The main purpose of this thesis is to investigate the economical and the commercial threats the Danish bank “Danske Andelskassers Bank A/S” (From now called “Andelskassen”) faces within the near future. “Andelskassen” is a bank with major issues, whereas the thesis’ sec-ondary focus will be on determining which options the bank has to solve their issues. The issues will be identified through a benchmark. The benchmark will be used to figure out how the bank is performing overall. Finally, with the knowledge of how the bank is performing, the opportunities for the bank will be discussed and assessed further in the final part of this thesis.
One of the most significant findings in the competitive analysis is that the competition level around the good customers is high, due to the number of competitors within the industry. Fur-thermore, the analysis shows that “Andelskassen” is in a favorable position when it comes to good customers, which they must exploit. Therefore, their primary focus should be on maintaining the good existing customer relation.
The conclusion of the financial analysis is, that “Andelskassen” generally through the period 2012 to 2016 performs worse than the benchmark on the selected indicators. The only indicator where “Andelskassen” performs better than the benchmark is “Weighted Average Cost of Capital”. It is worth noting that the operational costs of “Andelskassen” is too high primarily because of high financial costs and wages. The bank should either adjust the number of employees or try to increase the volume of business to strengthen their position in the market.
The analysis of “Andelskassen’s” capital shows that they currently comply with the rules and the composition thereof. However, “Andelskassen” have a few challenges in order to meet the full implementation of the CRD IV requirements in 2019. It is vital that they strengthen their earning base. In addition, they have to consider purchasing additional capital either through share issue or by issuing hybrid loans. If they do not meet the requirement, the consequences will not be fatal but will limit them to the possibilities of dividends and create uncertainty around them.
“Andelskassen” should focus their marketing towards all loan types due to the business, that come with the exposure. In addition, the bank should purchase additional capital to be able to increase business with new and existing customers. Finally, the bank can benefit from launching campaigns and initiatives towards new and existing customers.
Based on the above, the bank will meet a lot of obstacles in its future, but they will be able to face these challenges with the options presented in the thesis.