Pareto Bank (Buy, TP: NOK62.00) - Strong Q4 leaves 2022 ROE >14%
Fuelled by continued NII momentum, trading income tailwinds and net loan loss reversals, PARB reported a strong Q4 ROE of 17.4% – leaving the 2022 ROE at 14.6%, above the company’s 14% target. The board proposed a 2022 DPS of NOK3.86, implying a 7.2% dividend yield and a 50.1% payout ratio. Based on a more moderate growth outlook and still-solid earnings prospects, we see scope for further generous distributions ahead. We have raised our 2023–2024e EPS by ~4% on higher NII and increased our target price to NOK62 (57). At a 2024e P/E of ~6.8x, we continue to find the valuation attractive, and reiterate our BUY.
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.