UK Regulatory | 26 April 2011 14:04
Sydbank A/S / 1st Quarter Results
26.04.2011 14:04
Dissemination of a UK Regulatory Announcement, transmitted by
DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Aabenraa, Denmark, 2011-04-26 14:03 CEST (GLOBE NEWSWIRE) --
Company Announcement No 08/2011 26 April 2011
Contents
Financial Review
Group Financial Highlights
3
Summary
4
Financial Review
6
Financial Statements - Sydbank Group
Income Statement
12
Statement of Comprehensive Income
12
Balance Sheet
13
Financial Highlights - Quarterly
14
Capital
15
Cash Flow Statement
17
Segment Statements
18
Notes
19
Statement
Management Statement
27
Supplementary Information
28
Group Financial Highlights
Q1 Q1 Index Full
year
--------------------------------------------------------------------------------
2011 2010 11/10 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income statement (DKKm)
Core income excl trading income 799 829 96 3,304
Trading income 299 399 75 1,290
--------------------------------------------------------------------------------
Total core income 1,098 1,228 89 4,594
--------------------------------------------------------------------------------
Costs, core earnings 650 656 99 2,479
--------------------------------------------------------------------------------
Core earnings before impairment 448 572 78 2,115
--------------------------------------------------------------------------------
Impairment of loans and advances etc 250 323 77 1,400
--------------------------------------------------------------------------------
Core earnings 198 249 80 715
--------------------------------------------------------------------------------
Profit on investment portfolios 75 116 65 227
--------------------------------------------------------------------------------
Profit before contributions to deposit guarantee 273 365 75 942
and PCA
--------------------------------------------------------------------------------
Contributions to deposit guarantee and the Private 98 139 71 384
Contingency Association (PCA)
--------------------------------------------------------------------------------
Profit before tax 175 226 77 558
--------------------------------------------------------------------------------
Tax 44 57 77 147
--------------------------------------------------------------------------------
Profit for the period 131 169 78 411
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet highlights (DKKbn)
Loans and advances at amortised cost 71.4 73.3 97 73.0
Loans and advances at fair value 9.3 7.4 126 10.7
Deposits and other debt 64.6 62.2 104 64.2
Bonds issued at amortised cost 11.2 8.6 130 11.2
Subordinated capital 2.3 3.1 74 2.3
Shareholders' equity 9.6 9.3 103 9.6
Total assets 140.6 149.0 94 150.8
Financial ratios per share (DKK per share of DKK
10)
EPS Basic ** 1.8 2.3 5.6
EPS Diluted ** 1.8 2.3 5.6
Share price at end of period 132.8 147.8 151.3
Book value 130.5 126.5 129.8
Share price/book value 1.02 1.17 1.17
Average number of shares outstanding (millions) 73.5 73.7 73.5
Dividend per share - - 1.0
Other financial ratios and key figures
Solvency ratio 15.4 15.3 15.4
Core capital ratio 14.4 13.1 14.3
Pre-tax profit as % of average shareholders' equity 1.8 2.4 6.0
**
Post-tax profit as % of average shareholders' 1.4 1.8 4.4
equity **
Costs (core earnings) as % of core income 59.2 53.4 54.0
Interest rate risk 1.1 1.0 1.5
Foreign exchange position 4.5 2.8 1.2
Foreign exchange risk 0.0 0.0 0.0
Loans and advances relative to deposits * 1.0 1.1 1.0
Loans and advances relative to shareholders' equity 7.5 7.9 7.6
*
Growth in loans and advances for the period * (2.2) (1.7) (2.0)
Excess cover relative to statutory liquidity 129.3 121.1 106.3
requirements
Total large exposures 23.9 13.6 54.4
Accumulated impairment ratio excl PCA 2.2 2.1 2.0
Accumulated impairment ratio for the period excl 0.30 0.39 1.70
PCA **
Number of full-time staff at end of period 2,285 2,344 97 2,284
Financial ratios are 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.
Summary
The Sydbank Group recorded a pre-tax profit of DKK 175m. The result, which is
adversely affected by a provision for the Deposit Guarantee Fund in connection
with the bankruptcy of Amagerbanken, is considered acceptable given the weak
growth in the economy. The development meets the expectations at the beginning
of the year. Profit before tax equals a return of 7.3% p.a. on average
shareholders' equity.
The Interim Report is characterised by:
-- 4% decrease in core income excl trading income
-- 25% decline in trading income
-- Unchanged level of costs (core earnings)
-- Decrease in impairment charges for loans and advances of DKK 73m to DKK
250m
-- Profit on investment portfolios of DKK 75m
-- Provision for deposit guarantee etc of DKK 98m
-- 3% reduction in bank loans and advances to DKK 71.4bn
-- 4% growth in deposits to DKK 64.6bn
-- Core capital ratio of 14.4%
-- Solvency ratio of 15.4%.
Income statement - Q1 (DKKm) 2011 2010
--------------------------------------------------------------------------------
Core income excl trading income 799 829
--------------------------------------------------------------------------------
Trading income 299 399
--------------------------------------------------------------------------------
Total core income 1,098 1,228
--------------------------------------------------------------------------------
Costs, core earnings 650 656
--------------------------------------------------------------------------------
Core earnings before impairment 448 572
--------------------------------------------------------------------------------
Impairment of loans and advances etc 250 323
--------------------------------------------------------------------------------
Core earnings 198 249
--------------------------------------------------------------------------------
Profit on investment portfolios 75 116
--------------------------------------------------------------------------------
Profit before contributions to deposit guarantee and PCA 273 365
--------------------------------------------------------------------------------
Contributions to deposit guarantee and the Private Contingency 98 139
Association (PCA)
--------------------------------------------------------------------------------
Profit before tax 175 226
--------------------------------------------------------------------------------
Tax 44 57
--------------------------------------------------------------------------------
Profit for the period 131 169
--------------------------------------------------------------------------------
Core earnings before impairment represent DKK 448m against DKK 572m for the
first three months of 2010. The reduction of DKK 124m consists of a decline in
core income excl trading income of DKK 30m, a decrease in trading income of DKK
100m and a decline in costs (core earnings) of DKK 6m.
Core earnings before impairment are in line with our announcement in the 2010
Annual Report.
Impairment charges for loans and advances etc represent DKK 250m (Q1 2010: DKK
323m).
