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Third party research

Sparekassen Sjælland-Fyn: Q1 2022 first impression, More of a mixed bag - Nordea

Sparekassen Sjælland-Fyn

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

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Q1 2022 PBLL came in DKK 31 (21%) below our estimate, mainly led by a DKK 25m miss on low quality market value adjustments. Main positive is key income lines; NII came in at DKK 146m, DKK 3m (2%) ahead of our estimate, while NCI was in line with our estimate and 7% up y/y. Total business volumes (including DLR- and Totalkredit credit lines) continued a positive trajectory in Q1 2022, but bank lending was flattish (and thus below peers and our expectations).Total cost came in DKK 11m (6%) above (thus, worse than) our estimate. Impairment charges represented a small income in Q1 2022. CET1 ratio was 16.2%. We estimated 17.2%. The 2022 guidance is left unchanged (pre-tax proft DKK 385-510m). We estimate DKK 489m. Overall, the report is more of a mixed bag in our view. We are likely to make negative EPS revisions for 2022E of 4-6% while we are likely to reduce 2023E-2024E EPS 3-4%. The share is likely to trade somewhat below peers.
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