SpareBank1 Nord-Norge (Hold, TP: NOK130.00) - Still-strong profitability
Helped by a NOK176m one-off gain, solid core revenues and modest loan losses, NONG reported a strong Q4 ROE of 18.9%. The board proposed a NOK8.75 2024 DPS, implying a ~54% payout ratio (>50% policy) and a 6.7% dividend yield. We have raised our 2026e EPS by ~2%, and our target price to NOK130 (123). That said, with the stock trading at a dividend-adjusted 2026e P/E of 10.0x, we still see a more attractive risk/reward elsewhere in the sector. Thus, we reiterate our HOLD.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.
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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