BankNordik: Solid PTP beat outshines insurance difficulties - ABG

Net profit in Q1 18% above ABGSCe driven by...
...loan loss reversals and investment portfolio earnings
We lift 2023e adjusted EPS by 6%


Strong net profit beat despite insurance headwinds

BankNordik reported solid Q1 figures with net profit 18% above our estimates, primarily driven by stronger investment portfolio income and loan loss reversals of DKK 8m compared to our expectation of minor loan losses. This more than offset the DKK 4m softer net interest income vs. ABGSCe and headwinds in the insurance business on the claim side due to a stormy February, while premiums came in lower-than-expected mainly due to the loss of a large client. The continued strong asset quality supports our belief that BankNordik will see lower loan losses relative to its Danish peers in '23e, and that the negative effect of the higher interest rates will affect the Faroe Islands and Greenland later than the rest of the Nordics. Lastly, BankNordik reported strong lending growth q-o-q in both of its geographical regions (Greenland +10% and Faroe Islands +2%).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/banknordik/Equity-research/2023/4/banknordik---solid-ptp-beat-outshines-insurance-difficulties-/