Interim report
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AL SYDBANK – INTERIM REPORT – FIRST HALF 2026 2/50 AL Sydbank maintains momentum in Q2 AL Sydbank’s half-year report shows that the positive trend from Q1 has been sustained and strengthened in several areas. Profit has improved, lending has increased and the amalgamation of the organisation is proceeding as planned. At the same time, the Bank has delivered a higher return on equity. AL Sydbank continues to build on the momentum established in Q1. Profit for the half-year after tax represented DKK 1.8bn, equalling a return on tangible equity of 13.3% after tax. Bank loans and advances increased by DKK 3.4bn – equivalent to 2.4% – in H1 2026 and constituted DKK 143.7bn at the end of the period. Deposits rose by DKK 10.1bn in the same period and now amount to DKK 219.4bn. “AL Sydbank continues to build on the momentum generated in Q1. The business continues to perform well, driven in particular by positive developments among retail customers in the housing finance and investment segments. At the same time, efforts to realise cost synergies are progressing according to plan. In H1 2026, we achieved cost synergies of DKK 175m. This has resulted in a strong half-year performance and a robust capital position. We are firmly on track,” says Mark Luscombe, CEO of AL Sydbank. Macroeconomic developments remain subject to uncertainty. Geopolitical tension, financial market trends and interest rate developments may affect customer activity, the demand for financing as well as the level of impairment charges. The Danish economy is still considered fundamentally robust with high employment and moderate growth prospects. “It is crucial that AL Sydbank maintains strong customer proximity while leveraging the scale advantages provided by the merger. The first six months show that the Bank is well capitalised, has strong earnings power and can drive progress during a demanding integration period. This provides a solid basis for the further development of the Bank for the benefit of customers, employees, local communities and shareholders”, says Ellen Trane Nørby, Chair of the Board of Directors of AL Sydbank. Integration and development with customers at the centre The efforts to bring AL Sydbank together as one bank continued in Q2 2026. During the half-year, we merged 52 branches in towns and cities with more than one branch, bringing the number of branches at the end of Q2 to 88 branches in Denmark and three branches in Germany. We still have branches in all the towns and cities where we were present at the time of the merger. The work preparing for the transition to Bankdata in 2027 is also progressing as expected. This takes place in a structured process with focus on mitigating complexity, ensuring good client-facing solutions and creating an efficient and scalable bank. “The integration of three banks is a substantial and complex task and we have made a good start. We have remained focused on customers while working to create a common culture and a stronger foundation for the future AL Sydbank. The ambition is still to combine the opportunities of a major bank with the local presence that is characteristic of our customer relationships”, says Mark Luscombe. Outlook for 2026 • 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, among other factors, 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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AL SYDBANK – INTERIM REPORT – FIRST HALF 2026 3/50 H1 2026 – highlights • Profit for the period of DKK 1,761m equals a retur n on tangible equity of 13.3% p.a. after tax • Core income of DKK 5,921m is 78% higher compared t o the same period in 2025 • Trading income of DKK 185m compared to DKK 127m in the same period in 2025 • Costs (core earnings) of DKK 3,487m against DKK 1, 765m in the same period in 2025 • Core earnings before impairment of DKK 2,619m are 54% higher compared to the same period in 2025 • Impairment charges for loans and advances etc repr esent an expense of DKK 151m • Bank loans and advances have gone up by DKK 3.4bn, equal to an increase of 2.4% compared to year-end 2025 • The CET1 ratio is 16.0% compared to 15.8% at year- end 2025
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AL SYDBANK – INTERIM REPORT – FIRST HALF 2026 4/50 Contents Group Financial Highlights ........................................................................................................................................................................... 5 Highlights ................................................................................................................................................................................................................. 6 Financial Review – Performance in H1 2026 .................................................................................................................................. 8 Income Statement ........................................................................................................................................................................................... 16 Statement of Comprehensive Income ............................................................................................................................................... 16 Balance Sheet ................................................................................................................................................................................................... 17 Financial Highlights – Quarterly ............................................................................................................................................................. 18 Financial Highlights – Half-yearly ......................................................................................................................................................... 19 Statement of Changes in Equity ............................................................................................................................................................ 20 Capital Statement ............................................................................................................................................................................................ 21 Cash Flow Statement ................................................................................................................................................................................... 22 Segment Reporting etc ................................................................................................................................................................................ 23 Notes ....................................................................................................................................................................................................................... 25 Notes ....................................................................................................................................................................................................................... 26 Management Statement ............................................................................................................................................................................. 49 Supplementary Information ...................................................................................................................................................................... 50
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AL SYDBANK – INTERIM REPORT – FIRST HALF 2026 5/50 Group Financial Highlights H1 H1 2025 Index Q2 Q2 Full year 2026 26/25 2026 2025 2025 Income statement (DKKm) Core income 5,921 3,335 178 2,996 1,635 7,174 Trading income 185 127 146 105 63 256 Total income 6,106 3,462 176 3,101 1,698 7,430 Costs, core earnings 3,487 1,765 198 1,732 884 3,715 Core earnings before impairment 2,619 1,697 154 1,369 814 3,715 Impairment of loans and advances etc 151 97 - 94 62 297 Core earnings 2,468 1,600 154 1,275 752 3,418 Investment portfolio earnings 126 39 - 134 15 158 Profit before non -recurring items 2,594 1,639 158 1,409 767 3,576 Non-recurring items, net (277) (23) - (135) (10) (1,102) Profit before tax 2,317 1,616 143 1,274 757 2,474 Tax 556 404 138 316 190 581 Profit for the period 1,761 1,212 145 958 567 1,893 Balance sheet highlights (DKKbn) Loans and advances at amortised cost 143.7 82.7 174 143.7 82.7 140.3 Loans and advances at fair value 22.7 21.8 104 22.7 21.8 21.6 Deposits and other debt 219.4 121.8 180 219.4 121.8 209.3 Bonds issued at amortised cost 25.5 11.2 228 25.5 11.2 21.5 Subordinated capital 3.6 2.2 164 3.6 2.2 3.5 AT1 capital 1.7 1.6 106 1.7 1.6 1.8 Shareholders’ equity 34.9 14.3 244 34.9 14.3 35.8 Total assets 361.0 197.9 182 361.0 197.9 342.0 Financial ratios per share (DKK per share of DKK 10) EPS 20.0 23.3 11.0 10.9 34.8 Share price at end of period 576.0 469.8 576.0 469.8 570.0 Book value 410.1 285.2 410.1 285.2 416.8 Book value (tangible equity) 307.0 278.3 307.0 278.3 314.3 Share price/book value 1.40 1.65 1.40 1.65 1.37 Share price/book value (tangible equity) 1.88 1.69 1.88 1.69 1.81 Average number of shares outstanding (in millions) 8 5.5 50.8 85.2 50.5 52.3 Dividend per share - - - - 25.00 Other financial ratios and key figures CET1 ratio 16.0 16.7 16.0 16.7 15.8 T1 capital ratio 17.3 19.1 17.3 19.1 17.1 Capital ratio 19.5 21.5 19.5 21.5 19.2 Pre-tax profit as % p.a. of average tangible equity 17.7 22.9 19.5 21.4 15.9 Post-tax profit as % p.a. of average tangible equity 13.3 17.1 14.6 15.9 12.1 Pre-tax profit as % p.a. of average equity 13.2 22.4 14.6 20.8 14.9 Post-tax profit as % p.a. of average equity 9.9 16.7 10.9 15.5 11.3 Costs (core earnings) as % of total income 57.1 51.0 55.9 52.1 50.0 Return on assets (%) 0.5 0.6 0.3 0.3 0.7 Interest rate risk 0.5 0.6 0.5 0.6 1.1 Foreign exchange position 0.8 1.2 0.8 1.2 0.6 Foreign exchange risk 0.0 0.0 0.0 0.0 0.0 Liquidity, LCR (%) 279 243 279 243 271 Loans and advances relative to deposits 0.5 0.6 0.5 0.6 0.6 Loans and advances relative to equity 4.1 5.8 4.1 5.8 3.9 Growth in loans and advances during the period 2.4 0.1 0.9 1.7 70.0 Total large exposures 82 119 82 119 72 Accumulated impairment ratio 1.5 2.2 1.5 2.2 1.5 Impairment ratio for the period 0.09 0.10 0.05 0.06 0.20 Number of full-time staff at end of period 3,888 2,149 181 3,888 2,149 4,231 When calculating financial ratios AT1 capital is considered a liability regardless of the fact that it is accounted for as equity. Reference is made to financial ratio definitions in the 2025 Annual Report (page 139). Comparative fig ures for previous years have not been restated.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 6 / 5 0 Highlights AL Sydbank was established in December 2025 as a result of the merger of Sydbank, Arbejdernes Landsbank and Vestjysk Bank. AL Sydbank’s results for H1 2026 comprise the results for the merged entity, AL Sydbank. Comparative figures for the income statement concern Sydbank’s activities up to the merger and are thus not compatible. The balance sheet is a consolidated balance sheet for AL Sydbank at 30 June 2026 and includes all assets, liabilities and equity items in respect of the entire group after the merger was implemented. Comparative figures for previous periods have not been restated. AL Sydbank’s financial statements for H1 2026 show a profit before tax of DKK 2,317m compared with DKK 1,616m in the same period in 2025. Profit before tax equals a return of 17.7% p.a. on average tangible equity. Profit before tax shows an increase of DKK 701m, which is mainly attributable to a rise in core income of DKK 2,586m set off against a rise in costs (core earnings) of DKK 1,722m and an increase in non- recurring costs of DKK 254m. Core income constitutes DKK 5,921m compared to DKK 3,335m in the same period in 2025 – an increase of DKK 2,586m, equivalent to 78%. The increase is attributable to the merger. Core income is in line with the expectations presented in the 2025 Annual Report. Trading income in H1 2026 constituted DKK 185m compared with DKK 127m in the same period in 2025. Total income represents DKK 6,106m for H1 2026 – an increase of DKK 2,644m, equivalent to 76% compared to the same period in 2025. Costs (core earnings) constituted DKK 3,487m in H1 2026 – an increase of DKK 1,722m compared to the same period in 2025. The increase is attributable to the merger. Costs (core earnings) are in line with the expectations presented in the 2025 Annual Report. Core earnings before impairment total DKK 2,619m for H1 2026 – an increase of DKK 922m, equivalent to 54% compared to the same period in 2025. Impairment charges for loans and advances represent an expense of DKK 151m compared with an expense of DKK 97m in the same period in 2025. Core earnings for H1 2026 represent DKK 2,468m – an increase of DKK 868m compared with the same period in 2025. Non-recurring items etc constitute a cost of DKK 277m compared to a cost of DKK 23m in the same period in 2025. Profit for the period before tax represents DKK 2,317m compared to DKK 1,616m in 2025 – an increase of DKK 701m. Tax represents DKK 556m, equal to an effective tax rate of 24.0%. Profit for the period amounts to DKK 1,761m compared with DKK 1,212m in the same period in 2025, equal to a return of 13.3% p.a. on average tangible equity. Profit in H1 2026 is on a par with the expectations presented in the 2025 Annual Report. H1 2026 performance Net interest income has risen by DKK 1,564m to DKK 3,413m, equal to an increase of 85% compared to the same period in 2025. The increase is attributable to the merger. Total core income has risen by DKK 2,586m to DKK 5,921m, equal to 78% compared with the same period in 2025. Trading income constituted DKK 185m in 1H 2026 compared with DKK 127m in the same period in 2025. Total income has increased by DKK 2,644m to DKK 6,106m. Costs (core earnings) have gone up by DKK 1,722m to DKK 3,487m. Core earnings before impairment for 1H 2026 represent DKK 2,619m – an increase of DKK 922m equal to 54% compared with the same period in 2025. Impairment charges for loans and advances represent an expense of DKK 151m compared with an expense of DKK 97m in the same period in 2025. Core earnings for H1 2026 constitute DKK 2,468m – an increase of DKK 868m compared with the same period in 2025. Together the Group’s position-taking and liquidity handling generated an income of DKK 126m in H1 2026 compared to earnings of DKK 39m in the same period in 2025. Non-recurring items etc constitute a cost of DKK 277m compared to a cost of DKK 23m in the same period in 2025. Of this DKK 256m is attributable to costs concerning the merger.