Sparebanken Norge's Q3 profit rises on loan growth

Overview

• Norway savings bank's Q3 pre-tax profit reached NOK 2,138 mln, ROE at 12.7%

• Company saw strong lending growth in both retail and corporate segments

• CET1 capital ratio at 18.1%, above capital target despite merger-related costs

Outlook

• Company says it has capacity to achieve growth targets and offer competitive dividends

• Sparebanken Norge to establish presence in Mo i Rana and Trondheim over next 12 months

• Company expects realization of merger synergies to accelerate heading into 2027

Result Drivers

• LENDING GROWTH - Co said robust loan growth in both retail and corporate segments drove results

• NEW MARKETS - Co said expansion into new market areas began to generate growth, with key advisor and manager appointments completed

• COST CONTROL - Co said strong cost control maintained despite merger-related costs and investments in new market areas

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Sparebanken Norge is NOK207.50, about 1.1% above its October 29 closing price of NOK205.25

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 28 - Norway's Equinor Q3 adjusted operating income nearly doubles on higher output, gas prices

• Oct 29 - Norway's Aker BP Q3 EBITDA beats analyst estimates; maintains annual production forecast

• Oct 29 - Norway's Europris Q3 sales miss estimates as lower footfall and weak campaigns weigh

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)