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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 628 635 667
Total operating costs -473 -437 -456
Operating profit 260 184 231
EPS Adj 22,59 14,83 18,95
EPS adj growth (%) 6,8 -34,4 27,8
BVPS 222,59 237,39 252,41
NAVPS 221,54 236,2 251,2
DPS 0 6,19 7,78
ROE (%) 10,1 6,7 8
RONAV (%) 10,6 6,5 7,8
C/I (%) 73,9 69,7 67
Loan losses (%) -1,06 0,12 0
CET1 ratio (%) 18,8 22,1 22,5
P/E Adj (x) 4,8 7,2 5,6
P/BV (x) 0,49 0,45 0,42
P/NAV (x) 0,49 0,45 0,42
Dividend yield (%) 0 5,8 7,3
N/A N/A N/A
DKKm 2019 2020e 2021e
Net interest income 337 358 362
Net commission income 189 195 208
Trading income 0 0 0
Insurance income 53 42 46
Other operating income 49 40 51
Total income 628 635 667
Personnel costs -472 -437 -456
Other operating costs -1 0 0
Total operating costs -473 -437 -456
Profit before loan losses 155 198 211
Loan losses 105,11 -12 0
Investment portfolio 14 -1 20
Other items -14 0 0
Operating profit 260 184 231
Tax -53 -38 -46
Other items after tax 0 0 0
Net profit 207 147 185
Tax rate (%) -20,3 -20,4 -20
EPS 21,61 15,46 19,6
Net Profit Adj 217 142 180
EPS Adj 22,59 14,83 18,95
Key balance sheet data 2019 0 0
Net lending 9909 9971 10219
Goodwill and intangibles 10 11 11
Total assets 18173 16959 17208
Shareholders equity 2112 2253 2358
Net asset value 2102 2242 2346
Capital adequacy 2019 0 0
Tier 1 Capital, excl.hybrids 2023 2143 2233
Tier 1 Capital, reported 2173 2298 2387
Capital base 2397 2522 2611
Risk exposure amount (BIS II) 10764 9688 9923
Asset quality 2019 0 0
Problem loans, gross 719 685 712
Provisions for problem loans -496 -491 -491
Problem loans, net 223 194 221
Key figures N/A N/A N/A
Profitability 2019 2020 2021
Net interest margin (%) 1,9 2 2,1
ROE (%) 10,1 6,7 8
RONAV (%) 10,6 6,5 7,8
ROREA (%) 1,9 1,4 1,9
Cost efficiency 2019 0 0
Cost / income Core (%) 73,9 69,7 67
Costs / assets Core (%) 2,71 2,49 2,67
Financial position 2019 0 0
Net lending / deposits (%) 69 76,4 78,3
REA / assets (%) 59,2 57,1 57,7
Common equity tier 1 ratio (%) 18,8 22,1 22,5
Tier 1 ratio, reported (%) 20,2 23,7 24,1
Capital adequacy (%) 22,3 26 26,3
Equity ratio Core (%) 11,1 12,6 13
Asset quality 2019 0 0
Problem loans, gross / lending (%) 6,6 6,3 6,4
Problem loans, net / lending (%) 2,3 1,9 2,2
Provision ratio (%) 69 71,6 68,9
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 Aug 2020
Eika Kapitalforvaltning 0.9 % 0.9 % 31 Aug 2020
P/F BankNordik 0.7 % 0.7 % 31 Dec 2019
BIL Danmark 0.4 % 0.4 % 31 Aug 2020
Dimensional Fund Advisors 0.4 % 0.4 % 31 Jul 2020
Source: Holdings by Modular Finance AB