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BankNordik

BankNordik

Faroe-based Northatlantic bank

BankNordik is headquartered in the Faroe Islands. It holds between 40% and 50% of the market. The bank also has smaller operations in Denmark and Greenland. It operates its own non-life insurance company in the Faroe Islands. BankNordik’s dividend policy is to pay out 20-40% of net profits while it targets a CET1 ratio of 18.5%.

BankNordik is optimising its business and divesting non-core units. We expect it to continue the efficiency measures. We see potential for higher cash flow stability ahead and a high and stable dividend stream.

Regulatory risks as well as credit risk are the biggest risks in the BankNordik investment case. New regulations such as Basel IV, MREL and IFRS 9 will be implemented over the coming years. Margin pressure is a risk to profitability as well.

DKKm 2019 2020e 2021e
Total Income 628 624 672
Total operating costs -473 -455 -464
Operating profit 260 97 229
EPS Adj 22,59 7,52 18,85
EPS adj growth (%) 6,8 -66,7 150,6
BVPS 222,59 230,15 247,92
NAVPS 221,54 229,01 246,76
DPS 0 3,26 7,74
ROE (%) 10,1 3,6 8,2
RONAV (%) 10,6 3,4 8
C/I (%) 73,9 75,9 67,5
Loan losses (%) -1,06 0,53 0
CET1 ratio (%) 18,8 20 19,2
P/E Adj (x) 4,8 13,3 5,3
P/BV (x) 0,49 0,43 0,4
P/NAV (x) 0,49 0,44 0,41
Dividend yield (%) 0 3,3 7,7
DKKm 2019 2020e 2021e
Net interest income 337 356 365
Net commission income 189 198 206
Trading income 0 0 0
Insurance income 53 26 44
Other operating income 49 45 57
Total income 628 624 672
Personnel costs -472 -455 -464
Other operating costs -1 0 0
Total operating costs -473 -455 -464
Profit before loan losses 155 169 207
Loan losses 105,11 -53,6 0
Investment portfolio 14 -18 22
Other items -14 0 0
Operating profit 260 97 229
Tax -53 -20 -46
Other items after tax 0 0 0
Net profit 207 77 184
Tax rate (%) -20,3 -20,4 -20
EPS 21,61 8,16 19,5
Net Profit Adj 217 73 179
EPS Adj 22,59 7,52 18,85
Key balance sheet data 2019 0 0
Net lending 9909 10105 10313
Goodwill and intangibles 10 11 11
Total assets 18173 17075 17283
Shareholders equity 2112 2184 2316
Net asset value 2102 2173 2305
Capital adequacy 2019 0 0
Tier 1 Capital, excl.hybrids 2023 2102 2152
Tier 1 Capital, reported 2173 2255 2303
Capital base 2397 2479 2527
Risk exposure amount (BIS II) 10764 10521 11184
Asset quality 2019 0 0
Problem loans, gross 719 778 809
Provisions for problem loans -496 -536 -536
Problem loans, net 223 242 273
Key figures N/A N/A N/A
Profitability 2019 2020 2021
Net interest margin (%) 1,9 2 2,1
ROE (%) 10,1 3,6 8,2
RONAV (%) 10,6 3,4 8
ROREA (%) 1,9 0,7 1,7
Cost efficiency 2019 0 0
Cost / income Core (%) 73,9 75,9 67,5
Costs / assets Core (%) 2,71 2,58 2,7
Financial position 2019 0 0
Net lending / deposits (%) 69 78,5 80,1
REA / assets (%) 59,2 61,6 64,7
Common equity tier 1 ratio (%) 18,8 20 19,2
Tier 1 ratio, reported (%) 20,2 21,4 20,6
Capital adequacy (%) 22,3 23,6 22,6
Equity ratio Core (%) 11,1 12,3 12,5
Asset quality 2019 0 0
Problem loans, gross / lending (%) 6,6 7 7,1
Problem loans, net / lending (%) 2,3 2,4 2,6
Provision ratio (%) 69 68,9 66,2
Loan losses, net / lending (%) -1,1 0,5 0

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Main shareholders - BankNordik

Main shareholders Share capital % Voting shares % Verified
Fíggingargrunnurin frá 1992 33.0 % 33.0 % 28 Feb 2019
Henrik Lind (Lind Invest) 10.0 % 10.0 % 28 Feb 2019
Protector Forsikring ASA 6.8 % 6.8 % 31 Dec 2019
Sp/F Framherji 5.1 % 5.1 % 25 Apr 2019
P/F Tjaldur 5.0 % 5.0 % 22 Mar 2019
P/F BankNordik 4.7 % 4.7 % 14 Mar 2019
Handelsbanken Fonder 2.9 % 2.9 % 30 Apr 2020
Eika Kapitalforvaltning 0.9 % 0.9 % 30 Apr 2020
BIL Danmark 0.4 % 0.4 % 30 Apr 2020
Dimensional Fund Advisors 0.4 % 0.4 % 31 Mar 2020
Source: Holdings by Modular Finance AB