UmweltBank

DE: UBK

€248.5m market cap

€8.8 last close

UmweltBank is a specialised lender with total assets of €3.7bn, providing financing of renewable energy projects, as well as loans for new construction or renovation of sustainable residential, community and commercial real estate.

Investment summary

UmweltBank’s (UBK’s) preliminary FY18 numbers confirm the continuation of healthy lending business and deposit base growth, but also further interest margin compression. The additional tier 2 capital raised recently (€45m in total) provides a solid foundation for further loan book expansion, which together with gradually diminishing pressure on margins could translate into UBK’s earnings momentum turning positive in 2020. The planned launch of new products in 2019 and 2020 (such as the sustainable consumer credit) may provide some additional tailwinds, but may also translate into a temporarily higher cost income ratio (CIR).

Y/E Dec
Revenue (€m)
EBITDA (€m)
PBT (€m)
EPS (c)
P/E (x)
P/CF (x)
2016A 59.5 N/A 46.0 116.1 7.6 N/A
2017A 55.1 N/A 40.3 99.4 8.9 N/A
2018E 53.6 N/A 37.3 90.2 9.8 N/A
2019E 54.0 N/A 35.5 85.1 10.3 N/A
Last updated on 21/02/2019
Industry outlook

UBK’s focus on financing sustainable projects should continue to facilitate the bank’s growth in the long term, with Germany’s ambitious target to generate more than 80% of electricity from RE sources by 2050 (vs 36% in 2017). In the short term however, the recently introduced auction system aimed at encouraging more competition and cost effectiveness has led to some market uncertainty. The trend towards sustainability is also reshaping the German real estate industry and becoming the key driver of UBK’s new lending volumes, as illustrated by its H118 results.

Last updated on 21/02/2019
Share price graph
Price performance
%
1m
3m
12m
Actual (0.5) 4.3 (15.4)
Relative* (3.0) 2.6 (7.6)
52-week high/low €11.1/€7.7
*% relative to local index
Key management
Goran Basic Member of the Board
Juergen Koppmann Member of the Board
Stefan Weber Speaker of the Board