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Third party research

Vestjysk Bank: Estimates up after 3rd guidance upgrade in '23 - ABG

Vestjysk Bank

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

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13% CAGR in adjusted EPS for 2022-'25e
Q3e: 7% NII growth q-o-q and another strong quarter on trading
Raising estimates on guidance upgrade and adjusting div. yield


Adjusted EPS CAGR of 13% for 2022-'25e

Vestjysk is on track for a record year after its third guidance upgrade this year on the 18 Sept. Our estimates imply a 2022-'25 net profit CAGR of 13%. The strong earnings growth comes from the recent central bank rate hikes, which improve both NII and the running yield on deposits at central banks. Vestjysk seems to have solid asset quality in its loan book; the company has both flagged for low loan losses in the remainder of 2023 and reversed loan loss provisions earlier this year. We also highlight that Vestjysk's management overlay of DKK 400m in conjunction with a '23e CET1 ratio buffer of 7.2pp provides a healthy cushion to any potential loan losses.
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