In today’s briefing:
- Thai Banks 4Q23 Screener; Stick with Krung Thai, Switch Out of Ayudhya into Kasikorn
- Bond Market Monitor: Thai Bonds Are for Issuers
Thai Banks 4Q23 Screener; Stick with Krung Thai, Switch Out of Ayudhya into Kasikorn
- Krung Thai has solid post-provision profitability, close to double digit ROE with a healthy balance sheet, along with attractive PBV and PE ratios
- We add Kasikorn to the buy list, as its cost of risk sharply improved in 4Q23, suggesting that it peaked in 3Q23; this should improve post-provision returns going forward
- We remove Ayudhya from the buy list, as its worsening cost of risk trends are eroding post-provision returns; it is also relatively weak in terms of capital adequacy
Bond Market Monitor: Thai Bonds Are for Issuers
- Here we are revisiting the Thai bond market, as per requests from our Thai readers, to see the impact of the global rate trajectory on Thailand.
- The Thai bond market will remain unattractive to foreign institutional investors, in our view.
- The attempt to increase yield should involve a material change in Thailand’s financial structure and regulatory mindset.
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