Investment portfolio earnings constitute DKK 75m and the provision for the
Deposit Guarantee Fund etc amounts to DKK 98m. Less a calculated tax charge of
DKK 44m, profit for the period stands at DKK 131m.
Profit for the period equals a return on average shareholders' equity of 5.5%
p.a. against 7.3% p.a. in 2010. Earnings per share stands at DKK 1.8 compared
with DKK 2.3 in 2010.
Since year-end 2010, risk-weighted assets have increased by DKK 0.5bn to DKK
74.2bn.
Sydbank and 89 other banks are undergoing an EU-wide stress test conducted at
the request of the European Banking Authority (EBA). The stress test includes
more than 65% of bank assets within the EU. The results of the stress test are
expected to be released in June 2011.
The Group's solvency ratio stands at 15.4%, of which 14.4 percentage points is
ascribable to core capital, compared with 15.4% and 14.3 percentage points,
respectively, at end-2010. The core capital ratio excluding hybrid core capital
is unchanged at 12.7% compared with the beginning of the year.
The Group's liquidity measured under the 15% and 10% statutory requirements
constitutes 35.9% and 21.7%, respectively, at 31 March 2011.
Sydbank's number of clients grew in the first three months - which is a highly
satisfactory development.
The Group continues to project core earnings before impairment charges for
loans and advances in the region of DKK 1.7-2.0bn in 2011 - unchanged compared
with previous announcements.
Financial Review
Core income excl trading income
Total core income excl trading income declined by 4% to DKK 799m.
Core income excl trading income - Q1 (DKKm) 2011 2010
-------------------------------------------------------
Interest margins etc 668 692
-------------------------------------------------------
Mortgage credit 43 49
-------------------------------------------------------
Payment services 37 40
-------------------------------------------------------
Remortgaging and loan fees 21 23
-------------------------------------------------------
Other commission 25 20
-------------------------------------------------------
Other operating income 5 5
-------------------------------------------------------
Total 799 829
-------------------------------------------------------
Income from interest margins went down by DKK 24m due to a decline in bank
loans and advances of 3% and a rise in deposits of 4% compared with 31 March
2010.
Net income from the cooperation with Totalkredit represents DKK 36m (2010: DKK
42m). Total mortgage credit income amounts to DKK 43m (2010: DKK 49m).
The remaining income components of core income excl trading income are
unchanged compared with Q1 2010.
Trading income
Total trading income decreased by 25% - from DKK 399m in 2010 to DKK 299m in
2011.
The development must be seen in light of the fact that income in Q1 2010 was
exceptionally high in a favourable market whereas income in Q1 2011 was
adversely affected by lower trading activity.
Trading income - Q1 (DKKm) 2011 2010
--------------------------------------
Bonds 54 107
--------------------------------------
Shares 66 81
--------------------------------------
Currency 50 56
--------------------------------------
Money market 16 50
--------------------------------------
Asset management 113 105
--------------------------------------
Total 299 399
--------------------------------------
Costs and depreciation
The Group's total costs and depreciation recorded DKK 746m, which is unchanged
compared with 2010. This includes DKK 3m which can be ascribed to investment
portfolio earnings and DKK 93m for the provision for the Deposit Guarantee
Fund. In Q1 2010 costs included a guarantee commission of DKK 86m to the
Private Contingency Association.
Costs and depreciation - Q1 (DKKm) 2011 2010
----------------------------------------------------------------------------
Staff costs 382 377
----------------------------------------------------------------------------
Other administrative expenses 345 275
----------------------------------------------------------------------------
Depreciation and impairment of property, plant and equipment 19 23
----------------------------------------------------------------------------
Other operating expenses 0 70
----------------------------------------------------------------------------
Total costs and depreciation 746 745
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Distributed as follows:
----------------------------------------------------------------------------
Costs, core earnings 650 656
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Costs, investment portfolio earnings 3 3
----------------------------------------------------------------------------
Costs, deposit guarantee and the Private Contingency Association 93 86
----------------------------------------------------------------------------
Costs (core earnings) of DKK 650m decreased by DKK 6m compared with one year
ago. At end-Q1 2011 the Group's staff numbered 2,285 (full-time equivalent)
compared with 2,344 at 31 March 2010. In 2011 Sydbank has closed one small
branch, bringing the number of branches to 101 in Denmark and unchanged three
in Germany.
As part of the continuing expansion in Zealand two new branches have been/will
be opened in Amager - in Amagerbrogade and in Dragor - as well as a new branch
in Horsholm.
Core earnings before impairment of loans and advances
Core earnings before impairment of loans and advances represent DKK 448m - a
decrease of DKK 124m or 22% compared with one year ago.
Impairment of loans and advances etc
Impairment charges for loans and advances constitute DKK 250m (2010: DKK 323m).
The impairment ratio represents 0.35% relative to bank loans and advances at 31
March 2011 and 0.31% relative to bank loans and advances and guarantees. At
end-March 2011 accumulated impairment and provisions amount to DKK 1,814m. A
rise of DKK 51m compared with the beginning of the year.
Compared with 31 March 2010 impaired bank loans and advances before impairment
charges went down by DKK 413m to DKK 3,142m. During the same period
individually impaired bank loans and advances after impairment charges declined
by DKK 440m. Impairment charges for bank loans and advances subject to
individual impairment constitute 52.0% at 31 March 2011 compared with 45.2% one
year ago and 51.8% at year-end 2010.
Individually impaired bank loans and advances (DKKm) 31 Mar 31 Mar
2011 2010
--------------------------------------------------------------------------------
Non-defaulted bank loans and advances 1,786 1,815
--------------------------------------------------------------------------------
Defaulted bank loans and advances 1,356 1,740
--------------------------------------------------------------------------------
Impaired bank loans and advances 3,142 3,555
--------------------------------------------------------------------------------
Impairment charges for bank loans and advances subject to 1,635 1,608
individual impairment
--------------------------------------------------------------------------------
Impaired bank loans and advances after impairment charges 1,507 1,947
--------------------------------------------------------------------------------
Impaired bank loans and advances as %
--------------------------------------------------------------------------------
of bank loans and advances before impairment charges 4.3 4.7
--------------------------------------------------------------------------------
Impairment charges as % of bank loans and advances before 2.2 2.1
impairment charges
--------------------------------------------------------------------------------
Impaired as % of impaired bank loans and advances 52.0 45.2
--------------------------------------------------------------------------------
Core earnings
Core earnings represent DKK 198m compared with DKK 249m in 2010.
