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.