Norne | Savings Banks - quarterly preview - Q1 / 21

BACKGROUND: Norwegian Savings Banks - 1Q21 Sector Results Preview. The Norwegian savings banks are expected to continue to improve profitability thanks to good volume growth, laser focus on costs and solid non-interest income, while strengthening macro outlook and oil price should lead to further reduction in overall loan losses. The sentiment in the sector is also strengthened by an expected increase in the key policy rate later this year as well as solid additional dividends when dividend limits are lifted after September by the ECB. The savings banks OSEEX index already gained 15% YTD, probably largely pricing in the higher interest rates, thus investors need to be selective going forward. Our new Top Picks will be revealed.