AL Sydbank posts strong Q1 growth and solid returns amid global uncertainty after merger.

AL Sydbank reported solid growth in deposits and lending in its first quarterly report as a merged bank, with total credit increasing to DKK 387.3bn and deposits rising to DKK 212.9bn. Despite geopolitical tensions and market volatility, the bank achieved a profit of DKK 803m and a return on tangible equity of 11.8%. The merger integration is progressing well, with branch consolidations and management appointments underway. The bank remains well-capitalized after a DKK 1,100m share buyback and projects moderate economic growth with a 2026 profit forecast of DKK 3,500-4,000m, though uncertainties remain due to market and macroeconomic factors.