Sydbank receives IRB approval

As announced in its annual reports, Sydbank has been working on the development
and application of internal rating systems and models (IRB) to manage the
credit risks of the Bank's corporate and retail client portfolios. In late 2006
the Bank filed an application with the Dan-ish Financial Supervisory Authority
(FSA) for authorisation to apply these IRB models to de-termine the Bank's
capital requirement as of 2008. Such authorisation requires, among other
things, that the models are applied in the business management and give a
precise description of the credit risk. 

Sydbank has just been informed by the Danish Financial Supervisory Authority
that it has been granted approval to apply the internal rating models developed
to determine the Bank's capital requirement according to the foundation
approach as of 2008. 

The further development and application of the rating systems will also in
future represent a focus area for Sydbank as it offers a significant potential
to rationalise credit treatment and to minimise credit risks. 

Yours faithfully
 	 
Mogens Asmund	
Group Executive Vice President