Sparebank 1 Helgeland (Buy, TP: NOK132.00) - A much needed scale-up
HELG reported a rather weak Q3, with PTP 10% below our forecast after adjusting for the lower than expected transaction costs booked in the quarter. The adjusted Q3 ROE was 5.8%, hampered by loan loss provisions of NOK19m. In our view, this once again demonstrates the benefits of the scale-up from the soon-to-be-closed transaction. We have trimmed our 2022–2023e EPS by c2% following the Q3 report, but reiterate our BUY and NOK132 target price. We continue to find the risk/reward attractive at a 2022e P/E of 10.8x given the prospects of rising interest rates.Helgeland Sparebank (the Bank) is a Norway-based regional bank active in the Norwegian region of Helgeland. It offers its services mainly to the private market, business and the public sector. Its offering includes such products and services, as payment services, credit cards, saving accounts, placement services, loans, insurance, shares and currencies, as well as an online banking facility, the Nettbank. Additionally, the Bank carries out leasing of property through ANS Bankbygg Mo, AS Sparebankbygg, Helgeland Sparebank Eiendomsselskap AS and Helgeland Utviklingsselskap AS, all of which are wholly owned subsidiaries of the Bank. It also offers housing mortgages through Helgeland Boligkreditt AS, its whole owned subsidiary. As of December 31, 2011, the Bank also had such associated companies, as Helgeland Invest AS, Eiendomsmegleren Helgeland AS and Storgt. The Bank operates through 16 offices in 14 municipalities in Helgeland.
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.