Barclays turns positive on Swedish banks as corporate lending recovers
BUZZ-Barclays turns positive on Swedish banks as corporate lending recovers ** Barclays turns positive on Swedish banks, particularly those with exposure to corporate lending, as it expects a cyclical recovery to support business loan growth
** The brokerage notes that the "return of Sweden" means it now "offers the most compelling corporate lending growth story in the Nordic region" following balance sheet repair
** It adds that its stance is also underpinned by the Swedish banks' rate sensitivity and continues to forecast two further 25-basis-point Riksbank hikes
** The broker adds that SEB SEBa.ST is its preferred way to capture a recovery in Swedish large-corporate borrowing and expects a re-acceleration in loan demand from this segment
** It highlights the bank can fund new loans through deposits due to its strong loan-to-deposit ratio
** Barclays double-cuts DNB DNB.OL cut to "underweight", citing stronger-than-expected competition in corporate lending and earnings forecasts below consensus
COMPANY | NEW RATING | OLD RATING | NEW PT | OLD PT |
Danske Bank DANSKE.CO | equal weight | overweight | DKK 391 | DKK 385 |
DNB DNB.OL | underweight | overweight | NOK 282 | NOK 333 |
SEB SEBa.ST | overweight | equal weight | SEK 262 | SEK 204 |
Svenska Handelsbanken SHBa.ST | equal-weight | underweight | SEK 146 | SEK 127 |
Swedbank SWEDa.ST | overweight | equal-weight | SEK 467 | SEK 347 |
(Reporting by Vera Dvorakova)
((vera.dvorakova@thomsonreuters.com))