LSE:0QM2

Stock Analysis Report

Berner Kantonalbank

Executive Summary

Berner Kantonalbank AG, a cantonal bank, offers various banking products and financial services to private individuals and corporate customers in Switzerland.


Snowflake Analysis

Flawless balance sheet established dividend payer.


Similar Companies

Share Price & News

How has Berner Kantonalbank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0QM2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

0QM2

-3.6%

GB Banks

0.05%

GB Market


1 Year Return

-18.5%

0QM2

-6.0%

GB Banks

7.1%

GB Market

Return vs Industry: 0QM2 underperformed the UK Banks industry which returned -6% over the past year.

Return vs Market: 0QM2 underperformed the UK Market which returned 7.1% over the past year.


Shareholder returns

0QM2IndustryMarket
7 Day0%-3.6%0.05%
30 Day-18.2%-3.6%-1.7%
90 Day-14.6%-2.3%4.1%
1 Year-15.7%-18.5%-1.2%-6.0%12.6%7.1%
3 Yearn/a-6.7%-17.4%18.4%3.6%
5 Yearn/a-2.6%-21.1%35.2%4.2%

Price Volatility Vs. Market

How volatile is Berner Kantonalbank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Berner Kantonalbank undervalued compared to its fair value and its price relative to the market?

15.95x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 0QM2 (CHF186.2) is trading above our estimate of fair value (CHF153.29)

Significantly Below Fair Value: 0QM2 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 0QM2 is poor value based on its PE Ratio (16x) compared to the Banks industry average (9.2x).

PE vs Market: 0QM2 is good value based on its PE Ratio (16x) compared to the UK market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: 0QM2 is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: 0QM2 is overvalued based on its PB Ratio (0.9x) compared to the GB Banks industry average (0.6x).


Next Steps

Future Growth

How is Berner Kantonalbank forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0QM2's forecast earnings growth (6.8% per year) is above the savings rate (0.5%).

Earnings vs Market: 0QM2's earnings (6.8% per year) are forecast to grow slower than the UK market (13% per year).

High Growth Earnings: 0QM2's earnings are forecast to grow, but not significantly.

Revenue vs Market: 0QM2's revenue (5.6% per year) is forecast to grow faster than the UK market (3.5% per year).

High Growth Revenue: 0QM2's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0QM2's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Berner Kantonalbank performed over the past 5 years?

2.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0QM2 has a large one-off gain of CHF44.5M impacting its June 30 2019 financial results.

Growing Profit Margin: 0QM2's current net profit margins (35.7%) are lower than last year (35.8%).


Past Earnings Growth Analysis

Earnings Trend: 0QM2's earnings have grown by 2% per year over the past 5 years.

Accelerating Growth: 0QM2's earnings growth over the past year (2.4%) exceeds its 5-year average (2% per year).

Earnings vs Industry: 0QM2 earnings growth over the past year (2.4%) underperformed the Banks industry 28.3%.


Return on Equity

High ROE: 0QM2's Return on Equity (5.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Berner Kantonalbank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: 0QM2 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 0QM2's debt is not covered by short term assets (assets are 0.6x debt).


Financial Institutions Analysis

Asset Level: 0QM2's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0QM2 has a sufficient allowance for bad loans.

Low Risk Liabilities: 0QM2's liabilities are made up of primarily low risk sources of funding.

Loan Level: 0QM2 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0QM2's loans are broadly funded by customer deposits.

Level of Bad Loans: 0QM2 has an appropriate level of bad loans (0.06%)


Next Steps

Dividend

What is Berner Kantonalbank's current dividend yield, its reliability and sustainability?

3.32%

Current Dividend Yield


Dividend Yield vs Market

company3.3%marketbottom25%1.8%markettop25%5.1%industryaverage6.4%forecastin3Years3.9%

Current dividend yield vs market & industry

Notable Dividend: 0QM2's dividend (3.32%) is higher than the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: 0QM2's dividend (3.32%) is low compared to the top 25% of dividend payers in the UK market (5.09%).


Stability and Growth of Payments

Stable Dividend: 0QM2's dividends per share have been stable in the past 10 years.