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 7 / 5 0 Profit before tax for H1 2026 amounts to DKK 2,317m compared with DKK 1,616m in 2025. Tax represents DKK 556m, equal to an effective tax rate of 24.0%. Profit for the period amounts to DKK 1,761m compared with DKK 1,212m in 2025. Return on shareholders’ tangible equity before and after tax constitutes 17.7% and 13.3% respectively against 22.9% and 17.1% respectively in the same period in 2025. Bank loans and advances Bank loans and advances totalled DKK 143.7bn at 30 June 2026. Compared to 31 December 2025 this is an increase of DKK 3.4bn. Bank loans and advances (DKKbn) 30 Jun 2026 31 Dec 2025 30 Jun 2025 Corporate clients 92.4 91.6 67.6 Retail clients 51.2 48.7 15.1 Public authorities 0.1 0.0 0.0 Total 143.7 140.3 82.7 Bank loans and advances to corporate clients represent DKK 92.4bn – an increase of DKK 0.8bn in H1 2026. Bank loans and advances to retail clients represent DKK 51.2bn – an increase of DKK 2.5bn in H1 2026. Credit facilities to corporate clients (DKKbn) 30 Jun 2026 31 Dec 2025 30 Jun 2025 Drawn facilities = loans/advances before impairment charges 94.3 93.3 69.4 Undrawn facilities 72.1 75.0 43.5 Total 166.4 168.3 112.9 Credit facilities to corporate clients fell by DKK 1.9bn to DKK 166.4bn in H1 2026. During H1 2026 corporate clients drew a further DKK 1bn under their credit facilities. Credit intermediation In addition to traditional bank loans and advances, the Group distributes mortgage loans from Totalkredit and DLR Kredit. The Group’s total credit intermediation comprises bank loans and advances, mortgage-like loans funded by Totalkredit as well as mortgage loans distributed through Totalkredit and DLR Kredit. Total credit intermediation (DKKbn) 30 Jun 2026 31 Dec 2025 30 Jun 2025 Bank loans and advances 143.7 140.3 82.7 Funded mortgage-like loans 2.3 2.6 3.0 Distributed mortgage loans – Totalkredit 201.0 200.8 89.1 Distributed mortgage loans – DLR 41.6 40.3 15.8 Total 388.6 384.0 190.6 The Group’s total credit intermediation represents DKK 388.6bn – an increase of DKK 4.6bn compared to year-end 2025. The change is attributable to a rise in bank loans and advances of DKK 3.4bn, a decline in funded mortgage-like loans of DKK 0.3bn and an increase in distributed mortgage loans of DKK 1.5bn. Outlook for 2026 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, among other factors, on financial market developments, interest rate developments, pig settlement prices, integration costs and macroeconomic factors that may affect customer activity and the level of impairment charges.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 8 / 5 0 Financial Review – Performance in H1 2026 The AL Sydbank Group has recorded a profit before tax of DKK 2,317m compared to DKK 1,616m in 2025. Profit before tax equals a return of 17.7% p.a. on average tangible equity. Profit for the period after tax represents DKK 1,761m compared with DKK 1,212m in 2025, equal to a return of 13.3% p.a. on average tangible equity. The financial statements are characterised by the following: • A rise in core income of DKK 2,586m, equal to 78% • An increase in trading income of DKK 58m • A rise in costs (core earnings) of DKK 1,722m • Impairment charges for loans and advances represent an expense of DKK 151m • A rise in core earnings of DKK 868m to DKK 2,468m • Investment portfolio earnings of DKK 126m • Non-recurring items etc represent a cost of DKK 277m • Bank loans and advances of DKK 143.7bn (year-end 2025: DKK 140.3bn) • Bank deposits of DKK 219.4bn (year-end 2025: DKK 209.3bn) • A CET1 ratio of 16.0% (year-end 2025: 15.8%) • An individual solvency need of 9.2% (year-end 2025: 9.3%) Income statement – H1 (DKKm) 2026 2025 Core income 5,921 3,335 Trading income 185 127 Total income 6,106 3,462 Costs, core earnings 3,487 1,765 Core earnings before impairment 2,619 1,697 Impairment of loans and advances etc 151 97 Core earnings 2,468 1,600 Investment portfolio earnings 126 39 Profit before non-recurring items 2,594 1,639 Non-recurring items, net (277) (23) Profit before tax 2,317 1,616 Tax 556 404 Profit for the period 1,761 1,212 Core income Total core income has risen by DKK 2,586m or 78% to DKK 5,921m. The increase is attributable to the merger. Net interest income has gone up by DKK 1,564m to DKK 3,413m. The increase is attributable to the merger. Net income from the cooperation with Totalkredit represents DKK 547m (2025: DKK 247m) after a set- off of loss of DKK 6m (2025: DKK 5m). The increase is attributable to the merger. The cooperation with DLR Kredit has generated an income of DKK 85m (2025: DKK 53m). The increase is attributable to the merger. Total mortgage credit income represents DKK 632m – an increase of DKK 331m compared to 2025. Income from commission etc concerning investment funds and pooled pension plans has gone up by DKK 194m to DKK 367m. The increase is attributable to the merger. The remaining income components have risen by DKK 497m – an increase of 49% compared with the same period in 2025. Core income – H1 (DKKm) 2026 2025 Net interest etc 3,413 1,849 Mortgage credit 632 301 Payment services 231 135 Remortgaging and loan fees 148 91 Commission and brokerage 367 267 Commission etc investment funds and pooled pension plans 367 173 Asset management 326 250 Custody account fees 75 54 Other operating income 362 215 Total 5,921 3,335 Trading income Trading income represents DKK 185m against DKK 127m in the same period in 2025. Trading income is considered satisfactory. Costs and depreciation The Group’s costs and depreciation total DKK 3,768m – an increase of DKK 1,977m compared to the same period in 2025. The increase is attributable to the merger.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 9 / 5 0 Costs and depreciation – H1 (DKKm) 2026 2025 Staff costs 2,096 1,037 Other administrative expenses 1,464 688 Amortisation/depreciation and impairment of intangible assets and property, plant and equipment 154 65 Other operating expenses 54 1 Total 3,768 1,791 Distributed as follows: Costs, core earnings 3,487 1,765 Costs, investment portfolio earnings 4 4 Non-recurring costs 277 23 Costs (core earnings) represent DKK 3,487m against DKK 1,765m in the same period in 2025. The increase is attributable to the merger. At 30 June 2026 the Group’s staff numbered 3,888 compared to 2,149 at 30 June 2025 and 4,231 at 31 December 2025. Compared to year-end 2025 the number of branches has been reduced by 52, bringing the number of branches to 88 in Denmark and 3 in Germany at end- June 2026. Core earnings before impairment of loans and advances Core earnings before impairment charges for loans and advances represent DKK 2,619m – an increase of DKK 922m or 54% compared to the same period in 2025. Impairment of loans and advances etc Impairment charges for loans and advances represent an expense of DKK 151m compared with an expense of DKK 97m in the same period in 2025. At 30 June 2026 the Group maintained its management estimate of DKK 500m to hedge macroeconomic uncertainty where DKK 400m concerns corporate clients, including agricultural clients, and DKK 100m concerns retail clients. The management estimate regarding macroeconomic uncertainty covers eg potential losses related to global energy supply challenges and a continued protectionist line in the US that could lead to economic recession in both the US and Europe. Such a development would also impact the Danish economy where particularly export businesses would be hit by lower international demand resulting 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 portfolios acquired. Management estimates represent a total of DKK 985m. The chart below shows impairment charges for loans and advances in the last 4 quarters as regards agriculture etc, trade, real estate, other industries as well as retail clients. Impairment charges – quarterly At 30 June 2026 accumulated impairment and provisions amounted to DKK 2,559m (year-end 2025: DKK 2,466m). In H1 2026 reported losses amounted to DKK 128m (H1 2025: DKK 19m). Of the reported losses an impairment charge of DKK 28m has previously been recorded (H1 2025: DKK 14m). The impairment ratio for the period represented 0.09% relative to bank loans and advances and guarantees at 30 June 2026. Impairment charges are recorded for expected credit losses as regards all financial assets measured at amortised cost and similar provisions are made for expected credit losses as regards undrawn credit commitments and financial guarantees. Impairment charges for expected credit losses depend on whether the credit risk of a financial asset has increased significantly since initial recognition and follow a 3-stage model. The portfolios in stage 3 acquired from Arbejdernes Landsbank and Vestjysk Bank are recognised under “credit impaired at initial recognition”: -40 -20 0 20 40 60 80 100 120 140 Landbrug m.m Handel Fast ejendom Øvrige erhverv Privat DKKm Q3 2025 Q4 2025 Q1 2026 Q2 2026
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 0 / 5 0 Stage 1 – facilities with no significant increase in credit risk. The asset is written down by an amount equal to the expected credit loss as a result of the probability of default over the coming 12 months. Stage 2 – facilities with a significant increase in credit risk. The asset is transferred to stage 2 and is written down by an amount equal to the expected credit loss over the life of the asset. Stage 3 – facilities where the financial asset is in default or is otherwise credit impaired. Credit impaired at initial recognition (POCI) – facilities which were credit impaired at the time of the merger with the Arbejdernes Landsbank Group. They are recognised on acquisition at the fair value of the debt acquired. The Group’s loans and advances and impairment charges at 30 June 2026 allocated to these stages are shown below. Loans and advances and impairment charges Stage 1 Stage 2 Stage 3 POCI Total 30 Jun 2026 (DKKm) Loans/advances before impairment charges 132,044 10,047 2,463 1,398 145,952 Impairment charges 504 539 1,214 2,257 Total loans/advances 131,540 9,508 1,249 1,398 143,695 30 Jun 2026 (%) Impairment charges as % of bank loans/advances 0.4 5.4 49.3 - 1.5 Share of bank loans/advances before impairment charges (%) 90.4 6.9 1.7 1.0 100.0 Share of bank loans/advances after impairment charges (%) 91.5 6.6 0.9 1.0 100.0 Credit impaired bank loans and advances – stage 3 – represent 1.7% (year-end 2025: 1.1%) of total bank loans and advances before impairment charges and 0.9% (year-end 2025: 0.4%) of total bank loans and advances after impairment charges. Impairment charges concerning credit impaired bank loans and advances as a percentage of credit impaired bank loans and advances at 30 June 2026 stand at 49.3% (year-end 2025: 65.4%). Core earnings Core earnings for H1 2026 represent DKK 2,468m – an increase of DKK 868m compared with the same period in 2025. Investment portfolio earnings Together the Group’s position-taking and liquidity handling generated an income of DKK 126m in H1 2026 compared to earnings of DKK 39m in the same period in 2025. Investment portfolio earnings – H1 (DKKm) 2026 2025 Position-taking 12 0 Liquidity generation and liquidity reserves 140 40 Strategic positions (21) 3 Costs (4) (4) Total 126 39 The interest rate risk was positive at the end of H1 2026 and the Group would suffer a loss in the event of interest rate increases. In terms of the Group’s bond portfolios – including cash resources – the interest rate risk is considered to be modest. Non-recurring items, net Non-recurring items represent a cost of DKK 277m compared with a cost of DKK 23m in H1 2025. In H1 2026, DKK 256m was recognised as costs related to the merger, mainly staff costs and premises costs, as well as DKK 21m in connection with the housing loan processes and the development of the bank/insurance partnership. Profit for the period Profit before tax for H1 2026 amounts to DKK 2,317m compared with DKK 1,616m in 2025. Tax represents DKK 556m, equal to an effective tax rate of 24.0%. Profit for the period amounts to DKK 1,761m compared with DKK 1,212m in H1 2025. Return Return on shareholders’ tangible equity after tax constitutes 13.3% against 17.1% in H1 2025. Earnings per share stands at DKK 20.0 compared with DKK 23.3 in H1 2025. Subsidiaries Profit after tax of the subsidiaries represents DKK 48m (H1 2025: DKK 27m).
