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Third party research

BankNordik: Another quarter of solid asset quality - Nordea

Føroya Banki

This is a third party research report and does not necessarily reflect our views or values

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Following BankNordik's Q2 2022 report, we lift 2022E-24E adjusted EPS by ~1%, primarily due to improved loan loss estimates but partly offset by higher cost estimates. We estimate 2022 net profit of DKK 182m, which is at the upper end of the bank's guidance range. Meanwhile, the CET1 ratio came in 40 bp weaker than our estimate for Q2 owing to an increase in REA. We believe that this increase will be temporary, however, and expect REA to return to normalised levels in 2023. Hence, we still expect that ~65% of the bank's market cap is likely to be distributed to shareholders by 2024. The BankNordik share currently trades at a 2024E excess capital- and dividend-adjusted P/E of 4x, which is 50% below its Danish peers. Following the Q2 report, our new Gordon growth-based fair value range is DKK 176-197 (177-199). Marketing material commissioned by BankNordik.
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