Press the button and be introduced to a new random company!

Introduce me >

Social media

facebook   Follow us on Twitter

Coverage

Vestjysk Bank

Vestjysk Bank

Danish regional bank

Vestjysk Bank has a market share in Denmark of ~2% after the merger with Den Jyske Sparekasse. Lending exposure is concentrated in mid-and southern Jutland while the branch network stretches from the west coast over the middle of Jutland to the east and south. The bank has ~650 employees. Exposure is tilted towards agriculture but this has now been reduced to around 13% of lending and guarantees.

A significant drop in loan loss provisions due to improved agri conditions has boosted net profits for Vestjysk in recent years, and if this continues, Vestjysk could return to announcing dividends for 2021. Vestjysk was recapitalisedby a group of investors in 2017 while EU restrictions were removed in April 2019. In January 2021, Vestjysk merged with Den Jyske Sparekasse, leading to a large synergy potential in the bank.

Regulatory risks and credit risk are the biggest risks in the Vestjysk investment case. New regulations such as Basel IV, MREL and IFRS 9 will be implemented over the coming years. As cattle farming and pig farming represents ~10% of Vestjysk’s total lending exposure, the future development in dairy prices and pig prices also present a high risk for the bank.

DKKm 2021 2022e 2023e
Total Income 1999 1531 1583
Total operating costs -1069 -882 -887
Operating profit 1005 628 665
EPS Adj 0,62 0,51 0,39
EPS adj growth (%) 82,1 -17,9 -23
BVPS 4,13 4,63 4,76
NAVPS 4,04 4,55 4,68
DPS 0 0,26 0,2
ROE (%) 22,8 12 8,6
RONAV (%) 16,3 11,8 8,5
C/I (%) 58,8 58,4 56,6
Loan losses (%) -0,34 0,12 0,17
CET1 ratio (%) 19,1 19,6 20
P/E Adj (x) 5,7 6,9 9
P/BV (x) 0,85 0,76 0,74
P/NAV (x) 0,87 0,77 0,75
Dividend yield (%) 0 7,4 5,7
DKKm 2021 2022e 2023e
Net interest income 802 858 890
Net commission income 594 597 615
Trading income 114 61 62
Insurance income 0 0 0
Other operating income 489 15 15
Total income 1999 1531 1583
Personnel costs -547 -508 -508
Other operating costs -522 -374 -379
Total operating costs -1069 -882 -887
Profit before loan losses 930 648 695
Loan losses 57 -20 -30
Investment portfolio 0 0 0
Other items 18 0 0
Operating profit 1005 628 665
Tax 75 18 -166
Other items after tax 0 0 0
Net profit 1080 646 499
Tax rate (%) 7,5 2,8 -25
EPS 0,88 0,52 0,4
Net Profit Adj 764 627 483
EPS Adj 0,62 0,51 0,39
Key balance sheet data 0 0 0
Net lending 16822 17495 18020
Goodwill and intangibles 107 107 107
Total assets 40962 41635 42160
Shareholders equity 5089 5717 5876
Net asset value 4982 5610 5770
Capital adequacy 0 0 0
Tier 1 Capital, excl.hybrids 4425 4730 4963
Tier 1 Capital, reported 4726 5030 5264
Capital base 5323 5628 5861
Risk exposure amount (BIS II) 23187 24115 24838
Asset quality 0 0 0
Problem loans, gross 5675 5845 5962
Provisions for problem loans -2827 -2841 -2846
Problem loans, net 2848 3004 3116
Key figures N/A N/A N/A
Profitability 2021 2022 2023
Net interest margin (%) 2,5 2,1 2,1
ROE (%) 22,8 12 8,6
RONAV (%) 16,3 11,8 8,5
ROREA (%) 5,9 2,7 2
Cost efficiency 0 0 0
Cost / income Core (%) 58,8 58,4 56,6
Costs / assets Core (%) 2,76 2,14 2,12
Financial position 0 0 0
Net lending / deposits (%) 70,1 72,9 75,1
REA / assets (%) 56,6 57,9 58,9
Common equity tier 1 ratio (%) 19,1 19,6 20
Tier 1 ratio, reported (%) 20,4 20,9 21,2
Capital adequacy (%) 23 23,3 23,6
Equity ratio Core (%) 10,8 11,4 11,8
Asset quality 0 0 0
Problem loans, gross / lending (%) 22,4 22,2 22
Problem loans, net / lending (%) 16,9 17,2 17,3
Provision ratio (%) 49,8 48,6 47,7
Loan losses, net / lending (%) -0,3 0,1 0,2

Equity research

Read earlier research

Main shareholders - Vestjysk Bank

Main shareholders Share capital % Voting shares % Verified
A/S Arbejdernes Landsbank 72.7 % 72.7 % 31 Dec 2021
Lærernes Pension 1.3 % 1.3 % 31 Dec 2021
Novo Holdings A/S 0.9 % 0.9 % 26 Feb 2019
Maj Invest 0.5 % 0.5 % 31 Mar 2022
PFA Pension A/S 0.4 % 0.4 % 31 Dec 2021
Handelsbanken Fonder 0.2 % 0.2 % 30 Apr 2022
Danske Invest (DK) 0.2 % 0.2 % 31 Mar 2022
Claus E. Petersen 0.0 % 0.0 % 14 Jan 2021
Bolette Van Ingen Bro 0.0 % 0.0 % 31 Dec 2021
Vestjysk Bank A/S 0.0 % 0.0 % 31 Mar 2021
Source: Holdings by Modular Finance AB