Sydbank (SYDB) Q2 2025 earnings summary

Executive summary

• Profit after tax for H1 2025 was DKK 1,212m, with a return on equity of 16.7%, down from H1 2024, despite lower interest rates and global uncertainty.

• Core income declined by 9% year-over-year to DKK 3,335m, mainly due to lower net interest income, partially offset by a 7% rise in other core income.

• Costs (core earnings) increased by 6% to DKK 1,765m, primarily due to the Coop Bank acquisition and pay rises.

• Customer satisfaction reached an all-time high, with a strong influx of new customers and increased lending and deposits.

• CET1 ratio was 16.7%, supported by a DKK 1,350m share buyback program, with DKK 490m repurchased by end-June.

Financial highlights

• Profit before tax was DKK 1,616m, down from DKK 2,156m in H1 2024, mainly due to a DKK 311m drop in core income.

• Trading income for H1 2025 was DKK 127m, down 17% from H1 2024.

• EPS for H1 2025 was DKK 23.3, down from 29.5 in H1 2024.

• Impairment charges for loans and advances totaled DKK 97m in H1 2025, up from DKK 24m.

• Loans and advances at amortised cost were DKK 82.7bn; deposits were DKK 121.8bn at end-June 2025.

Outlook and guidance

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

• Moderate growth is expected for the Danish economy.

• Outlook is subject to uncertainty from financial markets and macroeconomic factors, especially regarding impairment charges.