Revised expectations for the 2019 result
Company announcement
Announcement no. 22/2019
Revised expectations for the 2019 result
Due to strong reversals of impairment charges for the first six months of 2019 (DKK 72m), BankNordik raises its net profit guidance for the year of 2019 from previously guided DKK 100–150m to DKK 150–200m (H1 2019: 118m).
“Favourable economic conditions and stronger customer finances are the main drivers behind the Group’s reversal of impairment charges in the first half of 2019, stipulating an upwards revision of our net profit guidance for the full year of 2019. Although margin pressure continued to adversely affect net interest income, we were pleased to observe high customer activity and an overall increase in business volumes year-to-date,” said BankNordik CEO, Árni Ellefsen.
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 H1 2019 on 5 August 2019, which includes further financial details.
Preliminary adjusted Income Statement
| DKK million | H1 2019 | H1 2018 | Q2 2019 | Q1 2019 | Q4 2018 | Q3 2018 | Q2 2018 |
| Net interest income | 181 | 188 | 90 | 91 | 92 | 94 | 93 |
| Net fee and commission income | 93 | 87 | 45 | 48 | 42 | 43 | 43 |
| Income from insurance operations | 24 | 18 | 15 | 9 | 13 | 13 | 6 |
| Other operating income | 22 | 27 | 11 | 11 | 9 | 10 | 15 |
| Operating income | 321 | 319 | 163 | 158 | 156 | 160 | 157 |
| Operating costs | -240 | -231 | -119 | -120 | -115 | -111 | -116 |
| Operating profit before impairment charges | 81 | 88 | 43 | 38 | 42 | 49 | 42 |
| Impairment charges, net | 72 | 54 | 53 | 19 | 18 | 39 | 23 |
| Operating profit | 153 | 142 | 96 | 57 | 60 | 88 | 65 |
| Non-recurring items | 0 | 88 | 0 | 0 | -10 | -6 | 12 |
| Profit before value adjustments and tax | 153 | 230 | 96 | 57 | 50 | 81 | 76 |
| Value adjustments | -2 | -23 | -10 | 8 | -12 | -3 | -17 |
| Profit before tax | 151 | 207 | 86 | 65 | 38 | 78 | 59 |
| Net profit | 118 | 169 | |||||
| Loans and advances | 10.052 | 9.742 | 10.052 | 10.006 | 9.956 | 10.008 | 9.742 |
| Deposits and other debt | 14.131 | 13.147 | 14.131 | 14.004 | 13.432 | 13.163 | 13.147 |
| Mortgage credit | 12.644 | 11.890 | 12.644 | 12.477 | 12.238 | 12.050 | 11.890 |
| Operating cost/income, % | 75 | 72 | 73 | 76 | 73 | 69 | 73 |
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.
