Sparebanken Ost ASA

Sparebanken Ost (the Bank) is a Norway-based regional bank. The Bank is engaged in the provision of both banking and financial products and services to individuals and businesses. The Bank's primary market area is the lower part of Buskerud county and the Drammen region. Its product and service offering includes loans, cards, payment services, savings accounts, pension funds, life and non-life insurance, investment services and foreign exchange. As of December 31, 2011, the Bank had such subsidiaries, as Sparebanken Ost Boligkredit AS, a mortgage company; AS Financiering, a car financing company; Sparebanken Ost Eiendom AS, which was engaged in real estate development and operations, and Ost Prosjekt AS, a subsidiary supporting the Bank's activities. As of December 31, 2011, the Bank's largest shareholder was MP Pensjon (9.89%).
  • TickerSPOG
  • ISINNO0006222009
  • ExchangeOslo Bors
  • SectorBanks
  • CountryNorway

Analysts

Håkon Astrup

Good value despite headwinds

With valuations approaching previous troughs, we see meaningful valuation support as the sector is now trading at a 2020e P/B of ~0.7x. We have cut our earnings estimates for the Norwegian banks we cover to reflect higher loan losses given the rising macro uncertainty and downward pressure on margins. However, we believe extended fiscal easing should limit the Norwegian economic downturn. We reiterate our positive sector view, highlighting Sbanken as our top pick on robust asset quality and attractive valuation.

Sparebanken Ost: 1 director bought

A director at Sparebanken Ost bought 10,000 shares at 54.000NOK and the significance rating of the trade was 50/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of bo...

Alexander Aukner ...
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Martin Huseby Karlsen
  • Nicolay Dyvik
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Simen Mortensen
  • Viktor Trollsten

Northern Lights

Håkon Astrup

Sparebanken Øst (Hold, TP: NOK57.00) - Strong end to 2019

SPOG reported a Q4 ROE of 8.5% with PTP 7% above our estimate and consensus, led by strong NII and continued cost control. The bank is sticking with its cautious mortgage approach for 2020, highlighting fierce competition. We have raised our 2020–2021e PTP by 1–3% on higher NII and lowered costs, and our target price to NOK57 (56). However, we reiterate our HOLD as we find the valuation fair at a 2020e P/B of 0.9x given an ROE of ~9%.

Håkon Astrup

Set for a profitable 2020

We remain positive on the sector as we expect supportive margin growth, and see prospects of attractive dividends following the recent capital decision. Regulators consider the overall capital level adequate, and advocate a neutral transition to the new capital regime. Hence, we expect the average payout ratio of the largest banks to climb above 50% for 2019.

Sparebanken Ost: 1 director bought

A director at Sparebanken Ost bought 10,000 shares at 54.000NOK and the significance rating of the trade was 50/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two years clearly showing Close periods where trading activity is restricted under listing rules. The names of bo...

Håkon Astrup

Good value despite headwinds

With valuations approaching previous troughs, we see meaningful valuation support as the sector is now trading at a 2020e P/B of ~0.7x. We have cut our earnings estimates for the Norwegian banks we cover to reflect higher loan losses given the rising macro uncertainty and downward pressure on margins. However, we believe extended fiscal easing should limit the Norwegian economic downturn. We reiterate our positive sector view, highlighting Sbanken as our top pick on robust asset quality and attractive valuation.

Håkon Astrup

Sparebanken Øst (Hold, TP: NOK57.00) - Strong end to 2019

SPOG reported a Q4 ROE of 8.5% with PTP 7% above our estimate and consensus, led by strong NII and continued cost control. The bank is sticking with its cautious mortgage approach for 2020, highlighting fierce competition. We have raised our 2020–2021e PTP by 1–3% on higher NII and lowered costs, and our target price to NOK57 (56). However, we reiterate our HOLD as we find the valuation fair at a 2020e P/B of 0.9x given an ROE of ~9%.

Håkon Astrup

Set for a profitable 2020

We remain positive on the sector as we expect supportive margin growth, and see prospects of attractive dividends following the recent capital decision. Regulators consider the overall capital level adequate, and advocate a neutral transition to the new capital regime. Hence, we expect the average payout ratio of the largest banks to climb above 50% for 2019.

Håkon Astrup

Sparebanken Øst (Hold, TP: NOK56.00) - NII momentum and low costs

SPOG reported Q3 ROE of 9.9% and pre-tax profit 25% above consensus due to solid NII momentum, lower than expected operating costs, and continued low loan losses. The bank’s capital position is well above its internal target and we believe it has the potential to pay out a dividend equal to a yield of around ~7% in 2019. Following the strong report, we have raised our 2020–2021e EPS by 1–4% due to higher NII and lower costs. We reiterate our HOLD and NOK56 target price.

Håkon Astrup

Riding the rate tide

We expect an ROE of 11–12% for the larger Norwegian banks in Q3, boosted by a sequential improvement in NII. The recent hike in key policy rates has allowed a fourth round of mortgage repricing for the sector, which should provide further support to interest margins going forward. Despite the near-term momentum and an appealing sector valuation of ~9x 2020e EPS, we reiterate our nuanced sector view favouring large banks with capital generation capabilities. Sbanken and SVEG are our top sector picks.

Alexander Aukner ...
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Hoang Nguyen
  • Martin Huseby Karlsen
  • Nicolay Dyvik
  • Niklas Wetterling
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Simen Mortensen
  • Viktor Trollsten

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Håkon Astrup
  • Jon Masdal
  • Marius Knudssøn
  • Martin Huseby Karlsen
  • Mattias Holmberg
  • Nicolas McBeath
  • Ole-Andreas Krohn
  • Rune Majlund Dahl
  • Tomi Railo

Northern Lights

Håkon Astrup ...
  • Martin Arnell
  • Niclas Gehin
  • Nicolas McBeath
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Simen Mortensen
  • Tomi Railo

Northern Lights

Christoffer Wang Bjørnsen ...
  • Håkon Astrup
  • Jørgen Lian
  • Karl-Johan Bonnevier
  • Marius Knudssøn
  • Mattias Holmberg
  • Niclas Gehin
  • Nicolai Farstad Olsen
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Rune Majlund Dahl
  • Simen Mortensen

Northern Lights

Alexander Aukner ...
  • Christoffer Wang Bjørnsen
  • Eivind Sars Veddeng
  • Håkon Astrup
  • Joachim Gunell
  • Jon Berggren
  • Martin Arnell
  • Niclas Gehin
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn
  • Olof Larshammar
  • Patrik Ling
  • Simen Mortensen

Northern Lights

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Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind each recommendation and reflect the fundamental and price data as of the last trading day of the week...

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