Announcement of the 2008 Financial Statements
Contents
Financial Review 3
Financial Highlights 3
Summary 4
Performance in 2008 6
Financial Statements - the Sydbank Group
Income Statement 11
Balance Sheet 12
Capital 13
Supplementary Information 15
Group Financial Highlights
2008 2007 2006 2005 2004
Income statement (DKKm)
Core income excl trading income 3,066 2,539 2,298 2,013 1,965
Trading income 1,159 1,488 1,319 1,079 712
Total core income 4,225 4,027 3,617 3,092 2,677
Costs and depreciation 2,484 2,200 2,030 1,853 1,714
Core earnings before impairment 1,741 1,827 1,587 1,239 963
Impairment of loans and advances etc 544 (568) (171) 65 225
Core earnings 1,197 2,395 1,758 1,174 738
Profit/(Loss) on investment portfolios (385) (193) 173 139 160
Profit before non-recurring items 812 2,202 1,931 1,313 898
Non-recurring items, net 162 55 120 - 87
Profit before contribution to
the Danish Contingency Committee 974 2,257 2,051 1,313 985
Contribution to the Danish Contingency Committee 163 -
- - -
Profit before tax 811 2,257 2,051 1,313 985
Tax 205 547 537 377 235
Profit for the year 606 1,710 1,514 936 750
Balance sheet highlights (DKKbn)
Loans and advances at amortised cost 82.5 74.5 65.5 53.5 41.8
Loans and advances at fair value 13.3 8.6 7.7 7.2 5.7
Deposits and other debt 75.0 66.0 50.0 43.6 38.6
Bonds issued at amortised cost 10.1 10.1 10.0 6.7 1.9
Subordinated capital (Tier 2) 4.2 3.8 3.5 2.8 1.8
Shareholders' equity (Tier 1) 7.1 6.7 6.3 5.0 4.4
Total assets 156.0 132.3 114.8 98.9 78.6
Financial ratios per share (DKK per share of DKK 10)
EPS Basic 9.5 25.6 22.1 13.7 10.7
EPS Diluted 9.5 25.6 22.1 13.7 10.7
Share price at year-end 64.3 219.3 270.0 151.0 107.8
Book value 112.5 104.6 92.1 72.9 63.6
Share price/book value 0.57 2.10 2.93 2.07 1.69
Average number of shares outstanding (in millions) 63.4 66.7 68.5 68.6 70.3
Proposed dividend - 3.0 3.0 3.0 3.0
Other financial ratios and key figures
Solvency (total capital) ratio 14.7 11.9 11.8 11.1 11.4
Core capital (Tier 1) ratio 10.8 8.9 9.0 8.1 9.3
Pre-tax profit as % of average equity 11.8 34.6 36.2 27.9 22.3
Post-tax profit as % of average equity 8.8 26.2 26.7 19.9 17.0
Income/cost ratio (DKK) 1.24 2.37 2.10 1.68 1.51
Interest rate risk 1.4 2.6 2.0 2.3 3.4
Foreign exchange position 11.4 1.7 10.3 2.8 1.5
Foreign exchange risk 0.0 0.0 0.1 0.1 0.0
Loans and advances relative to deposits 1.0 1.0 1.2 1.1 1.1
Loans and advances relative to equity 11.6 11.1 10.3 10.7 9.4
Growth in loans and advances for the year 10.7 13.7 22.4 28.0 19.9
Excess cover relative to statutory liquidity requirements
89.4 103.1 74.0 95.1 114.2
Total large exposures 23.8 46.4 34.7 93.9 61.5
Accumulated impairment ratio 1.0 0.9 1.6 2.1 2.6
Impairment ratio for the year 0.6 (0.6) (0.2) 0.1 0.4
Number of full-time staff at year-end 2,479 2,276 2,190 2,123 2,075
From 2008 solvency (total capital) and core capital (Tier 1) ratios are
calculated according to the new capital adequacy requirements.
Summary
Profit for 2008 is severely adversely impacted by the financial crisis and by
the decline in economic growth. In this light profit before tax of DKK 811m is
satisfactory. The result equals a return of 11.8% on average shareholders'
equity (Tier 1).
