities Income Result Consolidated subsidiaries Sydbank (Schweiz) AG, St. Gallen, Switzerland Banking 100 207 0 Ejendomsselskabet af 1. juni 1986 A/S, Aabenraa Real property 100 8 1 Associates Value-Call S.A., Luxembourg Investment and finance 50 43 50 5 43 29 Foreningen Bankdata, Fredericia IT 50 371 489 118 652 (6) Core Property Management A/S, Copenhagen Real property 20 28 35 7 22 7 Other entities in which the Group owns more than 10% of the share capital PRAS A/S, Copenhagen Investment and finance 11 1,649 1,649 0 30 29 ValueInvest Asset Management S.A., Luxembourg Investment and finance 14 37 58 21 36 14 Scandinavian Private Equity Partners A/S, Copenhagen Investment and finance 17 9 10 1 2 0 Hedgeforeningen Sydinvest, afdeling Aktie & ObligationsMix II, Aabenraa Investment and finance 28 67 165 97 35 34 BI Holding A/S, Copenhagen Investment and finance 10 252 407 154 425 32 Berlin KGI A/S, Nyborg Real property 13 183 186 3 0 4 Financial data according to the most recently published annual report. ? Group Financial Highlights - Quarterly Q2 Q1 Q4 Q3 Q2 Q1 2010 2010 2009 2009 2009 2009 Income statement (DKKm) Core income excl trading income 831 829 849 830 819 822 Trading income 327 399 296 329 369 272 Total core income 1,158 1,228 1,145 1,159 1,188 1,094 Costs, core earnings 625 656 592 586 629 659 Core earnings before impairment 533 572 553 573 559 435 Impairment of loans and advances etc 310 323 346 284 295 270 Core earnings 223 249 207 289 264 165 Profit on investment portfolios 8 116 69 150 139 72 Profit before non-recurring items 231 365 276 439 403 237 Non-recurring items, net - - 86 - - - Profit before contribution to Private Contingency Association etc 231 365 362 439 403 237 Contribution to Private Contingency Association etc 122 139 116 113 142 72 Profit before tax 109 226 246 326 261 165 Tax 27 57 29 81 66 41 Profit for the period 82 169 217 245 195 124 Balance sheet highlights (DKKbn) Loans and advances at amortised cost 74.1 73.3 74.5 73.9 75.6 78.2 Loans and advances at fair value 6.6 7.4 12.9 9.1 12.9 15.8 Deposits and other debt 64.9 62.2 68.8 65.3 71.6 73.5 Bonds issued at amortised cost 8.6 8.6 8.6 10.1 10.1 10.1 Subordinated capital 3.1 3.1 3.1 3.2 3.5 4.2 Shareholders' equity 9.4 9.3 9.1 8.9 7.5 7.2 Total assets 154.4 149.0 157.8 153.4 160.1 161.4 Financial ratios per share (DKK per share of DKK 10) EPS Basic ** 1.1 2.3 3.0 3.7 3.0 2.0 EPS Diluted ** 1.1 2.3 3.0 3.7 3.0 2.0 Share price at end of period 124.8 147.8 133.8 133.3 122.3 71.5 Book value 127.5 126.5 124.1 120.8 116.2 114.0 Share price/book value 0.98 1.17 1.08 1.10 1.05 0.63 Average number of shares outstanding (millions) 73.7 73.7 73.3 67.0 64.3 63.0 Other financial ratios and key figures Solvency ratio 15.7 15.3 15.2 14.8 13.8 15.0 Core capital ratio 13.5 13.1 13.1 12.9 11.4 11.3 Pre-tax profit as % of average shareholders' equity ** 1.2 2.4 2.7 4.0 3.5 2.3 Post-tax profit as % of average shareholders' equity ** 0.9 1.8 2.4 3.0 2.7 1.7 Costs (core earnings) as % of core income 54.0 53.4 51.7 50.6 52.9 60.2 Interest rate risk 0.2 1.0 1.0 0.4 2.2 2.3 Foreign exchange position 1.5 2.8 1.1 1.4 3.4 1.5 Foreign exchange risk 0.0 0.0 0.0 0.0 0.1 0.0 Loans and advances relative to deposits * 1.0 1.1 1.0 1.0 1.0 1.0 Loans and advances relative to shareholders' equity * 7.9 7.9 8.2 8.4 10.1 10.8 Growth in loans and advances for the period * 1.1 (1.7) 0.8 (2.2) (3.3) (5.2) Excess cover relative to statutory liquidity requirements 96.8 121.1 94.4 93.8 106.8 66.6 Total large exposures 0.0 13.6 17.2 20.1 34.6 21.4 Accumulated impairment ratio excl PCA ** 2.1 2.1 1.8 1.5 1.3 1.3 Accumulated impairment ratio for the period excl PCA ** 0.38 0.39 0.39 0.34 0.33 0.28 Number of full-time staff at end of period 2,323 2,344 2,369 2,385 2,414 2,429 Financial ratios prepared according to “Recommendations & Financial Ratios 2010” published by the Danish