Head of Research, Krungthai XSpring

Waraporn Wiboonkanarak

Head of Research

A full service Thai brokerage

Krungthai XSpring

Krungthai XSpring is a full service broker. The company provides a wide range of investment services such as Securities Brokerage, Derivative Agent Business, Securities Borrowing and Lending, Securities Trading, Underwriting, Financial Advisory, Wealth Advisory, Private Fund Management and International Markets Securities Trading. 

In terms of credibility, Fitch Ratings has assigned Krunghtai XSpring a long-term rating of AA- and a national short-term rating of F1+ with stable outlook.

Equity Bottom-Up

<ul><li>We maintain an Outperform rating with a 12-month fair value (FV) of Bt180.00, based on the earnings yield method with a. required return of 14.1%.</li><li>The stock price implies 18.8% upside to its fair value. The net profit growth outlook is moderate, with an expected CAGR of 5.1% in 2025-26E.</li><li>This should be driven by loan portfolio expansion and declining provisions, supported by the highest coverage ratio among Thai banks at 334%.</li></ul>

We maintain an Outperform rating with a 12-month fair value (FV) of Bt180.00, based on the earnings yield method with a. required return of 14.1%.The stock price implies 18.8% upside to its fair value. The net profit growth outlook is moderate, with an expected CAGR of 5.1% in 2025-26E.This should be driven by loan portfolio expansion and declining provisions, supported by the highest coverage ratio among Thai banks at 334%.

Bangkok Bank - In-Line 4Q24 Earnings; Better Asset Quality

<ul><li>We maintain a Neutral rating, with a 12M FV of Bt160.00, based on the earnings yield and a required return of 15.7%.</li><li>The valuation metrics suggest that the share price implies potential upside to the fair price of just 2%, while the tactical risk is neutral.</li><li>Moreover, the long-term growth prospects are also expected to be just neutral.</li></ul>

We maintain a Neutral rating, with a 12M FV of Bt160.00, based on the earnings yield and a required return of 15.7%.The valuation metrics suggest that the share price implies potential upside to the fair price of just 2%, while the tactical risk is neutral.Moreover, the long-term growth prospects are also expected to be just neutral.

Bangkok Bank - 3Q24 NP Beat Forecast by 10%

Research and consultancy, Tabbush Report

Daniel Tabbush

Research and consultancy

Tabbush Report

We provide research and consultancy on Asian banks. Our focus is on what we call “Asian bank research, without the noise.” We are interested in the most critical swing-factors for banks, the NPL and credit cycle, and where we believe there is a gap between perception and reality. We often focus on the less studied components of bank financial statements.  Our research is highly thematic, sometimes examining unlisted banks and companies as a window on mainstream banks. 

Being independent allows us to look at smaller banks, often overlooked by others. Analysis of BIS bank guidelines in the context of Asia, is also a focal point, while we also analyze global banks operating in the region. We use what we believe is the most comprehensive, reliable financials database, SNL Financial. S&P Capital IQ augments our database, with corporate data and CEIC, with economics. 

Asian bank research, without the noise.

<ul>
<li>Where there are many other areas of interest in Asia, globally, the figures just out for Bangkok Bank are incredible to us, not in a positive way.</li>
<li>The bank has seen its NPLs rise from THB71bn to THB85bn to THB92bn from 4Q23 to 2Q24 to 3Q24, putting YTD growth at 29%</li>
<li>The bank has more than 1/4 of its loans in manufacturing &amp; commercial where loan balances are down 4.0% YTD and down 4.3% QoQ</li>
</ul>


Where there are many other areas of interest in Asia, globally, the figures just out for Bangkok Bank are incredible to us, not in a positive way.
The bank has seen its NPLs rise from THB71bn to THB85bn to THB92bn from 4Q23 to 2Q24 to 3Q24, putting YTD growth at 29%
The bank has more than 1/4 of its loans in manufacturing &amp; commercial where loan balances are down 4.0% YTD and down 4.3% QoQ


Bangkok Bank - BBL Sees 29% Higher NPLs YTD and Core Manufacturing & Commercial Loans -4% YTD

<ul><li>We maintain a Neutral rating, with a new fair value of Bt149.06 (vs. Bt138.23 previously), following the adjustments to the macroeconomic variables, in line with our house view assumptions.</li><li>The valuation metrics suggest that the stock is fundamentally undervalued (with upside of 8.4% to the current share price); however, this is offset by slow earnings growth prospects and a neutral tactical view.</li><li>BBL’s 2Q24 net profit beat our forecast by 17% at Bt11.8bn, growing 4.5% YoY and 12.2% QoQ.</li></ul>

We maintain a Neutral rating, with a new fair value of Bt149.06 (vs. Bt138.23 previously), following the adjustments to the macroeconomic variables, in line with our house view assumptions.The valuation metrics suggest that the stock is fundamentally undervalued (with upside of 8.4% to the current share price); however, this is offset by slow earnings growth prospects and a neutral tactical view.BBL’s 2Q24 net profit beat our forecast by 17% at Bt11.8bn, growing 4.5% YoY and 12.2% QoQ.

Bangkok Bank - Upbeat 2Q24 Earnings but Weaker Asset Quality

<ul><li>We maintain our Neutral rating, based on the earnings yield and the new required rate of return of 16.7%.</li><li>The valuation metrics suggest that the stock is fundamentally undervalued, which is offset by an expected low CAGR of 3.4% in 2024-26E.</li><li>Meanwhile, the tactical view is neutral</li></ul>

We maintain our Neutral rating, based on the earnings yield and the new required rate of return of 16.7%.The valuation metrics suggest that the stock is fundamentally undervalued, which is offset by an expected low CAGR of 3.4% in 2024-26E.Meanwhile, the tactical view is neutral

Bangkok Bank - 2Q24E Net Profit Expected to Fall YoY and QoQ

Thailand

Bangkok Bank Public Company Limited provides various banking and financial services including commercial, consumer, credit card, and mortgage lending, international trade financing, investment banking, and securities services.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Bangkok Bank (BBL/F TB)

Bangkok Bank - In-Line 4Q24 Earnings; Better Asset Quality

We maintain an Outperform rating with a 12-month fair value (FV) of Bt180.00, based on the earnings yield method with a. required return of 14.1%.

Krungthai XSpring

Bangkok Bank - 3Q24 NP Beat Forecast by 10%

The valuation metrics suggest that the share price implies potential upside to the fair price of just 2%, while the tactical risk is neutral.

Krungthai XSpring

Bangkok Bank - BBL Sees 29% Higher NPLs YTD and Core Manufacturing & Commercial Loans -4% YTD

BBL is seeing dwindling loan balances in its core segment - manufacturing and commercial loans are -4% YTD. And what's worse: its NPLs are surging,...

Daniel Tabbush

Bangkok Bank - Upbeat 2Q24 Earnings but Weaker Asset Quality

We maintain a Neutral rating, with a new fair value of Bt149.06 (vs. Bt138.23 previously), following the adjustments to the macroeconomic...

Krungthai XSpring

Bangkok Bank - 2Q24E Net Profit Expected to Fall YoY and QoQ

The valuation metrics suggest that the stock is fundamentally undervalued, which is offset by an expected low CAGR of 3.4% in 2024-26E. Meanwhile,...

Krungthai XSpring

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)