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BankNordik: Tenth consecutive quarter of reversals expected - Nordea

BankNordik will publish its Q3 2023 report on 2 November. Ahead of the report, we raise 2023E net profit by ~5%, to DKK 274m, which is roughly at the midpoint of BankNordik's new guidance range following the September upgrade. Moreover, we estimate that ~55% of the bank's current market cap is set to be distributed to shareholders by 2025, corresponding to an average annual dividend yield of ~18%. At the same time, BankNordik is trading at a 2025E P/E of 3.8x, which puts the share at a ~40% discount to its Danish peers despite its recent strong performance. Marketing material commissioned by BankNordik.

BankNordik will publish its Q3 2023 report on 2 November. Ahead of the report, we raise 2023E net profit by ~5%, to DKK 274m, which is roughly at the midpoint of BankNordik's new guidance range following the September upgrade. Moreover, we estimate that ~55% of the bank's current market cap is set to be distributed to shareholders by 2025, corresponding to an average annual dividend yield of ~18%. At the same time, BankNordik is trading at a 2025E P/E of 3.8x, which puts the share at a ~40% discount to its Danish peers despite its recent strong performance. Marketing material commissioned by BankNordik.
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