Danish banks Vestjysk Bank A/S, Jutlander Bank A/S and Skjern Bank A/S upgraded their net profit guidance for 2019, taking into account the anticipated sale of their combined 75% stake in Luxembourg-based Sparinvest Holdings SE.
In March, Denmark-based Nykredit A/S entered into a conditional agreement to acquire the stake for roughly 2.25 billion Danish kroner.
Vestjysk Bank upgraded its net profit guidance for 2019 to a range of 360 million kroner to 410 million kroner, compared with the previous range of 225 million kroner to 275 million kroner.
Jutlander Bank raised its guidance to a range of 333 million kroner to 383 million kroner from between 250 million kroner and 300 million kroner previously, while Skjern Bank upgraded its expected profit for the year to between 135 million kroner and 150 million kroner from the previous range of 115 million kroner to 130 million kroner.
Jutlander Bank currently owns a 6.9% stake in Sparinvest, while Vestjysk Bank and Skjern Bank hold 11.3% and 1.79% stakes, respectively.
Vestjysk Bank and Jutlander Bank said the sale will result in an increase in their common equity tier 1 ratio and total capital ratio of approximately 1.3 percentage points, while Skjern Bank said its actual core capital ratio will increase by about 0.9 percentage points due to the transaction.
The lenders said the transaction will be completed in the third quarter.
As of June 28, US$1 was equivalent to 6.56 Danish kroner.