Society of Financial Analysts. * Financial ratios calculated on the basis of loans and advances at amortised cost. ** Quarterly ratios have not been converted to a full-year basis.? Group Financial Highlights - Half-yearly 1H 1H 1H 1H 1H 2010 2009 2008 2007 2006 Income statement (DKKm) Core income excl trading income 1,660 1,641 1,482 1,235 1,101 Trading income 726 641 635 772 705 Total core income 2,386 2,282 2,117 2,007 1,806 Costs, core earnings 1,281 1,288 1,276 1,116 1,020 Core earnings before impairment 1,105 994 841 891 786 Impairment of loans and advances etc 633 565 (13) (270) (22) Core earnings 472 429 854 1,161 808 Profit/(Loss) on investment portfolios 124 211 (192) (30) 58 Profit before non-recurring items 596 640 662 1,131 866 Non-recurring items, net - - 196 46 - Profit before contribution to Private Contingency Association etc 596 640 858 1,177 866 Contribution to Private Contingency Association etc 261 214 - - - Profit before tax 335 426 858 1,177 866 Tax 84 107 190 276 241 Profit for the period 251 319 668 901 625 Balance sheet highlights (DKKbn) Loans and advances at amortised cost 74.1 75.6 82.5 68.9 61.1 Loans and advances at fair value 6.6 12.9 11.5 8.0 7.2 Deposits and other debt 64.9 71.6 67.6 57.1 46.0 Bonds issued at amortised cost 8.6 10.1 10.1 10.0 10.4 Subordinated capital 3.1 3.5 4.2 3.8 3.5 Shareholders' equity 9.4 7.5 7.1 6.2 5.2 Total assets 154.4 160.1 149.8 121.1 107.5 Financial ratios per share (DKK per share of DKK 10) EPS Basic ** 3.4 5.0 10.5 13.1 9.1 EPS Diluted ** 3.4 5.0 10.5 13.1 9.1 Share price at end of period 124.8 122.3 180.5 264.0 193.5 Book value 127.5 116.2 112.0 94.2 76.8 Share price/book value 0.98 1.05 1.61 2.80 2.52 Average number of shares outstanding (millions) 73.7 63.6 63.5 68.6 68.4 Other financial ratios and key figures Solvency ratio 15.7 13.8 14.8 12.6 10.4 Core capital ratio 13.5 11.4 10.7 9.3 7.3 Pre-tax profit as % of average shareholders' equity ** 3.6 5.8 12.4 18.7 17.0 Post-tax profit as % of average shareholders' equity ** 2.7 4.4 9.7 14.3 12.3 Costs (core earnings) as % of core income 53.7 56.4 60.3 55.6 56.5 Interest rate risk 0.2 2.2 3.0 0.3 2.2 Foreign exchange position 1.5 3.4 12.9 16.1 10.9 Foreign exchange risk 0.0 0.1 0.0 0.2 0.1 Loans and advances relative to deposits * 1.0 1.0 1.1 1.1 1.2 Loans and advances relative to shareholders' equity * 7.9 10.1 11.6 11.1 11.8 Growth in loans and advances for the period * (0.6) (8.3) 10.8 5.2 14.1 Excess cover relative to statutory liquidity requirements 96.8 106.8 69.7 48.4 38.8 Total large exposures 0.0 34.6 39.5 29.5 64.9 Accumulated impairment ratio excl PCA ** 2.1 1.3 0.9 1.5 2.3 Accumulated impairment ratio for the period excl PCA ** 0.77 0.63 (0.01) (0.35) (0.03) Number of full-time staff at end of period 2,323 2,414 2,457 2,237 2,172 Financial ratios prepared according to “Recommendations & Financial Ratios 2010” published by the Danish Society of Financial Analysts. * Financial ratios calculated on the basis of loans and advances at amortised cost. ** Half-year ratios have not been converted to a full-year basis. Capital - Sydbank Group Reserve for Reserves net reval. acc to acc to Share Revaluation articles of equity Retained DKKm capital reserves association method earnings Total Shareholders' equity at 1 Jan 2010 742 112 418 33 7,813 9,118 Changes in equity in 2010 Purchase of own shares - - - - (1,033) (1,033) Sale of own shares - - - - 1,030 1,030 Comprehensive income for the period - - - - 251 251 Total changes in equity - - - - 248 248 Shareholders' equity at 30 Jun 2010 742 112 418 33 8,061 9,366 Shareholders' equity at 1 Jan 2009 675 91 411 20 5,891 7,088 Changes in equity in 2009 Purchase of own shares - - - - (655) (655) Sale of own shares - - - - 791 791 Tax on equity items - - - - (56) (56) Comprehensive income for the period - - - - 319 319 Total changes in equity - - - - 399 399 