SYDBANK – INTERIM REPORT – FIRST HALF 2021 2/46 Sydbank’s Interim Report – First Half 2021 Earnings up by 20% 1H 2021 – highlights Profit of DKK 645m equals a return on equity of 10.4% p.a. after tax. Core income of DKK 2,193m is 20% higher compared to the same period in 2020. Costs (core earnings) are 16% higher compared to the same period in 2020 and constitute DKK 1,647m. Impairment charges for loans and advances represent an income of DKK 206m compared with an expense of DKK 42m in the same period in 2020. Bank loans and advances constitute DKK 61.4bn – an increase of DKK 1.2bn in 1H 2021. Total credit intermediation amounts to DKK 168.9bn – an increase of DKK 3.3bn in 1H 2021. The CET1 ratio has declined by 1.1 percentage points compared to year-end 2020 and constitutes 17.7% excluding profit for the period. We are undertaking a number of initiatives to strengthen: Sydbank’s position – Denmark’s corporate bank – significant increase in awareness our earnings – via new terms and conditions for corporate deposits our customer focus – via a change in Sydbank’s organisation our engine room – we will simplify processes for Sydbank’s advisers. Denmark’s corporate bank – significant increase in awareness Our targeted efforts to raise the awareness of Sydbank’s strengths and competences in the corporate area have produced measurable results: A significant increase in awareness Many positive responses to the campaign Influx of new customers Increased business volume with existing customers. The next stage of the campaign will focus on value creation and specific customer benefits. Sydbank – Denmark’s corporate bank. Adjusted terms and conditions for corporate deposits Sydbank’s deposit surplus set a new record at 30 June 2021. We will adjust the interest rate of corporate clients’ deposit accounts from minus 0.75% to minus 0.95%, which is in line with developments in the marketplace. Change in Sydbank’s organisation Sydbank will strengthen its position in the Private Banking and Retail Client segments. As a result the division Retail Clients & Private Banking will be split into 2 divisions. Consequently we will have a division for each of the customer segments: Corporate, Private Banking and Retail. This aims to clarify more fully the Bank’s competences, strengths and value propositions for the individual customer. In addition customer-facing areas will be anchored more firmly within the Group Executive Management. This will ensure greater customer focus throughout the Bank – starting at the Group Executive Management level. We will simplify processes for Sydbank’s advisers We will continue to strengthen the Bank’s engine room. Digitization and automation of tasks will be further accelerated via the introduction of a new portal concerning the handling of retail client cases. We work continuously to deliver faster and improve quality, to create easier and simpler processes for our employees and to build a more cost effective engine room to the benefit of the Bank’s shareholders. CEO Karen Frøsig comments on Sydbank’s 1H result: - An earnings growth of 20% is strong and is the result of measures implemented, including the acquisition of Alm. Brand Bank which accounts for half of the growth in earnings.
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