SpareBank 1 Østlandet (Buy, TP: NOK135.00) - >12% ROE target after strong Q4
While raising its ROE target to >12% (>11%), SPOL reported a strong Q4 ROE of 12.9%, supported by continued NII momentum, solid non-interest income and a YOY decline in costs. The board proposed a 2022 DPS of NOK6.8, implying a payout ratio of ~60% versus its reiterated 50% dividend policy. We have raised our 2023–2024e EPS by ~8–7%, driven by higher NII, and our target price to NOK135 (128). Given our ~11% 2023–2024e ROEs, we still find the valuation undemanding at a 2023e P/B of ~1.0x, and reiterate our BUY.Sparebank 1 Ostlandet operates as a bank and holding company. Co.'s main focus is on responsible lending, financial crime, requirements for providers of financial services, ethics and corruption, and ethical marketing of products and services. Co. is primarily a regional actor that operates in central Eastern Norway. Because of this, Co. concentrates on sustainability, growth and development in the local communities of which it. is a part. The Co.'s 38 branches have authorised financial advisers with local knowledge about their communities to better serve its clients.
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.