Shareholders' equity at 30 Jun 2009 675 91 411 20 6,290 7,487 1H Full year 1H The Sydbank share 2010 2009 2009 Share capital (DKK) 742,499,990 742,499,990 675,000,000 Shares issued (number) 74,249,999 74,249,999 67,500,000 Shares outstanding at end of period 73,438,476 73,471,636 64,433,558 Average number of shares outstanding 73,673,196 66,926,690 63,641,304 The Bank has only one class of shares as all shares carry the same rights. Capital - Sydbank Group 30 Jun 31 Dec 30 Jun DKKm 2010 2009 2009 Solvency Solvency ratio 15.7 15.2 13.8 Core capital ratio 13.5 13.1 11.4 Capital base after deductions Shareholders' equity 9,366 9,118 7,487 Revaluation reserves (112) (112) (91) Proposed dividend - - - Intangible assets and capitalised tax assets (25) (25) (25) Core capital (excl hybrid core capital) 9,229 8,981 7,371 Hybrid core capital 1,383 1,386 1,388 50% of holdings > 10% (135) (105) (102) 50% of total holdings etc > 10% - - (12) 50% of difference between expected losses and accounting value adjustments and accounting provision - (33) (184) 50% of the value of transferred payments etc with delivery risk - (5) - Core capital (incl hybrid core capital) after deductions 10,477 10,224 8,461 Subordinated loan capital 1,745 1,744 2,093 Revaluation reserves 112 112 91 Difference between expected losses and impairment charges 151 - - Capital base before deductions 12,485 12,080 10,645 50% of holdings > 10% (135) (105) (102) 50% of total holdings etc > 10% - - (13) 50% of difference between expected losses and accounting value adjustments and accounting provision - (33) (184) 50% of the value of transferred payments etc with delivery risk - (5) - Holdings in associates (125) (128) (54) Capital base after deductions 12,225 11,809 10,292 Credit risk 63,985 62,608 60,475 Market risk 6,437 8,764 7,432 Operational risk 7,378 6,537 6,537 Risk-weighted items 77,800 77,909 74,444 Regulatory solvency requirement 6,224 6,233 5,956 Adequate capital base 7,002 7,012 5,956 Cash Flow Statement - Sydbank Group 1H Full year 1H DKKm 2010 2009 2009 Operating activities Pre-tax profit for the period 335 998 426 Taxes paid (79) 86 (111) Adjustment of non-cash operating items 882 1,867 421 Cash flows from working capital (6,290) (193) 2,993 Cash flows from operating activities (5,152) 2,758 3,729 Investing activities Purchase and sale of holdings in associates 4 (67) 12 Purchase and sale of property, plant and equipment (29) (128) (62) Cash flows from investing activities (25) (195) (50) Financing activities Purchase and sale of own holdings (3) 371 80 Share issue - 855 - Raising of subordinated capital 4 (1,095) (745) Issue of bonds 10 (1,473) (3) Cash flows from financing activities 11 (1,342) (668) Cash flows for the period (5,166) 1,221 3,011 Cash equivalent positions at 1 Jan 7,421 6,200 6,200 Cash flows for the period (5,166) 1,221 3,011 Total cash equivalent positions at end of period 2,255 7,421 9,211 Segment Statements - Sydbank Group DKKm Banking Sydbank Markets Treasury Other Total Business segments 1H 2010 Core income excl trading income 1,677 (17) - - 1,660 Trading income 406 320 - - 726 Core income 2,083 303 - - 2,386 Costs, core earnings 1,095 160 5 26 1,286 Core earnings before impairment 988 143 (5) (26) 1,100 Impairment of loans and advances etc 633 - - - 633 Core earnings 355 143 (5) (26) 467 Investment portfolio income - - 121 8 129 Profit/(Loss) before non-recurring items 355 143 116 (18) 596 Non-recurring items, net - - - - - Profit before contribution to Private Contingency Association etc 355 143 116 (18) 596 Contribution to Private Contingency Association etc - - - 261 261 Profit before tax 355 143 116 (279) 335 Business segments 1H 2009 Core income excl trading income 1,682 (41) - - 1,641 Trading income 288 353 - - 641 Core income 1,970 312 - - 2,282 Costs, core earnings 1,103 158 5 27 1,293 Core earnings before impairment 867 