LSE:0Q57

Stock Analysis Report

SpareBank 1 SR-Bank

Executive Summary

SpareBank 1 SR-Bank ASA, together with its subsidiaries, provides various financial products and services for personal and corporate customers in Southern and Western Norway.


Snowflake Analysis

Solid track record established dividend payer.


Similar Companies

Share Price & News

How has SpareBank 1 SR-Bank's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 0Q57's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.7%

0Q57

12.6%

GB Banks

8.6%

GB Market


1 Year Return

-36.8%

0Q57

-39.2%

GB Banks

-19.4%

GB Market

Return vs Industry: 0Q57 exceeded the UK Banks industry which returned -40.7% over the past year.

Return vs Market: 0Q57 underperformed the UK Market which returned -21.5% over the past year.


Shareholder returns

0Q57IndustryMarket
7 Day11.7%12.6%8.6%
30 Day-13.5%-13.1%-3.5%
90 Day-35.7%-35.7%-23.0%
1 Year-34.0%-36.8%-37.0%-39.2%-15.5%-19.4%
3 Year11.2%-2.4%-34.2%-41.5%-8.8%-19.9%
5 Year33.8%9.1%-34.7%-46.5%4.2%-19.0%

Price Volatility Vs. Market

How volatile is SpareBank 1 SR-Bank's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is SpareBank 1 SR-Bank undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 0Q57 (NOK65.03) is trading below our estimate of fair value (NOK134.55)

Significantly Below Fair Value: 0Q57 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 0Q57 is good value based on its PE Ratio (5.2x) compared to the Banks industry average (5.4x).

PE vs Market: 0Q57 is good value based on its PE Ratio (5.2x) compared to the UK market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: 0Q57's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 0Q57 is overvalued based on its PB Ratio (0.7x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is SpareBank 1 SR-Bank forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 0Q57's earnings are forecast to decline over the next 3 years (-2.4% per year).

Earnings vs Market: 0Q57's earnings are forecast to decline over the next 3 years (-2.4% per year).

High Growth Earnings: 0Q57's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 0Q57's revenue (1.7% per year) is forecast to grow slower than the UK market (2.5% per year).

High Growth Revenue: 0Q57's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 0Q57's Return on Equity is forecast to be low in 3 years time (10.2%).


Next Steps

Past Performance

How has SpareBank 1 SR-Bank performed over the past 5 years?

12.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 0Q57 has high quality earnings.

Growing Profit Margin: 0Q57's current net profit margins (49%) are higher than last year (44.7%).


Past Earnings Growth Analysis

Earnings Trend: 0Q57's earnings have grown by 12.4% per year over the past 5 years.

Accelerating Growth: 0Q57's earnings growth over the past year (34.6%) exceeds its 5-year average (12.4% per year).

Earnings vs Industry: 0Q57 earnings growth over the past year (34.6%) exceeded the Banks industry 26.6%.


Return on Equity

High ROE: 0Q57's Return on Equity (12.6%) is considered low.


Next Steps

Financial Health

How is SpareBank 1 SR-Bank's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: 0Q57's level of assets compared to its equity is moderate.

Allowance for Bad Loans: 0Q57 has a low allowance for bad loans.

Low Risk Liabilities: 0Q57's liabilities are made up of primarily higher risk sources of funding.

Loan Level: 0Q57 has an acceptable proportion of non-loan assets held.

Low Risk Deposits: 0Q57 has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: 0Q57 has an appropriate level of bad loans (1.12%)


Next Steps

Dividend

What is SpareBank 1 SR-Bank's current dividend yield, its reliability and sustainability?

8.67%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: 0Q57's dividend (8.68%) is higher than the bottom 25% of dividend payers in the UK market (2.49%).

High Dividend: 0Q57's dividend (8.68%) is in the top 25% of dividend payers in the UK market (6.84%)


Stability and Growth of Payments

Stable Dividend: 0Q57's dividend payments have been volatile in the past 10 years.

Growing Dividend: 0Q57's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (45%), 0Q57's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 0Q57's dividends in 3 years are forecast to be covered by earnings (53.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.3yrs

Average management tenure


CEO

Arne Austreid (63yo)

9.25s

Tenure

kr8,806,000

Compensation

Mr. Arne Austreid has been the Chief Executive Officer of SpareBank 1 SR-Bank ASA since January 1, 2011. Mr. Austreid is Director at Fremtind Forsikring AS. Mr. Austreid served as the Chief Executive Offi ...


