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.

Sparebanken Vest: 3 directors

Three Directors at Sparebanken Vest sold 86,280 shares at between 147.633NOK and 148.500NOK. The significance rating of the trade was 63/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over...

Bank Brunch/Deutsche Bank makes a decision on its AT1 calls, Sparebank...

Deutsche Bank makes a decision on its AT1 calls. Sparebanken Vest covered bond

Bank Brunch/Deutsche Bank makes a decision on its AT1 calls, Sparebank...

Deutsche Bank takes a dynamic approach for its AT1 calls. Another day, another Norwegian covered bond.

Synergies vs. EPS headwinds

Norwegian banks: Q4'24 outcome vs. expectations

We make net positive revisions for Borea

Q4: Adj. PTP +2% and +4% vs. ABGSCe and consensus; Adj. EPS -0.4% and +0.7% for '25e and '26e ; At current 1.66x P/NAV in '24, the valuation is fair: HOLD