Norion Bank AB
Research
Buy by micke (08/04/2024)
- 56.00 +42.31% by 06/04/2025
A bit higher risk than traditional big banks, since it works with credits that have higher risk and higher yield. The P/E=7.3 and the business seam to growth with low risk. Norion could be negative effected by lower rates, but it is hard to determine in what way. On the negative side the margins might be a bit lower, potentially the need for mortgages will decrease. On the positive side clients defaulting on loans should be lower and Norion’s funding cost would go down. All in all I see a P/E around 10 as a good buy.
Business (3)
Norion Bank is growing in a market that is quite weak.
The C/I ratio has increased to 27.1, which is still on a very good level.
After Erik Selin became involved in Norion and it has become much harder for real estate to raise capital, Norion's focus on real estate has increased.
I get the impression that the business is good.
06/04/2024 by MICKE｜01Norions target for ROE=15%.
2-400 basis points margin to requirements.
There will be no dividend for 2023. Norion will repay a 500MSEK AT1. Norion wants to keep capital on the balance sheet for future expansion. Also note that Erik Selin's Balder does not give dividend, thus his focus is not on dividend, and I don't expect Norion to be a dividend case in the future.
For 2023 the net profit was 1293MSEK.06/04/2024 by MICKE｜01Norion Bank has three main businesses; customer credits, loans to small and mid sized businesses and mortgages. The company was previously named Collectum and the focus was on cusomer credits, but the company ran into financial problems and has now got Erik Selin as a major owner and seems like a much better company. Many analysts loved the old Collectum, which didn’t work, and now seem a bit reluctant to Norion.
06/04/2024 by MICKE｜01People (1)
CEO Martin Nossman and CFO Peter Olsson give a good impression.
Erik Selin is a major share holder and chair of the board. Erik is a very skilled business man and CEO of Balder.
06/04/2024 by MICKE｜01