Sydbank A/S : Investor Pre­sen­ta­tion Q1 2024

1 May 2024

Highlights Q1 2024

Profit

Core income

Trading income

Costs

Impairment charges

Bank loans

CET1 ratio

Capital distribution

Profit of DKK 861m - ROE of 23.4% p.a. after tax

Core income of DKK 1,849m in Q1 2024 - up by 13% compared with Q1 2023

Trading income of DKK 89m in Q1 2024

Costs (core earnings) of DKK 831m in Q1 2024 - compared with DKK 797m in Q1 2023

Impairment charges (loans and advances): an expense of DKK 8m in Q1 2024

Bank loans up by DKK 3.4bn in Q1 2024

CET1 ratio of 17.4% - down by 1.5pp in Q1 2024

At end-Q1 shares totalling DKK 104m had been purchased within the current share buyback of DKK 1,200m

2

Core income - 13% growth

DKKm	Q1 2024	Q1 2023	Index			Q1 2024	Q4 2023	Index
Net interest income etc	1,146	986	116		1,146	1,166	98
Mortgage credit	150	140	107			150	144	104
Payment services	73	60	122			73	72	101
Remortgaging and loan fees	47	49	96		47	50	94
Commission and brokerage	122	124	98		122	120	102

Key points Q1 2024 vs Q1 2023

• Net interest income etc up by 16%
• Mortgage credit up by 7%
• Payment services up by 22%
• Asset management up by 17%
• Other items up by 5%

Commission etc investment funds and
pooled pension plans	82	76	108
Asset management	98	84	117
Custody account fees	26	26	100

82 80 103

98 85 115

26 24 108

Key points Q1 2024 vs Q4 2023

•	Net interest income down by 2%
•	Mortgage credit up by 4%

Other operating income	105	90	117		105	103	102
Total	1,849	1,635	113		1,849	1,844	100

•	Asset management up by 15%
•	Other items up by 1%

3

Net interest income etc

Development from Q4 2023 to Q1 2024

DKKm

1,200

1,150	1,166	13								2	6	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
rates	rates	average	average

4

Core income - up by 13%

DKKm																+13%
1,750
															636
1,500														638	678	703
1,250										649
								668
1,000
					684	673
750	646	686	708
											1,116	1,202	1,166	1,146
500										986
								836
250	441	470	492	515	618
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

Trading income

- satisfactory income in Q1 2024

DKKm 120

			117
100			107
103
	100
80			89
60			69
			61
40			54

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

Costs (core earnings)

Savings of DKK 8m in Q1 2024

DKKm
								8
800			ABB				42
700
				833
600					779	797			831
	703	719	718
691
500
400								Savings	Q1 24
Q1 17	Q1 18	Q1 19	Q1 20	Q1 21	Q1 22	Q1 23	Rise in
							costs
							5,25%

7

Impairment charges

Expense of DKK 8m in Q1 2024

DKKm	Impairment of loans and advances etc
25

Key points

• At 31 March 2024 the Group maintained a management estimate

of DKK 500m to hedge macroeconomic uncertainty. The

management estimate represents DKK 400m as regards corporate

0

-23

-25

-50

-61

-75

8

-3	-10	-6	-5	-6
	-12

clients and DKK 100m as regards retail clients.

The management estimate as regards macroeconomic risks covers potential losses related to the negative effects of geopolitical tension, a higher interest rate environment as well as the risk of a recession etc.

Q1	Q2	Q3	Q4	Q1	Q2	Q3	Q4	Q1
22	22	22	22	23	23	23	23	24

8

Impairment charges - by industry

DKKm Impairment charges - quarterly

75

50

25

0

-25

-50

Agriculture		Trade		Real estate	Other	Retail clients
etc							industries
		Q2-23		Q3-23			Q4-23			Q1-24

Key points Q1 2024

• Impairment charges as regards corporate exposures represent an expense of DKK 15m
• Impairment charges as regards retail exposures represent an income of DKK 7m

Quarterly impairment charges

DKKm	Q4 22	Q1 23	Q2 23	Q3 23	Q4 23	Q1 24
Agriculture etc	-30	-46	-9	-23	-7	-14
Trade	99	25	35	10	60	6
Real estate	-12	1	-21	-5	-11	-5
Other industries	-39	57	7	1	-17	28
Total corporate lending	18	37	12	-17	25	15
Retail clients	-30	-47	-18	12	-31	-7
Total	-12	-10	-6	-5	-6	8

9

Investment portfolio earnings

Investment portfolio earnings - DKKm		Key points
29	28	30	• Investment portfolio earnings: DKK 24 in Q1 2024
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
Position-taking			20		0	-7	2	25	0
Liquidity generation and reserves	-4		32	13	27	14	21
Strategic positions			2		-1	-3	0	-7	5
Costs				-2		-2	-2	-1	-2	-2
Total				17		29	1	28	30	24

10