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Third party research

Vestjysk Bank - Q4'22: Strong trading income the only surprise - ABG

Vestjysk Bank

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

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Q4'22 pre-tax profit +2% vs ABGSC
2022 ended with a rebound in trading income
Proposed DPS at DKK 0.11 vs. ABGSC 0.14


Q4'22e pre-tax profit 2% above ABGSC,

Vestjysk reported Q4 net profit 2% above ABGSC. Net interest income and commission was in line with our estimates with the largest deviation found in trading income at DKK 51m vs. ABGSC at 26m. This led to total income +6% vs. ABGSC. Total costs came in 5% higher than our estimates due to operating cost 12% higher than ABGSC, partly offset by personnel costs 5% lower than ABGSC. Loan loss reversals came in at DKK 28m vs. ABGSC at DKK 30m. Regarding capital, the CET1 ratio stood at 19.5% vs. ABGSC at 17.6%. The DPS proposal is DKK 0.11 vs. ABGSC at 0.14 corresponding to a payout ratio of 25% in the low end of the target range of 25-50%. FY'2022 pre-tax profit came in at DKK 604m as pre-announced in January. Since there are no large surprises in the Q4 figures we expect the stock to be neutral for the rest of the day.
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