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 1 / 5 0 Group – Q2 2026 compared with Q1 2026 The Group’s profit before tax for the quarter represents DKK 1,274m (Q1: DKK 1,043m). Compared to Q1 2026 profit before tax reflects: • A rise in core income of DKK 71m • An increase in trading income of DKK 25m • A decline in costs (core earnings) of DKK 23m • Impairment charges for loans and advances: an expense of DKK 94m (Q1: expense of DKK 57m) • Investment portfolio earnings of DKK 134m (Q1: loss of DKK 8m). The comparison covers the first two quarters following the merger of Sydbank, Arbejdernes Landsbank and Vestjysk Bank. Quarterly results Q2 Q1 Q4 Q3 Q2 Q1 (DKKm) 2026 2026 2025 2025 2025 2025 Core income 2,996 2,925 2,188 1,651 1,635 1,700 Trading income 105 80 52 77 63 64 Total income 3,101 3,005 2,240 1,728 1,698 1,764 Costs, core earnings 1,732 1,755 1,139 811 884 881 Core earnings before impairment 1,369 1,250 1,101 917 814 883 Impairment of loans and advances etc 94 57 182 18 62 35 Core earnings 1,275 1,193 919 899 752 848 Investment portfolio earnings 134 (8) 81 38 15 24 Profit before non-recurring items 1,409 1,185 1,000 937 767 872 Non-recurring items, net (135) (142) (1,070) (9) (10) (13) Profit before tax 1,274 1,043 (70) 928 757 859 Tax 316 240 (41) 218 190 214 Profit for the period 958 803 (29) 710 567 645
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 2 / 5 0 Total assets At 30 June 2026 the Group’s total assets made up DKK 361.0bn (year-end 2025: DKK 342.0bn). Assets (DKKbn) 30 Jun 2026 31 Dec 2025 Amounts owed by credit institutions etc 47.9 33.6 Loans and advances at fair value (reverse transactions) 22.7 21.6 Loans and advances at amortised cost (bank loans and advances) 143.7 140.3 Securities and holdings etc 73.9 77.1 Assets related to pooled plans 51.4 48.3 Intangible assets 9.1 9.1 Other assets etc 12.3 12.0 Total 361.0 342.0 The Group’s bank loans and advances totalled DKK 143.7bn at 30 June 2026. Compared to year-end 2025 this is an increase of DKK 3.4bn. Equity and liabilities (DKKbn) 30 Jun 2026 31 Dec 2025 Amounts owed to credit institutions etc 7.2 5.8 Deposits and other debt 219.4 209.3 Deposits in pooled plans 51.4 48.3 Bonds issued 25.5 21.5 Other liabilities etc 16.1 14.8 Provisions 1.2 1.2 Subordinated capital 3.6 3.5 Equity 36.6 37.6 Total 361.0 342.0 The Group’s deposits make up DKK 219.4bn – an increase of DKK 10.1bn compared to year-end 2025. Equity At 30 June 2026 shareholders’ equity constituted DKK 34,841m – a decrease of DKK 918m since the beginning of the year. The change comprises the addition from comprehensive income for the period of DKK 1,722m, net purchases of own shares etc of DKK 443m, dividend paid of DKK 2,158m as well as other transactions of -DKK 39m. Capital The Bank announced a new share buyback programme of DKK 1,100m on 25 February 2026. The share buyback is made in line with the Bank’s aim to optimise the capital structure in accordance with the Bank’s capital targets and capital policy. The share buyback programme was initiated on 2 March 2026 and will be completed by 31 January 2027. At 30 June 2026 shares totalling DKK 449m had been repurchased. In Q1 2026 the Group redeemed 2 SNP loans from the portfolio acquired in connection with the merger of SEK 250m and SEK 800m respectively as well as AT1 capital from the acquired portfolio of Vestjysk Bank of DKK 46m and DKK 50m. In Q2 2026 the Group issued T2 capital equivalent to approx DKK 1.0bn (SEK 1,250m and NOK 250m) for the refinancing of existing T2 capital of DKK 900m which was redeemed in May 2026. In addition, the Group issued SNP capital totalling EUR 500m, SEK 600m and NOK 1,000m in Q2. The issues support the planned refinancing of the expected redemptions of SNP capital of DKK 1.0bn and EUR 500m in September 2026. The Group continues to be well capitalised following these redemptions. Risk exposure amount The risk exposure amount (REA) constitutes DKK 135.6bn – a decline of DKK 2.4bn compared to year- end 2025. Risk exposure amount (DKKbn) 30 Jun 2026 31 Dec 2025 Credit risk 91.7 91.9 Market risk 9.4 11.5 Operational risk 20.0 20.0 Other exposures, incl CVA 14.5 14.6 Total 135.6 138.0 Solvency Solvency (DKKm) 30 Jun 2026 31 Dec 2025 REA 135,584 138,017 CET1 capital 21,701 21,780 T1 capital 23,405 23,625 Total capital 26,373 26,490 CET1 ratio 16.0 15.8 T1 capital ratio 17.3 17.1 Capital ratio 19.5 19.2 At 30 June 2026 the CET1 ratio and the capital ratio stood at 16.0% and 19.5% respectively compared to 15.8% and 19.2% respectively at year-end 2025. The development in the capital ratio in H1 2026 is shown below.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 3 / 5 0 Capital ratio in H1 2026 In H1 2026 the capital ratio went up by 0.3pp to 19.5%. The increase is mainly attributable to the profit for the period and set off against the initiated share buyback programme of DKK 1,100m and a decline in REA. At 30 June 2026 the individual solvency need represented 9.2% (31 December 2025: 9.3%). Solvency of the parent At 30 June 2026 the CET1 ratio and the capital ratio of the parent stood at 15.8% and 19.2% respectively (31 December 2025: 15.6% and 19.0%). Capital and solvency and capital requirements The Group’s capital policy consistently supports the Group’s strategy and at the same time takes into account AL Sydbank’s status as a SIFI as well as full implementation of capital regulations. The Group’s capital targets are a CET1 ratio of around 14.5%, a T1 capital ratio of around 16.0% and a capital ratio of around 18.5%. The capital targets have been set to ensure that the Group complies with all capital requirements, including buffer requirements. At end-June 2026, the individual solvency need represented 9.2%. The solvency need consists of a minimum capital requirement of 8% under Pillar I and a capital add-on under Pillar II. Approximately 56% of the solvency need must be covered by CET1 capital, equal to 5.2% of the risk exposure amount. In addition to the solvency need, the Group must meet a combined buffer requirement of 6.6% at 30 June 2026. Capital and solvency and capital requirements (% of REA) 30 Jun 2026 31 Dec 2025 Capital and solvency CET1 ratio 16.0 15.8 T1 capital ratio 17.3 17.1 Capital ratio 19.5 19.2 Capital requirements (incl buffers)* Total capital requirement 15.8 16.0 CET1 capital requirement 11.8 11.9 - of which sector-specific systemic risk buffer 0.3 0.3 - of which SIFI buffer 1.5 1.5 - of which capital conservation buffer 2.5 2.5 - of which countercyclical buffer** 2.4 2.4 Excess capital CET1 capital 4.2 3.9 Total capital 3.7 3.2 * The total capital requirement consists of an individual solvency need and a combined buffer requirement. The countercyclical buffer is determined by the Danish Ministry of Industry, Business and Financial Affairs and may not exceed 2.5%. The rate currently makes up 2.5% **The countercyclical buffer is calculated as an ex posure weighted average of the specific rates as regards the countries in which the companies to which exposures have been granted are domiciled. Th e rate as regards exposures to companies domiciled in Denmark constit utes 2.5%. Market risk At 30 June 2026 the Group’s interest rate risk represented DKK 126m. The Group’s exchange rate risk continues to be very low and its equity position modest. Funding and liquidity The guidelines for calculating the Liquidity Coverage Ratio (LCR) specify a run-off of exposures while taking into account counterparties, funding size, hedging and maturity. Consequently the most stable deposits are favoured relative to large deposits, in particular from businesses and financial counter- parties. The Group’s LCR constituted 279% at 30 June 2026 (31 December 2025: 271%). LCR (DKKbn) 30 Jun 2026 31 Dec 2025 30 Jun 2025 Total liquidity buffer 126.7 114.1 68.8 Net cash outflows 45.4 42.1 28.3 LCR (%) 279 271 243 The Group meets the LCR requirement of 100% and its excess cover is significant at 30 June 2026. NSFR The guidelines for calculating the Net Stable Funding Ratio (NSFR) require that the available stable funding exceeds the required stable funding. The required stable funding is calculated on the basis of the balance sheet values and degree of stability of assets where the strictest requirements in terms of degree of stability are imposed on long-term illiquid assets. The available stable funding is calculated on the basis of the balance sheet values and degree of stability of the funding where the highest degrees of stability apply to equity and long-term funding. 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 Kapitalprocent 30. juni 2026 Fradrag m.m. Fald i risikoeksponeringer Periodens resultat ej indregnet Periodens resultat Indfrielse af AT1 og T2 Udstedelse af Tier 2 Aktietilbagekøb 1.100 mio. kr. Kapitalprocent 31. dec. 2025
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 4 / 5 0 The Group’s NSFR constituted 146% at 30 June 2026 (year-end 2025: 141%). NSFR (DKKbn) 30 Jun 2026 31 Dec 2025 30 Jun 2025 Required stable funding 196.7 190.3 100.8 Available stable funding 287.1 268.6 141.7 NSFR (%) 146 141 141 The Group meets the NSFR requirement of 100% and its excess cover is significant at 30 June 2026. Rating Moody’s most recent rating of AL Sydbank: • Outlook: Stable • Long-term deposit: A1 • Baseline Credit Assessment: Baa1 • Senior unsecured: A1 • Short-term deposit: P-1 Supervisory Diamond The Supervisory Diamond sets up a number of benchmarks to indicate banking activities that initially should be regarded as involving a higher risk. Any breach of the Supervisory Diamond is subject to reactions by the Danish FSA. At 30 June 2026 the Group as well as the parent company comply with all the benchmarks of the Supervisory Diamond. Supervisory Diamond benchmarks 30 Jun 2026 31 Dec 2025 30 Jun 2025 Sum of 20 largest exposures < 175% 82 72 119 Lending growth < 20% annually 74 70 4 Commercial property exposure < 25% 9 11 13 Excess liquidity coverage > 100% 269 269 230 The growth in lending of 74% is mainly attributable to the merger. The real growth in lending in the period from 30 June 2025 to 30 June 2026 totals 5% for the 3 banks. Subordinated debt and MREL requirements Once a year the Danish FSA sets requirements as to subordinated debt and own funds and eligible liabilities (MREL) for Danish institutions, including AL Sydbank. At 1 January 2026 the subordinated debt and MREL requirements were set at 25.6% and 23.3% respectively of the risk exposure amount. The subordinated debt requirement can be calculated as follows: Subordinated debt at 30 Jun 2026 Require- ment (%) DKKm REA 135,584 Total requirement 25.6 34,710 Total capital 26,373 SNP loans with maturities exceeding 1 year 23,227 Total subordinated debt 36.6 49,600 Excess cover 11.0 14,890 At 30 June 2026, the Group met the subordinated debt requirement with an excess cover of DKK 14,890m. The excess cover corresponds to an increase in the solvency need of 5.5pp or an increase in the risk exposure amount of DKK 56,403m. The MREL can be calculated as follows: MREL at 30 Jun 2026 Require- ment (%) DKKm REA 135,584 Total requirement 23.3 31,591 Total capital 26,373 SNP loans with maturities exceeding 1 year 23,227 Cover of combined buffer requirement (9,010) Senior debt 2,269 Total MREL 31.6 42,859 Excess cover 8.3 11,268 At 30 June 2026, the Group met the MREL with an excess cover of DKK 11,268m. The excess cover corresponds to an increase in the solvency need of 4.2pp or an increase in the risk exposure amount of DKK 48,360m. Leverage ratio The CRR2 Regulation stipulates that T1 capital must constitute at least 3% of total exposures. The Group’s leverage ratio constituted 7.0% at 30 June 2026 (year-end 2025: 7.4%) taking into account the transitional rules. SIFI AL Sydbank has been designated as a SIFI in Denmark and there is an additional buffer requirement of 1.5% as regards CET1 capital. The intention is to bring Danish SIFI capital requirements on a par with the requirements in other comparable European countries.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 5 / 5 0 Bank Recovery and Resolution Directive According to legislation each credit institution must meet a minimum requirement for own funds and eligible liabilities (MREL). The Danish FSA has set the MREL for AL Sydbank at 23.3% of the risk exposure amount as of 1 January 2026. In 2025 the MREL constituted 24.1%. The general resolution principle for SIFIs is that it should be possible to restructure them and send them back to the market with adequate capitalisation to ensure market confidence. The Group’s MREL is based on the risk exposure amount using a factor which has been set at the sum of twice the solvency need plus the combined capital buffer requirement, excluding the countercyclical buffer. The establishment of a resolution fund was completed as of 31 December 2024. Credit institutions must contribute according to their relative size and risk in Denmark. The resolution fund represents 1% of the covered deposits of all Danish credit institutions. Basel IV Since the Basel Committee on Banking Supervision published its recommendations regarding changes to the calculation of capital requirements – Basel IV – in 2017, the EU has worked on implementing these changes into CRR (regulation) or CRD (directive). Some of the recommended changes have already been implemented and the remainder were adopted at end-May 2024 to take effect on 1 January 2025. Implementation will take place over a protracted period and with significant transitional rules. However the part of the FRTB regulation covering market risk has been postponed to 1 January 2027. The transition to Basel IV is expected in the short term to have a limited effect on the Group’s capital requirements due to transitional rules. Sector-specific systemic risk buffer The government has activated the sector-specific systemic risk buffer for exposures to real estate companies at a rate of 7% of the exposures’ risk- weighted assets. The buffer applies to exposures to real estate companies, ie under activity code “Development of building projects” as well as “Real estate” whereas exposures to “Social housing associations” and “Cooperative housing societies” under activity code “Real estate” are exempt. As a result the Group will be subject to a sector- specific systemic risk buffer of 0.3% in addition to the regulatory capital requirements.