Following the announcement of its preliminary 2021 figures, Sparekassen Kronjylland is set to report 2021 pre-tax profit of DKK 509m and net profit of DKK 425m, hence marking a record year for the bank in terms of profitability. More importantly, after years of efforts towards strengthening its credit book, Sparekassen is again visibly deploying capital toward growth initiatives, which suggests a more positive growth trajectory going forward. We therefore lift 2022E-23E PBLL by 2-3% as we now pencil in recent branch openings and positive sector momentum in general, only partly offset by a step-up in our cost estimates. We estimate a 2021 CET1 ratio of 18.5%, up 70 bp from H1, and a DKK 30m guaranteed capital inflow h/h for H2 2021. Marketing material commissioned by Sparekassen Kronjylland.
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