Commissioned research: It’s harvest time
In recent years Sparekassen Sjælland-Fyn has merged with Sparekassen Faaborg, and raised capital via an IPO in 2015 and a rights issue in 2018. The bank has also reduced its credit risk and expanded its branch network. All these projects have, in our view, reduced the prioritisation of cost control. We find potential for the bank to optimise costs as branch openings are set to stop. Moreover, we expect to see income support from the branch network over the coming years as recently opened branches mature. Both cost efficiency and profitability are also key parameters of the ‘New Ways’ strategy plan, launched in November 2017. We arrive at a basecase fair value range of DKK 90-131, depending on the applied cost of equity and level of normalised loan losses.
Marketing material commissioned by Sparekassen Sjælland-Fyn.
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