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Good performance in Q1

27.4.2023 08:00:01 CEST | BankNordik | Interim report (Q1 and Q3)

Announcement no. 7/2023

“We’re pleased to report solid financial results for the first quarter, as we improved our net profit by 30% year on year. The strong performance was driven especially by the persistently sound credit quality and resilience to inflationary pressures of our customer portfolio, which enabled reversals of impairment losses during the period. Although income from our insurance operations came in below our expectations, we upgraded our full-year net profit guidance in April due to the improved outlook for our core operations. While we see good prospects for the rest of the year, we have decided to raise the management estimated provision from DKK 56m to DKK 65m in light of the generally uncertain economic environment,” said BankNordik CEO Árni Ellefsen. 

Highlights of BankNordik's interim report for the three months to 31 March 2023:

Q1 2023 vs Q1 2022

Q1 2023 vs Q4 2022

Capital ratios
At 31 March 2023, the Group had a CET 1 capital ratio of 21.0%, against 21.6% at 31 December 2022. The total capital ratio including MREL was 29.1% at 31 March 2023 against 29.9% at 31 December 2022.

Guidance for 2023
On 18 April 2023, the Bank raised its FY 2023 net profit guidance from DKK 190–220m as originally guided to DKK 210–240m.The guidance is generally subject to uncertainty and will, amongst other things, depend on economic developments, loan impairment charges and market value adjustments.

For further information, please call:
Árni Ellefsen, CEO, tel. (+298) 230 348
Turið F. Arge, Executive Vice President, tel. (+298) 230 678

BankNordik has banking activities in Greenland and the Faroe Islands and insurance activities in the Faroe Islands. Founded in the Faroe Islands more than a century ago, the Group has total assets of DKK 12.5bn and 201 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.

Appendix: Q1 2023 financial highlights and comparative figures:

DKKm Q1 2023 Q4 2022 Index Q3 2022 Q2 2022 Q1 2022 Q1 2023 Q1 2022 Index
Net interest income 78 72       107 67 65 66 78 66        118
Net fee and commission income 21 23        93 22 22 22 21 22         99
Net insurance income 5 14        34 11 15 12 5 12         42
Other operating income (less reclassification) 8 8       110 11 9 10 8 10         84
Operating income 112 117        96 110 111 109 112 109        103
Operating costs -63 -58       109 -62 -62 -61 -63 -61        104
Sector costs 0 0   0 0 0 0 0  
Profit before impairment charges 49 59        82 48 48 48 49 48        102
Impairment charges, net 8 3 249 12 22 10 8 10 87
Operating profit 57 62        92 60 70 57 57 57         99
Non-recurring items -3 0   0 0 0 -3 0  
Profit before investment portfolio earnings and tax 54 62        86 60 70 57 54 57         93
Investment portfolio earnings 22 8 275 -36 -16 2 22 2 1354
Profit before tax 75 70       108 24 54 59 75 59        128
Tax 14 16        87 4 10 12 14 12        119
Net profit 61 54       114 20 43 47 61 47        130
Loans and advances 8.354 8.083       103 7.977 7.724 7.684 8.354 7.684        109
Deposits and other debt 8.506 8.351       102 8.225 8.897 8.047 8.506 8.047        106
Mortgage credit 2.634 2.648        99 2.652 2.730 2.727 2.634 2.727         97
Equity 1.626 1.817          89 1.756 1.737 1.697 1.626 1.697           96
Total capital ratio, incl. MREL capital, % 29,1 29,9   31,4 32,0 32,9 29,1 32,9  
CET 1 capital, % 21,0 21,6   22,9 23,3 23,8 21,0 23,8  
ROE, % 14,7 12,1   4,6 10,1 10,1 14,7 10,1  
ROE, excl. one-offs, % 14,9 12,1   4,6 10,1 10,1 14,9 10,1  
Liquidity Coverage Ratio (LCR), % 220,0 225,2   225,8 223,4 198,4 220,0 198,4  
Operating cost/income, % 56 49   56 56 56 56 56  
Number of FTE, end of period 201 200       101 201 203 199 201 199        101

Attachments

Attachments

ritzau-6682-en.pdf
Interim Report_Q1 2023.pdf
IR presentation Q1 2023.pdf