In Q1 2007 Sydbank generated a pre-tax profit of DKK 611m, an improvement of
DKK 136m or 29% compared with Q1 2006. The result equals a 38% return p.a. on
average shareholders' equity (Tier 1).
Core earnings improved by DKK 163m (41%) to DKK 559m. The increase is mainly
ascribable to continued growth in loans and advances and rising income from
interest margins. Furthermore the very high level of trading income of Q1 2006
has continued. Also, DKK 137m concerning impairment of loans and advances etc
was recognized as income.
Profit from investment portfolios amounts to DKK 14m. Moreover an extraordinary
gain of DKK 38m has been realized from the sale of non-current assets.
Post-tax profit represents DKK 447m, equal to a return of 28% p.a. on average
shareholders' equity (Tier 1) Earnings per share for the period has gone up by
30% from DKK 5.0 to DKK 6.5.
Performance and business developments are considered very satisfactory.
Based on developments in Q1, core earnings for 2007 are projected to lie in the
upper end of DKK 1.6-1.9bn, which was announced in Sydbank's 2006 Annual
Report.
Yours faithfully
Carsten Andersen
Group Chief Executive
