Sparebanken More serves the More og Romsdal region of western Norway, with the listed equity certificate representing the ~49.1% owners' fraction. The balance sheet is exceptionally clean (intangibles ~NOK 70m), CET1 17.3% (total capital 21.1%), losses very low (~0.05%). But the return is thin: owners' ROE ~11% over a 10% cost of equity gives residual income of only +NOK 83m — a borderline value creator, far weaker than peers like SpareBank 1 Nord-Norge (ROE ~17.7%, RI +NOK 1.4bn).
On bank primitives it trades at 1.28x book, 1.29x tangible and 11.9x earnings with a ~6.3% dividend yield (~69% payout incl. the community share). On a normalized 11% ROE the Gordon fair value is ~NOK 99.6 (-11%); on the FY2025 12.5% ROE ~NOK 118 (+6%). NIM compressed to 1.75% of assets in Q1 2026 (from 1.89%), so the case hinges on margin recovery. A quality-but-thin-spread bank, fairly-valued-to-modestly-rich for its return.
Gordon fair P/B = (ROE-g)/(COE-g) with COE 10%, g 3%: an 11% ROE -> ~NOK 99.6 (-11%); the FY2025 12.5% ROE -> ~NOK 118 (+6%). Current 1.28x book, 11.9x earnings, ~6.3% yield. A premium-ish P/B for an ~11% ROE.
Base NOK 110 (~current; thin spread, yield the return); bull NOK 122 if NIM recovers + ROE holds ~12.5%; bear NOK 95 on further NIM compression + a de-rate.
The operating reverse-DCF (NOPAT / invested capital / WACC) does not apply to a balance-sheet business — leverage is the raw material and "net debt" is not meaningful. The equity is valued on residual income: book equity plus the present value of returns above the cost of equity, discounted at Ke; the single-stage lens is the Gordon fair price-to-book, (ROE−g)/(Ke−g). The market prices in a sustainable ROE of 7.1% vs 10.5% currently earned; at a sustained 10.5% ROE the warranted P/B is 1.07× (NOK 207/sh, +85%).
| Scenario | 24m target | Impl. ROE | Upside | Prob. | Driver |
|---|---|---|---|---|---|
| Bull | NOK 122 | 7% | +9% | 25% | NIM recovers + ROE holds ~12.5% |
| Base | NOK 110 | 7% | -2% | 50% | Thin spread; yield is the return |
| Bear | NOK 95 | 6% | -15% | 25% | Further NIM compression + de-rate |
| Prob-weighted | NOK 109 | — | -2% | 100% | Scenario-weighted expected value |
| Ke \ ROE | 10% | 14% | 18% | 22% | 26% | 30% | 34% |
|---|---|---|---|---|---|---|---|
| 8.50% | 245 | 385 | 525 | 665 | 805 | 945 | 1085 |
| 9.25% | 216 | 339 | 462 | 585 | 708 | 832 | 955 |
| 10.00% (base) | 193 | 303 | 413 | 523 | 633 | 743 | 853 |
| 10.75% | 174 | 273 | 373 | 472 | 571 | 671 | 770 |
| 11.50% | 159 | 249 | 340 | 430 | 521 | 611 | 702 |
Green = fair value above the current price of NOK 111.72. For a financial the surface is dominated by cost of equity and sustainable ROE — not unit growth.
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Leading More og Romsdal position + alliance scale.
Negligible intangibles; very low losses (~0.05%).
~6.3% yield (~69% payout).
A rebound in net interest margin would lift the thin ROE.
Sparebanken More is a clean, fortress-capitalised regional bank but only a borderline value creator (ROE ~11%, RI +NOK 83m), fairly-valued-to-modestly-rich at 1.28x book with a ~6.3% yield. HOLD; base NOK 110.
Own it for the yield + capital strength, not a re-rating; NIM recovery is the swing factor.
Every adjustment traces to the cited note/page in the source filing — click to open it there. Source reports archived locally.
| Adjustment / figure | Value | Source | Why mttssn treats it this way |
|---|---|---|---|
| Net interest income (FY2025 / Q1 2026) | 2,014 | Group income statement (Note 3) p.9, FY2025 column | Core bank revenue line. FY2025 NII 2,014 (1.89% of avg assets); Q1 2026 469 (1.75%), Q1 2025 485 (1.87%). LTM NII 1,998 = 469 + 2,014 - 485. Margin compression is the central earnings story. |
| Net commission and other operating income (FY2025) | 317 | Group income statement p.9 | Fee income line (commission income 305 - commission expenses 34 + other operating income 46). FY2025 317; Q1 2026 71, Q1 2025 66. LTM 322. Discretionary portfolio-management income up 25% YoY in Q1 2026. |
| Total income (FY2025) | 2,390 | Key figures / income statement p.2-9, FY2025 column | FY2025 total income 2,390 (NII 2,014 + net commission 317 + net financial instruments 59). Q1 2026 553, Q1 2025 566. LTM total income = 553 + 2,390 - 566 = 2,377. |
| Profit before impairment on loans (FY2025) | 1,397 | Group income statement p.9 | Pre-provision profit FY2025 1,397 (total income 2,390 - opex 993). Q1 2026 300, Q1 2025 315. Bank pre-provision profitability proxy. |
| Pre-tax profit (FY2025) | 1,350 | Group income statement p.9 | FY2025 pre-tax profit 1,350 (after impairment 47). Q1 2026 275, Q1 2025 302. 'operating_profit' field carries the LTM pre-tax 1,323 = 275 + 1,350 - 302. |
