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AABENRAA, Denmark - Sydbank, a major Danish bank, reported a 20% decrease in its basic earnings before impairments for the first quarter of 2025, compared to the same period last year. Despite a challenging economic environment, the bank achieved a net profit of DKK 645 million, translating to an annual return on equity of 17.4% after tax.
The bank’s basic income for the quarter stood at DKK 1.7 billion, an 8% decline from the first quarter of 2024. Trading income also fell to DKK 64 million from DKK 89 million year-over-year. Additionally, Sydbank experienced a 2% reduction in bank loans, amounting to a DKK 1.2 billion decrease from the end of 2024.
Costs rose slightly, with base costs reaching DKK 881 million, up from DKK 831 million in the previous year. Impairments on loans and other items resulted in an expense of DKK 35 million.
CEO Mark Luscombe commented on the results, noting the bank’s ability to maintain a strong return on equity amid uncertain market conditions. He mentioned that customers are opting for financial flexibility, with private individuals focusing on savings and businesses strengthening their balance sheets, delaying major financial decisions.
The bank’s Chairman, Ellen Trane Nørby, described the quarter’s results as satisfactory, given the faster-than-expected pace of interest rate cuts by the European Central Bank and Denmark’s National Bank.
Looking ahead, Sydbank anticipates moderate growth in the Danish economy for 2025. The bank’s after-tax earnings are expected to be in the range of DKK 2.2 to 2.6 billion, contingent on the financial markets and macroeconomic conditions that could impact impairment levels.
The information for this report is based on a press release statement from Sydbank.
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