ABG Sundal har mod betaling udarbejdet denne analyse af Vestjysk Bank:
Uddrag fra ABG Sundal Collier analyse af Vestjysk Bank:
- PBLL was in-line with ABGSCe, but worse quality
- Surprisingly high organic lending growth Q1 a positive
- We expect a neutral share price reaction
Lower quality and higher loan losses amid large EO gains
Vestjysk Bank reported Q1’21 profit before loan losses of DKK 534m which were 1% below ABGSCe. Income was 1% below but with a worse quality mix than we expected with NII 7% below ABGSCe and commissions 5% below while trading income of DKK 32m was above ABGSCe of DKK 13m. Noise from the takeover of Den Jyske Sparekasse (DJS) Q1’21 may potentially play into the deviations while the DKK 477m badwill gain Q1 was in-line with our expectations. Q1’21 lending was 3.5% above ABGSCe related to surprisingly high organic lending growth in Q1 above 6% q-o-q. Costs of DKK 307m Q1 was in-line (DKK 69m non-recurring costs Q1). Loan losses of DKK 22m (52bp p.a.) was higher than we expected despite a DKK 79m net reversal related to pork farmers, other agriculture and SME lending was behind the negative surprise. Vestjysk Bank holds upfront charges for economic uncertainty of DKK 289m as of Q1’21 (310m Q4’20). Vestjysk Bank booked a tax gain of DKK 82m in Q1’21 due to the takeover of DJS (ABGSCe DKK 70m). CET1 of 17.2% was 130bp above ABGSCe.
Generalt om Commissioned Research: Bemærk, at man bør se bort fra eventuelle kursestimater i såkaldt commissioned research, og den underliggende analyse skal også tolkes med forsigtighed, da negative aspekter ikke nødvendigvis fremhæves.
