Vestjysk Bank: Good outlook for ’22, AL moves a bit closer - ABG
Guidance for 2021 net profit 6% above ABGSCe
Good outlook for 2022 alongside high business activity
We see support to the strong share sentiment
ANNONS
High business activity and tax gain behind the ’21 upgrade
This afternoon, Vestjysk Bank (VB) upgraded its guidance for 2021 net profit to DKK 1,080m (DKK 950-1,050m). The new net profit guidance is 8% higher than the mid-point before and it is 6% above ABGSCe of DKK 1,016m. Adjusted for the merger with DJS, the 2021 net profit guidance is up to DKK 725m (DKK 650-700m). The guidance upgrade for 2021 is mentioned to be due to a high level of business activity while a tax gain is playing a role as well.
Good guidance for 2022, AL moving a bit closer
Following new guidelines from the Danish FSA, VB is also guiding for 2022. For 2022 PTP VB is guiding DKK 600-650m which has its mid-point slightly above ABGSCe of DKK 617m. Vestjysk Bank also announces that the CEO of Arbejdernes Landsbank (AL owns 73% of VB) is nominated for election as Deputy Chairman on the board of VB.
The M&A angle could help the share as well
The VB share was up 4-5% today ahead of the guidance upgrade (likely as a part of the ongoing Danish banking rally), we still view the guidance upgrade and outlook for 2022 as supportive for the share. The M&A angle with AL could support the share as well.
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