16.7.2020 14:34:08 CEST | BankNordik | Inside information

Company announcement no. 11/2020

The BankNordik Group’s original guidance announced at the beginning of the year called for a net profit in the DKK 100-150 million range.

Due to the impact of the COVID-19 situation and the uncertainty caused hereof, BankNordik reassessed the Group’s financial guidance for 2020 and on April 27 2020 announced a lowered financial guidance expecting net profit in the range of DKK 30-80 million for 2020. Mainly due to higher loan impairments, a loss on the investment portfolio and travel insurance claims paid out.

Based on a review of the Group’s financial guidance for 2020 BankNordik on June 24 2020 announced a raised financial guidance expecting net profit in the range of DKK 50-90 million.

The impact of COVID-19 situation on the Group’s financial results has so far been more alleviated than expected. Therefore BankNordik has made a new reassessment of the Group’s financial guidance for 2020 and now expects net profit in the range of DKK 80-120 million. The upwards revision is primarily related to reversal of impairment charges.

Given the considerable uncertainty still prevailing in terms of the long-term financial impact of the COVID-19 situation BankNordik will make a further DKK 10 million provision to cover potential COVID-19 related losses, bringing the total provisions to DKK 35 million.

The Group’s raised net profit guidance for the year 2020 is based on expectations for the future and are thus subject to uncertainty. BankNordik's interim report for Q2 2020 is scheduled for release on 4 August 2020.

 

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 16.9bn and 359 employees. The Bank is subject to the supervision of the Danish Financial Supervisory Authority and is listed on Nasdaq Copenhagen.

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