Morrow Bank fires on 4 cylinders in Q2
4% organic growth Q/Q (and 28% y/y) is very good 🔥
Net Interest margin (NII) up 40 bp to 10.9% 🔥
Market leading C/I ratio down to 25.8% 🔥
Loan losses stable at 4.3% 🔥
This leads to a strong increased profitability (up 35% y/y) and improved return on equity (12.2% ROTE up from 9.7%).
If you add increased volume guiding towards end of 2026, Swedish entry on schedule and an increased ROTE target you are certainly “on fire”.
If you add a senior management who obviously have the necessary skills and “walk the talk” we love it❤️
We increase our 12-month target price from 17.9 NOK to 19.2 NOK based on increased 2026 volume expectations (mostly organic growth).
Remember, risk is very low since piles of cash in dividends (4.5 NOK/share) is the alternative to organic and inorganic growth.
You better get in before the big bucks start buying😬
Remember, we now own 9 mill shares so you cannot trust us...or perhaps you can😅
Best regards,
David and Sverre
Hvaler Invest AS
Lillestrøm, Norway
23.09.25
Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)