AL Sydbank (ALSYDB) Q1 2026 earnings summary

Executive summary

• Q1 2026 is the first full quarter post-merger, making prior period comparisons less meaningful.

• Profit for Q1 2026 reached DKK 803m, with a ROTE of 11.8% after tax, in line with expectations following the merger.

• Core income rose 72% year-over-year to DKK 2,925m, driven by the merger, while costs (core earnings) increased 99% to DKK 1,755m.

• Integration costs of DKK 134m and BEC service client fees of DKK 60m impacted results.

• The integration of the merged banks is progressing, with branch consolidation and IT migration planning underway.

Financial highlights

• Core income rose to DKK 2,925m in Q1 2026 from DKK 1,700m in Q1 2025.

• Trading income increased to DKK 80m from DKK 64m year-over-year.

• Costs (core earnings) nearly doubled to DKK 1,755m from DKK 881m year-over-year.

• Impairment charges for loans and advances were DKK 57m in Q1 2026.

• Profit before tax was DKK 1,043m, up DKK 184m year-over-year; tax expense was DKK 240m (effective tax rate 23.0%).

Outlook and guidance

• Moderate growth is projected for the Danish economy in 2026.

• Profit after tax for 2026 is expected in the range of DKK 3,500–4,000m.

• Outlook is subject to uncertainty from financial markets, interest rates, and impairment charges.