Barclays double upgrades SEB, Danske as it stays picky about Nordic banks

Nordea Bank Abp

02/06/2025 12:32

** Barclays says it has turned more constructive on Danish banks and sees some opportunities within Swedish banks, but remains selective for Nordic lenders as a whole

** It double upgrades SEB SEBa.ST and Danske Bank DANSKE.CO to "overweight"

** It expects both banks' net interest incomes to trough in Q2, and is 1-4% above consensus NII expectations for 2025-2027

** It notes SEB and Danske have above-average percentage of non-NII revenues amongst Nordic banks, at 36-47% vs average of 35%, which is helpful in a falling rate environment

** For Danske, the termination of the probation period related to the Estonia case at the end of 2025 could be a positive catalyst for capital return, Barclays adds

** It downgrades DNB DNB.OL and Nordea NDAFI.HE to "equal weight", citing limited upside potential

** It keeps "underweight" rating on Swedbank SWEDa.ST, but sees a positive catalyst in June should the group address its cost base at its investor day

COMPANY
RATING
OLD RATING
Danske Bank
overweight
underweight
DNB
equal-weight
overweight
Jyske Bank
overweight
-
Nordea
equal-weight
overweight
Skandinaviska Enskilda Banken (SEB)
overweight
underweight
Svenska Handelsbanken
equal-weight
-
Swedbank
underweight
-

 (Reporting by Marta Frąckowiak)

 ((marta.frackowiak@thomsonreuters.com))