Sparebanken Møre (Buy, TP: NOK95.00) - Strong Q4 and generous dividends
Boosted by offshore-related reversals and continued core revenue momentum, MORG reported a strong Q4 ROE of ~17%, despite low trading income and elevated cost inflation. The board proposed a 2023 DPS of NOK7.5, implying a ~74% payout ratio (~50% policy) and an ~8.8% dividend yield. The bank reiterated its financial ambitions, including its ROE target, which was raised from >11% to >12% in December. With the stock trading at a dividend-adjusted 2025e P/E of ~8.5x, we continue to find the valuation undemanding. We reiterate our BUY and NOK95 target price.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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