Nordic platform set to strengthen
We expect Bank Norwegian to deliver an ROE of 39% in Q3 (results due at 07:00 CET on 31 October), supported by strong lending growth and a gain from the sale of Norwegian NPLs. The stock is trading at 8.5x 2018e EPS, with prospects of continued lending growth at attractive margins and improving cost efficiency; thus we reiterate our BUY and NOK115 target price.Norwegian Finans Holding ASA is a Norway-based bank. The Company focuses on e-commerce and self-service solutions, and offers deposit accounts and consumer loans, which are distributed through the Internet. It also provides a combined credit card and reward card for buying tickets with the airline Norwegian Air Shuttle ASA. The Company's ownership is divided between institutional and private investors in Norway and abroad. It operates through Bank Norwegian AS, a wholly owned subsidiary.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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