Slides
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AL Sydbank Group Interim Report – First Half 2026
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Introduction 25 August 2026AL Sydbank2 Profit Balance sheet Investment portfolio earnings Integration costs Service customer BEC Q2 2026 and Q1 2026 are comparable – Figures for previous periods are not comparable The balance sheet from Q4 2025 onwards comprises AL Sydbank figures and is fully comparable From the beginning of 2026, AL Sydbank has been a service customer at BEC, increasing operating expenses by around DKK 60m per quarter until the IT conversion in 2027 H1 2026 includes integration costs of DKK 256m, of which integration costs amounted to DKK 122m in Q2 2026 Positive investment portfolio earnings of DKK 126m in H1 2026. The return on strategic positions constituted DKK 52m in Q2 2026 compared with a loss of DKK 72m in Q1 2026.
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Highlights H1 2026 25 August 2026AL Sydbank3 Profit Core income Trading income Costs CET 1 ratio Capital distribution Bank loans Impairment charges Profit of DKK 1.761m – ROTE of 13.3% p.a. after tax Core income of DKK 2,996m in Q2 2026 – compared with DKK 2,925m in Q1 2026 Trading income of DKK 105m in Q2 2026 – compared with DKK 80m in Q1 2026 Costs (core earnings) of DKK 1,732m in Q2 2026 – compared with DKK 1,755m in Q1 2026 Impairment charges for loans and advances etc represented an expense of DKK 94m in Q2 2026 – compared with an expense of DKK 57m in Q1 2026 Bank loans amounted to DKK 143.7bn in H1 2026 – up by DKK 1.3bn in Q2 2026 CET1 ratio of 16.0% in Q2 2026 – compared with 15.7% in Q1 2026 At the end of H1, shares totalling DKK 449m had been purchased within the current share buyback of DKK 1,100m.
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Core Income Core income up by 2% in Q2 2026 25 August 2026AL Sydbank4 Core income in DKKm H1 2026 H1 2025 Index Q2 2026 Q1 2026 Index Net interest etc 3,413 1,849 185 1,728 1,685 103 Mortgage credit 632 301 210 307 325 94 Payment Services 231 135 171 115 116 99 Remortgaging and loan fees 148 91 163 74 74 100 Commission and brokerage 367 267 137 185 182 102 Commission etc investment funds and pooled pensions plans 367 173 212 196 171 115 Asset management 326 250 130 174 152 114 Custody account fees 75 54 139 41 34 121 Other operating income 362 215 168 176 186 95 Total 5,921 3,335 178 2,996 2,925 102
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Net Interest Income etc Development from Q1 2026 to Q2 2026 25 August 2026AL Sydbank5 1,685 18 18 13 3 5 17 7 8 1,728 1,600 1,625 1,650 1,675 1,700 1,725 1,750 Q1 2026 1 day more Increase in lending rates Increase in lending, average Increase in deposit rates Increase in deposits, average Deposit surplus etc Issuance Tier2/SNP Other Q2 2026 DKKm
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Core Income Increase in both net interest income and other core income in Q2 25 August 2026AL Sydbank6 1,111 1,099 1,035 950 899 901 1,182 1,685 1,728 686 702 745 750 736 750 1,006 1,240 1,268 0 500 1,000 1,500 2,000 2,500 3,000 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 DKKm Net interest income etc Other core income
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Trading Income Highly satisfactory trading income in Q2 2026 25 August 2026AL Sydbank7 64 70 45 64 63 77 52 80 105 0 20 40 60 80 100 120 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 DKKm
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Costs (Core Earnings) Synergies of DKK 175m in H1 2026 25 August 2026AL Sydbank8 1,574 1,600 1,659 1,765 1,681 41 105 120 49 175 3,487 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 H1 2022 H1 2023 H1 2024 Sydbank H1 2025 AL Group H1 2025 Pensam H1 2025 Rise in cost 3% Fee BEC Tranf. fees charged Achieved synergies AL Sydbank H1 2026 DKKm
