BankNordik: Q1 net profit came in 7% above our estimate led by continued solid asset quality - Nordea

Q1 NII came in 1% above our estimate at DKK 78m while NCI came in at DKK 21m versus our estimate at DKK 23m. Moreover, costs came in 4% above (and thus worse than) our estimate. On asset quality, BankNordik reported a solid DKK 8m in reversals whereas we expected loan losses of DKK 2m. Additionally, market value adjustments came in at DKK 22m versus our estimate of DKK 16m. Hence, net profit for Q1 came in DKK 7% above our estimate. BankNordik also reported an increase in the management estimated provision from DKK 56m to DKK 65m due to the uncertain economic environment. Finally, the CET1 ratio came in at 21.0% compared to our estimate of 22.3% due to temporary deduction of the full Q1 net profit. We are likely to make minor EPS revisions in light of the report and expect the share to be slightly up today.

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