DnB Markets - Sparebanken More (MORG) Sparebanken Møre (Buy, TP: NOK93.00) - Improved asset-quality outlook

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DnB Markets

Håkon Astrup

EUR 88.54 For Business Accounts Only

Sparebanken Møre (Buy, TP: NOK93.00) - Improved asset-quality outlook

Sparebanken Møre reported a Q3 ROE of 13%, and PTP of NOK333m, up 32% YOY. NII momentum remained solid during the quarter, driven by QOQ margin improvements and 8.3% YOY loan growth. Together with rebounding financial markets, this more than offset a QOQ uptick in loan loss provisions, although the bank now sees potential reversals as offshore/supply markets continue to improve. We have made limited changes to our 2024–2025e EPS, and we reiterate our BUY and NOK93 target price.

27/10/2023 1 EN

Underlying

Sparebanken More

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%).

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NO0006390004 Oslo Bors Norway

Provider

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.

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Analysts

Håkon Astrup

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Sparebanken Møre (Buy, TP: NOK93.00) - Improved asset-quality outlook

Sparebanken Møre (Hold, TP: NOK95.00) - Higher margin pressure and costs

Outlook for continued high rates

Sparebanken Møre (Hold, TP: NOK97.00) - ROE target raised after strong Q4

Airthings (No_rec, TP: NOK) - Recommendation and target price withdrawn

SpareBank 1 Helgeland (Hold, TP: NOK167.00) - Softer margin, but lower costs

Smartoptics (Buy, TP: NOK27.00) - We remain optimistic

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