Sparebanken Møre (Buy, TP: NOK450.00) - NII momentum ahead
MORG reported a solid Q3 ROE of 10.5%, helped by strong NII and low loan losses. With the bank confirming up to 25bp price adjustments following the September rate hike, we estimate a ~5–6% 2022e EPS uplift from this round of repricing. As increased NII and fee income are partly offset by higher costs, we have edged up our 2022–2023e EPS by ~1% and in turn raised our target price to NOK450 (435). With an estimated 2022–2023 ROE of ~10–11%, we continue to find the valuation attractive at a 2021e P/B of 1.2x and reiterate our BUY.Sparebanken More (the Bank) is a Norway-based regional bank. The Bank's primary market area are the More and Romsdal regions in Norway. Its product and service offering includes loans, cards, payment services, savings accounts, pension funds, life and non-life insurance, investment services and investment advice. As of December 31, 2011, the Bank had four wholly owned subsidiaries: More Finans AS, offering leasing services; Sparebankeiendom AS, a company responsible for the management of the Bank's commercial properties; More Boligkreditt AS, which funded loans secured by residential and commercial properties, and as More Eiendomsmegling AS, engaged in the real estate services for both private customers and trade. As of December 31, 2011, its largest shareholder was Sparebankstiftelsen Tingvoll (10.27%).
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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