JPMorgan stays selective as competition clouds Nordic banks' outlook

By Reuters News

** JPMorgan is selective on Nordic banks into 2027, citing competition-driven pressure on lending margins and capital distribution uncertainty despite improving earnings prospects

** It sees intense competition across the region, particularly in Norway, while political pressure on Swedish banks and the prospect of additional taxation add to uncertainty

** It upgrades Danske Bank to DANSKE.CO "overweight" from "neutral", raising its PT by 25% to DKK 424, citing an attractive valuation relative to Nordic peers

** Lifts NOBA Bank NOBA.ST to "overweight" from "neutral", with a SEK 119 PT, on stronger earnings momentum and loan growth

** Handelsbanken SHBa.ST is raised to "neutral" from "underweight", PT by 23% to SEK 159, citing defensive earnings profile and high dividend yield, despite weaker growth prospects and returns than peers

** JPM remains "underweight" on Nordea NDAFI.HE and SEB SEBa.ST, while keeping "neutral" ratings on DNB DNB.OL and Swedbank SWEDa.ST

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