Al Sydbank A/s · OMXCOP:ALSYDB
Al Sydbank A/s — Sydbank — Q1 2023 Earnings Presentation
17 slides from Al Sydbank A/s's earnings presentation, 2023
Slide 1: Interim Report – 9M 2022
Interim Report – 9M 2022 Significantly higher net interest income Historically high income – a strong start to the year 1
Slide 2: Highlights Q1 2023
Highlights Q1 2023 Historically high income – a strong start to the year Profit Profit of DKK 734m – ROE of 22.1% p.a. after tax Core income Core income of DKK 1,635m in Q1 2023 – up by 36% compared with Q1 2022 Costs Costs (core earnings) at DKK 797m in Q1 2023 – compared with DKK 799m Q1 2022 Impa
Slide 3: Core income – growth of 36%
Core income – growth of 36% DKKm Q1 2023 Q1 2022 Index Q1 2023 Q4 2022 Index Key points Q1 2023 vs Q1 2022 Net interest income etc 986 492 200 986 836 118 • Net interest income up by 100% Mortgage credit 140 183 77 140 143 98 • Mortgage credit down by 23% Payment services 60 51 118 60 62 97 • Remort
Slide 4: Net interest income etc
Net interest income etc Development from Q4 2022 to Q1 2023 DKKm 5 107 950 986 900 0 850 141 7 18 836 800 77 750 700 650 600 Q4 2022 2 days Change in Change in Decrease in Increase in Deposit Other Q1 2023 less deposit rates lending rates deposits, lending, surplus average average etc 4
Slide 5: Core income – up by 36%
Core income – up by 36% DKKm +36% 1.600 1.400 649 1.200 668 1.000 673 708 684 800 686 671 657 646 587 600 528 986 400 836 618 470 492 515 200 372 434 431 441 354 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 20 20 21 21 21 21 22 22 22 22 23 Net interest income etc Other core income 5
Slide 6: Trading income
Trading income – highly satisfactory income DKKm 117 100 107 103 100 80 74 73 60 68 61 40 47 20 16 0 Q4 20 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 6
Slide 7: Costs (core earnings)
Costs (core earnings) Savings of DKK 23m in Q1 2023 DKKm 800 21 23 ABB 700 833 600 799 797 691 703 719 718 500 400 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Rise in Savings Q1 23 costs 2.65% 7
Slide 8: Impairment charges
Impairment charges Reversal of DKK 10m in Q1 2023 Key points Impairment of loans and advances DKKm • At 31 March 2023 the Group still had a management estimate of DKK 500m to cover macroeconomic uncertainty. The management 25 estimate consists of DKK 400m as regards corporate clients and DKK 100m as
Slide 9: Impairment charges – by industry
Impairment charges – by industry Key points Q1 2023 DKKm Impairment charges - quarterly • Impairment charges as regards corporate exposures represent an expense of DKK 37m 90 • Impairment charges as regards retail exposures represent an income of DKK 47m 60 30 0 Quarterly impairment charges -30 DKKm
Slide 10: Investment portfolio earnings
Investment portfolio earnings Investment portfolio earnings – DKKm Key points • Investment portfolio earnings constituted DKK 29 29m in Q1 2023 5 17 • Investment portfolio earnings constituted minus 2 DKK 141m in 12M 2022 -7 -29 -62 -67 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 DKKm Q4 21 Q1 2
Slide 11: Income statement
Income statement – ROE of 22.1% in Q1 2023 DKKm Q1 2023 Q1 2022 Index Q1 2023 Q4 2022 Index Key points Q1 2023 vs Q1 2022 Core income 1.635 1.200 136 1.635 1.504 109 • Core income up by 36% Trading income 117 100 117 117 107 109 • Trading income up by 17% Total income 1.752 1.300 135 1.752 1.611 109
Slide 12: Loans/advances and deposits
Loans/advances and deposits Bank loans up by DKK 1.2bn DKKbn 107,5 106,6 101,5 100,2 100 98,1 94,1 93,9 93,1 90 80 75,1 75,1 74,2 73,9 71,6 70 67,0 64,3 61,4 60 50 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 12 Deposits Loans
Slide 13: Credit facilities to corporate clients
Credit facilities to corporate clients Increase – 12 consecutive quarters DKKbn Key points Q1 2023 vs Q4 2022 100 • Lending to corporate clients before impairment 90 charges up by DKK 1.7bn in Q1 2023 40,1 42,0 43,3 • Undrawn facilities up by DKK 1.3bn in Q1 2023 80 37,4 37,3 39,9 70 40,3 39,4 38,3
Slide 14: Total credit intermediation
Total credit intermediation Total credit intermediation Q4 Q4 Q4 Q1 Change Key points Q1 2023 DKKbn 2020 2021 2022 2023 Q1 Bank loans - retail 15,2 14,1 13,7 13,3 -0,4 • Total credit intermediation up by DKK 0.4bn in Q1 2023. Bank loans - corporate 44,7 52,8 60,1 61,8 1,7 Bank loans - public authori
Slide 15: Capital ratio up by 0.9pp
Capital ratio up by 0.9pp in Q1 2023 Q4 Q4 Q4 Q1 DKKm 2020 2021 2022 2023 • The capital ratio rose by 0.9pp in Q1 2023 due to a rise in capital. • 50% of profit for the period is included Credit risk 33.355 38.849 41.018 41.453 Market risk 6.675 5.467 5.363 4.865 Operational risk 6.708 7.195 8.137 8
Slide 16: Outlook for 2023
Outlook for 2023 • Core income is expected to be higher than in 2022 • Costs (core earnings) are projected to be higher than in 2022 • Impairment charges are forecast to be represent a minor expense • Non-recurring costs are expected to be in the range of DKK 50-60m • Profit after tax is expected to
Slide 17: Forward-looking statements
Forward-looking statements • This presentation contains statements concerning expectations of future developments, including future income as well as expected business events. Such statements are by their nature uncertain and associated with risks as many factors – of which some may be beyond Sydban