Morrow bank, new target price 21.1 SEK

Updated analysis: The MedMera acquisition boosts growth, profitability and our target price📈

Read slowly; Morrow Bank has completed its turnaround, relisted to Sweden and deployed excess capital faster than expected. Growth has been strong over the past three years, including the acquisition of the MOANK portfolio for SEK 640m in Q4’25. This growth has not come at the expense of risk, in fact LLR is slightly down to a healthy 3.9% in Q4.

Read carefully; The MedMera acquisition appears highly value-accretive, at 1.06x P/B, with estimated (Hvaler estimate) synergies of approximately SEK 100m and increased scale. This is expected to drive the already industry-leading cost/income ratio from 27% to below 20%. MedMera is a fast-growing “prime” consumer bank with net loans of SEK 10.7bn.

Yes, we expect slightly increased losses due to macro uncertainty but both growth and profitability will strengthen in the coming quarters.

Read and consider; Target price is SEK 21.1 (up from 19.4). Morrow grows faster and is priced below peers...

Please have a look at our updated analysis (as always, we appreciate your feedback, especially if you disagree with us 🙂)

Morrow Bank - Faster, better, higher

Disclaimer:
Hvaler Invest is a significant shareholder so you cannot trust us (or perhaps you can?)

Best regards,
David and Sverre

Hvaler Invest AS
Lillestrøm, Norway
17.04.26