Sydbank's acquisition of and merger with bankTrelleborg was executed on 1
February 2008. Comparative figures for 2007 have not subsequently been
restated.
The Group's Danish activities are covered by the Danish government guarantee
scheme for deposits with and unsecured claims against Danish banks.
The income statement for 2008 is characterised by:
• 21% increase in core income excl trading income
• 22% decline in trading income
• 13% growth in costs (core earnings)
• Impairment of loans and advances and amounts owed of DKK 544m
• Loss on investment portfolios of DKK 385m
• Non-recurring items of DKK 162m
• Contribution of DKK 163m to the Danish Contingency Committee.
Summary income statement
Group (DKKm) 2008 2007
Core income excl trading income 3,066 2,539
Trading income 1,159 1,488
Total core income 4,225 4,027
Costs and depreciation 2,484 2,200
Core earnings before impairment 1,741 1,827
Impairment of loans and advances etc 544 (568)
Core earnings 1,197 2,395
Profit/(Loss) on investment portfolios (385) (193)
Profit before non-recurring items 812 2,202
Non-recurring items, net 162 55
Profit before contribution to the Danish Contingency Committee 974 2,257
Contribution to the Danish Contingency Committee 163 -
Profit before tax 811 2,257
Tax 205 547
Profit for the year 606 1,710
Core earnings before impairment represent DKK 1,741m against DKK 1,827m in
2007. The decline of DKK 86m consists of a rise in core income excl trading
income of DKK 527m, a decline in trading income of DKK 329m and a rise of DKK
284m in costs (core earnings).
Core earnings before impairment are in line with our announcement in the Q1-Q3
2008 Interim Report. In Q4 2008 core earnings before impairment made up DKK
514m, the highest level in the Group's history.
Impairment of loans and advances and amounts owed represents DKK 544m compared
with a reversal of impairment charges of DKK 568m in 2007.
Loss on investment portfolios amounts to DKK 385m. It must be noted that the
Group has not applied the new reclassification option of IAS 39 which permits
retroactive reclassification of securities in order to avoid value adjustment
through profit or loss.
Non-recurring items of DKK 162m were recognised as income.
Following a contribution to the Danish Contingency Committee of DKK 163m and a
tax charge of DKK 205m, the Group's profit after tax constitutes DKK 606m. In
2007 profit after tax amounted to DKK 1,710m. Profit after tax for 2008 equals
a return on average shareholders' equity (Tier 1) of 8.8% and earnings per
share stands at DKK 9.5 compared with DKK 25.6 in 2007.
Group balance sheet highlights in 2008m include:
• 11% rise in bank loans and advances to DKK 82.5bn
• 14% growth in deposits to DKK 75.0bn.
Bank loans and advances of DKK 5bn and deposits of just over DKK 2bn concern
the acquisition of bankTrelleborg.
The Group's solvency (total capital) ratio stands at 14.7%, including a core
capital (Tier 1) ratio of 10.8%. The Group's internal capital target continues
to represent DKK 9,900m, equal to 13.3% of risk-weighted items.
The Group's liquidity measured under the 15% and 10% statutory requirements
constitutes 33.2% and 18.9%, respectively, at year-end 2008.
The Group projects core earnings before impairment of loans and advances in the
region of DKK 1,600-1,900m in 2009 - unchanged compared with the figure
realised in 2008.
During 1H 2009 Sydbank will finally assess the need for capital injection
provided by the government of up to approximately DKK 2.2bn.
Performance in 2008
Core income excl trading income
Total core income excl trading income grew by 21% to DKK 3,066m.
Group (DKKm) 2008 2007
Interest margins etc 2,610 2,060
Mortgage credit 176 186
Payment services 136 144
Remortgaging and loan fees 73 73
Other commission 48 55
Other operating income 23 21
Total 3,066 2,539
During 2008 income from interest margins etc showed significant robustness with
an increase of DKK 550m to DKK 2,610m - favourably impacted by the growth in
bank loans and advances of 11% as well as an increase in interest margins.
