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Sydbank Q1 profit declines YOY, but impairments fall

reportedfirst-quarter profit of 283 million Danish kroner, down from 304 million kronerin the year-ago period.

EPSamounted to 4.0 kroner, compared to 4.1 kroner a year earlier.

Duringthe quarter, net interest and fee income reached 1.00 billion kroner, down from1.09 billion kroner a year ago, with net interest income falling to 618 millionkroner from 645 million kroner. Core income declined on a yearly basis to 1.05billion kroner from 1.12 billion kroner. Trading income decreased over the sameperiod to 54 million kroner from 118 million kroner.

Thebank said that, for 2016, it expects a slight decline in core income due toprice adjustments as a result of the turmoil that arose following theannouncement of increases in administration margins on mortgage loans.

Impairmentof loans and advances dropped year over year to 38 million kroner from 116million kroner. The bank said it expects lower impairment charges in 2016,although the uncertainty surrounding price developments in the agriculturalsector may affect such charges.

Thelender's common equity Tier 1 capital ratio as of March-end stood at 14.4%,compared to 14.5% at Dec. 31, 2015, and 14.6% at March 31, 2015.

Thegroup implemented a share buyback program of 350 million kroner to optimize itscapital structure. The share buyback commenced Feb. 29 and will be completed byDec. 31.

Asof April 26, US$1 was equivalent to 6.58 Danish kroner.