Sydbank (SYDB) Q3 2024 earnings summary

Executive summary

• Profit after tax reached DKK 2,396m for 9M 2024, with ROE of 21.7% p.a., reflecting strong earnings and cost discipline.

• Core income increased by 4% year-over-year to DKK 5,447m, driven by higher net interest and asset management income.

• Bank loans and advances grew by DKK 8.0bn in 9M 2024, with deposits reaching a record DKK 114.8bn.

• Acquisition of Coop Bank A/S completed in July 2024, adding DKK 1.2bn in loans and 88,000 customers.

• Launched new 3-year strategy “Bigger Sydbank” focused on growth, efficiency, digitalization, and ESG integration.

Financial highlights

• Net interest income rose by 2% year-over-year; mortgage credit up 3%; payment services up 13%; asset management up 27%.

• Trading income for 9M 2024 was DKK 223m; investment portfolio earnings reached DKK 69m.

• Costs (core earnings) rose by 5% to DKK 2,453m compared to 9M 2023, with cost-to-income ratio at 43.3%.

• EPS for 9M 2024 was 43.8, up from 42.1 in 9M 2023.

• Impairment charges on loans and advances amounted to DKK 87m in 9M 2024.

Outlook and guidance

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

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

• Moderate growth projected for the Danish economy.