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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 19.5%.

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 628 640 675
Total operating costs -473 -427 -433
Operating profit 260 218 262
EPS Adj 22,59 17,58 21,62
EPS adj growth (%) 6,8 -22,2 23
BVPS 222,59 240,02 256,67
NAVPS 221,54 238,75 255,37
DPS 0 7,29 8,83
ROE (%) 10,1 7,9 9
RONAV (%) 10,6 7,7 8,8
C/I (%) 73,9 67,5 62,8
Loan losses (%) -1,06 -0,06 0
CET1 ratio (%) 18,8 22,4 23,6
P/E Adj (x) 4,8 7,3 5,9
P/BV (x) 0,49 0,53 0,5
P/NAV (x) 0,49 0,53 0,5
Dividend yield (%) 0 5,7 6,9
N/A N/A N/A
DKKm 2019 2020e 2021e
Net interest income 337 357 368
Net commission income 189 197 211
Trading income 0 0 0
Insurance income 53 48 51
Other operating income 49 38 45
Total income 628 640 675
Personnel costs -472 -427 -433
Other operating costs -1 0 0
Total operating costs -473 -427 -433
Profit before loan losses 155 213 242
Loan losses 105,11 6 0
Investment portfolio 14 -1 20
Other items -14 0 0
Operating profit 260 218 262
Tax -53 -45 -52
Other items after tax 0 0 0
Net profit 207 173 210
Tax rate (%) -20,3 -20,6 -20
EPS 21,61 18,21 22,26
Net Profit Adj 217 168 205
EPS Adj 22,59 17,58 21,62
Key balance sheet data 2019 0 0
Net lending 9909 9873 10102
Goodwill and intangibles 10 12 12
Total assets 18173 16791 17020
Shareholders equity 2112 2278 2397
Net asset value 2102 2266 2385
Capital adequacy 2019 0 0
Tier 1 Capital, excl.hybrids 2023 2183 2288
Tier 1 Capital, reported 2173 2332 2437
Capital base 2397 2557 2662
Risk exposure amount (BIS II) 10764 9758 9677
Asset quality 2019 0 0
Problem loans, gross 719 638 663
Provisions for problem loans -496 -471 -471
Problem loans, net 223 166 192
Key figures N/A N/A N/A
Profitability 2019 2020 2021
Net interest margin (%) 1,9 2 2,2
ROE (%) 10,1 7,9 9
RONAV (%) 10,6 7,7 8,8
ROREA (%) 1,9 1,7 2,2
Cost efficiency 2019 0 0
Cost / income Core (%) 73,9 67,5 62,8
Costs / assets Core (%) 2,71 2,44 2,56
Financial position 2019 0 0
Net lending / deposits (%) 69 76,7 78,5
REA / assets (%) 59,2 58,1 56,9
Common equity tier 1 ratio (%) 18,8 22,4 23,6
Tier 1 ratio, reported (%) 20,2 23,9 25,2
Capital adequacy (%) 22,3 26,2 27,5
Equity ratio Core (%) 11,1 13 13,4
Asset quality 2019 0 0
Problem loans, gross / lending (%) 6,6 6 6,1
Problem loans, net / lending (%) 2,3 1,7 1,9
Provision ratio (%) 69 73,9 71,1
Loan losses, net / lending (%) -1,1 -0,1 0
N/A N/A N/A

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Main shareholders - BankNordik

Main shareholders Share capital % Voting shares % Verified
Fíggingargrunnurin frá 1992 34.4 % 34.4 % 27 Feb 2020
Henrik Lind (Lind Invest) 12.0 % 12.0 % 27 Feb 2020
Protector Forsikring ASA 7.0 % 7.0 % 27 Feb 2020
Sp/F Framherji 5.0 % 5.0 % 27 Feb 2020
P/F Tjaldur 5.0 % 5.0 % 27 Feb 2020
Handelsbanken Fonder 2.9 % 2.9 % 31 Oct 2020
Eika Kapitalforvaltning 1.0 % 1.0 % 31 Oct 2020
P/F BankNordik 0.7 % 0.7 % 31 Dec 2019
BIL Danmark 0.4 % 0.4 % 31 Oct 2020
Dimensional Fund Advisors 0.4 % 0.4 % 30 Sep 2020
Source: Holdings by Modular Finance AB