BofA sees fortunes to reverse for Nordic banks in 2025
19/02/2025 11:58
** BofA Global Research says Nordic banks' fourth quarter
net interest income (NII) is "saved again" by temporary effects,
but sees fortunes to reverse in 2025
** The broker cuts 2025 NII by 1.2% on average for Swedish
banks as the 2024 temporary boost reverses in 2025 partly offset
by higher rate expectations
** Norway is the clear outlier with loan growth rebounding,
driven by the business segment versus negative business
sentiment in the other Nordic countries, it says
** Yield profiles of Nordic banks remain mostly unimpressive
versus Europe until extra buffers come down, it adds
** BofA double upgrades DNB DNB.OL to "buy" on improved
NII dynamics with fading market rate cut expectations and
surging loan growth in Norway
** It downgrades Swedbank SWEDa.ST to "underperform" from
"neutral" as all positives are priced in, while seeing the
strongest NII pressure in the Nordics
** The broker maintains "buy" on Danske DANSKE.CO ,
"neutral" on Nordea, and "underperform" on Svenska Handelsbanken
SHBa.ST , and SEB SEBa.ST
(Reporting by Marta Frackowiak)
((marta.frackowiak@thomsonreuters.com))