AL Sydbank (ALSYDB) Q2 2026 earnings summary

Executive summary

• Profit after tax for H1 2026 reached DKK 1,761m, up 45% year-over-year, with a ROTE of 13.3% p.a. after tax, despite integration costs of DKK 256m and increased BEC service expenses.

• Core income rose to DKK 5,921m in H1 2026, up 78% year-over-year, and reached DKK 2,996m in Q2 2026, up 2% sequentially.

• Lending increased by DKK 3.4bn (2.4%) to DKK 143.7bn, and deposits rose by DKK 10.1bn to DKK 219.4bn in H1 2026.

• Integration of the merged banks is progressing, with 52 branches consolidated, 343 FTEs reduced, and DKK 175m in cost synergies achieved in H1 2026.

• The bank remains well-capitalised, with a CET1 ratio of 16.0% and a capital ratio of 19.5% at end-June 2026.

Financial highlights

• Total income in Q2 2026 was DKK 3,101m, up from DKK 3,005m in Q1 2026.

• Core earnings before impairment rose 54% to DKK 2,619m; trading income increased to DKK 185m from DKK 127m.

• Costs (core earnings) in Q2 2026 were DKK 1,732m, slightly down from DKK 1,755m in Q1 2026; H1 2026 costs nearly doubled to DKK 3,487m post-merger.

• Non-recurring items, mainly merger-related, amounted to DKK 277m in H1 2026.

• EPS for H1 2026 was DKK 20.0, compared to DKK 23.3 in H1 2025.

Outlook and guidance

• Profit after tax for 2026 is now expected at the top half of DKK 3,500–4,000m.

• Outlook remains subject to uncertainties including market developments, interest rates, pig settlement prices, integration costs, and macroeconomic factors.

• Impairment charges may rise if economic conditions worsen, especially in agriculture.