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 6 / 5 0 Income Statement AL Sydbank Group AL Sydbank A/S H1 H1 H1 H1 DKKm Note 2026 2025 2026 2025 Interest income calculated using the effective interest method 3,638 2,074 3,294 2,002 Other interest income 866 620 866 620 Interest income 2 4,504 2,694 4,160 2,622 Interest expense 3 1,206 873 1,000 858 Net interest income 3,298 1,821 3,160 1,764 Dividends on shares 203 109 221 125 Fee and commission income 4 2,405 1,440 2,253 1,335 Fee and commission expense 4 328 187 283 156 Net interest and fee income 5,578 3,183 5,351 3,068 Market value adjustments 5 516 294 508 381 Other operating income 80 15 24 15 Staff costs and administrative expenses 6 3,560 1,725 3,355 1,629 Amortisation/depreciation and impairment of intangible assets and property, plant and equipment 154 65 138 57 Other operating expenses 8 54 1 45 1 Impairment of loans and advances etc 9 151 97 174 98 Profit/(Loss) on holdings in associates and subsidiaries 10 62 12 137 29 Profit before tax 2,317 1,616 2,308 1,708 Tax 11 556 404 539 424 Profit for the period 1,761 1,212 1,769 1,284 Distribution of profit for the period Shareholders of AL Sydbank A/S 1,715 1,182 1,723 1,259 Holders of AT1 capital 46 25 46 25 Minority shareholders - 5 - - Total amount to be allocated 1,761 1,212 1,769 1,284 Interest paid to holders of AT1 capital 46 25 46 25 Minority shareholders - 5 - - Transfer to equity 1,715 1,182 1,723 1,259 Total amount allocated 1,761 1,212 1,769 1,284 EPS Basic for the period (DKK) * 20.0 23.3 11.0 24.8 EPS Diluted for the period (DKK) * 20.0 23.3 11.0 24.8 Dividend per share (DKK) - - - - * Calculated on the basis of average number of shares outstanding, see page 20. Statement of Comprehensive Income Profit for the period 1,761 1,212 1,769 1,284 Other comprehensive income Items that may not be reclassified to the income statement: Property revaluations (1) - (1) - Value adjustment of certain strategic shares 8 77 - - Other comprehensive income after tax 7 77 (1) - Comprehensive income for the period 1,768 1,289 1,768 1,284
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 7 / 5 0 Balance Sheet AL Sydbank Group AL Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm Note 2026 2025 2026 2025 Assets Cash and balances on demand at central banks 32,05 3 19,468 29,663 17,117 Amounts owed by credit institutions and central banks 12 15,858 14,119 15,756 14,077 Loans and advances at fair value 22,746 21,648 22,746 21,648 Loans and advances at amortised cost 13 143,695 140 ,268 142,806 139,361 Bonds at fair value 67,292 70,447 67,292 70,447 Shares etc 4,887 5,037 4,887 5,037 Holdings in associates etc 1,663 1,613 1,663 1,613 Holdings in subsidiaries etc - - 1,898 1,760 Assets related to pooled plans 51,400 48,297 51,400 48,297 Intangible assets 14 9,077 9,127 8,977 9,022 Investment property 641 620 28 12 Owner-occupied property 2,430 2,457 1,435 1,475 Owner-occupied property (leasing) 207 287 206 285 Total land and buildings 3,278 3,364 1,669 1,772 Other property, plant and equipment 253 271 186 204 Current tax assets 995 792 992 766 Deferred tax assets 10 10 10 10 Other assets 15 7,162 6,522 6,608 5,858 Prepayments 635 967 617 951 Total assets 361,004 341,950 357,170 337,940 Equity and liabilities Amounts owed to credit institutions and central banks 16 7,167 5,768 7,116 5,608 Deposits and other debt 17 219,369 209,345 216,234 206,349 Deposits in pooled plans 51,400 48,297 51,400 48,297 Bonds issued at amortised cost 20 25,497 21,474 25,497 21,474 Other liabilities 18 16,126 14,669 15,682 14,052 Deferred income 115 86 46 29 Total liabilities 319,674 299,639 315,975 295,809 Provisions 19 1,199 1,199 1,139 1,137 Subordinated capital 20 3,568 3,465 3,493 3,390 Total liabilities 324,441 304,303 320,607 300,336 Equity: Share capital 858 880 858 880 Revaluation reserves 176 177 176 177 Other reserves: Reserves according to articles of association 1,172 1,172 1,172 1,172 Reserve for net revaluation according to equity method 125 125 - - Retained earnings 32,510 31,242 32,635 31,367 Proposed dividend etc - 2,163 - 2,163 Shareholders of AL Sydbank A/S 34,841 35,759 34,841 3 5,759 Holders of AT1 capital 20 1,722 1,845 1,722 1,845 Minority shareholders - 43 - - Total equity 36,563 37,647 36,563 37,604 Total equity and liabilities 361,004 341,950 357,170 337,940
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 8 / 5 0 Financial Highlights – Quarterly AL Sydbank Group Q2 Q1 Q4 Q3 Q2 Q1 2026 2026 2025 2025 2025 2025 Income statement (DKKm) Core income 2,996 2,925 2,188 1,651 1,635 1,700 Trading income 105 80 52 77 63 64 Total income 3,101 3,005 2,240 1,728 1,698 1,764 Costs, core earnings 1,732 1,755 1,139 811 884 881 Core earnings before impairment 1,369 1,250 1,101 917 814 883 Impairment of loans and advances etc 94 57 182 18 62 35 Core earnings 1,275 1,193 919 899 752 848 Investment portfolio earnings 134 (8) 81 38 15 24 Profit before non -recurring items 1,409 1,185 1,000 937 767 872 Non-recurring items, net (135) (142) (1,070) (9) (10) (13) Profit before tax 1,274 1,043 (70) 928 757 859 Tax 316 240 (41) 218 190 214 Profit for the period 958 803 (29) 710 567 645 Balance sheet highlights (DKKbn) Loans and advances at amortised cost 143.7 142.4 140.3 83.3 82.7 81.3 Loans and advances at fair value 22.7 20.6 21.6 21.9 21.8 22.8 Deposits and other debt 219.4 212.9 209.3 119.1 121.8 118.1 Bonds issued at amortised cost 25.5 20.7 21.5 14.9 11.2 11.2 Subordinated capital 3.6 3.5 3.5 2.2 2.2 2.2 AT1 capital 1.7 1.7 1.8 0.8 1.6 0.8 Shareholders’ equity 34.9 34.1 35.8 14.6 14.3 14.1 Total assets 361.0 344.9 342.0 196.6 197.9 191.6 Financial ratios per share (DKK per share of DKK 10) EPS 11.0 9.0 (0.8) 13.8 10.9 12.3 Share price at end of period 576.0 514.5 570.0 510.5 469.8 431.8 Book value 410.1 399.5 416.8 296.7 285.2 276.4 Book value (tangible equity) 307.0 296.8 314.3 289.8 278.3 269.5 Share price/book value 1.40 1.29 1.37 1.72 1.65 1.56 Share price/book value (tangible equity) 1.88 1.73 1.81 1.76 1.69 1.60 Average number of shares outstanding (in millions) 85.2 85.7 51.8 49.7 50.5 51.2 Dividend per share - - 25.00 - - - Other financial ratios and key figures CET1 ratio 16.0 15.7 15.8 17.3 16.7 16.3 T1 capital ratio 17.3 17.0 17.1 18.6 19.1 17.5 Capital ratio 19.5 19.1 19.2 21.1 21.5 20.0 Pre-tax profit as % p.a. of average tangible equity 19.5 15.5 (1.7) 25.7 21.4 23.9 Post-tax profit as % p.a. of average tangible equity 14.6 11.8 (0.9) 19.5 15.9 17.8 Pre-tax profit as % p.a. of average equity 14.6 11.6 (1.4) 25.1 20.8 23.3 Post-tax profit as % p.a. of average equity 10.9 8.9 (0.7) 19.0 15.5 17.4 Costs (core earnings) as % of total income 55.9 58.4 50.8 46.9 52.1 49.9 Return on assets (%) 0.3 0.2 0.0 0.4 0.3 0.3 Interest rate risk 0.5 0.4 1.1 0.3 0.6 0.8 Foreign exchange position 0.8 0.7 0.6 1.7 1.2 1.1 Foreign exchange risk 0.0 0.0 0.0 0.0 0.0 0.0 Liquidity, LCR (%) 279 249 271 252 243 237 Loans and advances relative to deposits 0.5 0.6 0.6 0.6 0.6 0.6 Loans and advances relative to equity 4.1 4.2 3.9 5.7 5.8 5.8 Growth in loans and advances during the period 0.9 1.5 68.5 0.7 1.7 (1.5) Total large exposures 82 83 72 116 119 116 Accumulated impairment ratio 1.5 1.5 1.5 2.1 2.2 2.2 Impairment ratio for the period 0.05 0.03 0.12 0.02 0.06 0.04 Number of full-time staff at end of period 3,888 4,109 4,231 2,154 2,149 2,135 When calculating financial ratios AT1 capital is considered a liability regardless of the fact that it is accounted for as equity. Reference is made to financial ratio definitions in the 2025 Annual Report (page 139). Comparative fig ures for previous years have not been restated.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 1 9 / 5 0 Financial Highlights – Half-yearly AL Sydbank Group H1 H1 H1 H1 H1 2026 2025 2024 2023 2022 Income statement (DKKm) Core income 5,921 3,335 3,646 3,389 2,399 Trading income 185 127 153 186 116 Total income 6,106 3,462 3,799 3,575 2,515 Costs, core earnings 3,487 1,765 1,659 1,600 1,574 Core earnings before impairment 2,619 1,697 2,140 1,975 941 Impairment of loans and advances etc 151 97 24 (16) (84) Core earnings 2,468 1,600 2,116 1,991 1,025 Investment portfolio earnings 126 39 36 30 (91) Profit before non -recurring items 2,594 1,639 2,152 2,021 934 Non-recurring items, net (277) (23) 4 (26) 25 Profit before tax 2,317 1,616 2,156 1,995 959 Tax 556 404 532 503 211 Profit for the period 1,761 1,212 1,624 1,492 748 Balance sheet highlights (DKKbn) Loans and advances at amortised cost 143.7 82.7 79.2 74.6 74.2 Loans and advances at fair value 22.7 21.8 14.8 9.7 12.9 Deposits and other debt 219.4 121.8 111.6 102.7 100.2 Bonds issued at amortised cost 25.5 11.2 14.9 13.2 9.6 Subordinated capital 3.6 2.2 1.9 1.1 1.1 AT1 capital 1.7 1.6 0.8 0.8 0.8 Shareholders’ equity 34.9 14.3 14.5 13.7 12.2 Total assets 361.0 197.9 191.3 179.3 169.1 Financial ratios per share (DKK per share of DKK 10) EPS 20.0 23.3 29.5 26.0 12.5 Share price at end of period 576.0 469.8 369.0 315.2 217.2 Book value 410.1 285.2 271.5 242.7 212.3 Book value (tangible equity) 307.0 278.3 266.2 237.3 204.7 Share price/book value 1.40 1.65 1.36 1.30 1.02 Share price/book value (tangible equity) 1.88 1.69 1.39 1.33 1.06 Average number of shares outstanding (in millions) 85.5 50.8 54.2 56.5 58.2 Dividend per share - - - - - Other financial ratios and key figures CET1 ratio 16.0 16.7 17.7 18.7 16.6 T1 capital ratio 17.3 19.1 18.9 20.0 17.8 Capital ratio 19.5 21.5 21.1 21.0 19.1 Pre-tax profit as % p.a. of average tangible equity 19.5 17.7 22.9 30.4 30.3 Post-tax profit as % p.a. of average tangible equity 14.6 13.3 17.1 22.9 22.6 Pre-tax profit as % p.a. of average equity 13.2 22.4 29.8 29.6 15.3 Post-tax profit as % p.a. of average equity 9.9 16.7 22.4 22.0 11.9 Costs (core earnings) as % of total income 57.1 51.0 43.7 44.8 62.6 Return on assets (%) 0.5 0.6 0.9 0.8 0.4 Interest rate risk 0.5 0.6 0.8 1.0 1.4 Foreign exchange position 0.8 1.2 1.3 1.8 3.3 Foreign exchange risk 0.0 0.0 0.0 0.0 0.0 Liquidity, LCR (%) 279 243 240 227 170 Loans and advances relative to deposits 0.5 0.6 0.6 0.6 0.6 Loans and advances relative to equity 4.1 5.8 5.5 5.4 6.1 Growth in loans and advances during the period 2.4 0.1 6.2 0.9 10.7 Total large exposures 82 119 111 142 154 Accumulated impairment ratio 1.5 2.2 2.0 2.1 2.0 Impairment ratio for the period 0.09 0.10 0.02 (0.02) (0.09) Number of full-time staff at end of period 3,888 2,149 2,015 2,053 2,017 When calculating financial ratios AT1 capital is considered a liability regardless of the fact that it is accounted for as equity. Reference is made to financial ratio definitions in the 2025 Annual Report (page 139). Comparative fig ures for previous years have not been restated.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 0 / 5 0 Statement of Changes in Equity AL Sydbank Group DKKm Share capital Revalu- ation reserves Reserves acc to articles of asso- ciation* Reserve for net revaluation acc to equity method Retained earnings Proposed dividend etc Share- holders of AL Sydbank A/S AT1 capital** Minority share- holders Total equity Equity at 1 Jan 2026 880 177 1,172 125 31,242 2,163 35,759 1,845 43 37,647 Profit for the period 1,715 1,715 46 1,761 Other comprehensive income (1) 8 7 7 Comprehensive income for the period - (1) - - 1,723 - 1,722 46 - 1,768 Transactions with owners Redemption of AT1 capital (96) (96) Purchase of own shares (981) (981) (981) Sale of own shares 538 538 538 Reduction in share capital (22) 22 - - Interest paid on AT1 capital - (64) (64) Exchange rate adjustment (2) (2) (9) (11) Dividend etc paid (2,163) (2,163) (10) (2,173) Dividend, own shares 5 5 5 Purchase of holdings in subsidiaries (37) (37) (33) (70) Total transactions with owners (22) - - - (455) (2,163) (2,640) (169) (43) (2,852) Equity at 30 Jun 2026 858 176 1,172 125 32,510 - 34,841 1,722 - 36,563 Equity at 1 Jan 2025 546 163 435 56 12,387 1,395 14,982 760 42 15,784 Profit for the period 1,182 1,182 25 5 1,212 Other comprehensive income 77 77 77 Comprehensive income for the period - - - - 1.259 - 1.259 25 5 1.289 Transactions with owners Issue of AT1 capital - 850 850 Transaction costs (Issu anc e fee) (8) (8) (8) Purchase of own shares (1,152) (1,152) (1,152) Sale of own shares 584 584 584 Reduction in share capital (34) 34 - - Interest paid on AT1 capital - (20) (20) Exchange rate adjustment 0 0 (23) (23) Dividend paid (1,395) (1,395) (8) (1,403) Dividend, own shares 4 4 4 Total transactions with owners (34) - - - (538) (1,395) (1,967) 807 (8) (1,168) Equity at 30 Jun 2025 512 163 435 56 13,108 - 14,274 1,592 39 15,905 * Reserves according to the articles of association equal the undistributable savings bank reserve i n accordance with Article 4 of the Articles of Association. ** AT1 capital has no maturity date. Payment of interest and repayment of principal are voluntary. The refore AT1 capital is accounted for as equity. Moreover reference is made to note 20. The AL Sydbank share 30 Jun 2026 31 Dec 2025 30 Jun 2025 Share capital (DKK) 857 ,884 ,160 879 ,621 ,690 512 ,044 ,600 Shares issued (number) 85 ,788 ,416 87 ,962 ,169 51 ,204 ,460 Shares outstanding at end of period (number) 84 ,950 ,651 85 ,786 ,363 50 ,060 ,677 Average number of shares outstanding (number) 85 ,482 ,931 52 ,301 ,754 50 ,825 ,598 The Bank has only one class of shares as all shares carry the same rights.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 1 / 5 0 Capital Statement AL Sydbank Group 30 Jun 31 Dec 30 Jun DKKm 2026 2025 2025 Solvency CET1 ratio 16.0 15.8 16.7 T1 capital ratio 17.3 17.1 19.1 Capital ratio 19.5 19.2 21.5 Total capital Equity, shareholders of AL Sydbank A/S 34,841 35,759 14,274 Share of profit for the period not included (857) - (604) Capital deduction – prudent valuation (103) (109) (79) Actual or contingent obligations to purchase own shares (489) (35) (881) Proposed dividend - (2,163) - Intangible assets and capitalised deferred tax assets (8,706) (8,761) (312) Significant investments in the financial sector (2,3 89) (2,306) (1,410) Insufficient coverage for non-performing exposures (596) (605) (116) CET1 capital 21 ,701 21 ,780 10 ,872 AT1 capital – equity 1,704 1,845 1,573 T1 capital 23 ,405 23 ,625 12 ,445 T2 capital 3,008 2,905 1,594 Instruments in entities in the financial sector in which the institution has significant investments (40) (40) (28) Total capital 26 ,373 26 ,490 14 ,011 Credit risk* 91,713 91,853 43,394 Market risk 9,427 11,539 4,854 Operational risk 19,975 19,975 10,423 Other exposures, incl CVA 14,469 14,650 6,449 REA 135 ,584 138 ,017 65 ,120 Pillar I capital requirement 10 ,847 11 ,041 5,210 * Credit risk Corporate clients, IRB 33,589 34,133 32,255 Retail clients, IRB 7,162 6,578 8,709 Corporate clients, STD 17,236 16,389 262 Retail clients, STD 31,671 32,730 1,205 Credit institutions etc 2,055 2,023 963 Total 91 ,713 91 ,853 43 ,394
