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BankNordik expects 2018 net profit of 100M-150M kroner

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BankNordik expects 2018 net profit of 100M-150M kroner

Faroe Islands-based P/F BankNordik expects to post net profit between 100 million Danish kroner and 150 million kroner in 2018, down from 189 million kroner in 2017.

The bank expects impairment charges on loans and advances to remain low. It expects profit before impairment charges, nonrecurring items, value adjustments and tax to be in the range of 160 million kroner to 200 million kroner, compared to 187 million kroner in 2017.

The guidance figures reflect upcoming changes to the adjusted income statement methodology, effective 2018.

BankNordik adjusted its dividend policy target payout ratio of 40% to between 20% and 40% to allow for increased flexibility with respect to impending capital requirements. The board will propose a dividend of 4 kroner per share for 2017 in the upcoming annual general meeting.

The bank will recommence share buybacks up to a value of 7 million kroner in the first quarter, and will consider additional repurchases in the remaining part of the year.

It revised the target for its 2020 common equity Tier 1 ratio to 17% from 13%, and the total capital ratio target to 20% from 16.5%.

As of Feb. 28, US$1 was equivalent to 6.10 Danish kroner.