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Original-Research: UmweltBank AG - von GBC AG

Einstufung von GBC AG zu UmweltBank AG

Unternehmen: UmweltBank AG

ISIN: DE0005570808

Anlass der Studie: Research Note

Empfehlung: BUY

Kursziel: 13.80 EUR

Kursziel auf Sicht von: 31.12.2024

Letzte Ratingänderung:

Analyst: Cosmin Filker, Marcel Goldmann

H1 2023: Business further expanded, net interest income reduced in line

with expectations; forecast adjusted as project sale does not take place;

price target lowered to EUR13.80 (previously: EUR14.40); rating: BUY

 

Despite the current challenging market environment for the banking

industry, UmweltBank AG again increased its business volume, i.e. total

assets plus contingent liabilities and other commitments, by 3.1% to EUR

6,805 million (31.12.22: EUR 6,602 million) as of 30.06.2023. On the assets

side, the increase in outstanding environmental loans to EUR 3,889 million

(31.12.22: EUR 3,703 million) is likely to have contributed to this

development. At EUR 397 million (previous year: EUR 325 million), the volume of

new loans was 22.2 % higher than in the previous year.

 

However, this positive balance sheet development is contrasted by a decline

in the earnings and profit figures. The decline in the interest, financial

and valuation result to EUR 25.13 million (previous year: EUR 29.69 million) is

striking. Although UmweltBank AG does not publish any further details on

the development of earnings, it can be assumed that a decline in the

interest result is responsible for this. The higher interest rate level

continues to cause a stronger increase in interest expenses, as these react

more flexibly to market changes due to the short-term nature of the deposit

business. Furthermore, the expiry of special corona conditions is likely to

have caused an additional increase in interest expenses.  UmweltBank's

management had already anticipated a decline in the interest margin.

 

The financial years 2023 and 2024 are regarded by UmweltBank AG as a

transformation phase. This includes the conversion to a new core banking

system, the reinforcement of staff, the construction of a new company

headquarters and the fulfilment of regulatory requirements. The migration

of the core banking system in particular is associated with high costs,

which are estimated at around EUR 10 million for the current financial year

2023. In the first half of 2023, migration costs amounted to EUR 4.12 million

(previous year: EUR 0.10 million). This contributed significantly to the

increase in administrative expenses to EUR14.35 million (previous year: EUR9.37

million).

 

Together with the increase in personnel expenses, the cost-income ratio

increased noticeably to 89.6 % (previous year: 59.5 %). Both the decline in

income and the increase in expenses ultimately caused the pre-tax result to

fall to EUR 3.11 million (previous year: EUR 14.01 million) and the result for

the period to fall to EUR 1.49 million (previous year: EUR 3.11 million).

 

Shortly before the publication of the 2023 half-year figures, UmweltBank AG

lowered its annual forecast for the current 2023 financial year on 3 August

2013. Up to that point, the bank had expected a pre-tax result of

approximately EUR 20 million, but only with the help of proceeds from the

sale of investment projects. However, since the sale of projects planned

for the second half of the year has been postponed from the current point

of view, a pre-tax result of only about EUR 1 million is now expected.

 

According to the company, the discontinuation of the proceeds from the sale

is mainly responsible for the guidance adjustment. However, the ECB's

further increase in key interest rates to 4.25 % (as of 27 July 2023) is

likely to further burden interest expenses and thus the interest result.

Compared to the lending side, the deposit side has a much shorter duration

and thus reacts more flexibly to interest rate adjustments. For this

reason, the UmweltBank management expects the interest margin to continue

to decline in 2023 and does not expect the trend to reverse until the 2025

financial year.

 

Our forecasts are based on the new guidance and anticipate a significant

decline in current income (income outside the interest and commission area)

to EUR 3.28 million (previous estimate: EUR 20.50 million) for the current

financial year. In addition, we have taken the renewed ECB interest rate

increase as an opportunity to reduce the forecast for net interest income

to EUR 47.17 million (previous estimate: EUR 49.81 million). Following this

logic, we have also adjusted the net interest income estimates for the next

two financial years slightly downwards.

 

The bottom line is that we expect EBT of EUR 0.97 million for 2023 (previous

estimate: EUR 20.84 million). We had already taken the significant cost

increase into account in the projections as part of our previous research

study (see study dated 17 July 2023). As in the first six months, the cost

picture of UmweltBank AG will be characterised by rising personnel expenses

on the one hand and expenses in connection with the transformation process

currently underway on the other. As the majority of the expenses for the

migration to the new core banking system will be incurred in the current

financial year, operating costs should decrease in the coming financial

year. The estimated costs for the system migration in 2023 are around EUR 10

million. In 2024, these should only amount to around EUR 4 million. In

addition to the expected increase in net interest income, the reduction in

expenses should lead to a noticeable increase in earnings from the coming

financial year onwards.

 

The sum of the discounted residual income results in a value of EUR 488.93

million (previously: EUR 510.49 million). In view of an outstanding number of

shares of 35.44 million, this results in a fair enterprise value per share

of EUR 13.80 (previously: EUR 14.40). The reduction in the fair value is

primarily due to the loss of income from the planned sale of the

participation and thus to a significant reduction in earnings for the

current financial year 2023. On the other hand, we have slightly reduced

the interest result for 2024 and 2025. We continue to give the rating BUY.

 

Die vollständige Analyse können Sie hier downloaden:

http://www.more-ir.de/d/27533.pdf

Kontakt für Rückfragen

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (1,4,5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:

http://www.gbc-ag.de/de/Offenlegung

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Date (time) completion of the study: 14.08.23 (3:25 pm)

Date (time) first publication: 16.08.23 (10:00 am)

-übermittelt durch die EQS Group AG.-

Für den Inhalt der Mitteilung bzw. Research ist alleine der Herausgeber bzw.

Ersteller der Studie verantwortlich. Diese Meldung ist keine Anlageberatung

oder Aufforderung zum Abschluss bestimmter Börsengeschäfte.

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