As a result of the downturn in the housing market, income from mortgage credit
activities has declined by 5%. Moreover income from national and international
payment services has decreased by 5%.
Trading income
The huge turmoil in the capital markets prompted by the financial crisis has
resulted in reduced income from trading in securities and capital losses on the
necessary trading portfolio as well as reduced income from asset management.
Total trading income decreased by 22% - from DKK 1,488m in 2007 to DKK 1,159m
in 2008.
Group (DKKm) 2008 2007
Bonds 156 184
Shares 193 406
Foreign exchange 311 256
Money market 124 119
Asset management 375 523
Total 1,159 1,488
Costs and depreciation
The Group's total costs and depreciation recorded DKK 2,723m against DKK 2,213m
in 2007. This includes DKK 143m ascribable to the integration of bankTrelleborg
and a guarantee commission of DKK 86m paid to the Danish Contingency Committee.
Group (DKKm) 2008 2007
Staff costs 1,453 1,263
Other administrative expenses 997 804
Depreciation and impairment of property, plant and equipment 187 135
Other operating expenses 86 11
Total costs 2,723 2,213
Distributed as follows:
Costs, core earnings 2,484 2,200
Costs, investment portfolio earnings 10 13
Costs, integration of bankTrelleborg 143 -
Costs, guarantee commission to the Danish Contingency Committee 86 -
At year-end 2008 the Group's staff numbered 2,479 (full-time equivalent)
compared with 2,276 in 2007.
bankTrelleborg had 16 branches. Of these the branch in Aarhus has been disposed
of and five branches in the metropolitan area and in Odense have amalgamated
with existing Sydbank branches in these areas. Moreover Sydbank closed down
six small branches in 2008 and opened new branches in Greve and Roskilde in
September and October 2008, bringing the number of branches to 112 in Denmark
and three in Germany.
An impairment charge of net DKK 76m concerns the development of owner-occupied
property.
Core earnings before impairment of loans and advances
Core earnings before impairment of loans and advances decreased by DKK 86m to
DKK 1,741m.
Impairment of loans and advances etc
Impairment of loans and advances and amounts owed constitutes DKK 544m compared
with a reversal of impairment charges of DKK 568m in 2007. This level exceeds
the Group's expectations at the beginning of the year and reflects the
financial crisis as well as the downturn of the real economy.
Impairment of loans and advances includes DKK 150m concerning the EBH Group.
Another approximately DKK 175m relates to impairment of securities-based loans
and advances. The remaining impairment charges are predominantly ascribable to
the Group's highly-diversified corporate lending portfolio.
Core earnings
Core earnings represent DKK 1,197m compared with DKK 2,395m in 2007.
Investment portfolio earnings
Less funding charges and less related costs of DKK 10m, investment portfolios
generated a loss of DKK 385m (2007: loss of DKK 193m), of which DKK 23m
concerns Q4. The overall result is adversely affected by an unrealised capital
loss of DKK 175m on the Group's portfolio of CDOs. The market value of the CDO
portfolio represents DKK 70m as of 31 December 2008. The Group has not applied
the new reclassification option of IAS 39 which permits retroactive
reclassification of securities in order to avoid value adjustment through
profit or loss.
Non-recurring items
In 2008 non-recurring items amounting to DKK 162m (2007: DKK 55m) were
recognised as net income. The main items include: an adjustment of the purchase
sum concerning Totalkredit of DKK 186m, negative goodwill of DKK 119m
recognised as income and integration costs of DKK 143m in relation to
bankTrelleborg.
Contribution to the Danish Contingency Committee
In early September 2008 Sydbank paid its share of DKK 30m of the original
guarantee in connection with the Danish Contingency Committee's participation
in the solutions as regards Roskilde Bank. This amount was written down to DKK
0 in December 2008.
In October 2008 Sydbank signed the agreement of the Danish Contingency
Committee on the Danish government guarantee scheme for deposits with and
unsecured claims against Danish banks. The Danish Contingency Committee pays an
annual guarantee commission of DKK 7.5bn to the Winding-Up Company
(“Afviklingsselskabet til sikring af finansiel stabilitet A/S”) during the
period from 5 October 2008 to 30 September 2010. Sydbank's share so far
represents DKK 86m for Q4 2008.
