Guidance update for the 2019 result
Company announcement
Announcement no. 26/2019
Guidance update for the 2019 result
BankNordik raises its net profit guidance for the year of 2019 from previously guided DKK 150–200m to DKK 170–210 (9M 2019: 158m). The upwards revision is related to higher fee and insurance income as well as continuous reversal of impairment charges.
This guidance is generally subject to uncertainty and will, amongst other things, depend on economic conditions, loan impairments and market value adjustment.
The figures presented below are preliminary. The final figures will be published in the Interim Report for Q3 2019 on 29 October 2019, which includes further financial details.
Preliminary adjusted Income Statement
| DKK million | 9M 2019 | 9M 2018 | Q3 2019 | Q2 2019 | Q1 2019 | Q4 2018 | Q3 2018 |
| Net interest income | 272 | 282 | 90 | 90 | 91 | 92 | 94 |
| Net fee and commission income | 140 | 130 | 47 | 45 | 48 | 42 | 43 |
| Income from insurance operations | 39 | 31 | 15 | 15 | 9 | 13 | 13 |
| Other operating income | 35 | 36 | 13 | 11 | 11 | 9 | 10 |
| Operating income | 486 | 479 | 165 | 163 | 158 | 156 | 160 |
| Operating costs | -356 | -343 | -116 | -119 | -120 | -115 | -111 |
| Operating profit before impairment charges | 130 | 137 | 49 | 43 | 38 | 42 | 49 |
| Impairment charges, net | 80 | 93 | 9 | 53 | 19 | 18 | 39 |
| Operating profit | 211 | 230 | 58 | 96 | 57 | 60 | 88 |
| Non-recurring items | 0 | 82 | 0 | 0 | 0 | -10 | -6 |
| Profit before value adjustments and tax | 211 | 311 | 58 | 96 | 57 | 50 | 81 |
| Value adjustments | -10 | -26 | -8 | -10 | 8 | -12 | -3 |
| Profit before tax | 201 | 286 | 50 | 86 | 65 | 38 | 78 |
| Profit after tax | 158 | 229 | 40 | 66 | 52 | 33 | 60 |
| Loans and advances | 10.0 | 10.0 | 10.0 | 10.1 | 10.0 | 10.0 | 10.0 |
| Deposits and other debt | 13.5 | 13.2 | 13.5 | 14.1 | 14.0 | 13.4 | 13.2 |
| Mortgage lending | 12.9 | 12.1 | 12.9 | 12.6 | 12.5 | 12.2 | 12.1 |
| Equity | 2.1 | 1.9 | 2.1 | 2.0 | 2.0 | 2.0 | 1.9 |
| Solvency ratio | 21.0 | 17.6 | 21.0 | 19.6 | 19.2 | 19.8 | 17.6 |
| Operating cost/income, % | 73 | 71 | 70 | 73 | 76 | 73 | 69 |
Further information:
Árni Ellefsen, CEO, tel. (+298) 230 348
BankNordik has banking activities in Denmark, 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 17.7bn and 390 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.
