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1. Company Snapshot

1.a. Company Description

Sparebanken Sør operates as an independent financial institution in Norway.It operates through two segments, Retail Market and Corporate Market.The company is involved in banking, securities trading, and real estate brokerage activities in Agder, Rogaland, Vestfold, and Telemark.


It also provides leasing, mortgage, and property management services; and sells general insurance, occupational pension, and group life insurance products.It conducts banking operations in 35 locations and real estate services in 18 locations.The company was founded in 1824 and is headquartered in Kristiansand, Norway.


Sparebanken Sør operates as a subsidiary of Sparebankstiftelsen Sparebanken Sør.

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1.b. Last Insights on SOR

Sparebanken Sør's recent performance was driven by a surge in insider buying activity, indicating confidence in the company's future prospects. The European market's resilience, as evidenced by the pan-European STOXX Europe 600 Index's rebound, has created a favorable backdrop for small-cap stocks like Sparebanken Sør. Furthermore, the company's recent inclusion in the list of top 3 European undervalued small caps with insider buying in March 2025 highlights its potential for growth and diversification.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.35%)

6. Segments

People Market

Expected Growth: 3%

The 3% growth in People Market from Sparebanken Sør is driven by increasing demand for digital banking services, a growing customer base in the 18-35 age group, and strategic partnerships with fintech companies. Additionally, the bank's focus on customer experience, user-friendly mobile banking apps, and competitive interest rates have contributed to this growth.

Business Market

Expected Growth: 2%

Sparebanken Sør's 2% business market growth is driven by increasing demand for digital banking services, a strong presence in the Norwegian market, and a growing customer base. Additionally, the bank's focus on SME lending and mortgage financing contributes to its growth. Furthermore, strategic partnerships and investments in fintech companies also support its expansion.

Undistributed and Elimination

Expected Growth: 1%

Sparebanken Sør's undistributed and elimination segment growth is driven by increasing lending activities, improved asset quality, and effective cost management. The bank's strong deposit growth, fueled by its digitalization efforts and competitive pricing, has enabled it to maintain a low cost of funding. Additionally, its focus on SME and retail lending has contributed to the segment's growth.

Real Estate

Expected Growth: 4%

Sparebanken Sør's Real Estate segment growth is driven by Norway's strong economy, low unemployment, and increasing housing demand. Government incentives for first-time homebuyers and low interest rates also contribute to the growth. Additionally, the bank's strong brand and extensive branch network enable it to capitalize on the growing demand for mortgages and other real estate-related services.

7. Detailed Products

Personal Banking

Sparebanken Sør offers a range of personal banking services, including current and savings accounts, credit cards, loans, and mortgages.

Business Banking

Sparebanken Sør provides business banking services, including business loans, credit facilities, and cash management solutions.

Investment and Wealth Management

Sparebanken Sør offers investment and wealth management services, including portfolio management, investment advice, and pension planning.

Insurance

Sparebanken Sør provides a range of insurance products, including life insurance, non-life insurance, and pension insurance.

Real Estate and Mortgage

Sparebanken Sør offers mortgage financing and real estate services, including property valuation and brokerage.

Digital Banking

Sparebanken Sør provides digital banking services, including online banking, mobile banking, and payment solutions.

8. Sparebanken Sør's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes is moderate for Sparebanken Sør, as customers have alternative banking options available in the market.

Bargaining Power Of Customers

The bargaining power of customers is low for Sparebanken Sør, as customers have limited negotiating power in the banking industry.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Sparebanken Sør, as the bank relies on a few large suppliers for its operations.

Threat Of New Entrants

The threat of new entrants is low for Sparebanken Sør, as there are significant barriers to entry in the banking industry.

Intensity Of Rivalry

The intensity of rivalry is high for Sparebanken Sør, as the banking industry is highly competitive with many established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 83.94%
Debt Cost 5.79%
Equity Weight 16.06%
Equity Cost 6.67%
WACC 5.93%
Leverage 522.84%

11. Quality Control: Sparebanken Sør passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SpareBank 1 Nord-Norge

A-Score: 8.0/10

Value: 7.4

Growth: 7.8

Quality: 6.2

Yield: 9.4

Momentum: 8.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Sparekassen Sjælland-Fyn

A-Score: 7.6/10

Value: 7.5

Growth: 7.7

Quality: 7.6

Yield: 4.4

Momentum: 10.0

Volatility: 8.3

1-Year Total Return ->

View Full Report
Stock-Card
SpareBank 1 SMN

A-Score: 7.6/10

Value: 7.0

Growth: 5.6

Quality: 6.1

Yield: 8.8

Momentum: 8.0

Volatility: 10.0

1-Year Total Return ->

View Full Report
Stock-Card
Lån & Spar Bank

A-Score: 7.4/10

Value: 8.0

Growth: 7.0

Quality: 7.7

Yield: 3.1

Momentum: 9.5

Volatility: 9.0

1-Year Total Return ->

View Full Report
Stock-Card
Sparebanken Sør

A-Score: 6.7/10

Value: 7.4

Growth: 3.0

Quality: 6.4

Yield: 9.4

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Danske Bank

A-Score: 6.3/10

Value: 6.1

Growth: 2.9

Quality: 7.7

Yield: 5.0

Momentum: 8.5

Volatility: 7.7

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

203.0$

Current Price

203$

Potential

-0.00%

Expected Cash-Flows