Last checked at 26 Oct 2014 11:01
Sydbank A/S / Miscellaneous 26.10.2014 12:01 Dissemination of a Regulatory Announcement, transmitted byDGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.--------------------------------------------------------------------------- Aabenraa, Denmark, 2014-10-26 12:01 CET (GLOBE NEWSWIRE) -- Comprehensive assessment of the financial health of European banksSydbank has participated in a comprehensive assessment of the financial healthof European banks. The assessment, carried out across 123 banks, seeks to assess the resilience ofEuropean banks, including the banks' solvency, to severe shocks underhypothetical adverse scenarios. The assessment began in November 2013 and hasconsequently lasted for 12 months. The comprehensive assessment comprises two elements: 1. Asset quality review (AQR) 2. EU-wide stress test Asset quality review (AQR)The AQR increases the transparency of banks' exposures, including the valuationof assets and the adequacy of value adjustments made. The AQR has been conducted by the Danish FSA according to guidelinesestablished by the European Central Bank (ECB). The AQR was more comprehensivecompared with previous analyses conducted by the Danish FSA. The Danish FSA's statement as regards the AQR has been enclosed as an appendix.The Danish FSA has assessed that additional impairment charges at 31 December2013 of DKK 75m should be recorded, which is considered insignificant. The need for impairment charges of DKK 75m is composed of: -- Individual impairment charges of DKK 51m which are included in the impairment charges for Q1 2014. -- Collective impairment charges of DKK 24m which are included in the Bank's impairment charges for Q3 2014. The result of the review does not give rise to change the expectationsannounced in the interim report for the first half of 2014 as regardsimpairment charges for loans and advances for 2014 which are still expected torepresent around DKK 700-800m. 2014 EU-wide stress testThe 2014 EU-wide stress test has been conducted by the European BankingAuthority (EBA) in cooperation with national authorities, the European CentralBank (ECB), the European Commission and the European Systemic Risk Board(ESRB). From Denmark the Danish FSA participated as the national authority. The stress test is based on the EBA's common methodology and guidelines asdescribed in the EBA's Methodological note. Neither the result of the baselinescenario nor the result of the adverse scenario can in any way be construed asSydbank's forecasts or be compared to other information published by Sydbank. The stress test uses a baseline scenario and an adverse scenario that coversthe period 2014-2016. The baseline scenario is based on the European Commission's forecast fromFebruary 2014 which is in line with the current expected economic developmentin the case of Denmark. The adverse scenario has been designed by the ESRB and reflects the systemicrisks that are currently assessed as representing the most pertinent threats tothe stability of the EU banking sector. The assumptions and methodology were developed to assess banks' Common EquityTier 1 capital against a fixed minimum of 8.0% and 5.5% under the baselinescenario and the adverse scenario, respectively. Sydbank is pleased that the EU-wide stress test has been conducted and with theGroup's individual results indicating: -- great resilience to adverse economic developments in the period 2014-2016 -- no appreciable exposure to governments and banks in countries with increased risk -- a very robust capital structure. Under the baseline scenario Sydbank's CET1 ratio rises to 15.5% in 2016compared with 13.7% at year-end 2013, equal to 7.5 percentage points more thanthe fixed minimum of 8.0%. Under the adverse scenario Sydbank's CET1 ratio decreases to 12.9% in 2016compared with 13.7% at year-end 2013, equal to 7.4 percentage points more thanthe fixed minimum of 5.5%. Detailed resultsThe detailed results of the stress test under the baseline and adversescenarios as well as information on banks' credit exposures and exposures tocentral and local governments are provided in the accompanying disclosuretemplates based on the common format provided by the EBA. Further informationSee more details on the scenarios, assumptions and methodology on the EBA'swebsite:http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing/2014 Click on, or paste the following link into your web browser, to view theassociated documents https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=490613https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=490615https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=490616https://newsclient.omxgroup.com/cds/DisclosureAttachmentServlet?messageAttachmentId=490614 News Source: NASDAQ OMX 26.10.2014 The DGAP Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: EnglishCompany: Sydbank A/S DenmarkPhone: Fax: E-mail: Internet: ISIN: DK0010311471Category Code: MSCTIDM: 0G6USequence Number: 2353Time of Receipt: Oct 26, 2014 12:01:04 End of Announcement DGAP News-Service ---------------------------------------------------------------------------UK-Regulatory-announcement transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.