Pareto Bank sees increased risk of correction in real estate

Pareto Bank ASA

26/01/2017 13:16

OSLO, Jan 26 (Reuters) - Pareto Bank PARB.OL : 
    * Recent strong growth in housing prices increases concern 
of a market correction in the longer term  
    * Chief Executive Officer Tiril H. Villum tells Reuters she 
still expects a strong housing market this year, but sees 
increased risk from 2018-2019  
    * She does not see a substantial drop in Oslo property 
prices in the short-term due to the current imbalance of supply 
and demand 
    * Pareto says has a more restrictive view when it comes to 
the financing of residential property development projects that 
have a long-term perspective 
    * Says Market risk is reduced by a high level of presales in 
a strong Oslo market 
    * Goal for real estate 2017: Net growth of approximately 600 
million Norwegian crowns  ($71.97 million) 
    * Real estate is the bank's main business area, with an 
exposure of 63 percent of its lending to that sector 
    * Financial targets for 2017: 10 percent growth, return on 
equity above 13 percent, dividend policy of 30-50 percent  
    * For more on Pareto's Q4 results:  urn:newsml:reuters.com:*:nFWN1FG09J  urn:newsml:reuters.com:*:nL5N1FG2ZZ 
 
($1 = 8.3363 Norwegian crowns) 
 
 (Reporting by Camilla Knudsen, editing by Gwladys Fouche) 
 ((camilla.knudsen@thomsonreuters.com; +47 2331 6595; Reuters 
Messaging: camilla.knudsen.thomsonreuters.com@reuters.net)) 
 
Keywords: PARETO RESULTS/REALESTATE