Nordea har mod betaling udarbejdet denne analyse af Sparekassen Kronjylland:
Sparekassen Kronjylland reported H1 2021 profit before loan losses of DKK 194m, DKK 21m (12%) above our estimate. This was led by higher-thanexpected fee income and lower costs, while net interest income was in line with our estimate. The bank reported loan-loss reversals of DKK 43m, while the pandemic-related management buffer was reduced to DKK 247m (previously DKK 279m), hence still indicating a positive development in the underlying asset quality. Management raised its 2021 pre-tax profit guidance to DKK 420-480m (previously DKK 180-280m) amid the H1 report. We estimate DKK 464m. We raise 2021E-23E net profit by 8-37%, led by 7-10% higher profit before loan losses and lower loan losses.
Branch maturity set to be a profitability trigger
Lending increased by DKK 544m (3%) h/h, while net interest margin remained solid. Total costs were up DKK 14m (3%) y/y, yet DKK 5m (1%) below our estimate. Sparekassen Kronjylland has in recent years focused on branch openings and mergers, supporting an ambitious growth strategy. Meanwhile, as the branches begin to mature, we expect to see Sparekassen Kronjylland start reaping the fruits of its labour and turning its focus towards cost management and income initiatives. We believe that this is a rational next step and see upside potential for profitability.
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.
