ABG har mod betaling udarbejdet denne analyse af BankNordik:
- Q1’21 was in line with our expectations
- DKK 450m EO distributions coming up in Q2e
- Trading at a ’22e adj. P/E of 6.1 with EO buybacks
Q1 PBLL of DKK 38m in line, excess equity of DKK 765m
BankNordik reported Q1’21 profit before loan losses (PBLL) of DKK 38m, which was close to our expectation of DKK 37m. NII was 2% ahead of ABGSCe despite lending decreasing by 2.1% q-o-q, due to normal volatility in corporate lending on the Faroe Islands, while lending in Greenland was flat q-o-q. Fee income was slightly below ABGSCe but slightly up y-o-y. Low insurance income of DKK 7m was negatively impacted by the weather and a single incident in the transport sector (although up y-o-y). Loan losses of DKK 3m (16bp p.a.) related to a single Faroe exposure, while BankNordik maintains a balance of DKK 52m in upfront loan losses for COVID-19. The divestment of the 11 Danish branches led to a DKK 77m EO gain in Q1’21 (DKK 10m for Q2e), while it drove CET1 up 840bp q-o-q to 31%. Including Q1 net profit and the upcoming SME discount, this implies BankNordik has distributable excess equity of DKK 765m.
