Sydbank's 2007 Interim Report

Highly satisfactory
Sydbank generated a pre-tax profit of DKK 1,177m for the first six months of
2007 - an increase of DKK 311m or 36% compared with H1 2006. The result equals
a return of 37% p.a. on average shareholders' equity (Tier 1). 

Core earnings have improved by DKK 353m to DKK 1,161m. The increase is mainly
ascrib-able to continued growth in loans and advances and rising income from
interest margins. In addition trading income has gone up by 10%. Also, DKK 270m
concerning impairment of loans and advances was recognized as income. 
 
Investment portfolios generated a loss of DKK 30m.

An extraordinary gain of DKK 46m has been realized from the sale of non-current
assets. 

Post-tax profit represents DKK 901m, equal to a return of 29% p.a. on average
shareholders' equity (Tier 1). Earnings per share for the period have gone up
by 44% from DKK 9.1 to DKK 13.1. 

Performance and business developments are considered very satisfactory.

Proposal for capital reduction
As at 30 June 2007 the Group's solvency (total capital) ratio stands at 12.6%
including a core capital (Tier 1) ratio of 9.3%. Against this background the
Bank's Board of Directors recom-mends to an extraordinary general meeting
scheduled for mid-September that the share capital be reduced by 2,500,000
shares, equal to 3.57%. 

Increased outlook for the year
On the basis of realized core earnings for the first six months as well as
current business and earnings developments, core earnings for 2007 are forecast
to make up around DKK 2.0-2.2bn. At the release of the Bank's Q1 Report, core
earnings for the year were projected to lie “in the upper end of DKK
1.6-1.9bn”. 

Stock Exchange Announcement No 14/07 concerning the interim report is attached
and is also accessible on Sydbank's website www.sydbank.com together with
Sydbank's other stock exchange announcements and announcement of financial
statements. A printed version of the interim report is available at Sydbank's
branches. 


Yours faithfully

Carsten Andersen
Group Chief Executive




Enquiries concerning this Announcement to
Carsten Andersen, Group Chief Executive, tel +45 74 36 20 00
Mogens Asmund, Group Executive Vice President, tel +45 74 36 20 50