BankNordik: Solid earnings in sight - Nordea

BankNordik is set to distribute ~65% of its market cap to shareholders by 2024 in order to reach its 2024 capitalisation target. Meanwhile, smaller positive NII adjustments offset by negative NCI adjustments for 2022 leave our 2022 net profit estimate roughly unchanged at DKK 181m, which is at the upper end of BankNordik's guidance range.

We raise our 2023-24 adjusted EPS estimates by 6-9%, mainly owing to higher investment income following the recent increase in interest rates. Hence, we lift our Gordon growth-based fair value range to DKK 177-199 (161-181). Currently, the BankNordik share is trading at a 2024E dividend-adjusted P/E of ~4x, which is ~50% below Danish peers.

Marketing material commissioned by BankNordik.

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