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BankNordik

BankNordik

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Faroe-based Northatlantic bank

BankNordik is headquartered in the Faroe Islands. It holds between 40% and 50% of the market. The bank also has a small (but fast growing) operation in Greenland. It operates its own non-life insurance company in the Faroe Islands. BankNordik’s dividend policy is to pay out 50%-70% of net profits while it targets a CET1 ratio of 20% by 2024.

Weaker than expected asset quality, weaker than expected pre-provisioning earnings trend and regulation (capital requirements, taxes etc.).

Financials

DKKm 2022 2023e 2024e
Total Income 443 521 526
Total operating costs -246 -249 -246
Operating profit 187 257 271
EPS Adj 15,24 21,2 23,95
EPS adj growth (%) -43,9 39,1 13
BVPS 188,09 183,07 205,07
NAVPS 187,82 182,8 204,76
DPS 25 10,91 11,53
ROE (%) 7,9 11,8 12,7
RONAV (%) 7,7 11,5 12,5
C/I (%) 66,2 47,6 46,5
Loan losses (%) -0,69 0,28 0,2
CET1 ratio (%) 22,2 19,5 18,6
P/E Adj (x) 8,3 5,9 5,3
P/BV (x) 0,67 0,69 0,61
P/NAV (x) 0,67 0,69 0,62
Dividend yield (%) 19,8 8,7 9,1
DKKm 2022 2023e 2024e
Net interest income 270 356 361
Net commission income 89 90 93
Trading income 0 0 0
Insurance income 47 48 46
Other operating income 37 27 26
Total income 443 521 526
Personnel costs -246 -249 -246
Other operating costs 0 0 0
Total operating costs -246 -249 -246
Profit before loan losses 197 272 280
Loan losses 55,5 -23 -17
Investment portfolio -66 8 8
Other items 0 0 0
Operating profit 187 257 271
Tax -36 -49 -52
Other items after tax 0 0 0
Net profit 151 208 220
Tax rate (%) -19 -19 -19
EPS 15,87 21,83 24,63
Net Profit Adj 147 203 215
EPS Adj 15,24 21,2 23,95
Key balance sheet data 0 0 0
Net lending 8094 8290 8386
Goodwill and intangibles 3 3 3
Total assets 12217 12413 12509
Shareholders equity 1794 1746 1705
Net asset value 1791 1743 1703
Capital adequacy 0 0 0
Tier 1 Capital, excl.hybrids 1544 1418 1372
Tier 1 Capital, reported 1693 1569 1524
Capital base 1793 1669 1625
Risk exposure amount (BIS II) 6959 7278 7366
Asset quality 0 0 0
Problem loans, gross 537 548 559
Provisions for problem loans -275 -269 -264
Problem loans, net 262 279 295
Key figures N/A N/A N/A
Profitability 2022 2023 2024
Net interest margin (%) 2,2 2,9 2,9
ROE (%) 7,9 11,8 12,7
RONAV (%) 7,7 11,5 12,5
ROREA (%) 2,2 2,9 3
Cost efficiency 0 0 0
Cost / income Core (%) 66,2 47,6 46,5
Costs / assets Core (%) 2,05 2,02 1,97
Financial position 0 0 0
Net lending / deposits (%) 98,6 100,1 100,4
REA / assets (%) 57 58,6 58,9
Common equity tier 1 ratio (%) 22,2 19,5 18,6
Tier 1 ratio, reported (%) 24,3 21,6 20,7
Capital adequacy (%) 25,8 22,9 22,1
Equity ratio Core (%) 12,6 11,4 11
Asset quality 0 0 0
Problem loans, gross / lending (%) 6 6 6,1
Problem loans, net / lending (%) 3,2 3,4 3,5
Provision ratio (%) 51,2 49,2 47,2
Loan losses, net / lending (%) -0,7 0,3 0,2

Equity research

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Media

BankNordik - Company presentation with EVP Turið F. Arge
BankNordik - Company presentation with CFO Rune Nørregaard

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Main shareholders - BankNordik

Main shareholders Share capital % Voting shares % Verified
The government of the Faroe Island 34.8 % 34.8 % 25 Feb 2022
Henrik Lind (Lind Invest) 12.0 % 12.0 % 25 Feb 2022
Protector Forsikring ASA 10.0 % 10.0 % 11 Apr 2022
Sp/F Framherji 5.0 % 5.0 % 25 Feb 2022
P/F Tjaldur 5.0 % 5.0 % 25 Feb 2022
Eika Kapitalforvaltning 1.5 % 1.5 % 28 Feb 2023
Dimensional Fund Advisors 0.3 % 0.3 % 28 Feb 2023
P/F BankNordik 0.3 % 0.3 % 31 Dec 2021
Danske Invest 0.2 % 0.2 % 31 Jan 2023
BIL Danmark 0.2 % 0.2 % 30 Nov 2020
Source: Holdings by Modular Finance AB