SpareBank 1 Østlandet (Hold, TP: NOK140.00) - On HOLD after strong Q1
Fuelled by further NII expansion, the tax benefit of customer dividends, strong trading income and low loan losses, SPOL reported a Q1 ROE of 17.4% (>12% target), despite NOK26m of merger-related costs. We have made minor changes to our 2025–2026e EPS and reiterate our NOK140 target price. However, after the recent share price appreciation, we find more attractive risk/reward elsewhere in the sector. Thus, with the stock trading at a 2025e P/E of ~9.2x, we have downgraded to HOLD (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.
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