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Branches and Employees Key Points • The number of employees was reduced by 343 FTEs in H1 2026 as part of the planned synergy realisation following the merger. • In H1 2026, 52 branches were consolidated. 25 August 2026AL Sydbank9 Branches Employees Gradually being reduced 88 52 86 54 0 25 50 75 100 125 150 Branches - 30 June 2026 Closed due to merger AL Group Sydbank - 30 September 2025 3,888 343 2,077 2,154 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Employees - 30 June 2026 Net reduction due to merger AL Group Sydbank - 30 September 2025
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Impairment Charges for Loans and Advances etc Expense of DKK 151m in H1 2026 – Management Estimate is maintained 25 August 2026AL Sydbank10 Impairment charges for loans and advances etc 16 63 508 35 62 18 182 57 94 0 100 200 300 400 500 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 DKKm • Impairment charges for loans and advances represent DKK 151m in H1 2026. • At 30 June 2026 the Group maintained its management estimate of DKK 500m to hedge macroeconomic uncertainty. The management estimate comprises DKK 400m regarding corporate clients, including agricultural clients, and DKK 100m relating to retail clients. • The management estimate regarding macroeconomic uncertainty covers, inter alia, potential losses related to global energy supply challenges and a continued protectionist line in the US, which could lead to an economic downturn in both the US and Europe. • Such a development would also impact the Danish economy where particularly export businesses would be affected by lower international demand. This would result in rising unemployment and general restraint in consumer spending, which would feed through to the rest of the economy. Danish pig producers are experiencing settlement prices below production costs. In the beginning of Q3 2026, settlement prices dropped significantly to an all-time low, which could lead to an increased need for impairment charges in the long run. • In addition, the calculated fair value of the portfolios acquired in connection with the merger includes a management estimate of DKK 485m. This management estimate is included in the net value of the acquired portfolios. Management estimates represent a total of DKK 985m.
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Impairment Charges by Industry Key Points • Impairment charges regarding corporate exposures represent an expense of DKK 86m • Impairment charges regarding retail exposures represent an expense of DKK 8m 25 August 2026AL Sydbank11 Impairment charges by industry -40 -20 0 20 40 60 80 100 120 140 Agriculture etc Trade Real estate Other industries Retail clients DKKm Q3 2025 Q4 2025 Q1 2026 Q2 2026 Impairment charges in DKKm Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Agriculture etc 24 19 122 8 8 Trade -13 -6 25 31 -3 Real estate -4 9 9 -1 25 Other industries 75 6 0 43 56 Total corporate lending 82 28 156 81 86 Retail clients -20 -10 26 -24 8 Total 62 18 182 57 94 Quarterly impairment charges
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Investment Portfolio Earnings Key Points • Investment portfolio earnings in H1 2026: DKK 126m • Investment portfolio earnings for 12M 2025: 158m • The return on strategic positions amounted to DKK 52m in Q2 compared to a loss of DKK 72m in Q1 25 August 2026AL Sydbank12 Investment portfolio earnings 33 4 24 15 38 81 -8 134 -15 5 25 45 65 85 105 125 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 DKKm Invest. port. earnings in DKKm Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Position-taking 4 3 0 1 11 Liquidity generation and reserves 16 33 11 66 74 Strategic positions -3 3 72 -73 52 Costs -2 -1 -2 -2 -2 Total 15 38 81 -8 134
