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Third party research

Vestjysk Bank: 2022 ended on a high note - ABG

Vestjysk Bank

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
FY'22 PTP guidance DKK ~600m, at high end of the old range
Strong Q4e based on 21% NII growth q-o-q and rebounding MVA
Probable return of divs. for first time since '07 - expect ~4% yield


NII drives a strong Q4e - look out for the dividend

With FY'22 PTP already announced to come in around DKK 600m much of the excitement has been released, but we keep an eye out for the net interest income (NII) growth that is set to pick up speed. We estimate NII at DKK 251m in Q4e, corresponding to 21% growth q-o-q after the 7% growth q-o-q in Q3. Furthermore, Q4e has shown a welcomed rebound in market value adjustments (MVA). In the report we also look for the size of the reintroduced dividends for the first time since 2007. We lower the expected DPS to DKK 0.14, equivalent to a dividend yield of ~4% (vs. the '22e-'24e peer average of 4-5%) due to Vestjysk's conservatism combined with the recommendation of moderate payouts from the Danish FSA.