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 2 / 5 0 Cash Flow Statement AL Sydbank Group H1 Full year H1 DKKm 2026 2025 2025 Operating activities Pre-tax profit for the period 2,317 2,474 1,616 Taxes paid (689) (527) (485) Adjustment for non-cash operating items: Profit/(Loss) on holdings in associates 53 57 4 Amortisation/depreciation of intangible assets and property, plant and equipment 141 122 57 Impairment of loans and advances/guarantees 151 311 97 Other non-cash operating items - 843 15 Changes in working capital: Credit institutions and central banks (275) 134 (1,552) Trading portfolio 3,138 1,410 (5,538) Other financial instruments at fair value (200) (173) (326) Loans and advances (4,677) (996) 1,859 Deposits 10,024 4,656 5,093 Other assets/liabilities 1,444 (1,795) 379 Cash flows from operating activities 11,427 6,516 1,219 Investing activities Purchase of holdings in associates - - - Sale of holdings in associates 5 4 - Purchase of equity investments (13) - - Sale of equity investments 73 43 43 Acquisition through merger - 12,485 - Purchase/sale of holdings in subsidiaries (97) 0 0 Purchase/sale of intangible assets - - (1) Purchase of property, plant and equipment (53) (84) (16) Sale of property, plant and equipment 66 42 - Cash flows from investing activities (19) 12,490 26 Financing activities Purchase and sale of own holdings (443) (1,083) (568) Dividend etc (2,158) (1,390) (1,391) Raising of subordinated capital 1,007 842 842 Redemption of subordinated capital (996) (746) - Issue of bonds 4,802 3,732 - Redemption of bonds (758) (3,730) - Cash flows from financing activities 1,454 (2,375) (1,117) Cash flows for the period 12 ,862 16 ,631 128 Cash and cash equivalents at 1 Jan 20,393 3,762 3,762 Cash flows for the period 12,862 16,631 128 Cash and cash equivalents at end of period 33 ,255 20 ,393 3,890 Cash and cash equivalents at end of period Cash and balances on demand at central banks 32,053 19,468 3,445 Fully secured cash and cash equivalent balances on demand with credit institutions and insurance companies 1,202 925 445 Cash and cash equivalents at end of period 33 ,255 20 ,393 3,890
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 3 / 5 0 Segment Reporting etc AL Sydbank Group DKKm Banking Asset Management AL Sydbank Markets Treasury Other Total Operating segments H1 2026 Core income 5,526 309 86 - - 5,921 Trading income - - 185 - - 185 Total income 5,526 309 271 - - 6,106 Costs, core earnings 3,159 106 159 - 63 3,487 Impairment of loans and advances etc 151 - - - - 151 Core earnings 2,216 203 112 - (63 ) 2,468 Investment portfolio earnings (21) - - 147 - 126 Profit before non -recurring items 2,194 203 112 147 (63 ) 2,594 Non-recurring items, net (277) - - - - (277 ) Profit before tax 1,917 203 112 147 (63 ) 2,317 H1 2025 Core income 3,019 252 64 - - 3,335 Trading income - - 127 - - 127 Total income 3,019 252 191 - - 3,462 Costs, core earnings 1,539 77 109 - 40 1,765 Impairment of loans and advances etc 97 - - - - 97 Core earnings 1,383 175 82 - (40 ) 1,600 Investment portfolio earnings 3 - - 36 - 39 Profit before non -recurring items 1,386 175 82 36 (40 ) 1,639 Non-recurring items, net (23) - - - - (23 ) Profit before tax 1,363 175 82 36 (40 ) 1,616 Operating segments The Group’s segment statements are divided into the following business units: Banking, Asset Management, AL Sydbank Markets, Treasury and Other. Banking serves all types of retail and corporate clients. Asset Management primarily comprises the Bank’s advisory-related income from customers and investment funds. AL Sydbank Markets comprises trading income as well as a share of the income from customers with decentral affiliation calculated on the basis of its market price. The share represents the payment by Banking for AL Sydbank Markets’ facilities, including advisory services and administration. Treasury comprises the Group’s return on positions handled by Treasury, including liquidity allocation. Other includes non-recurring items, costs to the Group Executive Management etc as well as return on strategic shareholdings that are not allocated to Banking or AL Sydbank Markets. Inter-segment transactions are settled on an arm’s length basis. Centrally incurred costs are allocated to the business units in accordance with their estimated proportionate share of overall activities. Excess liquidity is settled primarily at short-term money market rates whereas other balances are settled on an arm’s length basis.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 4 / 5 0 Segment Reporting etc AL Sydbank Group DKKm Core income Trading income Costs, core earnings Impair- ment of loans/ advances etc Core earn- ings Invest- ment port- folio earn- ings Non- recurring items, net Profit before tax Correlation between the Group’s performance measures and the income statement according to IFRS 1H 2026 Net interest and fee income 5,567 (34) 5,533 45 5,578 Market value adjustments 212 219 0 431 85 516 Other operating income 80 80 80 Income 5,859 185 - 0 6,044 130 - 6,174 Staff costs and administrative expenses (3,279) (3,279 ) (4) (277) (3,560 ) Amortisation/depreciation and impairment of intangible assets and property, plant and equipment (154) (154) (154) Other operating expenses (54) (54) (54) Impairment of loans and advances etc (151) (151) (151) Profit/(Loss) on holdings in associates and subsidiaries 62 62 62 Profit before tax 5,921 185 (3,487 ) (151 ) 2,468 126 (277 ) 2,317 H1 2025 Net interest and fee income 3,144 14 3,158 25 3,183 Market value adjustments 164 112 0 276 18 294 Other operating income 15 15 15 Income 3,323 127 - 0 3,450 43 - 3,492 Staff costs and administrative expenses (1,699) (1,699 ) (4) (23) (1 ,725) Amortisation/depreciation and impairment of intangible assets and property, plant and equipment (65) (65) (65) Other operating expenses (1) (1) (1) Impairment of loans and advances etc (97) (97) (97) Profit/(Loss) on holdings in associates and subsidiaries 12 12 12 Profit before tax 3,335 127 (1,765 ) (97 ) 1,600 39 (23) 1,616 The AL Sydbank Group’s internal reporting is not based on products and services. Reference is made to notes 2, 3 and 4 for the distribution of net interest income as well as fee income.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 5 / 5 0 Notes Note 1 Accounting policies The interim report covers the period from 1 January to 30 June 2026 and is prepared in compliance with IAS 34 “Interim Financial Reporting” as adopted by the EU and in compliance with Danish disclosure requirements for interim reports of listed financial companies. As a result of the use of IAS 34, the presentation is less complete compared with the presentation of an annual report and the recognition and measurement principles are in compliance with IFRS. The accounting policies are consistent with those adopted in the 2025 Annual Report, to which reference is made. The 2025 Annual Report provides a comprehensive description of the accounting policies applied. Accounting estimates and judgements The measurement of certain assets and liabilities requires that management makes accounting estimates as to how future events will affect the value of such assets, liabilities, income and costs. Actual results may deviate from such estimates. The significant estimates made by management in the use of the Group’s accounting policies and the inherent considerable uncertainty of such estimates used in the preparation of the interim report are identical to those used in the preparation of the 2025 Annual Report. Impairment of loans and advances and provisions for guarantees and undrawn credit commitments are made to take into account the expected losses on conclusion as well as any credit impairment after initial recognition. The determination of impairment charges for expected losses is subject to a number of estimates, including which loans and advances or portfolios of loans and advances are subject to credit impairment as well as calculation of expected losses. Assessing the degree of credit impairment of exposures involves a number of estimates which may be subject to uncertainty. To a large extent the determination of expected losses at exposure level is based on risk registrations, models and past experience but it also involves a number of estimates of risks and expected developments in the individual exposure, including the future ability to pay and the value of collateral which in particular comprises mortgages on property. During periods of uncertain economic trends or significant demographic or structural changes uncertainty is greater. This is reflected in the need for management adjustments that by their nature are subject to uncertainty. The Group’s models to calculate impairment of exposures in stages 1 and 2 include expectations as to economic developments. The outlook is based on estimates of the probability of different outcomes of economic growth. The outlook results in a determination of the probability of the scenarios baseline, upturn and downturn. At 30 June 2026 the probability of the downturn scenario was fixed at 95%, which is unchanged compared with 31 December 2025. Impairment of exposures in stage 3 and the weak part of stage 2 is based on individual assessments which include expectations of future changes in collateral value etc. In addition to the calculated impairment charges, management estimates whether there is a need for special impairment charges as regards exposed industries, customer segments or other elements that are estimated as having not yet been reflected in the Bank’s registrations. At 30 June 2026 the Group maintained its management estimate of DKK 500m to hedge macroeconomic uncertainty where DKK 400m concerns corporate clients, including agricultural clients, and DKK 100m concerns retail clients. The management estimate regarding macroeconomic uncertainty covers eg potential losses related to global energy supply challenges and a continued protectionist line in the US that could lead to economic recession in both the US and Europe. Such a development would also impact the Danish economy where particularly export businesses would be hit by lower international demand resulting 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.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 6 / 5 0 Notes Note 1 – continued 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 portfolios acquired. Management estimates represent a total of DKK 985m. The Group’s significant risks and the external elements which may affect the Group are described in greater detail in the 2025 Annual Report.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 7 / 5 0 Notes AL Sydbank Group AL Sydbank A/S H1 H1 H1 H1 DKKm 2026 2025 2026 2025 Note 2 Interest income calculated using the effective interest method Amounts owed by credit institutions and central banks 371 269 355 248 Loans and advances and other amounts owed 3,266 1,812 2,938 1,761 Other interest income 1 (7) 1 (7) Total 3,638 2,074 3,294 2,002 Other interest income Reverse transactions with credit institutions and central banks 14 22 14 22 Reverse loans and advances 198 258 198 258 Bonds 542 263 542 263 Total derivatives 112 77 112 77 comprising: Foreign exchange contracts 40 42 40 42 Interest rate contracts 73 35 73 35 Total 866 620 866 620 Total interest income 4,504 2,694 4,160 2,622 Fair value, designated at initial recognition 212 280 212 280 Fair value, held for trading 654 340 654 340 Assets recognised at amortised cost 3,638 2,074 3,294 2,002 Total 4,504 2,694 4,160 2,622 The Group’s cash resources primarily comprise Danish mortgage bonds. The interest rate risk concerning these positions is reduced via derivatives. As a result the Group’s external income statement is affected in terms of interest income and the market value adjustment of bonds and derivatives. The same applies to the Group’s position-taking as regards bonds as well as shares. The breakdown by income statement item does not disclose income independently and consequently these items must be regarded as one as they are in “Segment Reporting” as well as in the Group’s financial review, which also takes funding of the positions into account.