In addition the Danish Contingency Committee guarantees the payment of up to
DKK 10bn to cover any losses in the Winding-Up Company. As at 31 December 2008
the Winding-Up Company recorded a loss of DKK 1,025m which can be ascribed to
the preliminary loss in connection with the takeover of EBH Bank. Sydbank's
share of the guarantee constitutes DKK 459m which is recognised as a guarantee
commitment.
Sydbank's proportionate share of the loss of the Winding-Up Company is expensed
at DKK 47m.
If the estimated loss of the Winding-Up Company exceeds DKK 25bn the Danish
Contingency Committee must cover further losses of up to DKK 10bn. Sydbank's
initial share constitutes DKK 459m which has also been recognised as a
guarantee commitment.
A further consequence of the participation in the government guarantee scheme
is that dividend distribution and share buybacks are not possible during the
two-year period.
Subsidiaries
The subsidiary bank, Sydbank (Schweiz) AG, which conducts private banking
activities in St. Gallen, Switzerland, recorded a loss after tax of DKK 33m
(2007: loss of DKK 7m). As a result of the financial crisis, business
developments have not been satisfactory.
Ejendomsselskabet recorded a loss after tax of DKK 26m (2007: loss of DKK 8m)
as a consequence of impairment charges for property developments.
Profit for the year
Pre-tax profit amounts to DKK 811m compared with DKK 2,257m in 2007. The tax
charge represents DKK 205m (2007: DKK 547m). Profit for the year amounts to DKK
606m compared with DKK 1,710m in 2007.
Return
Return on shareholders' equity (Tier 1) represents 8.8% against 26.2% in 2007.
Earnings per share decreased from DKK 25.6 to DKK 9.5.
Q4 2008
In Q4 2008 core income excl trading income represents DKK 830m (Q3 2008: DKK
754m) and trading income constitutes DKK 301m (Q3 2008: DKK 223m). After costs
of DKK 617m (Q3 2008: DKK 591m) core earnings
before impairment make up DKK 514m, the highest level in the Group's history.
Impairment of loans and advances etc totals DKK 459m in Q4 2008 (Q3 2008: DKK
98m). Overall impairment relates to the EBH Group, securities-based loans and
advances, and the Group's highly-diversified corporate lending portfolio by
approximately one third each. Core earnings represent DKK 55m (Q3 2008: DKK
288m).
Investment portfolio earnings generate a loss of DKK 23m for Q4 2008 (Q3 2008:
loss of DKK 170m). The loss includes an unrealised capital loss of DKK 87m on
the CDO portfolio. Non-recurring items total DKK 18m (Q3 2008: DKK 16m) and
constitute the final integration costs in relation to bankTrelleborg.
Profit before contribution to the Danish Contingency Committee makes up DKK 14m
(Q3 2008: DKK 102m). After contribution of DKK 163m to the Danish Contingency
Committee and set-off of tax of DKK 11m the result after tax for Q4 2008
amounts to a loss of DKK 138m (Q3 2008: profit of DKK 76m).
Balance sheet
The Group's total assets made up DKK 156.0bn at year-end 2008 against DKK
132.3bn at year-end 2007.
Assets - year-end (DKKbn) 2008 2007
Amounts owed by credit institutions etc 12.9 19.1
Loans and advances at fair value (reverse repo transactions) 13.3 8.6
Loans and advances at amortised cost (bank loans and advances) 82.5 74.5
Securities and holdings etc 28.3 17.6
Assets related to pooled plans 5.8 6.8
Other assets etc 13.2 5.7
Total 156.0 132.3
The Group's bank loans and advances total DKK 82.5bn - an increase of 11%, of
which DKK 5bn concerns loans and advances from bankTrelleborg. Individual and
collective impairment and provisions stand at DKK 1,106m at year-end 2008
(2007: DKK 895m), equal to 1.0% of total bank loans and advances and guarantees
(2007: 0.9%).
