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Den Jyske Sparekasse

Den Jyske Sparekasse

Danish savings bank

DJS has a market share of well below 1% in Denmark with lending exposure concentrated in the middle part of Jutland. The bank has 19 branches, ~350 employees and 97,000 customers. Exposure is tilted towards agriculture (~17%) but DJS is seeking to reduce its exposure to agriculture as well as to real estate (below 10%). DJS has introduced an intention of a 25% dividend pay-out at some point in the future depending on its capital accumulation.

Den Jyske Sparekasse (DJS) was recapitalised by a group of investors in 2018 ahead of the November IPO, giving the bank better capacity to handle its challenged agri exposure. A high earnings shield implies upside if conditions in the agri sector should improve, while a high interest-rate sensitivity implies upside if interest rates should at some point begin to rise.

Credit risk is the biggest risk for DJS, which has an exposure to cattle farming and pig farming of ~12% of loans and guarantees. The bank is sensitive to a drop in milk and pork prices. New regulations such as MREL and Basel IV remain a risk for DJS. Furthermore, the bank's capital plans do not allow for high lending growth in the short term.

DKKm 2019 2020e 2021e
Total Income 772 649 670
Total operating costs -463 -468 -473
Operating profit 148 35 112
EPS Adj 5,97 2,6 10,37
EPS adj growth (%) -47,1 -56,4 298,1
BVPS 166,7 169,37 180,57
NAVPS 166,1 168,82 180,01
DPS 0 0 0
ROE (%) 9,3 2 6,4
RONAV (%) 3,8 1,6 5,9
C/I (%) 69,1 73,1 71,4
Loan losses (%) 2,05 1,9 1,1
CET1 ratio (%) 15,8 16 16,4
P/E Adj (x) 12,2 27,7 6,9
P/BV (x) 0,44 0,43 0,4
P/NAV (x) 0,44 0,43 0,4
Dividend yield (%) 0 0 0
DKKm 2019 2020e 2021e
Net interest income 374 377 380
Net commission income 246 246 257
Trading income 131 18 25
Insurance income 0 0 0
Other operating income 20 8 8
Total income 772 649 670
Personnel costs -260 -280 -283
Other operating costs -203 -188 -190
Total operating costs -463 -468 -473
Profit before loan losses 309 181 197
Loan losses -160,57 -145,87 -85
Investment portfolio 0 0 0
Other items 0 0 0
Operating profit 148 35 112
Tax -1 -1 -1
Other items after tax 0 0 0
Net profit 148 34 111
Tax rate (%) -0,6 -1,8 -1
EPS 14,89 3,43 11,2
Net Profit Adj 59 26 103
EPS Adj 5,97 2,6 10,37
Key balance sheet data 2019 0 0
Net lending 7675 7737 7892
Goodwill and intangibles 6 6 6
Total assets 15956 15354 15509
Shareholders equity 1655 1682 1793
Net asset value 1649 1676 1787
Capital adequacy 2019 0 0
Tier 1 Capital, excl.hybrids 1739 1720 1804
Tier 1 Capital, reported 1839 1820 1904
Capital base 2086 2068 2151
Risk exposure amount (BIS II) 11011 10774 10990
Asset quality 2019 0 0
Problem loans, gross 2361 2756 2866
Provisions for problem loans -1108 -1247 -1332
Problem loans, net 1253 1508 1534
Key figures N/A N/A N/A
Profitability 2019 2020 2021
Net interest margin (%) 2,4 2,4 2,5
ROE (%) 9,3 2 6,4
RONAV (%) 3,8 1,6 5,9
ROREA (%) 1,3 0,3 1
Cost efficiency 2019 0 0
Cost / income Core (%) 69,1 73,1 71,4
Costs / assets Core (%) 2,96 2,99 3,06
Financial position 2019 0 0
Net lending / deposits (%) 71,6 74,9 76,4
REA / assets (%) 69 70,2 70,9
Common equity tier 1 ratio (%) 15,8 16 16,4
Tier 1 ratio, reported (%) 16,7 16,9 17,3
Capital adequacy (%) 18,9 19,2 19,6
Equity ratio Core (%) 10,9 11,2 11,6
Asset quality 2019 0 0
Problem loans, gross / lending (%) 20,9 23 23,3
Problem loans, net / lending (%) 16,3 19,5 19,4
Provision ratio (%) 46,9 45,3 46,5
Loan losses, net / lending (%) 2,1 1,9 1,1

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Main shareholders - Den Jyske Sparekasse

Main shareholders Share capital % Voting shares % Verified
AP Pension 15.7 % 15.7 % 29 Feb 2020
Finansiel Stabilitet 12.5 % 12.5 % 31 Dec 2019
Nykredit Realkredit A/S 8.8 % 8.8 % 31 Dec 2019
A/S Arbejdernes Landsbank 5.2 % 5.2 % 31 Dec 2019
Danske Invest (DK) 0.2 % 0.2 % 30 Apr 2020
Claus E. Petersen 0.1 % 0.1 % 31 Dec 2019
Ib Kristensen 0.0 % 0.0 % 31 Dec 2019
Jan Nordstrøm 0.0 % 0.0 % 13 Aug 2019
Bjarne L. Petersen 0.0 % 0.0 % 31 Dec 2019
Torben Sørensen 0.0 % 0.0 % 31 Dec 2019
Source: Holdings by Modular Finance AB