BankNordik: NII keeps climbing in a solid quarter - ABG

11% CAGR in net profit for 2022-'25e...
...and 12% dividend yield p.a. in 2023e-'25e
For Q1, we focus on NII in a solid quarter


Strong earnings growth and capital repatriation

Our earnings scenario for BankNordik implies a 2022-'25e CAGR of 11% in net profit and EPS, driven by the increasing net interest income and a continued strong asset quality. In addition, we forecast capital repatriation to shareholders corresponding to yields of ~12% p.a. in 2023e-'25e as we, with high conviction, factor in BankNordik's new policy of a 70% dividend payout ratio. Regarding Q1, we expect net interest income to increase by DKK 10m (14% q-o-q) while loan losses should once again be very modest. We expect the net interest income development to more than offset a lower activity in commission income and a Q1 with larger claims in the insurance business due to a stormy February. However, we expected large claims in Q1 and BankNordik should benefit from gradually increasingpremiums throughout 2023.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/banknordik/Equity-research/2023/4/banknordik---nii-keeps-climbing-in-a-solid-quarter/