June 21, 2017 / 6:46 AM / 7 months ago

UPDATE 2-Skandiabanken to grow in SME segment, eyes lower dividends

* To start lending to small, medium sized firms

* Dividends to fall to lower end of 0-30 pct interval from 20 pct

* Repeats 2017-2019 financial targets (Adds more from presentation, interview with CEO)

June 21 (Reuters) - Skandiabanken said on Wednesday:

* Repeats financial targets for 2017-2019: return on equity (roe) of 14 per cent, cost-to-income ratio lower than 35 per cent, annual lending growth exceeding 10 per cent

* Says on track to achieve 2017-2019 targets

* Says profitable growth favoured over dividend

* Chief Executive Magnar Oeyhovden told Reuters he expects dividend payments to be reduced to the “lower end” of the bank’s long term target of paying up to 30 percent

* Last year’s dividend was 20 percent of profits, which Oeyhovden said was “middle of the range” stretching from 0-30 percent

* Will expand lending to small and medium sized businesses, where the bank sees great potential for growth

* Expects a slowdown in the total market for consumer loans after stricter regulations, resulting in a relative competitive advantage for Skandiabanken and an opportunity to increase market share; will step up efforts in this field

* Investing in capital-light revenue growth

* Says credit portfolio has high quality, but is monitoring the Oslo housing market closely

* Has a loan-to-value ratio of around 45 percent in Oslo, Chief Financial Officer Henning Nordgulen says “can absorb a quite significant fall in Oslo prices without being too concerned” Source text for Eikon: Further company coverage: (Reporting by Camilla Knudsen, editing by Terje Solsvik)

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