UmweltBank

DE: UBK

€310.7m market cap

€10.15 last close

UmweltBank is a specialised lender with total assets of €3.9bn, providing financing for renewable energy projects, as well as loans for new construction or the renovation of sustainable residential, community and commercial real estate.

Investment summary

UmweltBank (UBK) raised c €45m of fresh tier-2 capital from the Green Bond Junior issue as well as the subordinated debt placed to an institutional investor last year. The capital base was further strengthened by the recently completed new share issue (with €23.5m of gross proceeds) creating a solid foundation for prospective loan book growth. As a result, we expect the bank’s total capital ratio to reach 15.4% at end of FY19e vs the 12.0% regulatory requirement in 2019. New product launches could further support UBK’s business, but we believe they will also result in a temporarily higher cost income ratio at 36.0% in FY19 vs 32.7% in FY18.

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2017A 55.1 N/A 40.3 99.4 10.2 N/A
2018A 53.8 N/A 37.3 90.0 11.3 N/A
2019E 56.4 N/A 37.8 89.0 11.4 N/A
2020E 58.0 N/A 39.3 86.1 11.8 N/A
Last updated on 21/10/2019
Industry outlook

UBK’s focus on financing sustainable projects should continue to facilitate its long-term growth, with Germany’s ambitious target to generate >80% of electricity from renewable energy sources by 2050 (40% in 2018). The recent slowdown in new capacity additions (6.6GW in 2018 vs 8.3GW in 2017) is largely due to wind projects (affected by permit delays and resistance from local residents), while new solar additions have been solid at 2.94GW in 2018 vs 1.66GW in 2017. The trend towards sustainability and persistent housing deficit continue to shape the German real estate market, assisting UBK’s new lending volumes.

Last updated on 21/10/2019
Share price graph
Price performance
%
1m
3m
12m
Actual 7.3 (1.5) 22.9
Relative* 4.9 (5.2) 11.4
52-week high/low €11.7/€7.8
*% relative to local index
Key management
Goran Basic Member of the Board
Juergen Koppmann Member of the Board
Stefan Weber Speaker of the Board