DNB reported lower impairments than feared and together with a better trading and solid quality income lines this resulted in a clear earnings beat. The impressive capital generation and the solid level of the CET1 ratio increases the likelihood for both 2019 DPS and a higher 2020 DPS in our view. We increase ‘20e/‘21e/’22e EPS 20%/4%/4%. We reiterate Buy and raise our target price to NOK 154 (146), equivalent to 12x 2021e EPS and a 2020e P/B of 1.03x.
13 Jul 2020
Cruising through 2020 at a higher speed
Sign up to access
Get access to our full offering from over 30 providers
Get access to our full offering from over 30 providers
Cruising through 2020 at a higher speed
DNB reported lower impairments than feared and together with a better trading and solid quality income lines this resulted in a clear earnings beat. The impressive capital generation and the solid level of the CET1 ratio increases the likelihood for both 2019 DPS and a higher 2020 DPS in our view. We increase ‘20e/‘21e/’22e EPS 20%/4%/4%. We reiterate Buy and raise our target price to NOK 154 (146), equivalent to 12x 2021e EPS and a 2020e P/B of 1.03x.