On 14 January, Sparekassen Sjælland upgraded its 2020 pre-tax profit guidance to DKK 240-244m from DKK 200-230m. We estimated DKK 240m. Limited details were given, but we believe the upgrade was led by strong securities trading fees and market valuations. On the negative side, DKK 27m of additional management overlay provisions were booked in Q4. We lift our 2020E pre-tax profit by 2% to DKK 243m led by the upgrade. We make limited revisions for 2021E-2022E. Our Gordon growth-based fair value range is unchanged at DKK 91-125. The bank is trading at a 2022E P/E of 6.3x on our estimates, which is below Danish peers at 9.0x. Marketing material commissioned by Sparekassen Sjælland-Fyn.

equityresearch@nordea.com

Nordea Research