BankNordik: Still the strongest div case after the jumbo div - ABG

Q4'22: Pre-tax profit in line with expectations
Jumbo dividend of DKK 26 offers a yield of 14.5%
2023e-24e div yields of 10-11% at 7.7x '24e adj. P/E


Delivering on pre-tax profit and size of dividend

BankNordik delivered pre-tax profit of DKK 70m, in line with our estimates with the main deviations found on trading income at DKK 14m vs. ABGSCe at DKK 10m and slightly lower loan loss reversals at 4bp vs. ABGSC at 10bp. Net interest income and investment portfolio earnings adjusted for reporting differences was in line with our estimates while costs came in DKK 2m lower. BankNordik remains strong on capital with a CET1 ratio of 21.6% even after the jumbo dividend, which was our main focus point ahead of the report. The DPS proposal was DKK 26.04, equalling a DKK 250m payout, fully in line with our estimates.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/banknordik/Equity-research/2023/2/banknordik---still-the-strongest-div-case-after-the-jumbo-div/