So far, it would seem that the Nordic economies are holding up well through the pandemic. How quickly economic activity recovers, particularly with larger corporations, is a key swing factor for Skandinaviska Enskilda Banken (OTCPK:SVKEF) (SEBa.ST) ("SEB"). With iffier credit quality, fee-based income tied to corporate activity, a recent strategy of the trading margin for market share, and less operating leverage potential, I believe SEB stands out among Nordic banks as one of the more reliant upon a relatively prompt rebound to healthy corporate activity, and I'm not sure that's the best call now.
Were SEB trading more cheaply, I'd be less concerned about the bank's need for growth. As is, while I don't think the shares are overvalued (European banks in general still trade close to historical lows), they don't stand out to me among the peer group as being particularly attractively-priced today.
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Skandinaviska Enskilda Banken's Reliance On Healthy Corporate Activity Is A Risk Factor To Watch
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