24th Feb 2016 07:27
Sydbank A/S / Annual Financial ReportSydbank's 2015 Annual Report 24-Feb-2016 / 08:27 CET/CESTDissemination of a Regulatory Announcement, transmitted by EQS Group AG.The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Aabenraa, Denmark, 2016-02-24 08:27 CET (GLOBE NEWSWIRE) --Improved credit quality, costs still under control as well as stable coreincome ensure a record dividend for Sydbank's shareholders and a new sharebuyback programme of DKK 350m, bringing total distribution concerning 2015 to100% of profit for the year after tax. The result for 2015 is the best since 2007 and can be attributed to lowerimpairment charges as well as a tight rein on costs. The result enables Sydbankto distribute a record high dividend to the Bank's shareholders while at thesame time launching a new share buyback programme. In connection with the financial statements, CEO Karen Froesig comments: - 2015 saw a high level of activity. We have implemented a large number ofchanges to develop the Bank's profitability - for instance the introduction ofour loyalty programme, Sydbank Favorit. At the same time it was a challengingyear to run a bank given the negative interest rate environment and fiercecompetition. Therefore it is rewarding that in spite of this we have deliveredthe best result since 2007. She elaborates: - In 2015 we focused extensively on improving our credit quality since this,together with continued tight cost control, forms the cornerstone of ensuringhigh profitability and consequently a strong market position for Sydbank.Therefore it is satisfying that impairment charges for loans and advances weresignificantly reduced in 2015. The targets in the plan to increase profitability to reduce costs (coreearnings) by DKK 200m as well as to achieve a decline in impairment charges forbank loans and advances by the beginning of 2016 have been met. Achieving thetarget of improving core income by DKK 200m was hampered by the negativeinterest rate environment which was a consequence of the pressure on DKK inJanuary 2015. 2015 highlights -- Core income remains unchanged. -- Trading income has gone up by 10%. -- Unchanged costs (core earnings) apart from the effect of the acquisition of Sydinvest Administration A/S. -- Impairment charges for loans and advances have declined by 55%. -- Core earnings have improved by DKK 364m to DKK 1,553m. -- Profit before tax rose to DKK 1,473m in 2015 compared to DKK 1,329m in 2014. -- Sydbank recorded a growth in loans and advances of DKK 5.8bn in 2015. Growth in deposits amounted to DKK 6.0bn during the same period. -- Return on shareholders' equity before and after tax constitutes 13.0% and 10.1%, respectively, against 12.3% and 9.8% in 2014. Earnings per share has increased from DKK 14.3 to DKK 15.8. Outlook for 2016 Limited economic growth is projected for the Danish economy in 2016. Based on the level of interest rates at the beginning of 2016, core income isexpected to remain unchanged as a result of the measures implemented anddespite continued fierce competition. Trading income is projected to remain unchanged relative to income in 2015 butis dependent on financial market developments. In spite of the general pay rises agreed for the financial sector of 1.80% anda payroll tax increase of 1.40%, costs (core earnings) are expected to decreaseas a result of the measures implemented and the discontinuation of payments tothe deposit guarantee scheme. Lower impairment charges are forecast for 2016. The uncertainty surroundingprice developments in the agricultural sector may however affect impairmentcharges. 2016 Financial Calendar The date of publication of the interim report for the first nine months of 2016is changed from Tuesday 1 November 2016 to Wednesday 2 November 2016. Additional information Joern Adam Moeller, CFO, tel +45 74 37 24 00 Mikkel Friis-Thomsen, Head of Communications, tel +45 29 12 36 64 Karen Froesig, CEO, Bjarne Larsen, Deputy Group Chief Executive, and Joern AdamMoeller, CFO, will present the 2015 Annual Report today at 10.00 (CET) at ateleconference. The teleconference will be held in Danish and may be attendedvia www.sydbank.dk/audiocast. Attendees, please call by 09.55 (CET). Danish attendees are invited to call 7022 35 00. International attendees are invited to call +44 (0) 207 57 21 187.Please quote the following code: 50582484# Click on, or paste the following link into your web browser, to viewthe associated documents https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=548322https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=548319https://cns.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=548321 News Source: NASDAQ OMX --------------------------------------------------------------------------- 24-Feb-2016 The EQS Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap.de/ukreg --------------------------------------------------------------------------- Language: English Company: Sydbank A/S Dänemark ISIN: DK0010311471 Category Code: ACS TIDM: 0G6U Sequence Number: 3011 Time of Receipt: 24-Feb-2016 / 08:26 CET/CEST End of Announcement EQS News Service --------------------------------------------------------------------------- 439675 24-Feb-2016UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.
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