SpareBank 1 Nord-Norge (NONG) reported a soft Q1 following higher impairments and a weak contribution from SB1/Fremtind. Despite the earnings miss NONG reported a ROE of 11.4% in Q1, and it was positive also to see the bank uphold its 12% ROE target for 2020. We also support the BoD’s choice in keeping interim CEO Liv Ulriksen as permanent group CEO and this bodes well for NONG going forward. We reiterate Buy and target price of NOK 70.
14 May 2020
Look through weak Q1, low risk with new CEO
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Look through weak Q1, low risk with new CEO
SpareBank 1 Nord-Norge (NONG) reported a soft Q1 following higher impairments and a weak contribution from SB1/Fremtind. Despite the earnings miss NONG reported a ROE of 11.4% in Q1, and it was positive also to see the bank uphold its 12% ROE target for 2020. We also support the BoD’s choice in keeping interim CEO Liv Ulriksen as permanent group CEO and this bodes well for NONG going forward. We reiterate Buy and target price of NOK 70.