Sydbank 2010 1
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Agenda 1. Executive summary 2. Danish macro economy 3. Overview of Sydbank 3 O e e o Sydba 4. Financial performance 5. Credit risk 6 6. ECOFIN Stress Test ECOFIN Stress Test 7. Capital management 8. Liquidity management – funding 9. Outlook 2010 3
Agenda 1. Executive summary 2. Danish macro economy 3. Overview of Sydbank 3 O e e o Sydba 4. Financial performance 5. Credit risk 6 6. ECOFIN Stress Test ECOFIN Stress Test 7. Capital management 8. Liquidity management – funding 9. Outlook 2010 4
Executive summary • The Danish economy is stabilizing and the Danish housing market shows signs of improvement • Sydbank is the fourth largest bank in Denmark with a market share of approx 5% Sydba s e ou a ges ba e a a a e s a e o app o 5% • Sydbank’s Moody’s ratings are at the top of the list among Danish and Nordic banks • Strong financial performance • Diversified loan book. No single sector concentration • Sydbank showed great strength in the ECOFIN Stress Test • Strong capital structure – core capital ratio of 13.1% and core capital ratio excl hybrid core capital of 11.5% as at 31. Dec. 2009 – the capital base was excl hybrid core capital of 11.5% as at 31. Dec. 2009 the capital base was strengthened by a share issue in September 2009 • No government hybrid core capital and no state guaranteed funding required 5
Agenda 1. Executive summary 2. Danish macro economy 3. Overview of Sydbank 3 O e e o Sydba 4. Financial performance 5. Credit risk 6 6. ECOFIN Stress Test ECOFIN Stress Test 7. Capital management 8. Liquidity management - funding 9. Outlook 2010 6
The Danish economy is heading out of recession Fast downturn – Fast downturn – steady upswing teady upswing • GDP contracted by 5.1% in 2009… • • …but slow positive growth rates in H2 but slow positive growth rates in H2 • GDP growth at around 1-1.5% in 2010 • Tax cuts and record low rates expected to boost private consumption in 2010 Tax cuts and record low rates expected to boost private consumption in 2010 7
Economic structures relatively sound • Total public deficit less than 3% of GDP in 2009 and expected at around 5% in 2010 – one of the lowest in EU • According to the rules of the growth and stability pact, Denmark will probably g g y p p y need to improve public balances by around 0.5% of GDP each year for the period 2011-2013 – just like Germany • Current account show healthy surplus around 4% of GDP in 2009 and 2010 Current account show healthy surplus around 4% of GDP in 2009 and 2010 • Unemployment show signs of stabilization around 7.5% (EU definition) • Inflation is close to Eurozone average. Expected around 2% in 2010 8
The Danish housing market is stabilizing 9
Agenda 1. Executive summary 2. Danish macro economy 3. Overview of Sydbank 3 O e e o Sydba 4. Financial performance 5. Credit risk 6 6. ECOFIN Stress Test ECOFIN Stress Test 7. Capital management 8. Liquidity management - funding 9. Outlook 2010 10
Sydbank’s history Ownership: – > 5%: Nykredit and ATP – 149,000 shareholders 11
Market position • 382,000 customers – About 8% are corporate clients • Market share of approx 5% of the Danish market pp – Market share of 6-7% of the Danish corporate market – Market share of 4-5% of the Danish retail market • 113 branches in Denmark including 3 branches in 113 branches in Denmark incl ding 3 branches in Germany and private banking operations in Graasten • In addition Sydbank has a subsidairy bank in St. Gallen, Switzerland • Approx 2,400 employees • Market cap EUR 1 6bn • Market cap EUR 1.6bn 12
Rating • Moody’s current ratings of Sydbank are as follows: A1 (long-term debt), P-1 (short-term debt) and C+ (financial strength) Bank Count untry Rating ng O Outlook BFSR *) Syd Sydbank DK A1 Stable C+ ( (neg. ou outlook ook) Jyske Bank DK A1 Stable C+ (neg. outlook) Ringkøbing Landbobank DK A1 Negative C+ (neg. outlook) Nordea Danmark DK Aa2 Stable C Danske Bank DK Aa3 Stable C Spar Nord DK A2 Stable C- FIH DK Baa3 Stable D- (neg. outlook) Amagerbanken Amagerbanken DK DK Baa3 Baa3 Stable Stable E E+ Nordea AB S Aa2 Stable C+ (neg. outlook) Svenske Handelsbanken S Aa2 Stable C+ (neg. outlook) DnB NOR N Aa3 Stable C (R) SEB S A1 Negative C- Sparbanken Nordnorge N A1 Negative C- (neg. outlook) Swedbank S A2 Negative D+ (neg. outlook) * Bank Financial Strength Rating 13
Strategic objectives • Sydbank aims to remain independent • Sydbank aims to be present nationwide through the establishment of branches and through ongoing extension of the Bank’s electronic availability g g g • Abroad, Sydbank aims to expand its presence in Northern Germany and its private banking activities on the basis of Sydbank (Schweiz) AG and PBI (Denmark) and PBI (Denmark) • Sydbank aims to win market shares – eg in relation to corporate clients and private banking • Sydbank aims to participate in the consolidation of the Danish banking sector 14
Agenda 1. Executive summary 2. Danish macro economy 3. Overview of Sydbank 3 O e e o Sydba 4. Financial performance 5. Credit risk 6 6. ECOFIN Stress Test ECOFIN Stress Test 7. Capital management 8. Liquidity management - funding 9. Outlook 2010 15
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