Sydbank (SYDB) Q1 2025 earnings summary

Executive summary

• Q1 2025 profit after tax was DKK 645m, down from DKK 861m year-over-year, with a return on equity of 17.4% p.a. after tax.

• Core income fell 8% to DKK 1,700m, mainly due to lower net interest income from declining interest rates.

• Costs (core earnings) increased by DKK 50m to DKK 881m, partly due to the Coop Bank acquisition.

• Bank loans and advances decreased by DKK 1.2bn (2%) since year-end 2024, while deposits rose by DKK 1.4bn.

• CET1 ratio declined to 16.3% from 17.8% at year-end, mainly due to a DKK 1,350m share buyback.

Financial highlights

• Trading income was DKK 64m, down from DKK 89m year-over-year.

• Core earnings before impairment dropped 20% to DKK 883m.

• Impairment charges for loans and advances were DKK 35m, up from DKK 8m in Q1 2024.

• Non-recurring items were an expense of DKK 13m, compared to an income of DKK 15m last year.

• EPS was DKK 12.3, down from DKK 15.5 year-over-year.

Outlook and guidance

• Profit after tax for 2025 is expected in the range of DKK 2,200–2,600m.

• Forecast assumes a 1pp interest rate cut by the Danish central bank in 2025.

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