| Profit after tax (FY2025, group) | 1,030 | Group income statement p.9 | FY2025 group PAT 1,030 (record third consecutive year above NOK 1bn). Q1 2026 211, Q1 2025 232. LTM group PAT = 211 + 1,030 - 232 = 1,009. |
| Allocated to equity owners / AT1 coupon (FY2025) | 970 | Group income statement p.9 (profit allocation) | FY2025 result allocated to equity owners (EC + community) 970, after AT1 coupon 60. Q1 2026 owners 197 / AT1 14; Q1 2025 217 / AT1 15. LTM owners = 197 + 970 - 217 = 950 (the owner-basis numerator for ROE / EPS / RI). No NCI. |
| EC ownership fraction (EC ratio / 'EC fraction 1.1') | 0.491 | Equity Certificates key-figure table p.3 | Equity-certificate holders' percentage of equity 49.1% (community/primary-capital 50.9%); stated as 'EC fraction 1.1 as a percentage (parent bank) 49.1'. The single most important structural figure — defines what the listed MORG certificate represents. Reconfirmed in per-EC footnote 'EC-holders' share (49.1%)'. |
| Total equity / AT1 (31 Mar 2026, 31 Dec 2025) | 9,586 | Group balance sheet (Liabilities and equity) p.11 | Total IFRS equity 9,586 at 31 Mar 2026 (9,374 at 31 Dec 2025; 9,258 at 31 Mar 2025), incl. AT1 750. Owners' common equity ex-AT1 = 8,836 (31 Mar 2026) / 8,624 (31 Dec 2025), the invested-capital base. Primary capital fund 3,807, gift fund 125, dividend equalisation fund 2,423, EC capital 995, share premium 382. |
| Intangible assets (group) | 70 | Group balance sheet (assets) p.11 | Intangible assets only NOK 70m (71 at 31 Dec 2025), essentially no goodwill — a very clean tangible balance sheet. Deducted from owners' common equity to reach tangible common equity 8,766; P/TBV barely above P/B. |
| Book value per EC (Group, 31 Mar 2026) | 87.2 | Equity Certificates key-figure table p.3 | Reported book value per EC (Group) NOK 87.2 (85.1 at 31 Dec 2025). Reconciles to our method: owners' common equity 8,836 x EC ratio 49.1% / 49.7955m EC = NOK 87.13. Basis for P/B 1.28x at NOK 111.72. |
| Profit per EC (Group) / number of ECs (FY2025) | 9.57 | Equity Certificates key-figure table p.3 | FY2025 profit per EC (Group) NOK 9.57; Q1 2026 1.94, Q1 2025 2.13. EC count 49,795,520, nominal NOK 20, EC capital NOK 995.9m. Our calc: owners' result 970 x 49.1% / 49.7955m = NOK 9.56 — confirms the owner-basis EC methodology. LTM EPS 9.37. |
| Return on equity (FY2025 / Q1 2026) | 0.125 | Key figures and APMs p.2 | Reported RoE FY2025 12.5%, Q1 2026 9.9%, Q1 2025 11.2% (owners' basis). Our LTM owners' ROE 10.95%; normalized through-cycle 11% used for Gordon. The fall to a 9.9% run-rate (barely above COE 10%) on margin compression is the key risk. |
| Common Equity Tier 1 ratio (CET1) and CET1 capital | 0.173 | Capital adequacy p.13-15 | CET1 ratio 17.3% (incl. 50% of profit) at 31 Mar 2026, 17.7% FY2025; comfortably above the 16.15% overall requirement. CET1 capital NOK 7,155m, RWA NOK 41,921m. Tier 1 19.1%, total capital ratio 21.1%. Foundation-IRB bank under CRR3 (effective in Norway 1 Apr 2025). |
| Cost/income ratio | 0.457 | Key figures and APMs p.2 | C/I 45.7% Q1 2026 (44.3% Q1 2025), 41.6% FY2025 (above the bank's <40% long-term target). The Q1 rise is income-driven (lower NII) rather than cost-driven — operating expenses were essentially flat (253 vs 251). |
| Losses as a percentage of loans (FY2025 / Q1 2026) | 0.001 | Key figures and APMs p.2 + losses narrative p.5 | Annualised loss ratio 0.05% FY2025, 0.11% Q1 2026 (impairment 25m, ~0.09% of avg assets) — still very low. Gross credit-impaired commitments ticked up to 1.33% (from 0.44%), largely one corporate exposure; NOK 28m of provisions relate to credit-impaired loans. Low-risk, mortgage-heavy book. |
| Loans / deposits and growth (31 Mar 2026) | 91,701 | Balance sheet summary p.1 | Loans to customers NOK 91,701m (12-month lending growth 3.3%, accelerating vs Q3/Q4 2025); deposits NOK 52,665m (deposit growth 2.7%); deposit-to-loan ratio 57.3%. Total assets 108,873. Region's housing market strong; bank gaining new customers in Nordvestlandet and major cities. |
| Proposed dividend per EC / total distribution (FY2025) | 7 | EC key figures p.3 + proposed dividend p.13-14 | Cash dividend NOK 7.00 per EC FY2025 (up from 6.25), total NOK 349m to EC holders + NOK 361m to the local community = NOK 710m, ~69% payout of group profit. Yield 6.27% on NOK 111.72. High, stable savings-bank distribution split by the 49.1%/50.9% ownership fraction. |
| EC price at Oslo Stock Exchange (history) | 117 | EC key figures p.3 | Bank's own MORG closing price NOK 117.0 (31 Dec 2025) and 117.4 (31 Mar 2026), stock market value NOK 5,826m / 5,848m, P/B 1.38x / 1.35x on reported book value. Live verified price NOK 111.72 (9 Jun 2026, ~5% lower) used for current multiples. |
How the mttssn view has evolved — each prior dated note is preserved.