Investment portfolio earnings
Less funding charges and less related costs of DKK 3m, investment portfolio
earnings constitute DKK 75m (2010: DKK 116m).
The Group's interest rate risk comprises DKK 119m at 31 March 2011. Moreover
the Group's exchange rate risk continues to be very low and its equity position
remains modest.
Contributions to deposit guarantee/the Private Contingency Association
In connection with the bankruptcy of Amagerbanken a further provision of DKK
93m has been made to cover the Bank's expected contribution to the Deposit
Guarantee Fund bringing the contribution to a total of DKK 110m at the end of
Q1 2011. Finally an amount of DKK 5m has been charged to income, representing
the Group's share of Amagerbanken's outstanding payment of the guarantee to the
Private Contingency Association. In Q1 2010 the guarantee commission and
provision concerning the Private Contingency Association constituted DKK 70m
and DKK 52m, respectively, and the provision for the Deposit Guarantee Fund in
connection with the bankruptcy of Capinordic Bank amounted to DKK 17m, or a
total of DKK 139m.
Subsidiaries
The subsidiary bank, Sydbank (Schweiz) AG, which conducts private banking
activities in St. Gallen, Switzerland, recorded a profit after tax of DKK 1m
(2010: DKK 3m). Profit after tax of Ejendomsselskabet is unchanged at DKK 1m
compared with 2010.
Profit for the period
Profit before tax amounts to DKK 175m. Less a calculated tax charge of DKK 44m,
profit for the period stands at DKK 131m compared with DKK 169m in 2010.
Return
Profit for the period equals a return on average shareholders' equity of 5.5%
p.a. against 7.3% p.a. in 2010. Earnings per share stands at DKK 1.8 compared
with DKK 2.3 in 2010.
Q1 2011 compared with Q4 2010
Profit before tax rose by DKK 198m and reflected:
-- A decrease in core income excl trading income of DKK 13m, ascribable in
part to lower lending volume and mortgage credit income.
-- An increase in trading income of DKK 60m, due to more normal interest rate
conditions compared with Q4 2010.
-- A rise in costs (core earnings) of DKK 40m, which corresponds to an
unchanged seasonal level.
-- A decline in impairment charges for loans and advances of DKK 206m as a
result of the cautious assessment of impairment charges for Q4 2010.
-- An increase in investment portfolio earnings from minus DKK 8m in the
preceding quarter to DKK 75m.
-- An additional provision for the Deposit Guarantee Fund etc of DKK 93m where
the amount for Q4 2010 represented DKK 0.
Profit for the period (DKKm) 2011 2010
--------------------------------------------------------------------------------
Q1 Q4 Q3 Q2 Q1
--------------------------------------------------------------------------------
Core income excl trading income 799 812 832 831 829
--------------------------------------------------------------------------------
Trading income 299 239 325 327 399
--------------------------------------------------------------------------------
Core income 1,098 1,051 1,157 1,158 1,228
--------------------------------------------------------------------------------
Costs, core earnings 650 610 588 625 656
--------------------------------------------------------------------------------
Core earnings before impairment 448 441 569 533 572
--------------------------------------------------------------------------------
Impairment of loans and advances etc 250 456 311 310 323
--------------------------------------------------------------------------------
Core earnings 198 (15) 258 223 249
--------------------------------------------------------------------------------
Profit/(Loss) on investment portfolios 75 (8) 111 8 116
--------------------------------------------------------------------------------
Profit before contributions to deposit 273 (23) 369 231 365
guarantee and PCA
--------------------------------------------------------------------------------
Contributions to deposit guarantee and the 98 - 123 122 139
Private Contingency Association (PCA)
--------------------------------------------------------------------------------
Profit before tax 175 (23) 246 109 226
--------------------------------------------------------------------------------
Tax 44 2 61 27 57
--------------------------------------------------------------------------------
Profit for the period 131 (25) 185 82 169
--------------------------------------------------------------------------------
Balance sheet
The Group's total assets made up DKK 140.6bn at 31 March 2011 against DKK
150.8bn at year-end 2010.
Assets (DKKbn) 31 Mar 31 Dec 2010
2011
--------------------------------------------------------------------------------
Amounts owed by credit institutions etc 8.6 8.4
--------------------------------------------------------------------------------
Loans and advances at fair value (reverse transactions) 9.3 10.7
--------------------------------------------------------------------------------
Loans and advances at amortised cost (bank loans and 71.4 73.0
advances)
--------------------------------------------------------------------------------
Securities and holdings etc 33.4 37.2
--------------------------------------------------------------------------------
Assets related to pooled plans 7.9 7.9
--------------------------------------------------------------------------------
Other assets etc 10.0 13.6
--------------------------------------------------------------------------------
Total 140.6 150.8
--------------------------------------------------------------------------------
The Group's bank loans and advances total DKK 71.4bn - a decline of DKK 1.6bn
compared with year-end 2010 and DKK 1.9bn compared with 31 March 2010.
Shareholders' equity and liabilities (DKKbn) 31 Mar 31 Dec 2010
2011
-----------------------------------------------------------------
Amounts owed to credit institutions etc 33.3 40.2
-----------------------------------------------------------------
Deposits and other debt 64.6 64.2
-----------------------------------------------------------------
Deposits in pooled plans 7.9 7.9
-----------------------------------------------------------------
Bonds issued 11.2 11.2
-----------------------------------------------------------------
Other liabilities etc 11.4 15.1
-----------------------------------------------------------------
Provisions 0.3 0.3
-----------------------------------------------------------------
Subordinated capital 2.3 2.3
-----------------------------------------------------------------
Shareholders' equity 9.6 9.6
-----------------------------------------------------------------
Total 140.6 150.8
-----------------------------------------------------------------
The Group's deposits make up DKK 64.6bn against DKK 64.2bn at year-end 2010 and
DKK 62.2bn at end-March 2010.
Capital
At end-Q1 2011, shareholders' equity constitutes DKK 9,579m - an increase of
DKK 25m since year-end 2010. The change comprises additions from dividends on
own shares of DKK 4m and profit for the period of DKK 131m as well as disposals
deriving from dividend distribution etc of DKK 84m and net purchase of own
shares of DKK 26m.
Since year-end 2010, risk-weighted assets have increased by DKK 0.5bn to DKK
74.2bn. The increase consists of a decrease in credit risk of DKK 2.6bn, a rise
in market risk and operational risk of DKK 2.4bn and DKK 0.7bn, respectively.
