This afternoon after market close, BankNordik issued its 2024 net profit guidance of DKK 225-255m, suggesting 2024 ROE of 12-14%. In comparison, we estimate DKK 264m, thus slightly above the upper end of the guidance range. As expected, the guidance range was slightly cautious, as also seen with the initial 2023 guidance when announced same time last year. In the announcement, BankNordik also stated that the 2024 targets remains unchanged, and the bank hence still targets ROE > 12%, cost/income < 53% and a CET1 ratio of 20%. As of Q3 2023E, BankNordik had ROE of 14.1% and a cost/income ratio of 48%. Meanwhile, in order to reach a CET1 ratio of 20%, we estimate that BankNordik will announce a dividend of DKK ~316m in connection with the Q4 2023E report and additional DKK ~300m with the Q4 2024E report. BankNordik wil publish its 2023 annual report on February 27.
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