Report
Håkon Astrup
EUR 95.40 For Business Accounts Only

Sparebanken Vest (Buy, TP: NOK156.00) - Further core revenue tailwinds

Helped by continued core revenue tailwinds and low loan losses, SVEG reported a Q4 ROE of 17.6%, despite a cost uptick after consolidating Frende Kapitalforvaltning. The board proposed a 2024 DPS of NOK8.5, implying a ~51% payout ratio and 6.1% dividend yield. With the stock trading at a dividend-adjusted 2026e P/E of 9.9x and the longer-term synergy potential from the pending merger, we continue to find the valuation undemanding. Thus, we reiterate our BUY and NOK156 target price.
Underlying
Sparebanken Vest

Sparebanken Vest is engaged as an independent banking and financial services group based in Bergen and with branches in the counties of Hordaland and Sogn & Fjordane. Co. also is engaged in estate agency activities and real estate management activities. As of Dec 31, 2002, Co. had total assets of NOK35 billion and total deposits of NOK22 billion. The banks market area comprises the regions Nordfjord, Sogn, Nordhordland, Hardanger/Midthorland, West, Sunnhordland, Bergern North and Bergen South.

Provider
DnB Markets
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.

 

Analysts
Håkon Astrup

Other Reports on these Companies
Other Reports from DnB Markets

ResearchPool Subscriptions

Get the most out of your insights

Get in touch