Accumulated impairment and provisions for loans and advances and guarantees
amounting to DKK 1,106m do not include accumulated impairment and fair value
adjustments of loans and advances taken over from bankTrelleborg. The market
value adjustment of the loans and advances acquired totals DKK 277m at 31
December 2008.
Shareholders' equity and liabilities - year-end (DKKbn) 2008 2007
Amounts owed to credit institutions etc 38.9 26.5
Deposits and other debt 75.0 66.0
Deposits in pooled plans 5.8 6.8
Bonds issued 10.1 10.1
Other liabilities etc 14.8 12.2
Provisions 0.1 0.2
Subordinated capital (Tier 2) 4.2 3.8
Shareholders' equity (Tier 1) 7.1 6.7
Total 156.0 132.3
The Group's deposits make up DKK 75.0bn against DKK 66.0bn at year-end 2007.
The 14% increase derives primarily from a rise in time deposits.
Subordinated capital (Tier 2)
Supplementary capital (Tier 2) represents DKK 2,837m and hybrid Tier 1 capital
DKK 1,382m. The increases of DKK 305m and DKK 85m, respectively, compared with
the beginning of the year are solely ascribable to the acquisition of
bankTrelleborg. Subordinated capital (Tier 2) totals DKK 4,219m (2007: DKK
3,829m).
Shareholders' equity (Tier 1)
At year-end 2008 shareholders' equity constitutes DKK 7,088m - an increase of
DKK 391m since the beginning of 2008. The change comprises disposals deriving
from:
• Dividend distribution etc of net DKK 207m
• Net purchase of own shares of DKK 168m
as well as additions deriving from:
• Tax on equity items of DKK 160m
• Profit for the year of DKK 606m.
Group solvency
At year-end 2008 the solvency (total capital) ratio stands at 14.7%, including
a core capital (Tier 1) ratio of 10.8 percentage points compared with 15.8% and
11.5%, respectively, at the beginning of 2008. The core capital (Tier 1) ratio
excluding hybrid core capital declined from 10.0% to 9.3%.
Outlook for 2009
The 2009 outlook is based on the assumption that the Danish economy is in
recession.
The Group projects moderate to zero growth in its bank loans and advances.
The positive trend in core income excl trading income is expected to continue
in 2009 due to increased interest margins particularly in 2H 2008.
It is assumed that trading income will show a falling trend compared with the
trading income generated in 2008. Much will however depend on financial market
developments.
A reduction in staff of approximately 100, synonymous with a largely unchanged
level of costs, is provided for in the budget.
Overall the Group projects core earnings before impairment of loans and
advances in the region of DKK 1,600-1,900m in 2009 - unchanged compared with
2008.
The Danish economy is in recession. The prospects for many industries seem
bleak, which will trigger a rise in impairment charges as regards corporate
clients. In contrast it is expected that in general the financial situation of
retail clients will continue to be satisfactory in 2009. The Group's overall
impairment charges for 2009 are expected to be higher than that of DKK 544m
realised in 2008.
Investment portfolio earnings will depend on financial market developments. At
the beginning of 2009 the Group's position-taking is predominantly short-term
involving limited interest rate risk.
The Group does not expect to realise non-recurring items in 2009.
It is anticipated that the contribution to the Danish Contingency Committee in
the form of guarantee commission will total around DKK 300m. To this must be
added Sydbank's share of the Committee's payment to cover any loss of the
Winding-Up Company as a result of the acquisition of EBH Bank and any other
acquisitions of ailing banks.
The Group's tax is budgeted at 25%.
Government capital injection
On 3 February 2009 the Danish parliament passed a bill according to which
Danish credit institutions complying with the statutory solvency requirements
may apply to the government for the injection of hybrid core capital not later
than 30 June 2009. During 1H 2009 Sydbank will finally assess the need for
capital injection provided by the government of up to approximately DKK 2.2bn.
