Sydbank Q1 pretax profit rises 29 pct to 611 mln dkr; beats expectations |
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Published
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Tue, 24 Apr 2007 13:26
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COPENHAGEN (Thomson Financial) - Sydbank posted a first quarter pretax profit of 611 mln dkr, up 29 pct from a year earlier and boosted by higher net interest income and net loan recoveries.Market expectations were for a pretax profit of 495 mln dkr according to a survey of analysts by SME Direkt.Net interest income was up 12 pct at 498 mln dkr.Core earnings, comprised of operating profit excluding extraordinary costs related to pensions, asset sales and other similar items, increased 41 pct to 559 mln skr, positively affected by continued growth in loans and advances and rising income from interest margins, Sydbank said.'Performance and business developments are considered very satisfactory,' it added.Net loan recoveries amounted to 137 mln dkr, versus 8 mln a year earlier, the bank said, adding that the increase stems from improved Danish business conditions, lower portfolio credit risk and positive settlement of major accounts.Profit from the bank's investment portfolios dropped to 14 mln dkr from 79 mln dkr a year earlier.Sydbank said it now expects 2007 core earnings to reach the upper end of the 1.6-1.9 bln dkr forecast in its 2006 annual report, adding that it will make any necessary revisions to its outlook after the second quarter.gustav.sandstrom@thomson.comgs/hjpCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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