As reported in its profit warning SRBANK took another big chunk of impairments in Q2, but they (and we) now see a prospect of lower impairments going forward. We downgraded the share in June as we were concerned about a very soft NII outlook, but Q2 showed a lot more resilience than we expected. Our EPS is lifted 8% for 2021 and 5% for 2022 and we now see risk/reward as improved and upgrade to Buy (Hold) and increase our TP to NOK 85 (76).
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Onwards and upwards
As reported in its profit warning SRBANK took another big chunk of impairments in Q2, but they (and we) now see a prospect of lower impairments going forward. We downgraded the share in June as we were concerned about a very soft NII outlook, but Q2 showed a lot more resilience than we expected. Our EPS is lifted 8% for 2021 and 5% for 2022 and we now see risk/reward as improved and upgrade to Buy (Hold) and increase our TP to NOK 85 (76).