The decrease in credit risk is ascribable to a decline in loans and advances
and guarantees as well as a positive trend in the average rating of the
exposures comprised by the IRB approach. The development in the distribution at
31 March 2010, 31 December 2010 and 31 March 2011 appears below.
The Group's solvency ratio stands at 15.4%, of which 14.4 percentage points is
ascribable to core capital, compared with 15.4% and 14.3 percentage points,
respectively, at end-2010. The core capital ratio excluding hybrid core capital
is unchanged at 12.7%.
At 31 March 2011 the individual solvency need represented 9.6%, unchanged from
31 December 2010.
Sydbank and 89 other banks are undergoing an EU-wide stress test conducted at
the request of the European Banking Authority (EBA). The stress test includes
more than 65% of bank assets within the EU. The results of the stress test are
expected to be released in June 2011.
Liquidity
The Group's liquidity measured under the 15% and 10% statutory requirements
constitutes 35.9% and 21.7%, respectively, at 31 March 2011.
Rating
Sydbank's rating - A1 (long-term debt), P-1 (short-term debt) and C+ (financial
strength) - was maintained in Q1 2011 with a negative outlook for long-term
debt.
Clients
Sydbank's number of clients grew in Q1 2011 - which is a highly satisfactory
development.
Outlook for 2011
The Group continues to project core earnings before impairment charges for
loans and advances in the region of DKK 1.7-2.0bn in 2011 - unchanged compared
with previous announcements.
Income Statement - Sydbank Group
Q1 Q1 Full
year
--------------------------------------------------------------------------------
DKKm Note 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Interest income 2 1,007 1,098 4,189
Interest expense 3 261 261 971
--------------------------------------------------------------------------------
Net interest income 746 837 3,218
--------------------------------------------------------------------------------
Dividends on shares 7 9 22
Fee and commission income 4 344 331 1,330
Fee and commission expense 50 40 184
--------------------------------------------------------------------------------
Net interest and fee income 1,047 1,137 4,386
--------------------------------------------------------------------------------
Market value adjustments 5 124 204 420
Other operating income 5 5 23
Staff costs and administrative expenses 6 727 652 2,353
Depreciation and impairment of property, plant and 19 23 153
equipment
Other operating expenses 0 70 211
Impairment of loans and advances etc 8 255 376 1,556
Profit on holdings in associates and subsidiaries 0 1 2
--------------------------------------------------------------------------------
Profit before tax 175 226 558
--------------------------------------------------------------------------------
Tax 9 44 57 147
--------------------------------------------------------------------------------
Profit for the period 131 169 411
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
EPS Basic (DKK) * 1.8 2.3 5.6
EPS Diluted (DKK) * 1.8 2.3 5.6
Dividend per share (DKK) 1.0
* Based on average number of shares outstanding,
see page 15.
Statement of Comprehensive Income - Sydbank Group
------------------------------------------------------------
Profit for the period 131 169 411
------------------------------------------------------------
------------------------------------------------------------
Other comprehensive income:
Translation of foreign entities (10) 8 40
Hedge of net investment in foreign entities 10 (8) (40)
Property revaluation - - (1)
------------------------------------------------------------
Other comprehensive income after tax 0 0 (1)
------------------------------------------------------------
Comprehensive income after tax 131 169 410
------------------------------------------------------------
Balance Sheet - Sydbank Group
31 Mar Full 31 Mar
year
--------------------------------------------------------------------------------
DKKm Note 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------
Cash and balances on demand at central banks 844 855 813
--------------------------------------------------------------------------------
Amounts owed by credit institutions and 10 7,704 7,527 9,020
central banks
Loans and advances at fair value 9,324 10,724 7,388
Loans and advances at amortised cost 71,447 73,028 73,277
Bonds at fair value 31,578 35,021 35,745
Shares etc 1,551 1,894 1,961
Holdings in associates etc 306 307 310
Assets related to pooled plans 7,920 7,923 7,154
Intangible assets 12 13 13
Total land and buildings 1,047 1,045 1,045
investment property - - 2
owner-occupied property 1,047 1,045 1,043
Other property, plant and equipment 95 105 128
Current tax assets 85 82 62
Deferred tax assets 11 11 11
Assets held for sale 1 1 -
Other assets 11 8,662 12,256 12,024
Prepayments 63 51 61
--------------------------------------------------------------------------------
Total assets 140,650 150,843 149,012
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity and liabilities
--------------------------------------------------------------------------------
Amounts owed to credit institutions and 12 33,264 40,250 42,958
central banks
--------------------------------------------------------------------------------
Deposits and other debt 13 64,609 64,161 62,178
Deposits in pooled plans 7,920 7,923 7,154
Bonds issued at amortised cost 11,247 11,242 8,627
Current tax liabilities 21 8 8
Other liabilities 14 11,394 15,084 15,096
Deferred income 8 11 9
--------------------------------------------------------------------------------
Total liabilities 128,463 138,679 136,030
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Provisions 15 278 281 531
Subordinated capital 16 2,330 2,329 3,126
Shareholders' equity:
Share capital 742 742 742
Revaluation reserves 110 110 112
Other reserves:
Reserves according to articles of association 423 423 418
Other reserves 26 26 33
Retained earnings 8,278 8,169 8,020
Proposed dividend - 84 -
--------------------------------------------------------------------------------
Total shareholders' equity 9,579 9,554 9,325
--------------------------------------------------------------------------------
Total shareholders' equity and liabilities 140,650 150,843 149,012
--------------------------------------------------------------------------------
Group Financial Highlights - Quarterly
Q1 Q4 Q3 Q2 Q1 Full
year
--------------------------------------------------------------------------------
2011 2010 2010 2010 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Income statement (DKKm)
Core income excl trading income 799 812 832 831 829 3,304
Trading income 299 239 325 327 399 1,290
--------------------------------------------------------------------------------
Total core income 1,098 1,051 1,157 1,158 1,228 4,594
--------------------------------------------------------------------------------
Costs, core earnings 650 610 588 625 656 2,479
--------------------------------------------------------------------------------
Core earnings before impairment 448 441 569 533 572 2,115
--------------------------------------------------------------------------------
Impairment of loans and advances etc 250 456 311 310 323 1,400
--------------------------------------------------------------------------------
Core earnings 198 (15) 258 223 249 715
--------------------------------------------------------------------------------
Profit/(Loss) on investment 75 (8) 111 8 116 227
portfolios
--------------------------------------------------------------------------------
Profit before contributions to 273 (23) 369 231 365 942
deposit guarantee and PCA
--------------------------------------------------------------------------------
Contributions to deposit guarantee 98 - 123 122 139 384
and the Private Contingency
Association (PCA)
--------------------------------------------------------------------------------
Profit before tax 175 (23) 246 109 226 558
