We expect SHB to deliver a decent Q2 report and model an EPS of SEK 3.1 and a ROE of 13.1%, with NII likely to come down q/q but earnings still supported by low loan losses. Though we agree that SHB should be rewarded for its history on credit quality and we admittedly have underestimated the bank’s ability to cut costs in the last year – we still find the relative valuation premium vs Nordic peers offers little upside. Given that the Riksbank’s facing downward pressure on its rate path from act ....
