SpareBank 1 Nord-Norge (NONG) reported a solid Q2 result with strong NII, lower impairments and a solid contribution from SB1 (incl. Fremtind) and MtM gains. The ROE was 14.6% in the quarter and the bank upheld its 12% ROE target for 2020. We have increased 2021e EPS by 13%, partly since we have moved the transfer of the Helgeland portfolio from Q1 to Q2, while underlying earnings are upped 5%. We increase our TP to NOK 70 (66) but retain our Hold recommendation.
12 Aug 2020
Prudent provisioning is a strength now
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Prudent provisioning is a strength now
SpareBank 1 Nord-Norge (NONG) reported a solid Q2 result with strong NII, lower impairments and a solid contribution from SB1 (incl. Fremtind) and MtM gains. The ROE was 14.6% in the quarter and the bank upheld its 12% ROE target for 2020. We have increased 2021e EPS by 13%, partly since we have moved the transfer of the Helgeland portfolio from Q1 to Q2, while underlying earnings are upped 5%. We increase our TP to NOK 70 (66) but retain our Hold recommendation.