Arion Bank: Raising estimates on macro recovery, Valitor sale and share buybacks

  • Arion has announced a further ISK8bn of share buybacks, in addition to the ISK15bn programme completed in H1

  • We lift our 2021 EPS forecast on better revenues, lower risk costs, the Valitor disposal gain and a lower share count

  • We price the shares off a 14.0% mid-cycle ROE (13.0% previously), leading to a new fair value of ISK180 (up 29%)
July 4th, 2021
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