Pareto Bank (Buy, TP: NOK50.00) - Solid quarter despite lower activity
The Q3 ROE was 13.7% and PTP came in 10% below our estimate due to negative effects from the bank’s bond portfolio and a slight miss on NII. Despite missing its 15% ROE target in Q3, the bank is well positioned to deliver a full-year ROE in line with its target. We have lowered our 2019–2020e EPS by 1–2% on slightly lower NII. We reiterate our NOK50 target price and BUY recommendation on solid valuation support.
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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