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.

Norwegian banks: Q4'24 outcome vs. expectations

BN Bank ASA - Company Profile and SWOT Analysis

Summary BN Bank ASA - Company Profile and SWOT Analysis, is a source of comprehensive company data and information. The report covers the company's structure, operation, SWOT analysis, product and service offerings and corporate actions, providing a 360˚ view of the company. Key Highlights BN Bank ASA (BN Bank) is a provider of banking products and financial related services to retail and corporate customers. It is owned by SpareBank 1 SMN, SpareBank 1 NORD-NORGE, SpareBank 1 SR-Bank, and Spa...

Raising dividend expectations

Adj. PTP 5% below ABGSCe & consensus due to non-NII; Higher CET raises DPS expectations; Strong fundamentals reflected in decent valuation: HOLD

SpareBank1 Nord-Norge (Hold, TP: NOK130.00) - Still-strong profitabili...

Helped by a NOK176m one-off gain, solid core revenues and modest loan losses, NONG reported a strong Q4 ROE of 18.9%. The board proposed a NOK8.75 2024 DPS, implying a ~54% payout ratio (>50% policy) and a 6.7% dividend yield. We have raised our 2026e EPS by ~2%, and our target price to NOK130 (123). That said, with the stock trading at a dividend-adjusted 2026e P/E of 10.0x, we still see a more attractive risk/reward elsewhere in the sector. Thus, we reiterate our HOLD.

Better DPS and good guiding weight positive

Adj. PTP -5% vs. ABGSCe & cons, driven by softer income and costs. Repeat its lower future costs growth andguide lending higher (2025). Cons. '25e-'26e EPS rev. trim 1-2%; stock could just hold up (DPS)

Norw. banks Q4e: Lower yields from RW floor

NII has peaked, but associate income stronger

On course for ample distributions

While we forecast some margin moderation from current highs, we believe still-high interest rates, robust asset quality and a firm profitability focus bode well for continued strong earnings. With the sector trading at an average dividend-adjusted 2025e P/E of ~9.3x and several banks having additional excess capital, we still find the valuation undemanding. Noting some HOLD recommendations, we keep our positive sector view.

Norwegian banks: Increased RW floors for IRB banks

N-MoF increase RW to 25% for mortgages, keep CRE at 35%; Implementation 30 June 2025, banks time to adopt; Stocks likely down 1-3%. SVEG, MING more than DNB, NONG.

Norwegian savings banks: 4 proposals in a white paper

The ECC capital loss absorbing rank must be solved. Four independent suggestions, interconnect we think. SB1NO could be a relative winner, but still early days.

Norwegian banks: Q3'24 outcome vs. expectations

SpareBank1 Nord-Norge (Hold, TP: NOK123.00) - Strong Q3, but reduced D...

NONG reported a Q3 ROE of 32.1%, boosted by sustained core revenue tailwinds, moderate loan losses and a NOK452m gain from the Fremtind/Eika merger (still-strong 21.2% adjusted for the latter). Meanwhile, the CET1 ratio fell by ~70bp QOQ, lowering the requirement buffer to ~80bp. Thus, while we have raised our 2025–2026e EPS by ~1%, we have cut our 2024–2026e DPS by ~5–6%. Following the recent share price uptick, we find the valuation fair (2025e P/E of ~9.7x) and have downgraded to HOLD (BUY). ...

Estimates up, but distributions down

Improve the cost guidance for towards 2027

Adj. PTP +3% vs. ABGSCe, 0% vs. cons, driven by better costs; Guide future costs growth 1-2% lower from replacing fewer FTEs; Cons. '25e-'26e EPS rev. likely up 0-2%; stock could just hold up

Estimates up from changed rate path & FTEs

Still-encouraging profitability outlook

Despite expecting some margin headwinds, we believe still-high interest rates, robust asset quality and a firm profitability focus bode well for sector earnings remaining strong. Adding generous dividend prospects, we continue to find the valuation undemanding, with a coverage average 2025e P/E of ~9.1x. While noting a slightly more nuanced perspective with some HOLD recommendations, we maintain our positive sector view.

2024 Norwegian bank survey - Sector trends remain promising

While the respondents unsurprisingly forecast margins to decline from current highs, our 11th annual survey of the 50 largest banks in Norway presents an upbeat outlook, in our view. In addition to robust asset quality, the banks expect a slight uptick in lending growth. Supported by a market-disciplining profitability focus and solid dividend potential, we still find the sector valuation undemanding at an average 2025e P/E of ~9.3x. Noting a slightly more nuanced perspective with some HOLD reco...

SpareBank1 Nord-Norge (Buy, TP: NOK118.00) - Continued ROE tailwinds

Fuelled by strong core revenues and low loan losses (4bp), NONG reported a Q2 ROE of 18.9% (>13% target), despite somewhat soft trading income and sustained cost pressure. Helped by improved lending margins and decent lending growth, ‘real NII’ rose 1.8% QOQ, while fees and other operating income improved ~11% YOY. We have raised our 2025–2026e EPS by ~1%, driven by higher NII and fees, and our target price to NOK118 (115). With the stock trading at a 2025e P/E of ~8.8x, we continue to find the ...