April 23, 2024 11:02 GMT
DNB Credit Tighter With Sector, Equity Underperforming
FINANCIALS
DNB update: equity is underperforming sector by almost 2% this morning on results, cash curve is c.4bp tighter, marginally better than the IG banks index.
- The equity market will be looking at the small revenue disappointment, alongside the fact that revenue estimates had been upgraded ahead of these results, and marking models down for FY24 and FY25, we feel. Downgrades only look likely to be 2-3%, in our view, though.
- From a credit standpoint, we prefer to focus on the improved non-performing number, alongside the lower loan loss charge as underpinning spreads. YTD spreads had lagged the sector’s 33bp tightening, but only by c.5bp. We may well learn more on asset quality on the call.
Analyst call is 1230 (London time), available at: https://events.webcast.no/dnb/zaEeS9WUTiwEQDAw15I3/JqzkDUuCauj1X6fftN8l
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