BankNordik: Delivering on the dividend yield - ABG

Q4'22 pre-tax profit in line with ABGSC
Just soft on NII but strong in the subsegments
Delivering the 15% dividend yield


Q4'22: Pre-tax profit and jumbo dividend in line

BankNordik reported Q4 net profit at DKK 70m in line with ABGSC. Net interest income came in DKK 7m (-9%) below ABGSC while on the positive side the deviation was mostly offset by net commission income and net insurance income. Therefore, total income came in 3% softer than ABGSC. Costs in Q4 came in DKK 2m stronger than expected. Asset quality remained strong with the ninth consecutive quarter with loan loss reversals, however they amounted to 4bp of lending vs. ABGSC at 10bp. The rebound in investment portfolio earnings at DKK 8m came in stronger vs. ABGSC at DKK 2m. Regarding capital the CET1 ratio stood at 21.6% vs. ABGSC at 22.8% due to a higher-than-expected REA. Last but not least the size of the extraordinary dividend was in line with ABGSC at DKK 26.04 per share equalling a dividend payout ratio of 152%.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/banknordik/Equity-research/2023/2/banknordik---delivering-on-the-dividend-yield/