154 (5) (27) 989 Impairment of loans and advances etc 571 (6) - - 565 Core earnings 296 160 (5) (27) 424 Investment portfolio income - - 217 (1) 216 Profit/(Loss) before non-recurring items 296 160 212 (28) 640 Non-recurring items, net - - - - - Profit before contribution to Private Contingency Association etc 296 160 212 (28) 640 Contribution to Private Contingency Association etc - - - 214 214 Profit before tax 296 160 212 (242) 426 Notes Note 1 Accounting policies The Interim Report has been prepared in accordance with IAS 34 “Interim Financial Reporting” as adopted by the EU and in compliance with additional Danish disclosure requirements for interim reports. As a result of the application of IAS 34, the presentation is less complete compared with the presentation of an annual report and the recognition and measurement principles are in compliance with IFRS. The accounting policies are consistent with those adopted in the 2009 Annual Report, to which reference is made. The 2009 Annual Report provides a comprehensive description of the accounting policies applied. The measurement of certain assets and liabilities requires managerial estimates as to how future events will affect the value of such assets and liabilities. The significant estimates made by the management in the application of the Group's accounting policies and the inherent considerable uncertainty of such estimates used in the preparation of the condensed interim report are identical to those used in the preparation of the annual report as at 31 December 2009. The Group's significant risks and the external elements which may affect the Group are described in detail in the 2009 Annual Report. Notes Sydbank Group Sydbank A/S 1H 1H 1H 1H DKKm 2010 2009 2010 2009 Note 2 Interest income Reverse transactions with credit institutions and central banks 14 28 14 28 Amounts owed by credit institutions and central banks 43 114 44 115 Reverse loans and advances 45 228 45 228 Loans and advances and other amounts owed 1,585 2,074 1,579 2,073 Bonds 406 654 406 654 Derivatives 45 159 45 159 Other interest income 11 5 11 5 Total 2,149 3,262 2,144 3,262 Note 3 Interest expense Repo transactions with credit institutions and central banks 63 14 63 14 Credit institutions and central banks 95 426 96 428 Repo deposits 1 6 1 6 Deposits and other debt 257 922 257 922 Bonds issued 37 129 37 129 Subordinated capital 31 72 31 72 Other interest expense 0 0 0 0 Total 484 1,569 485 1,571 Note 4 Fee and commission income Securities trading and custody accounts 369 279 354 270 Payment services 95 78 95 78 Loan fees 46 39 46 39 Guarantee commission 61 43 61 43 Other fees and commission 97 90 92 88 Total 668 529 648 518 Note 5 Market value adjustments Other loans and advances and amounts owed at fair value 1 (2) 1 (2) Bonds 351 198 351 198 Shares etc (81) 41 (81) 41 Investment property - 0 - 0 Foreign exchange 133 133 128 132 Derivatives (159) (73) (159) (74) Assets related to pooled plans 268 275 268 275 Deposits in pooled plans (268) (275) (268) (275) Other assets/liabilities 0 0 0 0 Total 245 297 240 295 Notes Sydbank Group Sydbank A/S 1H 1H 1H 1H DKKm 2010 2009 2010 2009 Note 6 Staff costs and administrative expenses Salaries and emoluments to: Group Executive Management: Salaries 8 5 8 5 Pensions 0 1 0 1 Severance pay 8 - 8 - Board of Directors 2 2 2 2 Shareholders' Committee 1 1 1 1 Total 19 9 19 9 Staff costs: Wages and salaries 598 617 585 607 Pensions 65 70 64 69 Social security contributions 3 3 3 3 Payroll tax etc 59 54 58 53 Total 725 744 710 732 Other administrative expenses: IT 258 253 254 251 Rent etc 66 65 68 67 Marketing and entertainment expenses 40 36 38 34 Other expenses 148 130 143 125 Total 512 484 503 477 Total 1,256 1,237 1,232 1,218 Note 7 Staff Average number of staff (full-time equivalent) 2,382 2,484 2,351 2,452 ? Notes Sydbank Group Sydbank A/S 1H 1H 1H 1H