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 8 / 5 0 Notes AL Sydbank Group AL Sydbank A/S H1 H1 H1 H1 DKKm 2026 2025 2026 2025 Note 3 Interest expense Repo transactions with credit institutions and central banks 18 21 18 21 Amounts owed to credit institutions and central banks 236 36 40 36 Repo deposits 7 15 7 15 Deposits and other debt 459 560 453 549 Bonds issued 425 184 425 184 Subordinated capital 55 55 52 51 Other interest expense 6 2 5 2 Total 1,206 873 1,000 858 Fair value, designated at initial recognition 25 36 25 36 Liabilities recognised at amortised cost 1,181 837 975 822 Total 1,206 873 1,000 858 Note 4 Fee and commission income Securities trading and custody accounts 563 446 563 352 Advisory fee, asset management 318 254 318 254 Payment services 380 216 380 207 Loan fees 320 104 307 104 Guarantee commission 143 79 143 79 Income concerning funded mortgage-like loans 34 39 34 39 Other fees and commission 647 302 508 300 Total fee and commission income 2,405 1,440 2,253 1,335 Fee expense, asset management 2 3 2 3 Other fee and commission expense 326 184 281 153 Total fee and commission expense 328 187 283 156 Net fee and commission income 2,077 1,253 1,970 1,179 Except for guarantee commission recognised according to IFRS 9, fee and commission income is recognised according to IFRS 15. The set-off of loss concerning distributed mortgage loans represented DKK 6m in 1H 2026 (H1 2025: DKK 5m) and has been deducted from commission received which is included under other fees and commission.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 2 9 / 5 0 Notes AL Sydbank Group AL Sydbank A/S H1 H1 H1 H1 DKKm 2026 2025 2026 2025 Note 5 Market value adjustments Other loans and advances and amounts owed at fair value 67 16 67 16 Bonds 136 127 136 127 Shares etc 16 29 9 116 Foreign exchange 194 151 193 151 Derivatives 90 (29) 90 (29) Assets related to pooled plans 109 (259) 109 (259) Deposits in pooled plans (109) 259 (109) 259 Other assets/liabilities 13 0 13 0 Total 516 294 508 381 Note 6 Staff costs and administrative expenses Salaries and remuneration: Group Executive Management 30 11 30 11 Board of Directors 7 4 7 4 Shareholders’ Committee 1 2 1 2 Total 38 17 38 17 Staff costs: Wages and salaries 1,632 813 1,540 765 Pensions 186 86 176 81 Social security contributions 12 5 11 4 Payroll tax 228 116 215 108 Total 2,058 1,020 1,942 958 Other administrative expenses: IT 1,089 454 1,018 434 Rent etc 189 41 185 40 Marketing and entertainment expenses 78 48 77 36 Other costs 108 145 95 144 Total 1,464 688 1,375 654 Total 3,560 1,725 3,355 1,629 Note 7 Staff Average number of staff (full-time equivalent)(FTE) 4 ,048 2,161 3,828 2,022
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 0 / 5 0 Notes AL Sydbank Group AL Sydbank A/S H1 H1 H1 H1 DKKm 2026 2025 2026 2025 Note 8 Other operating expenses Integration costs in connection with merger* 32 0 32 0 Losses from the sale of plant and equipment 17 0 8 0 Depositors’ guarantee scheme etc 5 1 5 1 Total 54 1 45 1 * Consists primarily of exit fee to BEC Financial Technologies. Note 9 Impairment of loans and advances recognised in the income statement Impairment and provisions 103 113 127 115 Write-offs 100 5 98 4 Recovered from debt previously written off 52 21 51 21 Impairment of loans and advances etc 151 97 174 98 Impairment and provisions at end of period (allowance account) Stage 1 295 129 275 123 Stage 2 419 438 417 435 Stage 3 1,340 1,212 1,864 1,562 Management estimates 505 506 500 500 Impairment and provisions at end of period 2,559 2,285 3,056 2,620 Impairment and provisions Impairment and provisions at 1 Jan 2,466 2,188 2,959 2,498 New impairment charges and provisions during the period, net 121 111 125 136 Impairment charges previously recorded, now finally written off 28 14 28 14 Impairment and provisions at end of period 2,559 2,285 3,056 2,620 Impairment of loans and advances 2,257 2,097 2,757 2,432 Provisions for undrawn credit commitments 155 53 152 53 Provisions for guarantees 147 135 147 135 Impairment and provisions at end of period 2,559 2,285 3,056 2,620 Loans and advances recognised as a loss for the period constitute DKK 128m. As regards loans and advances recognised as a loss for the period, a legal claim of DKK 42m has been upheld. As regards loans and advances recognised as a loss, a legal claim of DKK 62m has been upheld at year-end 2025.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 1 / 5 0 Notes AL Sydbank Group Loans/advances and guarantees Impairment and provisions Impairment charges for loans/advances etc for the period Losses for the period 30 Jun 31 Dec 30 Jun 31 Dec H1 H1 H1 H1 DKKm 2026 2025 2026 2025 2026 2025 2026 2025 Note 9 – continued Loans and advances and guarantees as well as impairment of loans and advances etc by industry Building and construction 5,165 4,558 156 140 49 49 32 0 Energy supply 7,126 6,393 307 282 25 1 0 0 Real estate 16,290 18,024 137 121 24 (2) 5 0 Finance and insurance 13,606 14,196 156 172 40 20 58 0 Trade 20,708 19,525 520 478 28 (36) 3 5 Hotels and restaurants 678 729 39 35 2 (1) 0 0 Manufacturing and extraction of raw materials 12,289 11,662 399 411 5 41 2 2 Information and communication 625 533 13 10 3 6 0 2 Agriculture, hunting, forestry and fisheries 7,133 6,674 183 166 16 47 4 1 Transportation 2,981 3,302 62 43 22 (2) 0 0 Other industries 16,720 17,167 201 239 (47) (2) 3 2 Total corporate 103,321 102,763 2,173 2,097 167 121 107 12 Public authorities 176 54 0 1 0 0 0 0 Retail 69,206 65,712 386 368 (16) (24) 21 7 Total 172 ,703 168 ,529 2,559 2,466 151 97 128 19 Building and construction Building and construction, special 2,987 2,854 145 131 47 56 32 0 Construction of buildings 1,431 1,123 7 7 2 (9) 0 0 Other building and construction 747 581 4 2 0 2 0 0 Total 5,165 4,558 156 140 49 49 32 0 Real estate Non-profit housing associations 7,798 8,588 9 4 5 0 0 0 Leasing of commercial property 4,887 5,426 61 62 7 2 5 0 Leasing of residential property 1,144 1,240 4 5 (2) (2) 0 0 Completion of building projects 549 578 25 31 (5) 2 0 0 Other related to real estate 1,912 2,192 38 19 19 (4) 0 0 Total 16 ,290 18 ,024 137 121 24 (2) 5 0 Finance and insurance Holding companies 8,181 8,592 101 118 39 11 58 0 Financing companies 5,425 5,604 55 54 1 9 0 0 Total 13 ,606 14 ,196 156 172 40 20 58 0
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 2 / 5 0 Notes AL Sydbank Group Loans/advances and guarantees Impairment and provisions Impairment charges for loans/advances etc for the period Losses for the period 30 Jun 31 Dec 30 Jun 31 Dec H1 H1 H1 H1 DKKm 2026 2025 2026 2025 2026 2025 2026 2025 Note 9 – continued Loans and advances and guarantees as well as impairment of loans and advances etc by industry Trade Retail 1,921 2,122 83 91 (9) 10 1 5 Trade, passenger cars and motorcycles 3,936 3,807 51 44 9 (1) 0 0 Wholesale, other machinery 1,588 1,598 83 88 (4) (2) 0 0 Wholesale, food, beverages and tobacco 2,965 2,564 60 53 4 (32) 0 0 Wholesale, household durables 4,854 4,358 143 124 12 (4) 2 0 Wholesale, agricultural raw materials and live animals 1,451 1,491 12 14 (2) (16) 0 0 Other specialised wholesale 2,455 2,167 58 43 14 12 0 0 Other trade 1,538 1,418 30 21 4 (3) 0 0 Total 20 ,708 19 ,525 520 478 28 (36 ) 3 5 Manufacturing and extraction of raw materials Extraction of raw materials 609 571 3 4 (1) 3 0 0 Manufacture of textiles and clothing 1,581 1,486 15 12 4 3 0 0 Manufacture and repair of machinery and equipment 1,289 1,475 23 25 (1) (1) 0 0 Manufacture of food products 3,142 2,796 47 32 15 (12) 1 0 Manufacture of fabricated metal products, excl machinery and equipment 1,107 1,050 117 126 (12) 41 0 2 Other manufacturing 4,561 4,284 194 212 0 7 1 0 Total 12 ,289 11 ,662 399 411 5 41 2 2 Agriculture, hunting, forestry and fisheries Pig farming 1,330 1,149 18 18 0 2 0 0 Cattle farming 1,616 1,673 76 77 (3) 40 0 0 Crop production 1,720 1,587 14 19 (6) (12) 0 0 Other agriculture 2,467 2,265 75 52 25 17 4 1 Total 7,133 6,674 183 166 16 47 4 1 Transportation Land transport 1,210 939 15 11 7 (5) 0 0 Water transport 577 358 0 0 0 0 0 0 Air transport 149 157 2 3 (1) 1 0 0 Other transportation 1,045 1,848 45 29 16 2 0 0 Total 2,981 3,302 62 43 22 (2) 0 0 Other industries Rental and leasing activities 7,119 7,274 55 74 (18) 11 2 0 Activities of head offices 2,708 2,690 8 13 (5) (1) 0 0 Liberal professions 1,942 1,975 51 55 (5) 1 0 1 Other industries 4,951 5,228 87 97 (19) (13) 1 1 Total 16 ,720 17 ,167 201 239 (47 ) (2) 3 2
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 3 / 5 0 Notes AL Sydbank Group AL Sydbank A/S H1 H1 H1 H1 DKKm 2026 2025 2026 2025 Note 10 Profit/(Loss) on holdings in associates and subsidiaries Profit/(Loss) on holdings in associates etc 62 12 62 12 Profit/(Loss) on holdings in subsidiaries etc - - 75 17 Total 62 12 137 29 Note 11 Effective tax rate Current tax rate of AL Sydbank 22.0 22.0 22.0 22.0 Special tax applying to financial undertakings 4.0 4.0 4.0 4.0 Permanent differences (2.0) (1.2) (2.0) (1.4) Adjustment of prior year tax charges 0.0 0.2 0.0 0.2 Effective tax rate 24.0 25.0 24.0 24.8 AL Sydbank Group AL Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2026 2025 2026 2025 Note 12 Amounts owed by credit institutions and central banks Amounts owed at notice by central banks 13,591 11,02 3 13,591 11,023 Amounts owed by credit institutions 2,267 3,096 2,165 3,054 Total 15 ,858 14 ,119 15 ,756 14 ,077 Of which reverse transactions 1,069 1,282 1,069 1,282
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 4 / 5 0 Notes AL Sydbank Group Credit impaired at initial 30 Jun 2026 31 Dec 2025 DKKm Stage 1 Stage 2 Stage 3 recognition Total Total Note 13 Loans and advances, guarantees and allowance account by stage Loans and advances before impairment charges 132,044 10,047 2,463 1,398 145,952 142,390 Guarantees 25,657 748 346 26,751 26,139 Total loans and advances and guarantees 157 ,701 10 ,795 2,809 1,398 172 ,703 168 ,529 % 91, 3 6,3 1,6 0,8 100,0 100,0 Impairment of loans and advances 504 539 1,214 2,257 2,122 Provisions for undrawn credit commitments 52 27 76 155 150 Provisions for guarantees 11 22 114 147 194 Total allowance account 567 588 1,404 - 2,559 2,466 Allowance account at 1 Jan 626 584 1,256 2,466 2,188 New impairment charges and provisions during the period, net (59) 4 176 121 351 Impairment charges previously recorded, now finally written off 28 28 73 Total allowance account at end of period 567 588 1,404 - 2,559 2,466 Impairment charges as % of loans and advances 0.4 5.4 49.3 1.5 1.5 Provisions as % of guarantees 0.0 2.9 32.9 0.5 0.7 Allowance account as % of loans and advances and guarantees 0.4 5.4 50.0 1.5 1.5 Loans and advances before impairment charges 132,044 10,047 2,463 1,398 145,952 142,390 Impairment of loans and advances 504 539 1,214 2,257 2,122 Loans and advances after impairment charges 131 ,540 9,508 1,249 1,398 143 ,695 140 ,268 % 91.5 6.6 0.9 1.0 100.0 100.0
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 5 / 5 0 Notes AL Sydbank Group Credit impaired at initial 30 Jun 2026 31 Dec 2025 DKKm Stage 1 Stage 2 Stage 3 recognition Total Total Note 13 – continued Loans and advances before impairment charges Rating category 1 18,812 13 18,825 17,931 2 26,200 26,200 22,468 3 11,427 26 11,453 11,771 4 12,545 1,132 13,677 16,255 5 5,639 2,046 7,685 7,793 6 1,101 1,928 3,029 2,703 7 271 1,950 2,221 2,122 8 19 239 258 322 9 986 986 943 Default 2,383 2,383 1,608 NR/STD 56,030 1,727 80 1,398 59,235 58,474 Total 132 ,044 10 ,047 2,463 1,398 145 ,952 142 ,390 Impairment of loans and advances Rating category 1 9 9 3 2 15 15 16 3 80 80 81 4 86 11 97 112 5 84 34 118 117 6 64 51 115 110 7 19 80 99 101 8 1 28 29 36 9 311 311 286 Default 1,166 1,166 1,051 NR/STD 146 24 48 218 209 Total 504 539 1,214 - 2,257 2,122 Loans and advances after impairment charges Rating category 1 18,803 13 18,816 17,928 2 26,185 0 26,185 22,452 3 11,347 26 11,373 11,690 4 12,459 1,121 13,580 16,143 5 5,555 2,012 7,567 7,676 6 1,037 1,877 2,914 2,593 7 252 1,870 2,122 2,021 8 18 211 229 286 9 675 675 657 Default 1,217 1,217 557 NR/STD 55,884 1,703 32 1,398 59,017 58,265 Total 131 ,540 9,508 1,249 1,398 143 ,695 140 ,268
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 6 / 5 0 Notes AL Sydbank Group Credit impaired at initial 30 Jun 2026 31 Dec 2025 DKKm Stage 1 Stage 2 Stage 3 recognition Total Total Note 13 – continued Loans and advances before impairment charges 1 Jan 129 ,999 8,990 1,608 1,793 142 ,390 84 ,551 Transfers between stages Additions concerning portfolio acquired - 56,461 Transfers to stage 1 1,998 (1,980) (18) - - Transfers to stage 2 (2,274) 2,367 (93) - - Transfers to stage 3 (183) (526) 709 - - New exposures 10,917 263 584 11,764 19,471 Final repayments (10,056) 951 (24) (9,129) (15,353) Changes in balances 1,643 (18) (175) (395) 1,055 (2,639) Write-offs (128) (128) (101) End of period 132 ,044 10 ,047 2,463 1,398 145 ,952 142 ,390 Impairment of loans and advances 1 Jan 536 535 1,051 2,122 2,017 Transfers between stages Additions concerning portfolio acquired - 161 Transfers to stage 1 49 (49) 0 - - Transfers to stage 2 (31) 51 (20) - - Transfers to stage 3 (2) (77) 79 - - New exposures 52 16 17 85 209 Final repayments (86) (48) (69) (203) (356) Changes in balances (14) 111 184 281 164 Write-offs (28) (28) (73) End of period 504 539 1,214 - 2,257 2,122 Loans and advances after impairment charges 1 Jan 129 ,463 8,455 557 1,793 140 ,268 82 ,534 Transfers between stages Additions concerning portfolio acquired - 56,300 Transfers to stage 1 1,949 (1,931) (18) - - Transfers to stage 2 (2,243) 2,316 (73) - - Transfers to stage 3 (181) (449) 630 - - New exposures 10,865 247 567 11,679 19,262 Final repayments (9,970) 999 45 (8,926) (14,997) Changes in balances 1,657 (129) (359) (395) 774 (2,803) Write-offs (100) (100) (28) End of period 131,540 9,508 61,249 1,398 143,695 140,268
