Nordic Credit Rating said today that net interest margins in the Norwegian savings bank sector are likely to rebound in 2022 on the back of higher short-term interest rates.
However, increasing loan losses, which are normally late cyclical, remain a major risk factor, the agency said in a report.
"Positively, we are less concerned about the sector than we were 12 months ago," said NCR credit analyst Geir Kristiansen.
"Our positive outlook follows a strong performance in 2021, with improving pre-impairment profit and low loan loss impairments, despite margin pressure and the continuing COVID-19 pandemic. We also note that Norwegian banks are generally well capitalised and have access to stable sources of funding."