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Third party research

Føroya Banki: 22% of market cap in capital distribution - Nordea

Føroya Banki

This is a third party research report and does not necessarily reflect our views or values

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Føroya Banki reported a soft Q4, as profit before loan losses landed at DKK 46m, DKK 8m (6%) below our estimate. This was mainly driven by significant deposit inflow, margin pressure and increased staff and IT costs. Føroya Banki proposed 2024 total dividends of DKK 350m. We trim 2025E-26E NII by ~3% and estimate 2025 net profit of DKK 220m, a tad below the midpoint of the guidance range of DKK 210-240m. Our new Gordon growth-based fair value range is DKK 192-235 (204-249). Marketing material commissioned by Føroya Banki.
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