DKKm 2010 2009 2010 2009 Note 8 Impairment of loans and advances recognised in the income statement Impairment and provisions 551 431 551 431 Write-offs 201 232 201 232 Recovered from debt previously written off 15 13 15 13 Impairment of loans and advances etc 737 650 737 650 Impairment and provisions at end of period Individual impairment and provisions 1,955 1,136 1,955 1,088 Collective impairment and provisions 137 194 137 194 Impairment and provisions at end of period 2,092 1,330 2,092 1,282 Individual impairment of loans and advances and provisions for guarantees Impairment and provisions at 1 Jan 1,637 954 1,605 904 Exchange rate adjustment 4 (1) 0 0 Impairment and provisions during the period 565 411 565 412 Other movements 94 - 94 - Write-offs covered by impairment and provisions 345 228 309 228 Impairment and provisions at end of period 1,955 1,136 1,955 1,088 Individual impairment of loans and advances 1,609 987 1,609 939 Individual provisions for guarantees 346 149 346 149 Impairment and provisions at end of period 1,955 1,136 1,955 1,088 Collective impairment of loans and advances and provisions for guarantees Impairment and provisions at 1 Jan 141 152 141 152 Impairment and provisions during the period (4) 42 (4) 42 Impairment and provisions at end of period 137 194 137 194 Individual impairment of loans and advances subject to objective evidence of impairment Balance before impairment of individually assessed loans and advances 3,801 1,963 3,801 1,915 Impairment of individually assessed loans and advances 1,609 987 1,609 939 Balance after impairment of individually assessed loans and advances 2,192 976 2,192 976 Note 9 Profit on holdings in associates and subsidiaries Profit on holdings in associates etc 4 20 4 20 Profit/(Loss) on holdings in subsidiaries - - 5 (7) Total 4 20 9 13 ? Notes Sydbank Group Sydbank A/S 1H 1H 1H 1H DKKm 2010 2009 2010 2009 Note 10 Effective tax rate Current tax rate of Sydbank 25.0 25.0 25.0 25.0 Permanent differences - - - - Adjustment of prior year tax charges - - - - Effective tax rate 25.0 25.0 25.0 25.0 Sydbank Group Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2010 2009 2010 2009 Note 11 Amounts owed by credit institutions and central banks Amounts owed at notice by central banks 3,750 3,554 3,750 3,554 Amounts owed by credit institutions 7,798 5,091 8,195 5,396 Reverse transactions 5,002 4,992 5,002 4,992 Total 16,550 13,637 16,947 13,942 Note 12 Other assets Positive market value of derivatives etc 12,779 8,330 12,779 8,330 Sundry debtors 396 336 393 332 Interest and commission receivable 364 649 365 650 Other assets 2 1 2 1 Total 13,541 9,316 13,539 9,313 Note 13 Amounts owed to credit institutions and central banks Amounts owed to central banks 15,218 12,522 15,218 12,522 Amounts owed to credit institutions 22,592 18,928 22,939 18,982 Repo transactions 5,116 13,956 5,116 13,956 Total 42,926 45,406 43,273 45,460 ? Notes Sydbank Group Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2010 2009 2010 2009 Note 14 Deposits and other debt On demand 40,414 40,645 39,766 40,344 At notice 661 697 661 697 Time deposits 18,251 21,526 18,251 21,526 Special categories of deposits 5,460 5,912 5,460 5,912 Repo transactions 151 - 151 - Total 64,937 68,780 64,289 68,479 Note 15 Other liabilities Negative market value of derivatives etc 11,813 7,488 11,813 7,488 Sundry creditors 5,515 7,886 5,505 7,880 Interest and commission etc 164 146 164 145 Other liabilities 0 4 0 0 Total 17,492 15,524 17,482 15,513 Note 16 Provisions Provisions for pensions and similar obligations 3 3 3 3 Provisions for deferred tax 208 208 208 208 Provisions for guarantees * 346 240 346 240 Other provisions 24 26 20 23 Total 581 477 577 474 * Of which the Private Contingency Association 325 220 325 220 ? Notes Sydbank Group Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2010 2009 2010 2009 Note 17 