--------------------------------------------------------------------------------
Tax 44 2 61 27 57 147
--------------------------------------------------------------------------------
Profit for the period 131 (25) 185 82 169 411
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Balance sheet highlights (DKKbn)
Loans and advances at amortised cost 71.4 73.0 73.6 74.1 73.3 73.0
Loans and advances at fair value 9.3 10.7 6.5 6.6 7.4 10.7
Deposits and other debt 64.6 64.2 61.5 64.9 62.2 64.2
Bonds issued at amortised cost 11.2 11.2 16.1 8.6 8.6 11.2
Subordinated capital 2.3 2.3 3.1 3.1 3.1 2.3
Shareholders' equity 9.6 9.6 9.5 9.4 9.3 9.6
Total assets 140.6 150.8 153.7 154.4 149.0 150.8
Financial ratios per share (DKK per
share of DKK 10)
EPS Basic 1.8 (0.3) 2.5 1.1 2.3 5.6
EPS Diluted 1.8 1.1 2.5 1.1 2.3 5.6
Share price at end of period 132.8 151.3 127.4 124.8 147.8 151.3
Book value 130.5 129.8 130.1 127.5 126.5 129.8
Share price/book value 1.02 1.17 0.98 0.98 1.17 1.17
Average number of shares outstanding 73.5 73.5 73.4 73.7 73.7 73.5
(millions)
Dividend per share - 1.0 - - - 1.0
Other financial ratios and key
figures
Solvency ratio 15.4 15.4 16.1 15.7 15.3 15.4
Core capital ratio 14.4 14.3 14.1 13.5 13.1 14.3
Pre-tax profit as % of average 1.8 (0.2) 2.6 1.2 2.4 6.0
shareholders' equity
Post-tax profit as % of average 1.4 (0.3) 2.0 0.9 1.8 4.4
shareholders' equity
Costs (core earnings) as % of core 59.2 58.0 50.9 54.0 53.4 54.0
income
Interest rate risk 1.1 1.5 0.4 0.2 1.0 1.5
Foreign exchange position 4.5 1.2 1.4 1.5 2.8 1.2
Foreign exchange risk 0.0 0.0 0.0 0.0 0.0 0.0
Loans and advances relative to 1.0 1.0 1.1 1.0 1.1 1.0
deposits *
Loans and advances relative to 7.5 7.6 7.7 7.9 7.9 7.6
shareholders' equity *
Growth in loans and advances for the (2.2) (0.8) (0.7) 1.1 (1.7) (2.0)
period *
Excess cover relative to statutory 129.3 106.3 126.3 96.8 121.1 106.3
liquidity requirements
Total large exposures 23.9 54.4 19.6 0.0 13.6 54.4
Accumulated impairment ratio 2.2 2.0 2.4 2.1 2.1 2.0
Impairment ratio for the period 0.30 0.40 0.38 0.38 0.39 1.70
Number of full-time staff at end of 2,285 2,284 2,303 2,323 2,344 2,284
period
Financial ratios are 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.
Capital - Sydbank Group
Reserve
for
--------------------------------------------------------------------------------
Reserve net
s revaluat
ion
Re- acc to accordin
g
Share valuat article to Retain Proposed
ion s of equity ed
DKKm capita reserv associa method earnin dividend Total
l es tion gs etc
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity 742 110 423 26 8,169 84 9,554
at 1 Jan 2011
Changes in equity in
2011
Purchase of own - - - - (973) - (973)
shares
Sale of own shares - - - - 947 - 947
Adopted dividend etc - - - - - (84) (84)
Dividends, own - - - - 4 - 4
shares
Comprehensive income - - - - 131 - 131
for the period
--------------------------------------------------------------------------------
Total changes in - - - - 109 (84) 25
equity
--------------------------------------------------------------------------------
Shareholders' equity 742 110 423 26 8,278 - 9,579
at 31 Mar 2011
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Shareholders' equity 742 112 418 33 7,813 - 9,118
at 1 Jan 2010
Changes in equity in
2010
Purchase of own - - - - (466) - (466)
shares
Sale of own shares - - - - 504 - 504
Comprehensive income - - - - 169 - 169
for the period
--------------------------------------------------------------------------------
Total changes in - - - - 207 - 207
equity
--------------------------------------------------------------------------------
Shareholders' equity 742 112 418 33 8,020 - 9,325
at 31 Mar 2010
--------------------------------------------------------------------------------
Q1 Full year Q1
--------------------------------------------------------------------------------
The Sydbank share 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Share capital (DKK) 742,499,990 742,499,990 742,499,990
Shares issued (number) 74,249,999 74,249,999 74,249,999
Shares outstanding at end of period 73,421,876 73,588,089 73,737,003
(number)
Average number of shares outstanding 73,451,336 73,522,284 73,661,441
(number)
--------------------------------------------------------------------------------
Capital - Sydbank Group
31 Mar 31 Dec 31 Mar
--------------------------------------------------------------------------------
DKKm 2011 2010 2010
--------------------------------------------------------------------------------
Solvency
Solvency ratio 15.4 15.4 15.3
Core capital ratio 14.4 14.3 13.1
Capital base after deductions
Shareholders' equity 9,579 9,554 9,325
Revaluation reserves (110) (110) (112)
Proposed dividend - (84) -
Intangible assets and capitalised tax assets (23) (24) (25)
Core capital (excluding hybrid core capital) 9,446 9,336 9,188
--------------------------------------------------------------------------------
Hybrid core capital 1,385 1,384 1,382
50% of holdings > 10% (157) (161) (119)
50% of total holdings etc > 10% - - (5)
Core capital (including hybrid core capital) after 10,674 10,559 10,446
deductions
--------------------------------------------------------------------------------
Subordinated loan capital 945 945 1,744
Revaluation reserves 110 110 112
Difference between expected losses and impairment - - 114
charges
---------------------------------------------------------
Capital base before deductions 11,729 11,614 12,416
--------------------------------------------------------------------------------
50% of holdings > 10% (157) (161) (119)
50% of total holdings etc > 10% - - (5)
Holdings in associates (120) (124) (131)
--------------------------------------------------------------------------------
Capital base after deductions 11,452 11,329 12,161
--------------------------------------------------------------------------------
Credit risk 55,391 58,040 63,609
Market risk 10,741 8,298 8,514
Operational risk 8,071 7,378 7,378
Risk-weighted assets 74,203 73,716 79,501
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Capital requirement under Pillar I 5,936 5,897 6,360
--------------------------------------------------------------------------------
Cash Flow Statement - Sydbank Group
Q1 Full year Q1
-----------------------------------------------------------------------------
DKKm 2011 2010 2010
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Operating activities
Pre-tax profit for the period 175 558 226
Taxes paid (46) (187) (81)
Adjustment of non-cash operating items 271 1,519 451
Cash flows from working capital 2,044 (8,344) (3,481)
-----------------------------------------------------------------------------
Cash flows from operating activities 2,444 (6,454) (2,885)
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Investing activities
Purchase and sale of holdings in associates 1 (4) 0
Purchase and sale of property, plant and equipment (10) (119) (11)
-----------------------------------------------------------------------------
Cash flows from investing activities (9) (123) (11)
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Financing activities
Purchase and sale of own holdings (22) 26 38
Dividend etc (84) - -
Raising of subordinated capital 1 (795) 2
Issue of bonds 5 2,620 5
-----------------------------------------------------------------------------
Cash flows from financing activities (100) 1,851 45
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Cash flows for the period 2,335 (4,726) (2,851)
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Cash equivalent positions at 1 Jan 2,695 7,421 7,421
Cash flows for the period 2,335 (4,726) (2,851)
-----------------------------------------------------------------------------
Total cash equivalent positions at end of period 5,030 2,695 4,570
-----------------------------------------------------------------------------
Segment Statements - Sydbank Group
--------------------------------------------------------------------------------
DKKm Bankin Sydbank Treasu Other Total
g Markets ry
