April 30, 2024 15:05 GMT
Sydbank 1Q24 Preview: Muted Growth, Spread Compression
FINANCIALS
Sydbank 1Q24 preview (SYDBDC; A3 pos): strong spread performance YTD, and over the last month, but earnings upgrades have been very muted. Danish GDP revisions have been positive recently, but ECB rate expectations remain a key driving factor.
- Results last time (28-Feb) were very positively received by equity investors (+20% over the following four sessions) as there was a big upgrade to the equity buyback commitment (c.5% of the market cap). Results were broadly in line with consensus at the pre-tax level but then a lower tax rate drove a beat on net income.
- Sydbank’s been the star performer of the Danish banks with spreads 78bp tighter YTD (Danes -36bp, €IG banks -39bp). The equity is up 22% YTD (SX7P +16%) so also a positive performer.
- Earnings were upgraded c.3% for FY24 (but barely at all for FY25) after results. Revenues were edged up for this year and down for next.
Results are 0730 (London time).
Keep reading...Show less
155 words