BankNordik raised its 2022 net profit guidance by ~20%, up to DKK 160-190m, from DKK 130-160m previously. The upgrade was led by better underlying operations and loan-loss reversals. We believe strong NCI and insurance income, which were also healthy in Q1 2022, could be the drivers behind its strong underlying operations. We lift 2022E EPS by 9%, prompted by improved NCI, insurance and loan losses. We raise EPS by 2-3% for 2023E-24E. We lift our Gordon growth-based fair value range to DKK 161-181 (157-176). BankNordik is trading at a 2024E P/E of 6.9x. Adjusted for expected dividends in 2022E-23E, the company is presently trading at just ~5x, which is ~35% below its Danish peers. Marketing material commissioned by BankNordik.

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