--------------------------------------------------------------------------------
Business segments Q1 2011
--------------------------------------------------------------------------------
Core income excl trading income 775 24 - - 799
Trading income 193 106 - - 299
--------------------------------------------------------------------------------
Core income 968 130 - - 1,098
--------------------------------------------------------------------------------
Costs and depreciation 549 86 3 15 653
Impairment of loans and advances etc 251 (1) - - 250
--------------------------------------------------------------------------------
Core earnings 168 45 (3) (15) 195
--------------------------------------------------------------------------------
Investment portfolio income - - 69 9 78
--------------------------------------------------------------------------------
Profit before contributions to deposit 168 45 66 (6) 273
guarantee and PCA
--------------------------------------------------------------------------------
Contributions to deposit guarantee and - - - 98 98
the Private Contingency Association
(PCA)
--------------------------------------------------------------------------------
Profit before tax 168 45 66 (104) 175
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DKKm Bankin Sydbank Treasu Other Total
g Markets ry
--------------------------------------------------------------------------------
Business segments Q1 2010
--------------------------------------------------------------------------------
Core income excl trading income 835 (6) - - 829
Trading income 197 202 - - 399
--------------------------------------------------------------------------------
Core income 1,032 196 - - 1,228
--------------------------------------------------------------------------------
Costs and depreciation 555 89 3 12 659
Impairment of loans and advances etc 323 - - - 323
--------------------------------------------------------------------------------
Core earnings 154 107 (3) (12) 246
--------------------------------------------------------------------------------
Investment portfolio income - - 113 6 119
--------------------------------------------------------------------------------
Profit before contributions to deposit 154 107 110 (6) 365
guarantee and PCA
--------------------------------------------------------------------------------
Contributions to deposit guarantee and - - - 139 139
the Private Contingency Association
(PCA)
--------------------------------------------------------------------------------
Profit before tax 154 107 110 (145) 226
--------------------------------------------------------------------------------
Notes - Sydbank Group
-------------------
-------------------
-------------------
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 use of
IAS 34, the presentation is less complete compared with the presentation of an
annual report and the measurement principles are in compliance with IFRS.
The accounting policies are consistent with those adopted in the 2010 Annual
Report, to which reference is made.
The 2010 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 use 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 2010.
The Group's significant risks and the external elements which may affect the
Group are described in detail in the 2010 Annual Report.
Notes - Sydbank Group
Q1 Q1 Full
year
--------------------------------------------------------------------------------
DKKm 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 2
Interest income
Reverse transactions with credit institutions and 4 8 23
central banks
Amounts owed by credit institutions and central banks 20 20 96
Reverse loans and advances 18 26 79
Loans and advances and other amounts owed 759 803 3,157
Bonds 196 214 752
Derivatives 0 26 68
Other interest income 10 1 14
--------------------------------------------------------------------------------
Total 1,007 1,098 4,189
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 3
Interest expense
Repo transactions with credit institutions and central 31 35 110
banks
Credit institutions and central banks 38 48 191
Repo deposits 0 1 2
Deposits and other debt 126 142 481
Bonds issued 51 19 125
Subordinated capital 14 16 61
Other interest expense 1 0 1
--------------------------------------------------------------------------------
Total 261 261 971
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 4
Fee and commission income
Securities trading and custody accounts 198 183 748
Payment services 53 47 199
Loan fees 20 24 95
Guarantee commission 26 29 116
Other fees and commission 47 48 172
--------------------------------------------------------------------------------
Total 344 331 1,330
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 5
Market value adjustments
Other loans and advances and amounts owed at fair value 1 0 0
Bonds (114) 215 302
Shares etc (23) 100 81
Investment property - - 0
Currency 45 68 238
Total derivatives 215 (179) (207)
Assets related to pooled plans 130 260 459
Deposits in pooled plans (130) (260) (459)
Other assets/liabilities 0 0 6
--------------------------------------------------------------------------------
Total 124 204 420
--------------------------------------------------------------------------------
Notes - Sydbank Group
--------------------------------------------------------------------------------
Q1 Q1 Full
year
--------------------------------------------------------------------------------
DKKm 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 6
Staff costs and administrative expenses
Salaries and emoluments to:
Group Executive Management 3 3 21
Board of Directors 1 1 4
Shareholders' Committee 1 1 2
--------------------------------------------------------------------------------
Total 5 5 27
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Staff costs:
Wages and salaries 310 308 1,187
Pensions 35 34 131
Social security contributions 4 3 15
Payroll tax etc 28 27 93
--------------------------------------------------------------------------------
Total 377 372 1,426
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other administrative expenses:
IT 128 125 513
Rent etc 34 31 145
Marketing and entertainment expenses 18 18 84
Other expenses 72 84 141
Deposit Guarantee Fund 93 17 17
--------------------------------------------------------------------------------
Total 345 275 900
--------------------------------------------------------------------------------
Total 727 652 2,353
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 7
Staff
Average number of staff (full-time equivalent) 2,326 2,396 2,364
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Notes - Sydbank Group
--------------------------------------------------------------------------------
Q1 Q1 Full
year
--------------------------------------------------------------------------------
DKKm 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 8
Impairment of loans and advances recognised in the
income statement
Impairment and provisions 240 330 709
Write-offs 31 53 880
Recovered from debt previously written off 16 7 33
--------------------------------------------------------------------------------
Impairment of loans and advances etc 255 376 1,556
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Impairment and provisions at end of period
Individual impairment and provisions 1,652 1,903 1,597
Collective impairment and provisions 162 136 166
--------------------------------------------------------------------------------
Impairment and provisions at end of period 1,814 2,039 1,763
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Individual impairment of loans and advances and
provisions for guarantees
Impairment and provisions at 1 Jan 1,597 1,637 1,637
Exchange rate adjustment 0 1 7
Impairment and provisions during the period 251 339 705
Other movements - 94 94
Write-offs covered by impairment and provisions 196 168 846
--------------------------------------------------------------------------------
