Apart from surprising us with a SEK ~1.5bn restructuring charge we had expected in Q4, SHB beat our estimates on most lines in the P&L. Underlying cost reductions are seemingly already coming through, and we have lowered our cost estimates by 2% and also reduced expected loan losses. This lifts EPS by 4%/3%/3%, implying a '21e P/E of 9.1x. With a strong capital position, we also see a 6.4% div yield for 2020e. We reiterate our Buy recommendation.
22 Oct 2020
Estimates lifted after positive Q3 report
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Estimates lifted after positive Q3 report
Svenska Handelsbanken AB Class A (SHB.A:OME) | 0 0 0.0%
- Published:
22 Oct 2020 -
Author:
Joakim Svingen | Roy Tilley -
Pages:
13
Apart from surprising us with a SEK ~1.5bn restructuring charge we had expected in Q4, SHB beat our estimates on most lines in the P&L. Underlying cost reductions are seemingly already coming through, and we have lowered our cost estimates by 2% and also reduced expected loan losses. This lifts EPS by 4%/3%/3%, implying a '21e P/E of 9.1x. With a strong capital position, we also see a 6.4% div yield for 2020e. We reiterate our Buy recommendation.