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BankNordik: ~5% upside to net profit guidance for 2023E - Nordea

Following BankNordik's Q1 report, we lift 2023E adjusted EPS by ~3% to reflect the continued solid asset quality after yet another quarter with loan loss reversals despite the uncertain economic environment. This leaves our 2023 net profit estimate at DKK 253m, ~5% above the upper end of BankNordik's guidance range (DKK 210-240m), which was upgraded in an announcement last week. Hence, we see scope for another guidance upgrade down the road. In light of the Q1 report, we also remain confident that BankNordik will be able to reach its proposed 2024 targets and probably even exceed them. Finally, we estimate that ~60% of BankNordik's current market cap will be paid out to shareholders by 2025. Marketing material commissioned by BankNordik.

Following BankNordik's Q1 report, we lift 2023E adjusted EPS by ~3% to reflect the continued solid asset quality after yet another quarter with loan loss reversals despite the uncertain economic environment. This leaves our 2023 net profit estimate at DKK 253m, ~5% above the upper end of BankNordik's guidance range (DKK 210-240m), which was upgraded in an announcement last week. Hence, we see scope for another guidance upgrade down the road. In light of the Q1 report, we also remain confident that BankNordik will be able to reach its proposed 2024 targets and probably even exceed them. Finally, we estimate that ~60% of BankNordik's current market cap will be paid out to shareholders by 2025. Marketing material commissioned by BankNordik.
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