17% ROE on still-high activity
Q3 ROE was 17.4%, above our forecast and consensus, driven by strong NII on the back of still-high real estate activity. We nonetheless expect activity in this segment to decline in 2018–2019 due to signs of a slowing residential market in the Oslo region. This should be partly offset by further expansion in corporate project financing and, we believe, excess capital from lower growth to be distributed as dividends, implying a 2018e dividend yield of 9%. We reiterate our BUY recommendation and NOK42 target.
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.