FY ROE target looks realistic but struggling on cost target We estimate a 2022 profit before tax of DKK 622m in the middle of guidance of DKK 600-650m. Vestjysk’s 2022 ROE target above 9% seems likely to be achieved in our view, especially when factoring in a tax gain at the year-end which Vestjysk is planning to exploit towards 2026. However, we see difficulties for Vestjysk in reaching its FY target of a C/I ratio below 55% since the reported Q1 ratio came in at 75.3%. With no signs of costs reductions for the remainder of ’22, due to inflation and completed redundancies, we do not expect income to reach its target while our ‘22e is at a C/I ratio of 62.9%.
2024e adj. P/E at 7.9x without the ‘23e-‘24e tax gain ... Läs mer på ABG Sundal Collier
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