Growing Dividend: 0QM2's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53%), 0QM2's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0QM2's dividends in 3 years are forecast to be covered by earnings (54.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.1yrs

Average management tenure


CEO

Armin Brun (54yo)

0.6yrs

Tenure

0

Mr. Armin Brun serves as Chief Executive Officer, Head of Department Investment Clients and Corporate Clients and Member of Management Board at Berner Kantonalbank AG since July 1, 2019. He served as Head  ...


Leadership Team

NamePositionTenureCompensationOwnership
Armin Brun
CEO, Head of Investment Clients / Corporate Clients & Member of Management Board0.6yrsno data0.0022% CHF48.2k
Alois Schärli
Head of Finance & Member of Management Board1.1yrsno data0.051% CHF1.1m
Marcel Oertle
Head of the Private Customers & Corporate Clients Department and Member of Management Board1.1yrsno datano data
Mark Haller
Head of Department Production & Operations and Member of Management Board2.1yrsno data0.015% CHF340.6k
Andreas Schafer
Head of Investment & Major Clients and Member of Management Board0.2yrsno datano data
Christian Heiniger
Head of Accounting & Controlling0yrsno datano data
Florian Kurz
Investor Relations0yrsno datano data
Ariane Ryser
Head of Legal service & Compliance0yrsno datano data
Karl-Martin Wyss
Head of Marketing0yrsno datano data
Thomas Gosteli
Head of Human Resources & Training0yrsno datano data

1.1yrs

Average Tenure

51yo

Average Age

Experienced Management: 0QM2's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Antoinette Hunziker-Ebneter
Chairwoman of the Board4.8yrsCHF540.00k0.016% CHF349.7k
Christoph Lengwiler
Director3.8yrsCHF113.00k0.0097% CHF216.8k
Rudolf Stämpfli
Vice-Chairman of the Board4.8yrsCHF106.00k0.038% CHF836.6k
Daniel Bloch
Independent Director11.8yrsCHF118.00k0.038% CHF836.6k
Peter Wittwer
Independent Director4.8yrsCHF132.00k0.0089% CHF199.4k
Annelis Hämmerli
Director0.8yrsno datano data
Gilles Frôté
Director0.8yrsno datano data
Pascal Sieber
Director0.8yrsno datano data

4.3yrs

Average Tenure

57.5yo

Average Age

Experienced Board: 0QM2's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Berner Kantonalbank AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Berner Kantonalbank AG
  • Ticker: 0QM2
  • Exchange: LSE
  • Founded: 1834
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: CHF2.230b
  • Shares outstanding: 9.25m
  • Website: https://www.bekb.ch

Number of Employees


Location

  • Berner Kantonalbank AG
  • Bundesplatz 8
  • Bern
  • Bern
  • 3011
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BEKNSWX (SIX Swiss Exchange)YesRegistered SharesCHCHFMay 1999
BEHVDB (Deutsche Boerse AG)YesRegistered SharesDEEURMay 1999
0QM2LSE (London Stock Exchange)YesRegistered SharesGBCHFMay 1999

Biography

Berner Kantonalbank AG, a cantonal bank, offers various banking products and financial services to private individuals and corporate customers in Switzerland. It offers investment, shareholder, youth, education, and SME savings accounts; deposit, current, rental, capital payment, and client funds accounts; investment products, which include investment advice, financial and pension planning, tax and estate advice, money-net trading, term and promissory notes, and various fund products; mortgages; and construction, investment, personal, syndicated, and operating loans. The company also provides real estate, capital market, complex, structured, project, start-up, and mergers and acquisitions financing products; documentary letter of credit, documentary collection, and payment guarantees; hedging transactions; pension products; asset management services, including investment strategy consulting, portfolio optimization and simulation, investment funds, and securities accounting products, as well as trades in stocks, bonds, derivatives, foreign exchange, and money market instruments. In addition, it offers credit, debit, and prepaid cards; travel cash; business and corporate cards; and mobile and e-banking services. Berner Kantonalbank AG operates through a network of 60 branches. The company was formerly known as Kantonalbank von Bern and changed its name to Berner Kantonalbank AG in 1991. Berner Kantonalbank AG was founded in 1834 and is headquartered in Bern, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:20
End of Day Share Price2020/02/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.