DNB’s Q3 report is due on October 22nd. We have included two hikes in the key policy rate in 2021 and see this as supportive for NII in the entire banking sector in Norway. We have also lowered impairments in 2021/2022 as we expect provisions taken largely to be sufficient, although uncertainty remains high within offshore. We expect key triggers going forward to be 1) normalisation of distribution, 2) additional comfort on credit quality and 3) a rate hike.
04 Oct 2020
Overcapitalisation is evident
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Overcapitalisation is evident
DNB’s Q3 report is due on October 22nd. We have included two hikes in the key policy rate in 2021 and see this as supportive for NII in the entire banking sector in Norway. We have also lowered impairments in 2021/2022 as we expect provisions taken largely to be sufficient, although uncertainty remains high within offshore. We expect key triggers going forward to be 1) normalisation of distribution, 2) additional comfort on credit quality and 3) a rate hike.