NRDBY - Nordea: European Banking Excellence Still Trading At A Discount
2024-03-07 06:28:35 ET
Summary
- Nordea is a high-quality bank operating in the Northern Europe, with a high-quality loan portfolio and focus on retail banking operations.
- The bank has experienced little loan losses and continues to generate real income growth even amidst a high interest rate environment.
- Shares appear undervalued by around 25% given a base-case valuation calculation.
- Nevertheless, Nordea remains exposed to NII fluctuations as a result of interest rate cycles.
- Buy rating issued.
Investment Thesis
Nordea ( NRDBY ) is a high-quality bank operating in the Nordics. Their scale, great loan portfolio and customer-centric approach to business have allowed the bank to emerge as the market leader within this geographic region.
I continue to like Nordea's ability to generate real income growth amidst the high interest rate environment in the EU and appreciate how little loan losses the bank has experienced over the last year.
Shares remain undervalued by around 25% given a bear-case scenario with even a no-growth bear-case valuation suggesting a fair share price at present time....
Nordea: European Banking Excellence Still Trading At A Discount