Sparebanken Vest (SVEG) reported a solid Q2 result with a 12.1% ROE characterized by high MtM gains, low opex and an improved contribution from Frende. NII was weak following the mismatch between repricing of deposit and lending rates, but we expect a bounce back in Q3. We have increased 2020e/2021e EPS 10%/5%. We increase our TP to 63 (58) and retain our Hold recommendation, but continue to find SVEG most expensive amongst the regional banks.
13 Aug 2020
Increased offshore provisions lower risk
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Increased offshore provisions lower risk
Sparebanken Vest (SVEG) reported a solid Q2 result with a 12.1% ROE characterized by high MtM gains, low opex and an improved contribution from Frende. NII was weak following the mismatch between repricing of deposit and lending rates, but we expect a bounce back in Q3. We have increased 2020e/2021e EPS 10%/5%. We increase our TP to 63 (58) and retain our Hold recommendation, but continue to find SVEG most expensive amongst the regional banks.