Norwegian Finans Holding (Buy, TP: NOK110.00) - Long-awaited capital distribution
Despite accounting changes being the main focus of the Q4 report, NOFI reported a solid Q4 ROE of 23.5% and a 2019 cash DPS of NOK3.18 combined with a NOK0.8 buyback per share. In our view, 80bp headroom (adjusted for buybacks) to the new CET1 requirement leaves ample room for growth and capital distributions going forward. We have raised our 2020–2021e EPS by 1–2% and have increased our target price to NOK110 (105). We reiterate our BUY.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.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.