AL Sydbank (ALSYDB) Q1 2025 earnings summary

Executive summary

• Q1 2025 profit after tax was DKK 645m, down from DKK 861m in Q1 2024, with ROE at 17.4% after tax.

• Core income declined by 8% year-over-year to DKK 1,700m, mainly due to lower net interest income from declining rates.

• Costs (core earnings) increased by 6% to DKK 881m, partly due to the Coop Bank acquisition.

• Bank loans decreased by DKK 1.2bn, while deposits rose by DKK 1.4bn in Q1 2025.

• CET1 ratio declined to 16.3%, 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.

• EPS for Q1 2025 was DKK 12.3, down from DKK 15.5 in Q1 2024.

• Non-recurring items in Q1 2025 included DKK 11m for home loan process development and DKK 2m for bank/insurance partnership development.

Outlook and guidance

• Profit after tax for 2025 is projected 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.