SpareBank1 SR-Bank (Buy, TP: NOK149.00) - Joining the >13% ROE race
While raising its long-term ROE target to >13%, SRBNK reported a Q4 ROE of 14.6%, supported by returned NII momentum (+15.3% QOQ). The board proposed a 2022 DPS of NOK7.0, implying a solid ~54% payout ratio and a 5.8% dividend yield. We have raised our 2023–2024e EPS by ~5–7%, driven by higher NII, and in turn increased our target price to NOK149 (141). Given our 2023–2024e ROEs of ~12–13%, we still find the valuation attractive at a 2023e P/B of ~1.06x, and reiterate our BUY.Sparebank 1 SR Bank is a savings bank. Co.'s core activities are sales and brokering of financial products and services, as well as leasing and real estate brokering. Co. is organized in three divisions: The Retail Market Division; The Corporate Market Division; and The Capital Market Division Co. provides products and services in the fields of financing, investments, money transfers, pensions and life and non-life insurance.
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.