AL Sydbank A/S

Outlook for 2026 and new share buyback

Dear Sirs

Outlook for 2026 and new share buyback

Outlook for 2026
AL Sydbank projects moderate growth in the Danish economy in the year ahead and profit after tax in the range of DKK 3,500-4,000m assuming that the Danish central bank holds the certificate of deposit rate steady. The outlook is subject to uncertainty and depends on financial market developments and macroeconomic factors that could affect eg the level of impairment charges.

Share buyback
The Board of Directors has decided to implement a share buyback programme of DKK 1,100 million. The purpose of the share buyback is to reduce the Bank’s share capital by the shares purchased under the programme.

At the general meeting of Sydbank A/S held on 20 March 2025 the Board of Directors was most recently authorised to allow the Bank to acquire own shares at a total value of up to 10% of the Bank’s share capital.

The price paid for shares may not differ by more than 10% from the price quoted on Nasdaq Copenhagen A/S at the time of purchase.

The share buyback is part of the adjustment to optimise the capital structure in accordance with the Bank’s capital targets and capital policy. At 31 December 2025 AL Sydbank had a CET1 ratio of 15.8% and a capital ratio of 19.2%.

The share buyback programme will be initiated on Monday, 2 March 2026 and will be completed by 31 January 2027.

AL Sydbank has chosen Danske Bank A/S to manage the share buyback programme, which will be executed in compliance with Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 and Commission Delegated Regulation (EU) 2016/1052 of 8 March 2016, referred to as the Safe Harbour rules.

The share buyback programme will be subject to the following guidelines:

• Shares may not be purchased at a price higher than the higher of the following prices:
  
  

I. the price of the last independent trade

II. the highest current independent purchase bid on the trading venue where the purchase is carried out, including when the shares are traded on different trading venues.

• Purchases on any trading day may not exceed 25% of the average daily volume of shares in the preceding 20 trading days on the trading venue on which the purchase is carried out.
  
  

On the first banking day of each week AL Sydbank will disclose the number and value of repurchased shares in a company announcement.

AL Sydbank may suspend or terminate the share buyback programme at any time. Such a decision will be announced in a company announcement.

Yours sincerely
                
Mark Luscombe        Jørn Adam Møller
CEO        CFO        

Attachment

• SM 05 UK