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1. Company Snapshot

1.a. Company Description

Spar Nord Bank A/S provides various banking products and services to retail, business, and public sector customers in Denmark.It offers deposits, loans, advances, and guarantee services, as well as custodianship accounts.The company also provides trading services in the field of equities, bonds, interest and forex, asset management, and international transactions, as well as leasing products.


In addition, it offers consumer financing services through retail stores; gift voucher solutions through shopping centers and shopping center associations; and direct loans through its website, sparxpres.dk.Spar Nord Bank A/S was founded in 1824 and is based in Aalborg, Denmark.

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1.b. Last Insights on SPNO

Spar Nord Bank A/S's recent performance was driven by a strong Q1-Q3 2024 financial results, with a profit after tax of DKK 1,779 million and a return on equity of 18.0%. The company's core income was 2% higher than in the same period of 2023, supported by higher net interest income and net fee income. Additionally, Spar Nord's share buyback program, initiated in February 2024, continued to reduce the bank's share capital, benefiting shareholders. The company's guidance for 2024 was revised upwards, with expectations for profit after tax now ranging from DKK 2,100-2,300 million.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Nasdaq Copenhagen A/S has accepted the request for delisting of Spar Nord Bank A/S' shares

Jun -25

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Notice of compulsory acquisition and request for delisting

Jun -25

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Nykredit Bank A/S – changes to the Executive Board

Jun -24

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Proceedings of the extraordinary general meeting of Spar Nord Bank A/S

Jun -24

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Updated financial Calendar for 2025

Jun -06

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Management changes in Spar Nord Bank A/S

May -28

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Nykredit announces completion of the takeover offer

May -28

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Nykredit announces final result of the takeover offer

May -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.00%)

6. Segments

Spar Nord's Local Banks

Expected Growth: 4.5%

Spar Nord's Local Banks are poised for growth driven by increasing demand for personalized services and local decision-making in Denmark. The community-focused approach and decentralized decision-making process will continue to attract customers seeking tailored banking solutions, driving a forecasted CAGR of 4.5%.

Trading

Expected Growth: 10.5%

Growing demand for online trading platforms, increasing adoption of digital banking, and rising popularity of ETFs are driving the growth of Spar Nord Bank's trading segment.

Other Areas

Expected Growth: 4.5%

The Other Areas segment of Spar Nord Bank A/S is expected to grow driven by increasing demand for non-core banking services, expansion of subsidiaries and joint ventures, and strategic partnerships. The segment's growth is also fueled by the bank's efforts to diversify its revenue streams and reduce dependence on core banking operations.

7. Detailed Products

Personal Banking

Spar Nord Bank A/S offers a range of personal banking services, including current and savings accounts, credit cards, and personal loans.

Business Banking

The bank provides business banking services, including business accounts, loans, and cash management solutions, tailored to the needs of small and medium-sized enterprises.

Mortgage Loans

Spar Nord Bank A/S offers a range of mortgage loan options, including fixed-rate and variable-rate loans, for individuals and businesses.

Investment Services

The bank provides investment services, including portfolio management, investment advice, and online trading platforms.

Insurance Services

Spar Nord Bank A/S offers a range of insurance products, including life insurance, pension plans, and non-life insurance.

Corporate Finance

The bank provides corporate finance services, including mergers and acquisitions, equity and debt capital markets, and restructuring advisory.

8. Spar Nord Bank A/S's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Spar Nord Bank A/S is moderate, as customers have alternative banking options available.

Bargaining Power Of Customers

The bargaining power of customers is low, as Spar Nord Bank A/S has a strong customer base and offers a range of financial services.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Spar Nord Bank A/S relies on a range of suppliers for its operations, but has some flexibility in its supply chain.

Threat Of New Entrants

The threat of new entrants is low, as the banking industry has high barriers to entry and Spar Nord Bank A/S has a strong market position.

Intensity Of Rivalry

The intensity of rivalry is high, as Spar Nord Bank A/S operates in a competitive market with several other banks and financial institutions.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.60%
Debt Cost 6.76%
Equity Weight 44.40%
Equity Cost 7.17%
WACC 6.94%
Leverage 125.22%

11. Quality Control: Spar Nord Bank A/S passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SpareBank 1 Ostlandet

A-Score: 7.7/10

Value: 6.4

Growth: 7.9

Quality: 5.5

Yield: 8.8

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

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Stock-Card
BKS Bank

A-Score: 7.0/10

Value: 7.3

Growth: 7.8

Quality: 5.6

Yield: 3.1

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Valiant Holding

A-Score: 6.6/10

Value: 5.9

Growth: 3.8

Quality: 4.9

Yield: 6.2

Momentum: 9.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
SpareBank 1 Østfold Akershus

A-Score: 6.5/10

Value: 4.7

Growth: 5.1

Quality: 5.5

Yield: 7.5

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

View Full Report
Stock-Card
Spar Nord Bank

A-Score: 6.5/10

Value: 4.6

Growth: 7.3

Quality: 7.6

Yield: 4.4

Momentum: 9.5

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
BankNordik

A-Score: 5.1/10

Value: 6.4

Growth: 6.1

Quality: 7.7

Yield: 5.0

Momentum: 4.0

Volatility: 1.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

209.6$

Current Price

209.6$

Potential

-0.00%

Expected Cash-Flows