High expectations reflected in valuation

Q4: NII down 2% q-o-q, in-line with expectations

Norw. banks: Rates help, competition hurts

Expect continued strong non-NII growth

Solid results, but reflected in valuation

Q3: Small beats across the board

Norwegian banks: Higher rates, uncertain rules

Fairly valued ex. customer dividend tax shield

Expectations lifted on bold growth ambitions

Solid Q2 NII and non-NII beat

Norwegian banks Q2e: It's time for a breather

Limited room for disappointment

A small step in their broader plan

Revisions hit by NII and capital synergies

Sparebanken Vest (Buy, TP: NOK157.00) - Strong pre-merger quarter

Continued solid loan growth, high fees, and a strong trading result helped offset merger-related costs and seasonally soft NII, as SVEG reported Q1 PTP of NOK1,415m, 13% higher YOY, and a Q1 ROE of 21.3%. As capital synergies are expected to offset increased IRB risk weights in the 2 May merger, we continue to find the capital situation supportive for further distributions. We have cut our 2026–2027e EPS by ~2%, while reiterating our NOK157 target price and our BUY.

Q1: Small beat standalone, inline proforma

Adj. net profit +2% (standalone) due to asset quality; inline (proforma). Softer NII, while better fees (Borea), weaker costs (Borea). Cons. est. rev. minor negative, stock to perform in line to just soft

Norwegian banks Q1: priced for higher rates

Our favourite among the savings banks

Heder Bank to offer mortgages at 4.99%

Outlook for continued high rates

Although we continue to expect some margin headwind, the outlook for postponed rate cuts – leaving interest rates at continued high levels – should bode well for sector earnings, further supported by a strong profitability focus and modest loan losses. With the sector trading at an average 2026e P/E of c11.0x, and solid dividend potential, we find the valuation undemanding. We reiterate our positive sector view but highlight a larger share of HOLD recommendations than 12 months ago.