Føroya Banki: Rock solid asset quality in our view - Nordea

Føroya Banki reported a Q3 2024 net profit of DKK 96m, DKK 7m (8%) above our estimate. This was mainly led by earnings from the investment portfolio of DKK 48m, DKK 10m higher than our estimate. Loan loss reversals were DKK 6m, similarly DKK 7m better than our estimate. On the negative side, net interest income and net fee income came in DKK 2m and DKK 3m short of our estimate, respectively. We trim 2025E-26E net profit by 5%, led by lowered NII and fee income estimates. Føroya Banki is trading at a 2025E capital-adjusted P/E of ~4.3x, ~40% below its Danish peers. Led by lowered earnings estimates, we derive a lower Gordon growth-based fair value range of DKK 192-235 (201-246). Marketing material commissioned by Føroya Banki.

Länk till analysen i sin helhet: https://research.nordea.com/api/reportfileapi?id=972575