AL Sydbank (ALSYDB) Q2 2024 earnings summary

Executive summary

• Profit for H1 2024 reached DKK 1,624m, up 9% year-over-year, with a return on equity of 22.4% after tax.

• Core income rose 8% to DKK 3,646m, driven by higher interest rates and increased lending and deposits.

• Bank loans and advances increased by DKK 4.7bn (6%) since year-end 2023, mainly from corporate clients.

• Acquisition of Coop Bank A/S completed on 1 July 2024 for DKK 345m, expected to boost business volume.

Financial highlights

• Total income for H1 2024 was DKK 3,799m, up 6% year-over-year.

• Trading income declined to DKK 153m from DKK 186m in H1 2023.

• Costs (core earnings) increased 4% to DKK 1,659m, in line with expectations.

• Core earnings before impairment rose 8% to DKK 2,140m.

• Impairment charges for loans and advances were DKK 24m, compared to an income of DKK 16m in H1 2023.

Outlook and guidance

• Profit after tax for 2024 is expected in the range of DKK 2,800-3,100m, revised up from previous guidance.

• Forecast assumes a 0.50pp interest rate cut by Danmarks Nationalbank in 2024.

• Outlook remains subject to macroeconomic and financial market uncertainties, especially regarding impairment charges.