Sydbank A/S releases its profit for Q1 2022 and revises upwards its expectations for profit for the year for 2022
Company Announcement No 16/2022 | Peberlyk 4 6200 Aabenraa Denmark Tel +45 70 10 78 79 Sydbank A/S |
| 25 April 2022 |
Dear Sirs
Sydbank A/S releases its profit for Q1 2022 and revises upwards its expectations for profit for the year for 2022
As a result of a highly satisfactory start to 2022 with strong growth in bank loans and advances of DKK 4.6bn to DKK 71.6bn as well as a high level of activity, the expectation for profit for the year is revised upwards to be in the range of DKK 1,350-1,550m. In connection with the release of the 2021 Annual Report on 2 March 2022, we announced that we expected a profit after tax in the range of DKK 1,150-1,450m for 2022.
Income statement
| DKKm | Q1 2022 | Q1 2021 | Index 22/21 | Full year 2021 |
| Core income | 1,200 | 1,105 | 109 | 4,436 |
| Trading income | 100 | 73 | 137 | 291 |
| Total income | 1,300 | 1,178 | 110 | 4,727 |
| Costs, core earnings | 799 | 833 | 96 | 3,177 |
| Core earnings before impairment | 501 | 345 | 145 | 1,550 |
| Impairment of loans and advances etc | (61) | (81) | 75 | (415) |
| Core earnings | 562 | 426 | 132 | 1,965 |
| Investment portfolio earnings | (29) | (21) | 138 | (21) |
| Profit before non-recurring items | 533 | 405 | 132 | 1,944 |
| Non-recurring items, net | 37 | (32) | – | (180) |
| Profit before tax | 570 | 373 | 153 | 1,764 |
| Tax | 125 | 82 | 152 | 353 |
| Profit for the period | 445 | 291 | 153 | 1,411 |
Core income
| DKKm | Q1 2022 | Q1 2021 | Index 22/21 | Full year 2021 |
| Net interest etc | 492 | 434 | 113 | 1,776 |
| Mortgage credit | 183 | 176 | 104 | 693 |
| Payment services | 51 | 47 | 109 | 203 |
| Remortgaging and loan fees | 61 | 53 | 115 | 169 |
| Commission and brokerage | 130 | 134 | 97 | 470 |
| Commission etc investment funds and pooled pension plans | 82 | 83 | 99 | 340 |
| Asset management | 89 | 89 | 100 | 380 |
| Custody account fees | 33 | 25 | 132 | 115 |
| Other operating income | 79 | 64 | 123 | 290 |
| Total | 1,200 | 1,105 | 109 | 4,436 |
Impairment of loans and advances etc
As a result of the trend in customers’ financial circumstances, a net reversal of impairment charges of DKK 61m was recorded in Q1 2022. Impairment charges for 2022 are still expected to be at a low level. The management estimates from year-end 2021 remained unchanged at end-Q1 2022. This applies to the provision of DKK 325m related to covid-19 as well as to the provision of DKK 60m related to pig farming.
Non-recurring items, net
Non-recurring items in Q1 2022 total a net income of DKK 37m.
The item includes costs of DKK 12m related to the development of housing loan processes and DKK 2m related to the development of the bank/insurance partnership. In addition DKK 51m has been recognised as income as regards extraordinary realised capital gains from the lending portfolio acquired from Alm. Brand Bank.
Sydbank’s Interim Report – Q1 2022 will be released on 4 May 2022 as planned.
Additional information
Jørn Adam Møller, Deputy Group Chief Executive, tel +45 74 37 20 30
Susanne Ingemann Faber, Press Manager, tel +45 26 29 11 29
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