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Income Statement ROTE of 13,3% in H1 2026 Key Points Q2 2026 vs Q1 2026: • Total income amounted to DKK 3,101m compared with DKK 3,005m in Q1 2026 • Profit before tax amounted to DKK 1,274m compared to DKK 1,043m in Q1 2026. Notable items in H1 2026: • Profit for the period is affected by integration costs of DKK 256m and a costumer service surcharge to BEC of DKK 120m. 25 August 2026AL Sydbank13 Income statement in DKKm H1 2026 H1 2025 Index Q2 2026 Q1 2026 Index Core income 5,921 3,335 178 2,996 2,925 102 Trading income 185 127 146 105 80 131 Total income 6,106 3,462 176 3,101 3,005 103 Costs, core earnings 3,487 1,765 198 1,732 1,755 99 Core earnings before impairment 2,619 1,697 154 1,369 1,250 110 Impairment of loans and advances etc 151 97 - 94 57 - Core earnings 2,468 1,600 154 1,275 1,193 107 Investment portfolio earnings 126 39 - 134 -8 - Profit before non-recurring items 2,594 1,639 158 1,409 1,185 119 Non-recurring items, net -277 -23 - -135 -142 - Profit before tax 2,317 1,616 143 1,274 1,043 122 Tax 556 404 138 316 240 132 Profit for the period 1,761 1,212 145 958 803 119 Costs (core earnings) / total income, C/I 0.57 0.51 0.56 0.58 Return on equity, ROE full-year basis 13.3 17.1 14.6 11.8 Earnings per share, EPS 20.0 23.3 11.0 9.0
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Loans/advances and Deposits Continued growth Loans/advances – up by DKK 3.4bn in H1 2026 25 August 2026AL Sydbank14 Deposits – up by DKK 10.1bn in H1 2026 79.2 82.5 82.5 81.3 82.7 83.3 49.7 51.0 52.8 53.9 54.3 56.2 128.9 133.5 135.3 135.2 137.0 139.4 140.3 142.4 143.7 0 40 80 120 160 200 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 DKKbn. Sydbank AL Group AL Sydbank 111.6 114.8 116.7 118.1 121.8 119.1 80.7 80.1 80.5 82.4 85.2 87.4 192.3 194.9 197.2 200.5 207.0 206.5 209.3 212.9 219.4 0 40 80 120 160 200 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 DKKbn Sydbank AL Group AL Sydbank
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Credit Facilities to Corporate Clients Key Points Q2 2026 vs Q1 2026 • Lending to corporate clients before impairment charges is unchanged • Undrawn facilities down by DKK 2.1bn 25 August 2026AL Sydbank15 68.6 69.4 69.4 93.3 94.3 94.3 44.8 43.5 43.4 75.0 74.2 72.1 0 40 80 120 160 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 DKKbn Loans before impairment charges Undrawn facilities Credit facilities to corporate clients
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Total Credit Intermediation Up by DKK 1.3bn in Q2 2026 Key Points • Corporate clients: total credit intermediation, including DLR, up by DKK 0,5bn • Retail clients: total credit intermediation – by way of loans and advances, funded mortgage-like loans and distributed mortgage loans from Totalkredit – up by DKK 1.2bn 25 August 2026AL Sydbank16 Change Total credit intermediation in DKKbn Q4 2024 Q4 2025 Q1 2026 Q2 2026 Q2 Bank loans - retail 14.2 48.7 49.5 51.2 1.7 Bank loans - corporate 68.3 91.6 92.4 92.4 0.0 Bank loans - public authorities 0.0 0.0 0.5 0.1 -0.4 Bank loans and advances 82.5 140.3 142.4 143.7 1.3 Funded mortgage-like loans 3.5 2.6 2.4 2.3 -0.1 Bank loans and funded mortgage-like loans 86.0 142.9 144.8 146.0 1.2 Distributed mortgage loans - Totalkredit 87.3 200.8 201.4 201.0 -0.4 Distributed mortgage loans - DLR 15.7 40.3 41.1 41.6 0.5 Total 189.1 384.0 387.3 388.6 1.3
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Capital Ratio Increase since year-end 2025 • The capital ratio was 19.5 at end-Q2 2026, compared with 19.2 at year-end 2025 • The initiated share buyback programme of DKK 1,100m has been deducted in H1 2026 • At 30 June 2026 shares totalling DKK 449m had been repurchased • DKK 2.4bn decrease in REA since year-end 2025 25 August 2026AL Sydbank17 DKKm Q4 2024 Q4 2025 Q1 2026 Q2 2026 Credit risk 40,721 91,853 90,019 91,713 Market risk 6,023 11,539 9,327 9,427 Operational risk 11,934 19,975 19,975 19,975 Other exposures incl CVA 6,536 14,650 15,159 14,469 Risk exposure amount 65,214 138,017 134,480 135,584 CET1 capital 11,635 21,780 21,130 21,701 Tier 1 capital 