Report
Håkon Astrup
EUR 91.87 For Business Accounts Only

Sparebank1 Nord-Norge (Buy, TP: NOK67.00) - Helping hand from lower NIBOR

Adjusted for a soft trading line, Q1 pre-tax profit was ~3% above our forecast, although NII fell short of our estimate. Despite this and a lowered growth outlook, we have raised our estimates given the positive outlook for funding costs in 2020e – leaving our 2021–2022e EPS up ~2%. We reiterate our BUY, and have raised our target price to NOK67 (65), considering the risk/reward attractive at a 2021e P/E of 8.3x.
Underlying
SpareBank 1 Nord-Norge

Sparebanken Nord-Norge is engaged in the provision of financial products and services in North Norway. In addition to loans, deposits, payments transmission services, leasing and factoring, such financial products and services also include most savings products as well as life-and non-life insurance. Co. is active within the areas of real estate brokerage, trading in securities, active investment management, value assessment and other corporate services. Co. has 81 branches throughout North Norway. As of Dec 31 2008, Co.'s total assets were NOK65,507,000,000 and its total deposits were NOK34,572,000,000.

Provider
DnB Markets
DnB Markets

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.

 

Analysts
Håkon Astrup

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