Slide 1: Interim Report - Q1 2024 Sydbank Group
Interim Report - Q1 2024 Sydbank Group 1 May 2024
Slide 2: Highlights Q1 2024
Highlights Q1 2024 Profit Profit of DKK 861m – ROE of 23.4% p.a. after tax Core income Core income of DKK 1,849m in Q1 2024 – up by 13% compared with Q1 2023 Trading income Trading income of DKK 89m in Q1 2024 Costs Costs (core earnings) of DKK 831m in Q1 2024 – compared with DKK 797m in Q1 2023 Imp
Slide 3: Core income – 13% growth
Core income – 13% growth DKKm Q1 2024 Q1 2023 Index Q1 2024 Q4 2023 Index Key points Q1 2024 vs Q1 2023 Net interest income etc 1,146 986 116 1,146 1,166 98 • Net interest income etc up by 16% Mortgage credit 150 140 107 150 144 104 • Mortgage credit up by 7% Payment services 73 60 122 73 72 101 • P
Slide 4: Net interest income etc
Net interest income etc Development from Q4 2023 to Q1 2024 DKKm 1,200 1,166 13 6 1,150 2 4 29 14 3 11 10 1,100 1,146 1,050 1,000 Q4 2023 1 day less Increase in Decrease in Increase in Increase in Deposit SNP Tier 2 Other Q1 2024 deposit lending deposits, lending, surplus etc redemption issuance rat
Slide 5: Core income – up by 13%
Core income – up by 13% DKKm +13% 1,750 1,500 636 678 703 638 649 1,250 668 1,000 673 708 684 686 750 646 1,202 1,166 1,146 1,116 500 986 836 618 250 441 470 492 515 0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 21 21 22 22 22 22 23 23 23 23 24 Net interest income etc Other core income 5
Slide 6: Trading income
Trading income – satisfactory income in Q1 2024 DKKm 120 117 100 107 103 100 80 89 60 69 61 54 40 35 20 16 0 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 6
Slide 7: Costs (core earnings)
Costs (core earnings) Savings of DKK 8m in Q1 2024 DKKm 8 42 800 ABB 700 833 831 600 779 797 703 719 718 691 500 400 Q1 17 Q1 18 Q1 19 Q1 20 Q1 21 Q1 22 Q1 23 Rise in Savings Q1 24 costs 5,25% 7
Slide 8: Impairment charges
Impairment charges Expense of DKK 8m in Q1 2024 Key points Impairment of loans and advances etc DKKm • At 31 March 2024 the Group maintained a management estimate 25 of DKK 500m to hedge macroeconomic uncertainty. The management estimate represents DKK 400m as regards corporate 8 clients and DKK 100
Slide 9: Impairment charges – by industry
Impairment charges – by industry DKKm Impairment charges - quarterly Key points Q1 2024 75 • Impairment charges as regards corporate exposures represent an expense of DKK 15m • Impairment charges as regards retail exposures represent an income of 50 DKK 7m 25 0 Quarterly impairment charges -25 DKKm
Slide 10: Investment portfolio earnings
Investment portfolio earnings Investment portfolio earnings – DKKm Key points • Investment portfolio earnings: DKK 24 in Q1 2024 29 28 30 24 17 1 • Investment portfolio earnings: DKK 88m in 12M 2023 -62 -67 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 DKKm Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 Posi
Slide 11: Income statement
Income statement – ROE of 23.4% in Q1 2024 DKKm Q1 2024 Q1 2023 Index Q1 2024 Q4 2023 Index Key points Q1 2024 vs Q1 2023 Core income 1,849 1,635 113 1,849 1,844 100 • Core income up by 13% Trading income 89 117 76 89 35 254 • Trading income down by 24% Total income 1,938 1,752 111 1,938 1,879 103 •
Slide 12: Loans/advances and deposits
Loans/advances and deposits - bank loans up by DKK 3.4bn and deposits down by DKK 2.5bn in Q1 2024 DKKbn 111.7 109.2 110 107.5 106.8 106.6 102.7 101.5 100.2 100 90 80 77.9 74.2 75.1 73.9 75.1 74.6 74.5 72.1 70 60 50 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 Q3 23 Q4 23 Q1 24 12 Deposits Loans
Slide 13: Credit facilities to corporate clients
Credit facilities to corporate clients Increase – 16 consecutive quarters DKKbn Key points Q1 2024 vs Q4 2023 120 • Lending to corporate clients before impairment 110 charges up by DKK 3.7bn 100 • Undrawn facilities down by DKK 0.8bn 90 47.1 40.1 42.0 43.3 44.9 49.0 47.9 80 37.4 37.3 70 40.3 39.4 39
Slide 14: Total credit intermediation
Total credit intermediation Total credit intermediation Q4 Q4 Q4 Q1 Change Key points Q1 2024 DKKbn 2021 2022 2023 2024 Q1 Bank loans - retail 14.1 13.7 12.7 12.4 -0.3 • Total credit intermediation up by DKK 3.2bn Bank loans - corporate 52.8 60.1 61.8 65.5 3.7 • Corporate clients: total credit inter
Slide 15: Capital ratio down by 0.1pp in Q1 2024
Capital ratio down by 0.1pp in Q1 2024 Q4 Q4 Q4 Q1 DKKm 2021 2022 2023 2024 Credit risk 38,849 41,018 39,187 39,897 • CET1 capital down by 1.5 pp due to the initiated share buyback Market risk 5,467 5,363 6,047 5,001 programme of DKK 1,200m Operational risk 7,195 8,137 10,250 10,250 Other exposures
Slide 16: Capital ratio in Q1 2024
Capital ratio in Q1 2024 Down by 0.1pp Capital ratio 1 Jan 2024 21.1 Capital ratio down by 0.1pp in Q1 2024 due to: Share buyback DKK 1,200m 1.9 • A share buyback programme of DKK 1,200m Issuance of T2 capital 1.3 • Issuance of Tier 2 capital Profit for the period 1.4 • 50% of profit for the period
Slide 17: Outlook for 2024
Outlook for 2024 • Moderate growth is projected for the Danish economy. • Profit after tax is expected to be in the range of DKK 2,500-2,900m. • The profit forecast assumes that Danmarks Nationalbank will lower the rate of interest on certificates of deposit by 0.75pp in 2024. • The outlook is subje
Slide 18: 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