12,381 23,625 22,846 23,405 Total capital 13,936 26,490 25,725 26,373 CET1 ratio 17.8 15.8 15.7 16.0 Tier 1 capital ratio 19.0 17.1 17.0 17.3 Capital ratio 21.4 19.2 19.1 19.5 Individual solvency need 9.8 9.3 9.2 9.2 19.5 0.1 0.3 0.6 1.3 0.7 0.7 0.8 19.2 18.0 18.5 19.0 19.5 Capital ratio 30 Jun 2026 Deductions etc Decrease in REA Profit not included Profit Redemption of AT1 and Tier 2 Issuance of Tier 2 Share buyback DKK 1,100m Capital ratio 31 Dec 2025 Capital ratio development in 2026 DKKm Q4 2024 Q4 2025 Q1 2026 Q2 2026 Corporate, IRB 30,472 34,133 33,699 33,589 Retail, IRB 7,787 6,578 6,727 7,162 Corporate, STD 211 16,389 15,975 17,236 Retail, STD 1,307 32,730 31,982 31,671 Creditinstitutions etc. 944 2,023 1,637 2,055 Total credit risk 40,721 91,853 90,019 91,713
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Outlook 2026 25 August 2026AL Sydbank18 Growth is projected for the Danish economy Profit after tax is now expected to be at the top half of the range of DKK 3,500-4,000m The outlook is subject to uncertainty and depends, inter alia, on financial market developments, interest rate developments, pig settlement prices, integration costs and macroeconomic factors which may affect customer activity and the level of impairment charges.
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AI strengthens our core business We are building a more efficient bank without compromising our close relationships with customers. 1 Relationships AI should make it easier for advisers to stay close to customers through faster responses, better insights and more relevant dialogue. 2 Decisions AI should strengthen decision-making through better use of data, knowledge, analyses and documentation. 3 Workflows AI should free up capacity and improve quality by reducing manual work and rethinking key processes. AI vision AI should strengthen customer relationships, improve decision- making and optimise workflows. Management principle Think big. Start small. Scale responsibly. We transform AI into measurable customer value and efficiency – on a shared and responsible foundation – with people at the centre. 19 AL Sydbank 25 August 2026
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From individual solutions to a scalable AI capability Our AI efforts are evolving from standalone solutions into a shared capability that can be scaled responsibly across the Bank IN OPERATION Proven use cases Several solutions are already delivering value in internal and external workflows. Customer-facing AI Support on the Bank's website Speech-to-text Automated summaries and meeting minutes Meeting preparation A consolidated adviser overview ahead of customer meetings Internal chatbot Rapid access to the Bank's expertise AI agents Decision support in asset management From AI in operation to AI at scale. Stronger customer experiences. Higher productivity. The same personal relationship. 20 AL Sydbank 25 August 2026 NEXT PHASE AI as a shared capability Four focus areas will establish AI as an organisational capability, not merely a portfolio of solutions. 01 AI in use Everyday and responsible use by managers and employees 02 Capabilities Competences, platform, governance, prioritisation and agent orchestration 03 AI by design Future processes designed with AI from the outset 04 AI re-design Existing processes are optimised using AI
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Forward Looking Statements 25 August 2026AL Sydbank21 This presentation contains forward-looking statements, including statements relating to future earnings and anticipated developments. Such statements are inherently subject to risks and uncertainties, and a number of factors, some of which are beyond AL Sydbank’s control, may cause actual results and developments to differ materially from those expressed or implied in these statements.
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25 August 2026AL Sydbank22