Q3 figures were a somewhat mixed bag as the NII trend proved softer than we expected, while we saw a better contribution from associated companies. With rates at zero and continued uncertainty on loan losses it will be hard for SRBANK to return to its targeted ROE of 12%, but that is well reflected in a 0.8x P/B multiple and P/E ’21e 8x we believe. We continue to find the valuation attractive and reiterate Buy and our NOK 88 target price.
29 Oct 2020
Softer NII trend, but overall a decent Q3
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Softer NII trend, but overall a decent Q3
SpareBank 1 SR-Bank ASA (SRBNK:OSL) | 0 0 0.0%
- Published:
29 Oct 2020 -
Author:
Joakim Svingen | Roy Tilley -
Pages:
12
Q3 figures were a somewhat mixed bag as the NII trend proved softer than we expected, while we saw a better contribution from associated companies. With rates at zero and continued uncertainty on loan losses it will be hard for SRBANK to return to its targeted ROE of 12%, but that is well reflected in a 0.8x P/B multiple and P/E ’21e 8x we believe. We continue to find the valuation attractive and reiterate Buy and our NOK 88 target price.