Impairment and provisions at end of period 1,652 1,903 1,597
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Individual impairment of loans and advances 1,635 1,608 1,565
Individual provisions for guarantees 17 295 32
--------------------------------------------------------------------------------
Impairment and provisions at end of period 1,652 1,903 1,597
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Collective impairment of loans and advances and
provisions for guarantees
Impairment and provisions at 1 Jan 166 141 141
Impairment and provisions during the period (4) (5) 25
--------------------------------------------------------------------------------
Impairment and provisions at end of period 162 136 166
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Sum of loans and advances and amounts owed
subject to collective impairment and provisions 11,604 20,993 12,231
Collective impairment and provisions 162 136 166
--------------------------------------------------------------------------------
Loans and advances and amounts owed after collective 11,442 20,857 12,065
impairment and provisions
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Individual impairment of loans and advances subject to
objective evidence of impairment
Balance before impairment of individually assessed 3,142 3,555 3,020
loans and advances
Impairment of individually assessed loans and advances 1,635 1,608 1,565
--------------------------------------------------------------------------------
Balance after impairment of individually assessed loans 1,507 1,947 1,455
and advances
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 9
Effective tax rate
Current tax rate of Sydbank 25.0 25.0 25.0
Permanent differences - - 2.3
Adjustment of prior year tax charges - - (0.9)
--------------------------------------------------------------------------------
Effective tax rate 25.0 25.0 26.4
--------------------------------------------------------------------------------
Notes - Sydbank Group
-----------------------------------------------------------------------------
31 Mar 31 Dec 31 Mar
-----------------------------------------------------------------------------
DKKm 2011 2010 2010
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Note 10
Amounts owed by credit institutions and central banks
Amounts owed at notice by central banks 1,365 215 -
Amounts owed by credit institutions 3,902 5,063 5,786
Reverse transactions 2,437 2,249 3,234
-----------------------------------------------------------------------------
Total 7,704 7,527 9,020
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Note 11
Other assets
Positive market value of derivatives etc 7,154 9,363 10,108
Sundry debtors 248 263 351
Interest and commission receivable 410 563 450
Collateral provided, CSA agreements 845 2,066 1,113
Other assets 5 1 2
-----------------------------------------------------------------------------
Total 8,662 12,256 12,024
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Note 12
Amounts owed to credit institutions and central banks
Amounts owed to central banks 3,747 2,700 2,626
Amounts owed to credit institutions 17,682 18,864 25,760
Repo transactions 11,835 18,686 14,572
-----------------------------------------------------------------------------
Total 33,264 40,250 42,958
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Note 13
Deposits and other debt
On demand 38,411 38,357 39,722
At notice 584 603 678
Time deposits 20,806 19,923 15,727
Special categories of deposits 4,808 5,278 5,531
Repo transactions - - 520
-----------------------------------------------------------------------------
Total 64,609 64,161 62,178
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Note 14
Other liabilities
Negative market value of derivatives etc 6,507 9,138 9,373
Sundry creditors 1,518 1,886 1,208
Negative portfolio, reverse transactions 2,774 3,437 4,187
Interest and commission etc 139 97 134
Collateral received, CSA agreements 453 520 191
Other liabilities 3 6 3
-----------------------------------------------------------------------------
Total 11,394 15,084 15,096
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Notes - Sydbank Group
-----------------------------------------------------------------------------
31 Mar 31 Dec 31 Mar
-----------------------------------------------------------------------------
DKKm 2011 2010 2010
-----------------------------------------------------------------------------
-----------------------------------------------------------------------------
Note 15
Provisions
Provisions for pensions and similar obligations 4 4 3
Provisions for deferred tax 225 225 209
Provisions for guarantees * 17 32 295
Other provisions 32 20 24
-----------------------------------------------------------------------------
Total 278 281 531
-----------------------------------------------------------------------------
* Of which the Private Contingency Association - - 272
-----------------------------------------------------------------------------
Note 16
Subordinated capital
Interest rate Nominal Maturity
(m)
--------------------------------------------------------------------------------
Repaid loans - - 800
--------------------------------------------------------------------------------
2.60 (floating) Bond loan DKK 200 14.11.14 200 200 200
1.36 (floating) Bond loan EUR 100 04.04.15 745 745 744
--------------------------------------------------------------------------------
Total supplementary 945 945 1,744
capital
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
2.13 (floating) Bond loan EUR 100 Perpetual 741 740 739
3.24 (floating) Bond loan EUR 75 Perpetual 559 559 558
6.36 (fixed) Bond loan DKK 85 Perpetual 85 85 85
--------------------------------------------------------------------------------
Total hybrid core capital 1,385 1,384 1,382
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Total 2,330 2,329 3,126
--------------------------------------------------------------------------------
Note 17
Contingent liabilities and other obligating agreements
Contingent liabilities
Financial guarantees 3,361 3,037 2,900
Mortgage finance guarantees 707 1,628 2,646
Registration and remortgaging guarantees 2,772 3,643 5,236
Loss guarantee/guarantee, the Private Contingency - - 479
Association
Other contingent liabilities 1,387 1,443 1,488
--------------------------------------------------------------------------------
Total 8,227 9,751 12,749
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Other obligating agreements
Irrevocable credit commitments 98 99 7
Other liabilities 51 51 58
--------------------------------------------------------------------------------
Total 149 150 65
--------------------------------------------------------------------------------
Notes - Sydbank Group
Note 17 - continued
In February 2008 a group of minority shareholders ('Foreningen af
Minoritetsaktionaerer i bankTrelleborg') filed a class action against Fonden for
bankTrelleborg, Sydbank and the Danish FSA. The lawsuit concerns the legality
of the compulsory redemption and the pricing of the shares in connection with
the compulsory redemption. The shares were priced by appraisers in accordance
with section 144 (4) of the Danish Financial Business Act. In late summer 2008
Fonden for bankTrelleborg paid the difference to the minority shareholders. On
7 December 2010 the Eastern High Court ruled that the compulsory redemption was
not legal as the conditions of section 144 of the Danish Financial Business Act
had not been met. However the Eastern High Court did not find that the minority
shareholders had suffered a loss exceeding the consideration they had already
received in connection with the compulsory redemption. Consequently the court
did not sustain the claim of the minority shareholders for payment of
additional consideration. The minority shareholders have filed an appeal with
the Supreme Court and have at the same time applied for free legal aid. Oral
proceedings have been scheduled for early January 2012.
