DNB Bank initiated with a Hold at Deutsche Bank

Deutsche Bank initiated coverage of DNB Bank with a Hold rating and NOK 229 price target. For the Nordic banks, the firm sees a mix of better interest income dynamics and Nordea and Danske, fee income potential at Nordea and Swedbank, higher capital return at Danske and Swedbank as well as removal of regulatory overhangs for costs and capital at Danske and Swedbank. While not immune from sales pressures stemming from anticipated rate cuts, the banks have strong cost efficiency and asset quality, allowing for solid 10% capital returns, the analyst tells investors in a research note.