ABG har mod betaling udarbejdet denne analyse af Vestjysk Bank:
- Strong NII momentum & large loan loss reversals in Q2
- Underlying cost reductions still to filter into P&L
- We maintain our FV range including M&A of DKK 2.8-5.6
Q2 NII 2% above ABGSCe; net loan loss reversals of 133bp
Vestjysk Bank (VB) reported Q2’21 NII of DKK 207m, up 10% q-o-q (6pp help from DJS merger) and 2% above ABGSCe even though lending was down 2.5% q-o-q related to a credit clean-up; underlying NII appeared to have good momentum. Commission income of DKK 152m was 3% below ABGSCe, linked to loan transaction fee income and other fee income, while trading of DKK 25m was below ABGSCe of DKK 30m. Q2’21 costs of DKK 272m rose 2.5% y-o-y adj. for DJS (DKK 115m costs Q2’20) and DKK 29m EO items Q2’21. This beat ABGSCe mainly due to higher EO costs (DJS merger) and fewer synergies coming through in the P&L in Q2 than we expected. Net loan loss reversals Q2 of DKK 56m (133bp p.a.) were almost twice our expectations, driven by a DKK 140m net reversal in the other business segment, while VB charged DKK 74m loan losses for pork farmers in Q2 amid a significant drop in local prices for pork meat (down to DKK 9.1/KG last week). CET1 of 17.9% was in line with ABGSCe and 70bp was up q-o-q.
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.
