Kreditbanken A/S provides various banking products and services to private and business customers in Denmark. It provides investment advice. Kreditbanken A/S is headquartered in Aabenraa, Denmark.

Denmark

Kreditbanken A/S

Financial Services

The company tries to pay dividends regularly but only sometimes does so. It has paid dividends in roughly half the past ten years. Dividend per share (DPS) has grown yearly, but the dynamics are unclear. In the past 12 months, the dividend yield has barely been above zero and was substantially below that of its peers. On average, the company pays dividends annually. 

KRE.CO reported revenue of DKK 307mn in the last 12 months, up 0% from FY24. The institution earned DKK 0 mn of interest before provisioning and taxes (IBPT) in the trailing 12 months (TTM), a decline of 0% from FY24 The dynamics of more stable income, as measure by recurring income before provisioning and taxes (RIBPT), were rather similar. 

Over the last six months, the stock performance has varied, with an increase following a drop. The stock's price trend wasn't definitive when matched against its global counterparts from the same sector and industry (as depicted above). Over the past six months the stock has exceeded the performance of this peer group by 21ppts and its growth decelerated by 1ppts in the past month. This is equally valid for peers from the same country and industry. Given the stock's valuation versus its peers, its total price movement is neither favourable nor unfavourable.

Kreditbanken A/S reported a return on equity (RoE) of 13.3% in the last 12 months, down from 15.3% in FY23. 

Another important profitability metric, return on assets (RoA), amounted to 2.1% in the last 12 months, a decrease from 2.5% in FY23. 

The institutional, legal, and compliance risks associated with the company's country are minimal. In combination with stringent business standards, shareholder rights are very highly protected.

KRE.CO has very poor trading liquidity. It will take considerable time for the average private investor to sell a common position under normal market conditions. Liquidity is usually stable and becomes extremely unfavourable on the days with the lowest activity. The trading volume mostly stays the same even under highly turbulent market conditions. Another factor to consider is the substantial number of days with zero trading volumes, i.e., without any ability to sell a position. The stock has a very small market capitalisation, which usually makes its trading liquidity erratic and unpredictable. 

No other major risks have been identified.

The solvency (credit quality) of KRE.CO is good. The credit profile rests on (a) a very strong capital position, (b) very weak asset quality, (с) a moderate corporate governance framework, (d) below average earnings power and cost efficiency, and (e) its ample liquidity profile. We draw special attention to the fairly low asset quality driven by low loss absorption capacity, high exposure to the securities market, which could become a severe problem in times of rising interest rates and market instability.

In highly turbulent market conditions, KRE.CO is as volatile as an index. In other words, the stock will move with the index in times of extreme market volatility or shocking company news. Standalone, the worst-day losses (less than 1% of the time) will likely be limited. 

In normal market circumstances, KRE.CO is as volatile as an index. Put differently, without outstanding market volatility or shocking company news, the stock's price will move with the index. The stock's losses on its worst days (less than 1-5% of the time) will range from very low to negligible. 

From both historical and forecast perspectives, the stock is moderately underpriced compared to similar stocks. Specifically, the stock is fairly valued on P/E, underpriced on P/RIBP. 
	Editor's note: P/CR is Price to Core Revenue (CR), similar to P/S for corporates. CR = Net interest income + Net fee & commission income. P/IBPT is Price to Income Before Provisioning and Taxes (IBPT), similar to EV/EBITDA for corporates. IBPT = Core revenue -- Operating expenses + Non-recurring income. P/RIBPT is Price to Recurring Income Before Provisioning and Taxes (RIBPT), similar to P/FCF for corporates. RIBPT = Core revenue -- Operating expenses. 

Kreditbanken A/S

DKK 6900

3

Kreditbanken A/S

DKK 6900

3

Risk factor

Profitability factor

Risk / Profitability

Risk factor

Profitability factor

DKK 6900

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