Income Statement - the Sydbank Group
DKKm 2008 2007
Interest income 7,457 5,601
Interest expense 4,692 3,474
Net interest income 2,765 2,127
Dividends on shares 31 24
Fee and commission income 1,256 1,454
Fee and commission expense 172 172
Net interest and fee income 3,880 3,433
Market value adjustments 115 400
Other operating income 143 33
Staff costs and administrative expenses 2,449 2,067
Depreciation and impairment of property, plant and equipment 187 136
Other operating expenses 86 11
Impairment of loans and advances etc 622 (568)
Profit/(Loss) on holdings in associates and subsidiaries* 17 37
Profit before tax 811 2,257
Tax 205 547
Profit for the year 606 1,710
* Including gain on sale of DMK-Holding in 2007 of DKK 26m
Distribution of profit for the year including proposed dividend
Profit for the year 606 1,710
Total amount to be allocated 606 1,710
Proposed dividend - 203
Proposal for allocation for other purposes - 20
Transfer to shareholders' equity 606 1,487
Total amount allocated 606 1,710
EPS Basic (DKK) * 9.5 25.6
EPS Diluted (DKK) * 9.5 25.6
Proposed dividend per share (DKK) - 3
* Calculated on the basis of average number of shares outstanding.
Balance Sheet - the Sydbank Group
DKKm 2008 2007
ASSETS
Cash and balances on demand at central banks 752 677
Amounts owed by credit institutions and central banks 12,165 18,450
Loans and advances at fair value 13,282 8,552
Loans and advances at amortised cost 82,476 74,475
Bonds at fair value 26,749 16,145
Shares etc 1,315 1,311
Holdings in associates etc 232 201
Holdings in subsidiaries - -
Assets related to pooled plans 5,777 6,789
Intangible assets 15 -
Total land and buildings 1,009 852
investment property 8 3
owner-occupied property 1,001 849
Other property, plant and equipment 158 116
Current tax assets 186 35
Deferred tax assets 10 23
Assets held for sale 5 -
Other assets 11,796 4,656
Prepayments 48 41
Total assets 155,975 132,323
SHAREHOLDERS' EQUITY AND LIABILITIES
Amounts owed to credit institutions and central banks 38,889 26,523
Deposits and other debt 75,007 66,037
Deposits in pooled plans 5,777 6,789
Bonds issued at amortised cost 10,096 10,076
Current tax liabilities 13 19
Other liabilities 14,764 12,083
Deferred income 19 85
Total liabilities 144,565 121,612
Provisions 103 185
Subordinated capital (Tier 2) 4,219 3,829
Shareholders' equity (Tier 1):
Share capital 675 675
Revaluation reserves 91 91
Other reserves:
Reserves according to articles of association 411 399
Reserve for net revaluation according to the equity method 20 11
Retained earnings 5,891 5,298
Proposed dividend etc - 223
Total shareholders' equity (Tier 1) 7,088 6,697
Total shareholders' equity and liabilities 155,975 132,323
Capital - the Sydbank Group
DKKm Reserve for
Reserves net revaluation
Share Revaluation acc to artic acc to Retained Proposed
Changes in equity capital reserves of assoc equity method earnings dividend
etc Total
Shareholders' equity at 1 Jan 2008 675 91 399 11 5,298 223 6,697
Changes in equity in 2008:
Translation of foreign entities - - - - 23 - 23
Hedge of net investment in foreign entities - - - - (23) - (23)
Property revaluation - 0 - - 0 - 0
Profit for the year - - 12 9 585 - 606
Total income - 0 12 9 585 - 606
Purchase of own shares - - - - (2,741) - (2,741)
Sale of own shares - - - - 2,555 - 2,555
Employee shares - - - - 18 - 18
Tax on equity items - - - - 160 - 160
Adopted dividend etc - - - - - (223) (223)
Dividends, own shares - - - - 16 - 16
Total changes in equity in 2008 - 0 12 9 593 (223) 391
Shareholders' equity at 31 Dec 2008 675 91 411 20 5,891 - 7,088
Shareholders' equity at 1 Jan 2007 700 - 388 8 5,023 230 6,349
Changes in equity in 2007:
Translation of foreign entities - - - - (5) - (5)
Hedge of net investment in foreign entities - - - - 5 - 5
Property revaluation - 91 - - - - 91
Profit for the year - - 11 3 1,473 223 1,710
Total income - 91 11 3 1,473 223 1,801
Capital reduction (25) - - - 25 - -
Purchase of own shares - - - - (5,115) - (5,115)
Sale of own shares - - - - 3,806 - 3,806
Employee shares - - - - 18 - 18
Tax on equity items - - - - 60 - 60
Adopted dividend etc - - - - - (230) (230)
Dividends, own shares - - - - 8 - 8
Total changes in equity in 2007 (25) 91 11 3 275 (7) 348
Shareholders' equity at 31 Dec 2007 675 91 399 11 5,298 223 6,697
Sydbank participates in the government guarantee scheme (the Danish Contingency
Committee) which was adopted by the Danish parliament on 10 October 2008. A
further consequence of participation in the government guarantee scheme is that
dividend distribution and share buybacks are not possible during the two-year
period.
