BankNordik: Guidance upgrade on strong Q4 - ABG

On Monday morning BankNordik upgraded its net profit guidance for 2022 back to DKK 160-190m which was also its guidance range before its downgrade to DKK 140-170m on 17 October. Today's guidance upgrade came as a result of a slightly larger net interest income effect in Q4 than BankNordik initially had expected and the positive development on the financial markets which has led to regained strength in the market value adjustments after considerable losses in Q2 and Q3.

In addition to the factors above, the development in the insurance business has contributed positively, both from a more positive quarter on income from investment activities and since the Faroe Islands has been spared of large storms, which should result in lower claims than what would normally be expected for Q4.

The guidance upgrade is largely in line with our expectations regarding net interest income in Q4'22e where we expect a 7% increase q-o-q to DKK 72m (DKK 67m in Q3), while the positive effect on market value adjustments and the insurance business is more positive than expected. Our latest FY'22 net profit estimate was DKK 151m, and we expect consensus to raise its estimates 10-15% based on the guidance upgrade.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/banknordik/Equity-research/2022/12/banknordik---guidance-upgrade-on-strong-q4/