BankNordik: Guidance upgrade shows signs of quality - Nordea

On Friday, 15 October, BankNordik upgraded its net profit guidance to DKK 230-250m (from DKK 190-220m), with asset quality being a key profit driver. Operating profit also came in strong in Q3 2021, despite high insurance claims, according to BankNordik. The bank does not provide much detail but we believe part of the operational improvement is due to the bank's renewed focus on profitability, which seems to be materialising faster and to a greater extent than previously expected. We lift 2021E-23E commission income by 1-6% but lower 2021E net insurance by DKK ~4m (8%). In total, we raise 2021E adjusted EPS by 14% as we now expect loan loss reversals of DKK 20m for H2 2021. Our new Gordon growth-based fair value range is DKK 201-225 (192-215). Marketing material commissioned by BankNordik.

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