AL Sydbank raised its 2026 profit range after its third-quarter profit exceeded the prior quarter and core costs declined, giving the newly merged Danish lender a higher full-year forecast.
Profit after tax reached DKK 1.072 billion for the three months ended Sept. 30, compared with DKK 958 million in the second quarter. Core income rose 4% quarter over quarter to DKK 3.118 billion, from DKK 2.986 billion, while core costs dropped 7% to DKK 1.610 billion from DKK 1.722 billion. Annualized after-tax return on tangible equity was 16.0%, above the bank’s 15% target.
The bank now expects full-year profit after tax of DKK 3.8 billion to DKK 4.2 billion, up from its previous range of DKK 3.5 billion to DKK 4 billion. AL Sydbank attributed the revision to core income exceeding expectations, with higher interest-rate effects and income from assets under management contributing to the change.
For the first nine months of 2026, profit after tax totaled DKK 2.833 billion. The bank also reported DKK 347 million in merger cost synergies during that period. Merger-related expenses were DKK 292 million, part of net nonrecurring items totaling DKK 322 million.
Sydbank, Arbejdernes Landsbank and Vestjysk Bank combined to form AL Sydbank in December 2025. Its 2025 income-statement comparisons cover Sydbank’s activity before the merger and are not directly comparable with results for the combined bank.
The bank says the merger is intended to create long-term value for customers, employees, local communities and shareholders. It is working to align prices and processes and preparing for two major IT conversions in 2027. Its forecast remains exposed to financial-market and interest-rate movements, integration costs, and economic conditions that affect customer activity and impairment charges.
The interim report was not audited or reviewed, although an external auditor verified period profit for ongoing recognition in Common Equity Tier 1 (CET1) capital. AL Sydbank’s 2026 financial statements are scheduled for release March 3, 2027.
