Report
Håkon Astrup
EUR 85.60 For Business Accounts Only

Sparebank1 Nord-Norge (Hold, TP: NOK92.00) - 2021e shaping up nicely

NONG reported a best-in-class ROE of 15.4% in Q2 following strong results across all business areas with additional support from loan loss reversals. Its capital position also improved considerably, which, combined with additional near-term tailwinds, could leave scope for generous capital distributions in the coming years, we believe. We have lifted our 2022–2023e EPS by 2–3%, and in turn our target price to NOK92 (90). However, we continue to find the valuation fair at a 2021e P/B of c1.2x and reiterate our HOLD.
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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