Moreover, in 2009 the group of minority shareholders - by three named
shareholders - filed an action against Sydbank regarding an inadequate
prospectus in connection with the conversion of sparTrelleborg to
bankTrelleborg. Exchange of pleadings is still ongoing and oral proceedings
have been scheduled for end-February 2012.
On 21 January 2011 two class action claims were filed with the City Court of
Copenhagen against Sydbank A/S. Both claims concern a potential responsibility
over a prospectus regarding bankTrelleborg, now Sydbank A/S, in connection with
the conversion of sparTrelleborg to bankTrelleborg in Q2 2007.
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.
Note 18
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 debt. Repo transaction securities are
treated as assets provided as collateral for liabilities. At 31 March 2011 the
fair value of such securities stood at DKK 11,727m.
In connection with reverse transactions, which involve purchasing securities to
be resold at a later date, the Group is entitled to sell or deposit them as
collateral for other loans. The securities are not recognised in the balance
sheet and consideration paid is recognised as a receivable. At 31 March 2011
the fair value of such securities stood at DKK 11,596m.
Assets received as collateral in connection with reverse transactions may be
sold to a third party. In such cases a negative portfolio may arise as a result
of the accounting rules. This is recognised under 'Other liabilities'.
Note 19
Collateral
As of 31 March 2011 the Group had deposited as collateral securities at a
market value of DKK 4,792m with Danish and foreign exchanges and clearing
centres etc in connection with margin calls and securities settlements etc.
Note 20
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 Q1 2011. Reference
is made to the Group's 2010 Annual Report for a detailed description of related
party transactions.
Note 21
Reporting events occurring after the balance sheet date
After the expiry of Q1, no matters of significant impact on the financial
position of the Sydbank Group have occurred.
Notes - Sydbank Group
--------------------------------------------------------------------------------
Q1 Q1 Full
year
--------------------------------------------------------------------------------
DKKm 2011 2010 2010
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Note 22
Large shareholders
Nykredit A/S, Copenhagen has announced that it owns at
least 5% of
Sydbank's share capital.
Note 23
Core income
Core income excl trading income
Interest margins etc 668 692 2,757
Mortgage credit 43 49 210
Payment services 37 40 153
Remortgaging and loan fees 21 23 90
Other commission 25 20 71
Other operating income 5 5 23
--------------------------------------------------------------------------------
Total 799 829 3,304
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Mortgage credit
Totalkredit cooperation 39 43 184
Totalkredit, set-off of loss 3 1 17
--------------------------------------------------------------------------------
Totalkredit cooperation, net 36 42 167
--------------------------------------------------------------------------------
DLR Kredit 6 4 34
Other mortgage credit income 1 3 9
--------------------------------------------------------------------------------
Total 43 49 210
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Trading income
Bonds 54 107 273
Shares 66 81 273
Currency 50 56 217
Money market 16 50 107
Asset management 113 105 420
--------------------------------------------------------------------------------
Total 299 399 1,290
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Management Statement
Today we have reviewed and approved the Interim Report - Q1 2011 of Sydbank A/S.
The Interim Report for Q1 2011 has been prepared in accordance with IAS 34 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.
In our opinion the accounting policies applied are appropriate and the interim
report gives a true and fair view of the Group's assets, shareholders' equity
and liabilities and financial position at 31 March 2011 and of the results of
the Group's operations and consolidated cash flows for the accounting period 1
January- ? 31 March 2011 as well as a description of the most significant risks
and elements of uncertainty which may affect the Group.
Aabenraa, 26 April 2011
Group Executive Management
Karen Frosig Preben L.
Hansen Allan Norholm
(CEO)
Board of Directors
Anders Thoustrup Hanni Toosbuy
Kasprzak Svend Erik Busk
(Chairman)
(Vice-Chairman)
Claus Christensen Peder Damgaard
Harry Max Friedrichsen
Erik Bank Lauridsen Sven Rosenmeyer
Paulsen Steen Tophoj
Jan Uldahl-Jensen Margrethe Weber
Supplementary Information
Financial calendar
In 2011 the Group's preliminary announcement of financial statements will be
released as follows:
- Interim Report - First Half 2011
16 August 2011
- Interim Report - Q1-Q3 2011
25 October 2011
Sydbank contacts
Karen Frosig, CEO
Tel +45 74 37 20 00
Mogens Sandbaek, CFO
Tel +45 74 37 24 00
Niels Mollegaard, 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 2010 Annual Report at
sydbank.com.
News Source: NASDAQ OMX
26.04.2011 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Sydbank A/S
Denmark
Phone:
Fax:
E-mail:
Internet:
ISIN: DK0010311471
Category Code: QRF
LSE Ticker: 0G6U
Sequence Number: 778
Time of Receipt: Apr 26, 2011 14:03:57
End of Announcement DGAP News-Service
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