Edison Investment Research Limited Edison issues outlook on UmweltBank (UBKX) 13-Jun-2019 / 16:01 GMT/BST London, UK, 13 June 2019 *Edison issues outlook on UmweltBank (UBKX)* UmweltBank (UBK) has successfully raised additional tier 2 capital from the Green Bond Junior issue and additional subordinated debt placed to an institutional investor last year. As a result, the bank's total capital ratio (TCR) at end-2018 reached 14.0% compared with UBK's regulatory requirement in 2019 of 12.0%. This created a solid foundation for prospective loan book growth and we now forecast the bank's loan book to expand at a CAGR of 7.8% over the next five years. New product launches could further support UBK's business growth, but we believe they will also result in a temporarily higher cost income ratio (35.9% in FY19e). We have revised our valuation of UBK upwards from EUR11.3 to EUR13.0 per share, primarily on the back of raised new lending volume forecasts. Although the share price is close to our previous valuation, this still implies 13% upside potential. On our dividend expectation of EUR0.34, based on FY19e earnings, UBK now offers a dividend yield of 2.9% (compared to the sector average of 4.5%). Click here [1] to view the full report. Subscribe [2]to Edison's content to receive reports by email. All reports published by Edison are free-to-access and available on thewebsite [3]. *About Edison:* Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting. Edison is authorised and regulated by the Financial Conduct Authority [4]. Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities. *For more information please contact Edison:* Milosz Papst, +44 (0)20 3077 5700 financials@edisongroup.com Learn more at www.edisongroup.com [5] and connect with Edison on: LinkedIn https://www.linkedin.com/company/edison-group- [6] Twitter www.twitter.com/Edison_Inv_Res [7] YouTube www.youtube.com/edisonitv [8] Dissemination of a CORPORATE NEWS, transmitted by EQS Group. The issuer is solely responsible for the content of this announcement. End of Announcement - EQS News Service 824377 13-Jun-2019 1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6f28f507c6c8d7f17b9c28666310e2fa&application_id=824377&site_id=vwd&application_name=news 2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=dc4b6da9609a3fa15934b7007f0912b2&application_id=824377&site_id=vwd&application_name=news 3: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=2d62d350e44141e01d1766d8ed0b3f95&application_id=824377&site_id=vwd&application_name=news 4: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=105fe9be9b5e36892886e5a39d51d4b7&application_id=824377&site_id=vwd&application_name=news 5: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=88c95533002fab2316572f9ef6cf3cc6&application_id=824377&site_id=vwd&application_name=news 6: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=afe662765000a80ab72afd922939c992&application_id=824377&site_id=vwd&application_name=news 7: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=ec2d264fe4f303e2143a2e85c6eaa823&application_id=824377&site_id=vwd&application_name=news 8: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=6b959e4d7ee3c402b931a274d2bbe945&application_id=824377&site_id=vwd&application_name=news
(END) Dow Jones Newswires
June 13, 2019 11:01 ET (15:01 GMT)