CEO Compensation Analysis

Compensation vs Market: Arne's total compensation ($USD858.29K) is below average for companies of similar size in the UK market ($USD1.85M).

Compensation vs Earnings: Arne's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Arne Austreid
Chief Executive Officer9.25yrskr8.81m0.045% NOK7.3m
Inge Reinertsen
Chief Financial Officer10.17yrskr3.91m0.036% NOK5.8m
Signe Helliesen
Executive Vice President of Compliance & AMLno datakr1.64m0.00011% NOK17.8k
Ella Skjørestad
Executive Vice President of Customer Services & Marketing2.17yrskr2.60m0.0033% NOK529.9k
Gro Tveit
Executive Vice President of Human Resources & Business Support1.83yrskr2.42m0.0079% NOK1.3m
Tore Medhus
Executive Vice President of Corporate Market19.58yrskr3.81m0.023% NOK3.7m
Thor-Christian Haugland
Executive Vice President of Communications & Sustainability15.25yrskr3.09m0.011% NOK1.8m
Jan Friestad
Executive Vice President of Retail Market8.67yrskr3.18m0.019% NOK3.1m
Frode
Executive Vice President of Risk Management14.25yrskr3.19m0.0068% NOK1.1m
Glenn Sæther
Executive Vice President of Strategy2.17yrskr3.83m0.012% NOK1.9m

9.3yrs

Average Tenure

52yo

Average Age

Experienced Management: 0Q57's management team is seasoned and experienced (9.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dag Mejdell
Chairman of the Board3.83yrskr664.00k0.012% NOK1.9m
Terje Vareberg
Member of Supervisory Boardno datakr511.00kno data
Therese Bergjord
Director3yrskr302.00k0.00078% NOK126.4k
Per Sekse
Chair of the Supervisory Board5.83yrsno data0.00064% NOK103.7k
Sally Lund-Andersen
Employee Representative Director8.25yrskr1.25m0.00093% NOK150.7k
Birthe Lepsøe
Director8.25yrskr357.00kno data
Jan Skogseth
Director3yrskr307.00k0.0039% NOK633.6k
Tor Dahle
Director6.83yrskr927.00k0.015% NOK2.4m
Kristian Kristensen
Employee Representative Director3.83yrskr997.00k0.0013% NOK202.6k
Kate Henriksen
Director4.83yrskr327.00kno data

4.8yrs

Average Tenure

60.5yo

Average Age

Experienced Board: 0Q57's board of directors are considered experienced (4.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: 0Q57 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

SpareBank 1 SR-Bank ASA's company bio, employee growth, exchange listings and data sources


Key Information


Number of Employees


Location

  • SpareBank 1 SR-Bank ASA
  • Bjergsted Terrasse 1
  • Postboks 250
  • Stavanger
  • Rogaland
  • 4066
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRBANKOB (Oslo Bors)YesOrdinary SharesNONOKMay 1994
SBRK.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 1994
0Q57LSE (London Stock Exchange)YesOrdinary SharesGBNOKMay 1994
B4M1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 1994
SRBANOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMay 1994

Biography

SpareBank 1 SR-Bank ASA, together with its subsidiaries, provides various financial products and services for personal and corporate customers in Southern and Western Norway. The company offers its products and services in the areas of savings, loans, advice, insurance, and pensions. It also provides foreign exchange, administrative securities, commercial properties brokerage, leasing, accounting, and securities trading services, as well as active management and securities management services. In addition, the company facilitates debt and equity funding; and sells real estate properties comprising holiday homes, new builds, and used homes. Further, it is involved in the customer trading of interest rate instruments; and purchasing of home mortgages and funds by issuing covered bonds. Additionally, the company offers credit and debit cards; structured products; and mobile and online banking services. The company also serves retail, small business, and agricultural customers, as well as public sector. As of December 31, 2018, it had 36 branches in Rogaland, Vest-Agder, Aust-Agder, and Hordaland. SpareBank 1 SR-Bank ASA was founded in 1839 and is headquartered in Stavanger, Norway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/09 23:26
End of Day Share Price2020/04/09 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.