Sparebanken Vest (SVEG) reported a solid Q4 result with a 12.2% return on equity helped by NII growth and good opex control. We also liked the solid contribution from Frende in Q4. The BoD proposed a NOK 2.8 DPS, currently yielding 4.1%. Valuation remains fair in our view and the dividend yield is amongst the lowest in our research universe both on 2019 and 2020 estimates. Hence we reiterate our Hold recommendation and target price of NOK 68 for now.
