Strong earnings growth and capital repatriation
Our estimates imply a 2022-25e CAGR in net profit of 11%. This is mainly based on solid NII due to the recent central bank rate hikes alongside improving investment portfolio earnings on the transition into a positive rate environment. We also foresee a dividend yield of 10-11% p.a. in 2023e-25e due to BankNordik's well-capitalised balance sheet. Even with these dividends in our estimates, we end up at a '25e CET1 ratio of 22.4%.