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 7 / 5 0 Notes AL Sydbank Group AL Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2026 2025 2026 2025 Note 14 Intangible assets Goodwill 7,859 7,859 7,859 7,859 Customer relationships 1,214 1,265 1,118 1,163 Software etc 4 3 - - Total 9,077 9,127 8,977 9,022 Note 15 Other assets Positive market value of derivatives etc 3,223 3,159 3,223 3,159 Sundry debtors 2,195 1,403 1,648 839 Interest and commission receivable 520 605 520 605 Cash collateral provided, CSA agreements 675 630 675 630 Other assets 549 725 542 625 Total 7,162 6,522 6,608 5,858 Note 16 Amounts owed to credit institutions and central banks Amounts owed to central banks 40 166 40 166 Amounts owed to credit institutions 7,127 5,602 7,076 5,442 Total 7,167 5,768 7,116 5,608 Of which repo transactions 1,913 1,789 1,913 1,789 Note 17 Deposits and other debt On demand 186,276 178,813 183,141 175,987 At notice 1,321 867 1,321 867 Time deposits 24,957 22,523 24,957 22,523 Special categories of deposits 6,815 7,142 6,815 6,972 Total 219 ,369 209 ,345 216 ,234 206 ,349 Of which repo transactions 1,307 1,152 1,307 1,152 Note 18 Other liabilities Negative market value of derivatives etc 2,787 2,68 6 2,787 2,686 Sundry creditors 9,232 9,377 8,791 8,761 Negative portfolio, reverse transactions 2,734 1,59 9 2,734 1,599 Interest and commission etc 575 403 572 402 Cash collateral received, CSA agreements 798 604 798 604 Total 16 ,126 14 ,669 15 ,682 14 ,052
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 8 / 5 0 Notes AL Sydbank Group AL Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2026 2025 2026 2025 Note 19 Provisions Provisions for pensions and similar obligations 14 1 6 14 15 Provisions for deferred tax 729 736 672 678 Provisions for guarantees 147 194 147 194 Other provisions 309 253 306 250 Total 1,199 1,199 1,139 1,137
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 3 9 / 5 0 Notes DKKm AL Sydbank Group AL Sydbank A/S Foreign exchange Nominal (m) Interest type Inte- rest rate Call option Maturity 30 Jun 2026 31 Dec 2025 30 Jun 2026 31 Dec 2025 Note 20 Bonds issued at amortised cost EUR 500 Fixed rate to call date 5.13 6 Sep 2027 1 Sep 2028 3,734 3,731 3,734 3,731 EUR 500 Fixed rate to call date 4.13 30 Sep 2026 1 Sep 2027 3,736 3,732 3,736 3,732 EUR 500 Fixed rate to call date 3.00 11 Dec 2028 11 Dec 2029 3,731 3,727 3,731 3,727 EUR 20 3M EURIBOR + 2.25% 4.42 26 Apr 2027 26 Apr 2028 149 149 149 149 EUR 500 Fixed rate to call date 3.63 5 Mar 2029 5 Mar 2030 3,786 3,741 3,786 3,741 SEK 800 3M STIBOR + 1.65% 3.66 20 Sep 2027 20 Sep 2028 547 563 547 563 DKK 1,000 3M CIBOR + 1.60% 3.89 22 Sep 2027 22 Sep 2028 1,014 1,070 1,014 1,070 EUR 300 Fixed rate to call date 4.88 14 Mar 2028 14 Mar 2029 2,300 2,326 2,300 2,326 DKK 700 3M CIBOR + 1.40% 3.67 17 Sep 2027 17 Sep 2028 709 712 709 712 DKK 1,000 3M CIBOR + 2.00% 4.28 16 Sep 2026 16 Sep 2027 1,000 999 1,000 999 SEK 250 Fixed rate to call date 6.00 9 Feb 2026 9 Feb 2027 - 172 - 172 SEK 800 3M STIBOR + 3.10% 5.03 9 Feb 2026 9 Feb 2027 - 552 - 552 EUR 500 Fixed rate to call date 3.63 29 May 2030 29 May 2031 3,729 - 3,729 - SEK 250 Fixed rate to call date 3.26 1 Jun 2029 1 Jun 2030 168 - 168 - SEK 350 3M STIBOR + 0.75% 2.75 1 Jun 2029 1 Jun 2030 235 - 235 - NOK 300 Fixed rate to call date 5.47 2 Jun 2031 2 Jun 2032 198 - 198 - NOK 700 3-3M NIBOR + 0.93% 5.49 2 Jun 2031 2 Jun 2032 461 - 461 - Total 25,497 21,474 25,497 21,474 Subordinated capital EUR 75 10Y Mid-Swap + 0.2% 3.32 24 Nov 2014 Perpetual 561 560 561 560 SEK 550 3M STIBOR + 3.00% 5.10 25 Apr 2029 25 Apr 2034 370 379 370 379 NOK 650 3M NIBOR + 3.05% 7.51 24 Apr 2029 25 Apr 2034 429 409 429 409 EUR 100 3M EURIBOR + 2.10% 4.41 6 Sep 2030 6 Sep 2035 745 745 745 745 DKK 125 6M CIBOR + 2.30% 4.51 28 Aug 2029 28 Aug 2034 128 128 128 128 DKK 900 6M CIBOR + 3.50% 5.70 21 May 2026 21 May 2031 - 907 - 907 DKK 250 6M CIBOR + 3.60% 7.02 26 Jun 2028 26 Jun 2033 258 262 258 262 NOK 250 3-3M NIBOR + 1.40% 5.86 29 Apr 2031 29 Jul 2036 164 - 164 - SEK 1,250 3M STIBOR + 1.40% 3.49 29 Apr 2031 29 Jul 2036 838 - 838 - DKK 25 6M CIBOR + 4.00% 6.42 23 Sep 2026 23 Sep 2031 25 25 - - DKK 50 6M CIBOR + 4.25% 6.47 22 Jun 2027 22 Jun 2032 50 50 - - Total 3,568 3,465 3,493 3,390 AT1 capital DKKmKK NOK 250 3M NIBOR + 3.35% 7.90 21 May 2030 Perpetual 167 159 167 159 SEK 1,000 3M STIBOR + 3.30% 5.30 21 May 2030 Perpetual 677 694 677 694 DKK 50 Fixed rate to call date 9.57 26 Jun 2028 Perpetual 53 56 53 56 DKK 380 6M CIBOR + 4.35% 6.55 16 Aug 2027 Perpetual 393 394 393 394 DKK 429 Fixed rate to call date 3.97 24 Apr 2029 Perpetual 432 441 432 441 DKK 46 Fixed rate to call date 5.25 25 Jan 2026 Perpetual - 48 - 48 DKK 50 Fixed rate to call date 4.75 12 Mar 2026 Perpetual - 52 - 52 Total 1,722 1,845 1,722 1,845
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 0 / 5 0 Notes AL Sydbank Group AL Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2026 2025 2026 2025 Note 21 Contingent liabilities and other obligating agreements Contingent liabilities Financial guarantees 15,685 14,434 15,703 14,397 Mortgage finance guarantees* 3,301 3,381 3,295 3,381 Funded mortgage -like loan guarantees* 335 397 335 397 Registration and remortgaging guarantees* 4,888 5,385 4,848 5,341 Other contingent liabilities 2,542 2,542 2,532 2,584 Total 26 ,751 26 ,139 26 ,713 26 ,100 * Subject to IFRS 9. Other obligating agreements Irrevocable credit commitments 2,542 3,414 1,914 2,720 Other liabilities * 6 128 137 158 Total 2,548 3,542 2,051 2,878 * Of which intra -group liabilities in relation to rented premises - - 27 30 Totalkredit loans distributed by AL Sydbank are comprised by an agreed right of set-off against future current commission which Totalkredit may invoke in the event of losses on the loans distributed. AL Sydbank does not expect that this set-off will have a significant impact on AL Sydbank’s financial position. As a result of the Bank’s membership of Bankdata, the Bank is obligated to pay an exit charge in the event of exit. The Group is party to legal actions. These legal actions are under continuous review and the necessary provisions made are based on an assessment of the risk of loss. Pending legal actions are not expected to have any significant impact on the financial position of the Group. AL Sydbank is jointly taxed with its Danish consolidated entities. The AL Sydbank Group has not opted for international joint taxation. AL Sydbank A/S has been appointed the management company of the joint taxation entity. Being the management company AL Sydbank has unlimited and joint and several liability with its subsidiaries as regards the joint taxation concerning Danish corporation tax. Note 22 Collateral At 30 June 2026 the Group had deposited as collateral securities and cash at a value of DKK 167m with Danish and foreign exchanges and clearing centres etc in connection with margin calls and securities settlements etc. In addition the Group has provided cash collateral in connection with CSA agreements of DKK 592m and deposited as collateral securities at a value of DKK 0m in connection with GMRA agreements. In connection with repo transactions, which involve selling securities to be repurchased at a later date, the securities remain on the balance sheet and consideration received is recognised as a debt. Repo transaction securities are treated as assets provided as collateral for liabilities. Counterparties are entitled to sell the securities or deposit them as collateral for other loans. In connection with reverse transactions, which involve purchasing securities to be resold at a later date, the Group is entitled to sell the securities or deposit them as collateral for other loans. The securities are not recognised in the balance sheet and consideration paid is recognised as a receivable. Assets received as collateral in connection with reverse transactions may be sold to a third party. In such cases a negative portfolio may arise as a result of the accounting rules. This is recognised under “Other liabilities”. Assets sold as part of repo transactions Bonds at fair value 3,199 2,923 3,199 2,923 Assets purchased as part of reverse transactions Bonds at fair value 24,149 23,260 24,149 23,260
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 1 / 5 0 Notes AL Sydbank Group AL Sydbank A/S H1 H1 Index 31 Dec DKKm 2026 2025 26/25 2025 Note 23 Related parties AL Sydbank is the bank of a number of related parties. Transactions with related parties are settled on an arm’s length basis. No unusual transactions took place with related parties in H1 2026. Reference is made to the Group’s 2025 Annual Report for a more detailed description of related party transactions. Note 24 Reporting events occurring after the balance sheet date No matters of significant impact on the financial position of the AL Sydbank Group have occurred after the expiry of H1. Note 25 Large shareholders Fagligt Fælles Forbund owns, through direct holdings, over 10% of the total share capital and the voting rights of AL Sydbank A/S. Dansk Metalarbejderforbund owns, through direct holdings, over 5% of the total share capital and the voting rights of AL Sydbank A/S. Note 26 Core income Net interest etc 3,413 1,849 185 3,932 Mortgage credit* 632 301 210 661 Payment services 231 135 171 308 Remortgaging and loan fees 148 91 163 191 Commission and brokerage 367 267 137 526 Commission etc investment funds and pooled pension plans 367 173 212 410 Asset management 326 250 130 523 Custody account fees 75 54 139 117 Other operating income 362 215 168 506 Total 5,921 3,335 178 7,174 * Mortgage credit Totalkredit cooperation 553 252 219 552 Totalkredit, set-off of loss 6 5 120 9 Totalkredit cooperation, net 547 247 221 543 DLR Kredit 85 53 160 117 Other mortgage credit income 0 1 - 1 Total 632 301 210 661
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 2 / 5 0 Notes AL Sydbank Group DKKm FVPL Fair value option FVOCI Total fair value 30 Jun 2026 Amortised cost Note 27 Fair value disclosure Financial instruments are included in the balance s heet either at fair value or at cost. The table below breaks down financial instruments by valuation technique. Financial assets Cash and balances on demand at central banks - 32,053 Amounts owed by credit institutions and central banks 1,069 1,069 14,789 Loans and advances at fair value 22,746 22,746 - Loans and advances at amortised cost - 143,695 Bonds at fair value 15,130 52,162 67,292 - Shares etc 581 3,717 589 4,887 - Assets related to pooled plans 51,400 51,400 - Land and buildings 3,278 3,278 - Other assets 3,327 287 3,614 3,548 Total 42,853 107,566 3,867 154,286 194,085 Undrawn credit commitments - 84,960 Maximum credit risk, collateral not considered 42,853 107,566 3,867 154,286 279,045 Financial liabilities Amounts owed to credit institutions and central banks 1,913 1,913 5,254 Deposits and other debt 1,307 1,307 218,062 Deposits in pooled plans 51,400 51,400 - Bonds issued at amortised cost - 25,497 Other liabilities 5,521 5,521 10,605 Subordinated capital - 3,568 Total 8,741 51,400 - 60,141 262,986
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 3 / 5 0 Notes AL Sydbank Group DKKm FVPL Fair value option FVOCI Total fair value 31 Dec 2025 Amortised cost Note 27 – continued Financial assets Cash and balances on demand at central banks - 19,468 Amounts owed by credit institutions and central banks 1,282 1,282 12,837 Loans and advances at fair value 21,648 21,648 - Loans and advances at amortised cost - 140,268 Bonds at fair value 15,968 54,479 70,447 - Shares etc 721 3,714 602 5,037 - Assets related to pooled plans 48,297 48,297 - Land and buildings 3,364 3,364 - Other assets 3,272 371 3,643 2,879 Total 42,891 106,861 3,966 153,718 175,452 Undrawn credit commitments - 89,415 Maximum credit risk, collateral not considered 42,891 106,861 3,966 153, 718 264,867 Financial liabilities Amounts owed to credit institutions and central banks 1,789 1,789 3,979 Deposits and other debt 1,152 1,152 208,193 Deposits in pooled plans 48,297 48,297 - Bonds issued at amortised cost - 21,474 Other liabilities 4,420 4,420 10,249 Subordinated capital - 3,465 Total 7,361 48,297 - 55,658 247,360 To take into account changes in credit risk concern ing derivatives with positive fair value, an adjust ment is made – CVA. CVA is a function of the risk of counterparty default (PD), the expected positive exposure and the loss ratio in the event of default. PD is determined on the basis of the Group’s credit models – default probability in 12 months. PD beyond 12 months is adjusted on the basis of market data of exposures with a sim ilar PD level. At 30 June 2026, CVA constituted DKK 1m compared to DKK 1m at year-end 2025. Customer margins recognised in connection with deri vatives are amortised over the life of the transact ion. At 30 June 2026, client margins not yet recognised a s income totalled DKK 14m compared to DKK 14m at year-e nd 2025. Financial instruments recognised at fair value Measurement of financial instruments is based on quoted prices from an active market, on generally accepted valuation models with observable market data or on available data that only to a limited extent is observable market data. Measurement of financial instruments for which prices are quoted in an active market or which is based on generally accepted valuation models with observable market data is not subject to significant estimates. As regards financial instruments where measurement is based on available data that only to a limited extent is observable market data, measurement is subject to estimates. Such financial instruments appear from the column unobservable inputs below and include primarily unlisted shares, including shares in DLR Kredit A/S. The fair value of unlisted shares and other holdings is calculated on the basis of available information on trades etc – including to a very significant extent on shareholders’ agreements based on book value. To an insignificant extent fair value is calculated on the basis of expected cash flows. A 10% change in the calculated market value of financial assets measured on the basis of unobservable inputs will affect profit before tax by DKK 367m (31 December 2025: DKK 371m).
