Lending growth back on track
The Q2 ROE was 8.4% with EPS 12% below consensus, primarily driven by lower trading income. Adjusted for this, pre-tax profit was 4% above our forecast due to a beat on all remaining P&L lines. After muted growth due to capital building in 2016, SOR’s lending growth has gained momentum and the bank still sees the potential to surpass its 6% target for 2017. We have raised our 2018–2019e EPS by ~1%, mainly driven by higher NII. We reiterate our HOLD recommendation and NOK105 target price.
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.