Q2 2021 operating profit came in at DKK 74m, which was DKK 10m (16%) ahead of our estimate. Main deviations are attributed to better than expected loan loss reversals, which came in DKK 7m (35%) better than our estimate. Net interest income was DKK 66m, which was DKK 3m (5%) ahead of our estimates. This was led by a mix of 1% higher Q2 lending than we expected, as well as stronger-than-expected deposit margins. Furthermore, commission income was DKK 20m. We had estimated DKK 18m. On the negative side, net insurance income was DKK 14m, which was DKK 2m (13%) below our estimates. Operating costs came at DKK 61m, also a tad weaker than our estimates of DKK DKK 59m amid the high activity. BankNordik still expects to distribute DKK 450m (DKK ~47 per share) this year following the sale of its Danish activities to Spar Nord and DKK 700m in total during 2021-23. An EO general meeting is expected to be held at latest in October 2021 on this topic, where the bank also expects to announce whether parts of this will be distributed through a share buyback, which would make sense due the Faroese taxation of dividends. The CET1 ratio ended at 25.7%, which was 5.1pp below our estimates, due to the bank now deducting of the expected EO dividend of DKK 450m. In connection with the Q2 2021 results, BankNordik also announced that it has launched initiatives that is expected to lift earnings by DKK 20-25m over the coming years, which is more than we expected. We estimate 2020-23 profit before loan losses growth of DKK 34m, corresponding to DKK roughly 25m after tax. As this also includes underlying growth and already announced initiatives, we have only partly reflected these new initiatives in our current estimates. We hence expect to see positive estimate revisions following the strong Q2 results.

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