We estimate Q2 2025 pre-tax profit of DKK 69m, down DKK 36m (34%) y/y. This earnings drop is mainly led by three elements: 1) Q2 2025E net interest income (NII) declining DKK 14m (16%) y/y, driven by lower market rates; 2) Q2 2025E loan losses of DKK 5m, which is DKK 12m worse than the reversal of DKK 7m in Q2 2024; and 3) Q2 2025E earnings from the investment portfolio of DKK 25m, down DKK 10m (29%) y/y, also due to lower market rates. We make only minor changes to 2025E-27E net profit. We derive a higher Gordon growth-based fair value range of DKK 173-211 (161-197), mainly as a result of the 50bp cut to our cost of equity estimate.
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