Subordinated capital Interest rate Nominal (m) Maturity Floating Bond loan EUR 100 21.10.2013 745 744 745 744 Floating Bond loan DKK 200 14.11.2014 200 200 200 200 Floating Bond loan EUR 100 04.04.2015 744 743 744 743 Floating Bond loan EUR 8 31.10.2015 56 56 56 56 Total supplementary capital 1,745 1,743 1,745 1,743 Floating Bond loan EUR 100 Perpetual 739 738 739 738 Floating Bond loan EUR 75 Perpetual 559 558 559 558 6.36 Bond loan DKK 85 Perpetual 85 85 85 85 Total hybrid core capital 1,383 1,381 1,383 1,381 Total 3,128 3,124 3,128 3,124 Note 18 Contingent liabilities and other obligating agreements Contingent liabilities Financial guarantees 3,039 2,702 2,925 2,589 Mortgage finance guarantees 2,615 2,343 2,615 2,343 Registration and remortgaging guarantees 5,002 5,057 5,002 5,057 Loss guarantee/guarantee 427 531 427 531 Other contingent liabilities 1,492 1,420 1,492 1,420 Total 12,575 12,053 12,461 11,940 Other obligating agreements Irrevocable credit commitments 2 14 2 14 Other liabilities * 57 61 113 114 Total 59 75 115 128 * Including intra-group liabilities in relation to rented premises - - 61 57 A group of minority shareholders (“Foreningen af Minoritetsaktionærer i bankTrelleborg”) has filed a class action regarding the legality of the compulsory redemption against Fonden for bankTrelleborg, Sydbank and the Danish Financial Supervisory Authority. In continuation of the compulsory redemption of the shares in bankTrelleborg, the shares were priced by appraisers in accordance with section 144 (4) of the Danish Financial Business Act. A few shareholders have brought the findings of the appraisers before the courts as regards Fonden for bankTrelleborg and Sydbank. ? Notes Note 18 - continued Moreover, in 2009 the group of minority shareholders filed an action against Sydbank regarding an inadequate prospectus in connection with the conversion of sparTrelleborg to bankTrelleborg. In addition, the Group is party to a number of legal actions. These actions are under continuous review and the necessary provisions made are based on an assessment of the risk of loss. Pending legal actions are not expected to have any significant impact on the financial position of the Group. Sydbank and the majority of Danish banks are participating in the government guarantee scheme which was adopted by the Danish parliament on 10 October 2008. The scheme extends from 5 October 2008 to 30 September 2010 and involves an unconditional government guarantee for the obligations of Danish banks, except for subordinated capital and covered bonds. Note 19 Repo and reverse transactions In connection with repo transactions, which involve selling securities to be repurchased at a later date, the securities remain on the balance sheet, and consideration received is recognised as a deposit. Repo transaction securities are treated as assets provided as collateral for liabilities. At 30 June 2010, the fair value of repo transaction securities stood at DKK 5,221m. In connection with reverse transactions, which involve buying securities to be resold at a later date, the Group is entitled to sell the securities or deposit them as collateral for other loans. The securities are not recognised on the balance sheet and consideration paid is recognised as a loan. At 30 June 2010, the fair value of reverse transaction securities stood at DKK 11,489m. Note 20 Collateral At 30 June 2010, the Group had deposited as collateral securities at a market value of DKK 16,785m with Danish and foreign stock exchanges and clearing centres etc in connection with margin calls and securities settlements etc. Note 21 Related parties Sydbank is the bank of a number of related parties. Transactions with related parties are settled on an arm's length basis. No unusual transactions took place with related parties in 1H 2010. Reference is made to the 2009 Annual Report for a detailed