The pandemic has resulted in new lockdowns and we expect this to trigger additional provisions in Q4 and likely an above normalised loan loss level next year. In addition, a worse macro picture will keep interest rates lower for longer and we have pushed our first hike to Q4/21. Finally, continued heightened uncertainty will mean less likelihood of normal distributions for 2019 and 2020 in our view. We lower our target price to NOK 155 (165) but reiterate Buy.
09 Nov 2020
Lockdowns will trigger additional provisions
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Lockdowns will trigger additional provisions
DNB Bank ASA (DNB:OSL) | 0 0 0.0%
- Published:
09 Nov 2020 -
Author:
Joakim Svingen | Roy Tilley -
Pages:
15
The pandemic has resulted in new lockdowns and we expect this to trigger additional provisions in Q4 and likely an above normalised loan loss level next year. In addition, a worse macro picture will keep interest rates lower for longer and we have pushed our first hike to Q4/21. Finally, continued heightened uncertainty will mean less likelihood of normal distributions for 2019 and 2020 in our view. We lower our target price to NOK 155 (165) but reiterate Buy.