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Sparekassen Sjælland-Fyn: A greater-than-expected guidance upgrade - Nordea

Yesterday, 15 April, Sparekassen Sjælland-Fyn raised its 2021 pre-tax profit guidance to DKK 350-425m (previously DKK 300-340m) ahead of its Q1 2021 results (due 5 May). According to the bank, the guidance upgrade was led by better-than-budgeted net interest and fee income, costs, loan losses, and market value adjustments.

Following the guidance upgrade, we raise 2021E PTP by ~17%, up to DKK 410m (previously DKK 350m). We argue this is only partly driven by strong activity and low anticipated loan losses in 2021. We hence lift 2022E-23E PTP by 9-12%.

Our new Gordon growth-based fair value range is DKK 108-146 (previously DKK 96-131). Marketing material commissioned by Sparekassen Sjælland-Fyn.
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