description of transactions with related parties. Note 22 Reporting events occurring after the balance sheet date After the expiry of the half year no matters of significant impact on the financial position of the Sydbank Group have occurred. Note 23 Large shareholders Two shareholders have each reported a holding of at least 5% of Sydbank's share capital: ATP, Copenhagen Nykredit A/S, Copenhagen ? Notes Sydbank Group 1H 1H Index Full year DKKm 2010 2009 10/09 2009 Note 24 Core income Core income excl trading income Interest margins etc 1,381 1,378 100 2,776 Mortgage credit 110 109 101 221 Payment services 73 75 97 159 Remortgaging and loan fees 44 40 110 83 Other commission 42 28 150 59 Other operating income 10 11 91 22 Total 1,660 1,641 101 3,320 Mortgage credit Totalkredit cooperation 90 77 117 168 Totalkredit, set-off of loss 4 3 133 8 Totalkredit cooperation, net 86 74 116 160 DLR Kredit 19 31 61 52 Other mortgage credit income 5 4 125 9 Total 110 109 101 221 Trading income Bonds 180 155 116 292 Shares 147 125 118 258 Foreign exchange 121 134 90 234 Money market 73 93 78 178 Asset management 205 134 153 304 Total 726 641 113 1,266 ? Notes Sydbank Group Q2 Q1 Q4 Q3 Q2 Q1 DKKm 2010 2010 2009 2009 2009 2009 Note 24 - continued Core income Core income excl trading income Interest margins etc 689 692 697 701 679 699 Mortgage credit 61 49 55 57 61 48 Payment services 33 40 51 33 43 32 Remortgaging and loan fees 21 23 22 21 21 19 Other commission 22 20 18 13 11 17 Other operating income 5 5 6 5 4 7 Total 831 829 849 830 819 822 Mortgage credit Totalkredit cooperation 47 43 45 46 47 30 Totalkredit, set-off of loss 3 1 2 3 3 0 Totalkredit cooperation, net 44 42 43 43 44 30 DLR Kredit 15 4 10 12 15 16 Other mortgage credit income 2 3 2 2 2 2 Total 61 49 55 57 61 48 Trading income Bonds 73 107 49 88 94 61 Shares 66 81 66 67 78 47 Foreign exchange 65 56 49 51 57 77 Money market 23 50 40 45 67 26 Asset management 100 105 92 78 73 61 Total 327 399 296 329 369 272 ? Management Statement Today we have reviewed and approved the Interim Report - First Half 2010 of Sydbank A/S. The consolidated interim financial statements for 1H 2010 have been prepared in accordance with International Financial Reporting Standards as adopted by the EU. Furthermore, the Interim Report has been prepared in compliance with additional Danish disclosure requirements for interim reports of listed financial companies. The Interim Report has not been audited or reviewed. We consider the accounting policies applied to be appropriate and the Interim Report gives a true and fair view of the Group's assets, shareholders' equity and liabilities and financial position at 30 June 2010 and of the results of the Group's operations and consolidated cash flows for the accounting period 1 January - 30 June 2010 as well as a description of the most significant risks and elements of uncertainty which may affect the Group. Aabenraa, 17 August 2010 Group Executive Management Karen Frøsig Preben L. Hansen Allan Nørholm (Group Chief Executive) Board of Directors Kresten Philipsen Anders Thoustrup Svend Erik Busk (Chairman) (Vice-Chairman) Otto Christensen Peder Damgaard Harry Max Friedrichsen Peter Gæmelke Hanni Toosbuy Kasprzak Sven Rosenmeyer Paulsen Steen Tophøj Jan Uldahl-Jensen Margrethe Weber ? Supplementary Information Financial Calendar In 2010 the Group's financial statements will be released as follows: Interim Report - Q1-Q3 2010 26 October 2010 Sydbank contacts Karen Frøsig, Group Chief Executive Tel: +45 74 37 20 00 Mogens Sandbæk, CFO Tel: +45 74 37 24 00 Niels Møllegaard, Group Executive Vice President Tel: +45 74 37 20 50 Address Sydbank A/S Peberlyk 4 DK-6200 Aabenraa Tel: +45 74 37 37 37 CVR No DK 12626509 Relevant links sydbank.dk sydbank.com For further information reference is made to Sydbank's 2009 Annual Report at sydbank.com/about/ir/finreports.