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 4 / 5 0 Notes AL Sydbank Group DKKm Quoted prices Observable inputs Unobservable inputs Total fair value Carrying amount Note 27 – continued 30 Jun 2026 Financial assets Amounts owed by credit institutions and central banks 1,069 1,069 1,069 Loans and advances at fair value 22,746 22,746 22,746 Bonds at fair value 67,292 67,292 67,292 Shares etc 1,187 34 3,666 4,887 4,887 Assets related to pooled plans 44,184 7,216 51,400 51,400 Land and buildings 3,278 3,278 3,278 Other assets 326 3,288 3,614 3,614 Total 45 ,697 101 ,645 6,944 154 ,286 154 ,286 Financial liabilities Amounts owed to credit institutions and central banks 1,913 1,913 1,913 Deposits and other debt 1,307 1,307 1,307 Deposits in pooled plans 51,400 51,400 51,400 Other liabilities 302 5,219 5,521 5,521 Total 302 59 ,839 - 60 ,141 60 ,141 31 Dec 2025 Financial assets Amounts owed by credit institutions and central banks 1,282 1,282 1,282 Loans and advances at fair value 21,648 21,648 21,648 Bonds at fair value 70,447 70,447 70,447 Shares etc 1,287 36 3,714 5,037 5,037 Assets related to pooled plans 41,211 7,086 48,297 48,297 Land and buildings 3,364 3,364 3,364 Other assets 237 3,406 3,643 3,643 Total 42 ,735 103 ,905 7,078 153 ,718 153 ,718 Financial liabilities Amounts owed to credit institutions and central banks 1,789 1,789 1,789 Deposits and other debt 1,152 1,152 1,152 Deposits in pooled plans 48,297 48,297 48,297 Other liabilities 198 4,222 4,420 4,420 Total 198 55 ,460 - 55 ,658 55 ,658 DKKm 30 Jun 2026 31 Dec 2025 30 Jun 2025 Assets measured on the basis of unobservable inputs Carrying amount at 1 Jan 3,714 2,459 2,459 Additions, merger - 1,840 - Additions 13 2 - Disposals 28 665 44 Market value adjustment 21 78 7 PPA regulation (49) - - Carrying amount at end of period 3,671 3,714 2,422 Recognised in profit for the period Dividend 189 124 105 Market value adjustment 21 78 7 Total 210 202 112
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 5 / 5 0 Notes AL Sydbank Group AL Sydbank A/S 30 Jun 31 Dec 30 Jun 31 Dec DKKm 2026 2025 2026 2025 Note 28 Leverage ratio Leverage ratio exposures Total assets 361,004 341,950 357,170 337,940 Of which pooled assets (51,400) (48,297) (51,400) (48,297) Correction derivatives etc 2,473 5,674 3,540 7,404 Guarantees etc 26,751 26,139 26,713 26,100 Undrawn credit commitments etc 4,978 5,092 4,814 4,482 Other adjustments (10,510) (9,594) (11,466) (11,345) Total 333 ,296 320 ,964 329 ,371 316 ,284 T1 capital – fully loaded 23,405 23,625 23,099 23,368 Leverage ratio (%) – fully loaded 7.0 7.4 7.0 7.4
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 6 / 5 0 Notes AL Sydbank Group DKKm 2025 Note 29 Merger On 27 October 2025 Sydbank (continuing entity), Arb ejdernes Landsbank and Vestjysk Bank entered an agr eement to complete a merger under the name AL Sydbank. The merger was finalised on 5 December 20 25 as a tax-free merger. The activities acquired are included in the segment reporting of the AL Sydbank Group under Banking. T he acquisition cost totalled DKK 21,855m. As consideration for the transfer of assets and equity and liabilities to Sydbank, new shares have been i ssued as follows: • The shareholders of Arbejdernes Landsbank A/S have received 33,457,482 shares in AL Sydbank at a ratio of 62.47:1 share. As a result, the former shareholders of Arbejdernes Landsbank repres ent 39.00% of the total share capital on completion of the merger. • The minority shareholders of Vestjysk Bank A/S hav e received 3,300,227 shares in AL Sydbank at a rati o of 100.52:1 share as well as a cash consideration of DKK 1.78 per share, corresponding to DKK 590m. After the merger, this group of shareh olders represents 3.85% of AL Sydbank’s total share capital. The share capital represents DKK 879,621,690 at year-end 2025 – an increase of DKK 333,737,490 compare d to year-end 2024. The transaction involves around 500,000 customers, bank loans and advances of DKK 56bn and distributed mortgage loans from Totalkredit of DKK 110bn. Merger-related costs consist primarily of an exit fee to BEC Financial Technologies and costs to advis ers. There is a positive cash flow effect of the merger of DKK 12,485m, mainly concerning cash acquired, de posits held with Danmarks Nationalbank as well as n et balances on demand at banks etc less cash payment t o the minority shareholders of Vestjysk Bank. After recognition of identifiable assets, liabilities and contingent liabilities at fair value, goodwill in connection with t he acquisition constitutes DKK 7,689m. Goodwill can be related, among other elements, to significant cost and capital synergies. The assets a cquired and liabilities assumed can be broken down as follows at the acquisition date: Statement of fair value AL Sydbank Group 2025 Assets Cash and balances on demand at central banks 14,006 Amounts owed by credit institutions and central banks 310 Loans and advances at amortised cost 54,854 Bonds at fair value 40,656 Shares etc 2,738 Holdings in associates 147 Assets related to pooled plans 19,560 Intangible assets, customer relationships 1,056 Land and buildings 2,113 Other property, plant and equipment 209 Current tax assets 241 Deferred tax assets 60 Assets in temporary possession 10 Other assets 2,617 Prepayments 105 Total assets 138,682 Liabilities Amounts owed to credit institutions and central banks 722 Deposits and other debt 88,016 Deposits in pooled plans 19,560 Bonds issued at amortised cost 10,276 Current tax liabilities 1 Other liabilities 3,117 Deferred income 74 Provisions 466 AT1 capital – equity 987 Subordinated capital 1,297 Total liabilities 124,516 Net assets acquired 14,166 Purchase price 21,855 Goodwill 7,689 Contingent liabilities Guarantees 9,847
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 7 / 5 0 Notes Note 29 – continued Calculation of fair values In connection with the merger of Sydbank, Arbejdernes Landsbank and Vestjysk Bank, AL Sydbank has dete rmined identifiable assets and liabilities, which a re recognised in the pre-acquisition balance sheet, at fair value. The fair value of loans and advances is based on an assessment of the market value of the portfolio acquired. Before the fair value adjustment, the net value of loans and advances represented DKK 55,632m at the a cquisition date. Contractual cash flows not expecte d to be received of DKK 1,664m have been deducted from this amount. The fair value adjustment of loans and advances totalled DKK 778m. Total loans and a dvances after fair value adjustment represent DKK 54,854m. The calculation of intangible assets in connection with the business combination is still provisional and changes can be made within 12 months of the dat e of acquisition. The fair value of customer relationships has been determined using the Multi-Period Excess Earnings Me thod (MEEM). Customer relationships are determined at the present value of the net cash flows generated through sale to customers after deducting a reaso nable return on all other assets which contribute t o generating the cash flows in question. Liabilities are valued at the present value of the amounts to be applied to settle the liabilities. The Group’s lending rate before tax is used in connection with discounting. Discounting is avoided as regards short-term liabilities when the effect is insignificant. Credit quality of portfolios acquired Loans and advances at amortised cost from the portfolios acquired can be broken down into the followin g credit quality categories at 31 December 2025: Loans and receivables at amortised cost (DKKbn) Corporate Retail 2025 Total 3/2A Normal credit quality 13.4 23.5 36.9 2B Some signs of weakness 8.5 7.4 15.9 2C Significant signs of weakness 1.3 0.2 1.5 1 Customers with evidence of credit impairment 1.2 0.8 2.0 Total 24.4 31.9 56.3 At parent company level , there are loans and advances for DKK 8.5bn to AL Sydbank Finans. The underlying exposures to AL Sydb ank Finans’ customers are included in the table above. The credit quality category assigned to the loans and advances from AL Sy dbank to AL Sydbank Finans is category 2A – Normal credit quality. Impact of the acquisition on the AL Sydbank Group’s income statement The activities acquired form part of the AL Sydbank Group’s net interest and fee income from 5 Decembe r 2025 and represent DKK 412m and improve profit fo r the year by DKK 105m for the period from the acquisition on 5 December 2025 to 31 December 2025 exclud ing exit costs. Net interest and fee income and profit for the year for 2025, made up pro forma as if the merger had b een completed on 1 January 2025, can be calculated as follows. The pro forma figures are determined on the basis of the actual acquisition cost and the allo cation of the purchase price as at the acquisition date. However, depreciation/amortisation, loan costs etc are included in the pro forma figures as of 1 January 2025. Group (DKKm) AL Sydbank 2025 Arbejdernes Landsbank Group 11 mths 2025 Pro forma 2025 Core income 7,174 4,440 11,614 Trading income 256 91 347 Total income 7,430 4,531 11,961 Costs, core earnings 3,715 3,109 6,824 Core earnings before impairment 3,715 1,422 5,137 Impairment of loans and advances etc 297 44 341 Core earnings 3,418 1,378 4,796 Investment portfolio earnings 158 202 360 Profit before non-recurring items 3,576 1,580 5,156 Non-recurring items, net (1,102) (17) (1,119) Profit before tax 2,474 1,563 4,037 Tax 581 347 928 Profit for the year 1,893 1,216 3,109
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 8 / 5 0 Notes AL Sydbank Group 30 Jun 2026 Activity Share capital (DKKm) Equity (DKKm) Profit/(Loss) (DKKm) Ownership share (%) Note 30 Group holdings and enterprises AL Sydbank A/S 858 Consolidated subsidiaries Coop Bank A/S, Albertslund Bank 133 330 (1) 100 Coop Betalinger A/S, Albertslund Payment services 2 2 0 100 Ejendomsselskabet af 1. juni 1986 A/S, Aabenraa Real estate 11 33 2 100 Syd Administration A/S, Aabenraa Invt & admin. 50 51 1 100 Syd Fund Management A/S, Aabenraa Administration 100 124 24 100 AL Finans A/S, København Car finance, leasing & factoring 6 316 14 100 Ejendomsselskabet Sluseholmen A/S, København Owner-occupied property 25 621 10 100 Sluseholmen 7 A/S, København Investment property 0 462 (2) 100 Held for sale Green Team Group A/S, Sønder Omme Wholesale 101 (86 ) (25 ) 100 Holdings in associates Foreningen Bankdata, Fredericia IT 472 468 1 29 Fynske Bank A/S, Svendborg Bank 76 1490 100 20 Komplementarselskabet Core Property Management A/S, København Real estate 1 2 0 20 Core Property P/S, København Real estate 5 45 (5) 2 0 PRAS A/S, København Investment 437 3,650 305 33 BOKIS A/S, København Payment solutions 1 7 1 26 Thise Udviklingsselskab ApS, Roslev Real estate 1 0 0 31 &Money ApS, København IT 0 21 10 25 Financial information according to the companies’ m ost recently published annual reports.
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 4 9 / 5 0 Management Statement We have reviewed and approved the Interim Report – First Half 2026 of AL Sydbank A/S. The consolidated interim financial statements are prepared in accordance with the IFRS Accounting Standards as adopted by the EU, and the parent company interim financial statements are prepared in accordance with the legislative requirements, including the Danish Financial Business Act. Furthermore the consolidated financial statements are prepared in compliance with further requirements of the Danish Financial Business Act. The Interim Report has not been audited or reviewed. However the Bank’s external auditor has conducted a verification of profit for the period, including audit procedures consistent with the requirements as regards a review and has thus verified that the conditions for ongoing recognition of profit for the period in CET1 capital were met. In our opinion the interim financial statements give a true and fair view of the Group’s assets, equity and liabilities and financial position at 30 June 2026 and of the results of the Group’s operations and cash flows for the period 1 January – 30 June 2026. Moreover it is our opinion that the management’s review includes a fair review of the developments in the Group’s operations and financial position as well as a description of the most significant risks and elements of uncertainty which may affect the Group. Aabenraa, 26 August 2026 Group Executive Management Mark Luscombe Frank Mortensen Jørn Adam Møller CEO Deputy CEO CFO Stig Westergaard Svend Randers Peter Hupfeld CRO Gry Bandholm Board of Directors Ellen Trane Nørby Claus Jensen Søren Holm Chair Vice Chair Janne Burkard Moltke-Leth Jon Stefansson Susanne Sc hou Brian Østergaard Roed Caroline Søeborg Ahlefeldt-La urvig-Bille Henning Egon Josefsen Overgaard Christian Riewe Kar sten Dybvad Aksel Bjørn Møller Jarl Oxlund Carsten Andersen Nadja Lind Bøgh Karlsen Jacob Møllgaard Jesper Pede rsen Pia Wrang
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A L S Y D B A N K – I N T E R I M R E P O R T – F I R S T H A L F 2 0 2 6 5 0 / 5 0 Supplementary Information Financial calendar In 2026 and 2027 the Group’s preliminary announcement of financial statements will be released as follows: – Interim Report – Q1-Q3 2026 5 November 2026 – Announcement of the 2026 financial statements 3 March 2027 – Annual General Meeting 2027 18 March 2027 – Interim Report – Q1 2027 28 April 2027 – Interim Report – First Half 2027 25 August 2027 – Interim Report – Q1-Q3 2027 3 November 2027 AL Sydbank contacts Jørn Adam Møller, CFO Tel +45 74 37 20 30 Kristine Racina, Press Officer Tel +45 21 26 34 71 Address AL Sydbank A/S Peberlyk 4 6200 Aabenraa, Denmark Tel +45 74 37 37 37 CVR No DK 12626509 Relevant links AL-sydbank.dk AL-sydbank.com For further information reference is made to AL Sydbank’s 2025 Annual Report at: Investor Relations