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
Håkon Astrup

Near-term NII headwinds

The Norwegian macroeconomic outlook is gradually improving on a wide range of fiscal measures, seemingly protecting asset values and overall credit quality. Lower interest rates nonetheless put pressure on the sector’s NII, particularly near-term. We expect an improvement in the sector’s capital generation in Q2 2020 QOQ, and continue to consider Norwegian banks well-equipped to endure the ongoing economic slowdown. We reiterate our positive sector view, but now take a more nuanced stance – highlighting MING and SRBANK as our top picks.

Alexander Aukner ...
  • Håkon Astrup
  • Helene Kvilhaug Brøndbo
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Huseby Karlsen
  • Nicolai Farstad Olsen
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn

Northern Lights

Håkon Astrup

Sparebanken Øst (Hold, TP: NOK45.00) - NII momentum fading

SPOG reported a mixed Q1, with EPS 19% above our estimate as lower loan-loss provisions offset soft NII. The bank expects NII pressure to mount as a result of the transition to lower interest rates, amplified by a low growth appetite. That said, SPOG should see some mitigating effects from its wholesale-tilted funding mix from Q2. We have trimmed our 2021–2022e EPS by ~2–3% on lower NII. We maintain our NOK45 target price, but have lowered our recommendation to HOLD (BUY) given the recent share price appreciation.

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...

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

Near-term NII headwinds

The Norwegian macroeconomic outlook is gradually improving on a wide range of fiscal measures, seemingly protecting asset values and overall credit quality. Lower interest rates nonetheless put pressure on the sector’s NII, particularly near-term. We expect an improvement in the sector’s capital generation in Q2 2020 QOQ, and continue to consider Norwegian banks well-equipped to endure the ongoing economic slowdown. We reiterate our positive sector view, but now take a more nuanced stance – highlighting MING and SRBANK as our top picks.

Håkon Astrup

Sparebanken Øst (Hold, TP: NOK45.00) - NII momentum fading

SPOG reported a mixed Q1, with EPS 19% above our estimate as lower loan-loss provisions offset soft NII. The bank expects NII pressure to mount as a result of the transition to lower interest rates, amplified by a low growth appetite. That said, SPOG should see some mitigating effects from its wholesale-tilted funding mix from Q2. We have trimmed our 2021–2022e EPS by ~2–3% on lower NII. We maintain our NOK45 target price, but have lowered our recommendation to HOLD (BUY) given the recent share price appreciation.

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.

Alexander Aukner ...
  • Håkon Astrup
  • Helene Kvilhaug Brøndbo
  • Jon Masdal
  • Karl-Johan Bonnevier
  • Martin Huseby Karlsen
  • Nicolai Farstad Olsen
  • Nicolay Dyvik
  • Ole Martin Westgaard
  • Ole-Andreas Krohn

Northern Lights

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

Ford Equity International Rating and Forecast Report

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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