This week, several of the heavyweights on Oslo Børs are presenting quarterly figures for the third quarter. Storebrand manager Tiril Støle is particularly excited about how much DNB will set aside for losses on commercial property.
Storebrand manager Tiril Flornes Støle believes in a good interest rate effect for DNB. This week the bank presents figures for the third quarter. Photo: StorebrandPublished:
Less than 20 minutes ago
Updated just now
Copy linkCopy linkShare on FacebookShare on FacebookShare by emailShare by email
The quarterly season is here, and this week several stock market giants present their figures for the third quarter.
DNB, Yara, Nordea, Gjensidige Forsikring and Nordic Semiconductor are among the companies that will present their results.
– DNB is one of the companies expected to deliver an increased top and bottom line for the third quarter compared to last year, says Støle.
– The most exciting thing in the report on Thursday is whether there will be larger provisions for losses in commercial property. So far, losses have generally been low, and if this continues, DNB’s figures will be very good, says the analyst.
– What do you think about income from increased interest rates? Will there be an interest rate party for DNB?
– Interest rates have continued to tick upwards, but the effects of each individual increase in interest rates are getting smaller and smaller for the banks. The last 25 basis points do not have the same impact on net interest as the first increases from zero interest did. But interest rate increases will still be positive for the banks and a record high net interest income of over NOK 16 billion is expected in Q3 for DNB, answers Støle.
This is happening this week
Monday 16 October:
SSB: Foreign trade in goods for September Balance of trade figures for the eurozone for August Italy: Final consumer price index (CPI) figures for September USA: Empire Manufacturing index for October. The index shows the confidence among industrial companies in the state of New York The Disney group celebrates its 100th anniversary
Tuesday 17 October:
Oslo Børs: Quarterly report from Nordic Semiconductor Wall Street: Quarterly reports from Bank of America, Goldman Sachs and Lockheed Martin Among others Ola Borten Moe, Erna Solberg and Anniken Huitfeldt have a deadline to respond The Control and Constitution Committee at the Storting The 2023 Offshore Wind Conference opens in OsloBoligproduktorenes Association presents figures for new home sales and starts in September and for the third quarter US: Retail sales and industrial production figures for September, unsold inventory figures for August and the National Association of Home Builders housing index UK: Unemployment figures for August Canada: Consumer price index for September
Wednesday 18 October:
Oslo Børs: Quarterly reports from Entra and BluenordNorden: Quarterly reports from ABB, Handelsbanken and Tele2Wall Street: Quarterly reports from, among others, Tesla, Netflix, Morgan Stanley and Procter & GambleNortura with report for other tertiariesUSA: The central bank presents the “Beige book”, an assessment of the conditions in the US economy, and figures for housing construction in September SSB: Tax accounts in September, building area figures (change in the number of start-up permits for housing) and weekly figures for the export of salmon Great Britain: Inflation figures (the consumer price index) China: Figures for gross domestic product (GDP) for September, industrial production figures, retail trade and unemployment figures for September Eurozone: Construction output for August
Thursday 19 October:
Oslo Børs: Quarterly reports from DNB and AteaQuarterly report from NordeaNorden: Quarterly report from TeliaWall Street: Quarterly reports from, among others, AT&T and L’orealSSB: The economic barometer for the second quarter is presented NVE’s new long-term power market analysis is presented The National Audit Office presents a report in which they have examined the work of the Tax Agency and the Ministry of Finance in uncover Norwegians’ income and wealth situation abroadUSA: The leading economic indicator ((Leading Economic Index, LEI), figures for sales of existing homes for September, weekly figures for first-time applicants for unemployment benefitsCentral Bank Governor Jerome Powell speaks at the Economic Club, New YorkJapan: Trade balance for SeptemberFrance: Industry expectations for October Australia: Unemployment figures
Friday 20 October:
Oslo Børs: Quarterly reports from Yara, Gjensidige Forsikring, Tomra Systems, Norske Skog and Protector ForsikringWall Street: Quarterly reports from, among others, American Express and Schlumberger China: Interest rate decision Credit rating agency S&P Global Ratings comes with new assessments of Greece, Italy and Great BritainJapan: Inflation figures (CPI)Sweden: Unemployment figures for September Great Britain: Consumer confidence figures for October (GfK) and retail trade figures for September Germany: Producer price index (PPI) Show more
– An interesting indicator of vulnerable households
Støle highlights several figures that she believes are worth following up on.
– Otherwise, the figures for unsecured debt or credit debt will also be able to say something about the temperature of the economy in general. It is an interesting indicator of how more vulnerable households are doing, she says.
But even though record revenues are expected for DNB this quarter, Støle is excited about how the banking sector will develop after the interest rate peak is once reached.
– What will be interesting to watch is what will happen when interest rates stabilise. Now that lending growth has slowed down, the banks may be tempted to cut the lending margin in order to gain market share – this increased competition will eat away at the interest margin, says Støle.
This week, several of the heavyweights on Oslo Børs are presenting quarterly figures for the third quarter. Photo: Erik Flaaris Johansen / NTB
But it is not just the DNB figures that are causing great excitement this week.
– Entra reports on Wednesday, here there may be further write-downs in the property portfolio as long-term interest rates have continued to rise, believes Støle.
– Yara and Nordic Semiconductor also report, and one expects a large drop in the top line of both companies, from very high levels in the same quarter last year. For NOD, the percentage drop in the bottom line will be among the biggest on the stock exchange year on year. The company has already had a “profit warning” for the Q3 figures.
– Gjensidige also reports at the end of the week, here the figures are overall weak due to the autumn’s storms, and it will be more exciting to look at the underlying development in the insurance result, continues the Storebrand manager.
– Tesla’s numbers will be an event in themselves
Nordnet economist Mads Johannesen is excited about this week’s numbers bonanza.
– The world economy is still growing, and if you combine that with lower gas prices, Yara can quickly do well, says Johannesen.
– DNB has delivered fantastic results in recent years with rising interest rates and a markets department that has really good earnings. This will probably also be the status when the bank comes up with figures this week, says the economist.
Mads Johannesen in Nordnet. Photo: Nordnet / Nordnet
He has lower expectations for the figures coming from Entra and Nordic Semiconductor.
– The high market interest rates have severely eroded growth and property shares such as Nordic and Entra. Unfortunately, I think this will be another quarter with weak results, he says.
– Which figures should small shareholders keep an eye on this week?
– As a private investor, it will be important to follow your respective shares, but also the large market-driving shares such as DNB, Tesla and the American banks. This will give you a good picture of the overall economy, he replies.
Tesla is a favorite among the small shareholders at Nordnet.
– Tesla’s figures will be an event in themselves, and we will probably experience a tremendous interest and trading in the stock. A little depends on how the numbers look, says Johannesen.
2023-10-15 19:57:42
#Waiting #interest #rate #party #banks #factor #decisive