The Sydbank share 31 Dec 2008 31 Dec 2007
Share capital (DKK) 675,000,000 675,000,000
Shares issued at year-end (number) 67,500,000 67,500,000
Shares outstanding at year-end (number) 63,011,999 64,034,059
Average number of shares outstanding 63,446,971 66,741,416
Capital - the Sydbank Group
DKKm 2008 1 Jan 2008 2007
Solvency
Shareholders' equity (Tier 1) 7,088 6,697 6,697
Revaluation reserves (91) (91) (91)
Proposed dividend - (223) (223)
Intangible assets and capitalised tax assets (26) (23) (23)
Core capital (excl hybrid core capital) 6,971 6,360 6,360
Hybrid core capital 1,230 1,123 1,123
50% of holdings > 10% (98) (89) (89)
50% of total holdings etc > 10% (34) (135) (135)
Core capital 8,069 7,259 7,259
Subordinated loan capital 2,839 2,535 2,535
Revaluation reserves 91 91 91
Hybrid core capital 158 182 182
Difference between expected losses and impairment charges 26 244
-
Capital base before deductions 11,183 10,311 10,067
50% of holdings > 10% (98) (89) (89)
50% of total holdings etc > 10% (34) (135) (135)
Holdings in associates (62) (57) (57)
Capital base after deductions 10,989 10,030 9,786
Credit risk 60,616 51,491 70,151
Market risk 7,261 6,117 6,117
Operational risk 6,731 5,649 5,649
Risk-weighted items 74,608 63,257 81,917
Capital requirement under Pillar I 5,968 5,060 6,553
Pillar II and transitional rules 711 1,187 -
Capital requirement 6,679 6,247 6,553
Core capital (Tier 1) ratio (excl hybrid core capital) 9.3 10.0 7.8
Core capital (Tier 1) ratio 10.8 11.5 8.9
Solvency (total capital) ratio 14.7 15.8 11.9
As of 2008, the solvency (total capital) and core (Tier 1) capital ratios are
calculated according to IRB. For 2007, the solvency (total capital) and core
(Tier 1) capital ratios are calculated according to the Danish FSA rules in
force at that time (Basel I). Risk-weighted items calculated under the Basel I
rules amounted to DKK 92,764m at end-2008. Consequently following the
transitional rules capital requirements represented 90% of the capital
requirement of 8% of risk-weighted items, equivalent to DKK 6,679m.
Supplementary Information
Presentation of the financial statements
In connection with the release of Sydbank's
Annual Report on 17 February 2009, a video presentation
in Danish will be available at www.sydbank.dk.
Financial Calendar
In 2009 the Group's preliminary announcements of
financial statements will be released as follows:
- Annual General Meeting
5 March 2009
- Interim Report - Q1 2009
28 April 2009
- Interim Report - First Half 2009
18 August 2009
- Interim Report - Q1-Q3 2009
27 October 2009
Sydbank contacts
Carsten Andersen, CEO
tel +45 74 36 20 00
Mogens Sandbæk, CFO
tel +45 74 36 24 00
Jakob Aakjær, Head of Executive Secretariat
tel +45 74 36 20 05
Links
www.sydbank.dk
www.sydbank.com
For further information reference is made to Sydbank's 2008 Annual Report on
http://www.sydbank.com/sydbankcom/about/ir/finreports.
