Sydbank's Quarterly Report - Q1 2008


Satisfactory profit
The Sydbank Group recorded a pre-tax profit of DKK 522m for the first three
months of 2008 against DKK 611m in Q1 2007. The result equals a return of 31%
p.a. on average shareholders' equity (Tier 1). 

Core earnings before impairment represent DKK 360m against DKK 422m for the
first quarter of 2007. The decline is caused by a reduction in trading income
and a rise in costs. DKK 19m concerning impairment of loans and advances was
recognised as net income in the period. 

Investment portfolio earnings represent a loss of DKK 55m and non-recurring
items amounting to DKK 198m were recognised as net income. Post-tax profit
amounts to DKK 421m. The result equals a return of 25% p.a. on average
shareholders' equity (Tier 1). Earnings per share for the period rose from DKK
6.5 to DKK 6.6. 

Performance and business developments are considered satisfactory and the Bank
still projects core earnings before impairment in the region of DKK 1.6-1.9bn
for the full year. 

The acquisition of bankTrelleborg
In Q1 2008 Sydbank acquired bankTrelleborg, which on 1 February became a
wholly-owned subsidi-ary of the Sydbank Group and which on 27 March merged with
Sydbank with accounting effect as of 1 February. 

As a result the Sydbank Group's core earnings before impairment for Q1 2008
were favourably affected by an amount of DKK 13m and bank loans and advances
at quarter-end rose by DKK 4.9bn and deposits by DKK 2.9bn. Moreover Sydbank's
quarterly report is affected by the acquisition of bankTrelleborg via a number
of non-recurring items with a preliminary net effect of DKK +13m on the result. 

The data correlation of bankTrelleborg and Sydbank is according to schedule.
Integration with Sydbank's IT platform will be implemented in early October
2008. 

Capital targets
The Group's capital targets have been adjusted following transition to IRB
which has resulted in a reduction of just over 20% of risk-weighted items to
DKK 76bn at end-March 2008. 

The Group's capital base (Tiers 1+2) represents DKK 10.9bn, equivalent to 14.3%
of risk-weighted items. The difference between the capital base (Tiers 1+2) and
the Bank's internal capital target of DKK 9.9bn - equivalent to a solvency
(total capital) ratio of 13% - is made up of free capital of DKK 1bn; the
difference between the internal capital target and the minimum capital
(equivalent to the 8% requirement) is made up of buffer capital of DKK 3.9bn. 

Group Executive Management
As of 1 May 2008 Sydbank's Group Executive Management will include the Bank's
Head of Legal Department, Karen Frøsig. 

Karen Frøsig, 49, has worked at Sydbank since 1994 and was previously employed
by Topdanmark and Aktivbanken. 

Karen Frøsig's responsibilities in the Group Executive Management will comprise
Retail & Corporate Clients, Human Resources/IT, Global Payments & Cash
Management and Business Processes. 

As of 1 May 2008 Sydbank's Group Executive Management consists of Carsten
Andersen, Group Chief Executive, Preben L. Hansen, Deputy Group Chief
Executive, Torben A. Nielsen, Deputy Group Chief Executive and Karen Frøsig,
Deputy Group Chief Executive. 

Yours faithfully

Kresten Philipsen	Carsten Andersen
Chairman of	Group Chief Executive
the Board of Directors



Enquiries concerning this Announcement to
Carsten Andersen, Group Chief Executive, tel +45 74 36 20 00
Mogens Sandbæk, CFO, tel +45 74 36 24 00

Attachments

fm 11 uk.pdf fm 11 uk.doc