In today’s briefing:
- Bangkok Bank – Positive Credit Turn
- Kasikornbank (KBANK.BK) – Attractive Valuation
- KBANK: Growth Momentum Remains Intact
- Siam Commercial Bank (SCB.BK) – Expects Credit Cost To Decline In Fy22 E
- SCB: Going More Digital Services
Bangkok Bank – Positive Credit Turn
- Bangkok Bank reported 4Q21 bottom-line results of THB 6.3 bn, declining THB 591 mn (8.6%) on a linked quarter basis, driven by costs which rose THB 3.5 bn or 21.8%;
- Outside of expenses, BBL had a pretty solid quarter with net interest income improving and provisions declining; and
- We find that BBL’s annualized net new NPLs were negative, and that reserves likely will begin being reversed in the near-term.
Kasikornbank (KBANK.BK) – Attractive Valuation
- Our favourite big bank
- 4Q21 earnings beatBeat MKE or consensus? Please specify in the text our forecast by 25% due to lower credit cost QoQ
- We expect credit cost to decline further in FY22
- Loans under debt-relief measures down QoQ in 4Q21
KBANK: Growth Momentum Remains Intact
- We reiterate our BUY rating with a target price at Bt172. Our BUY call reflects (1) steady growth ahead from improving economic recovery; (2) adequate reserves against new NPLs
- Management forecasted Thai GDP to accelerate to 3.7% YoY in 2022 from an expected rise of 1% in 2021
- Following the analyst meeting, we remain neutral and maintain our net profit projections for 2022-23
Siam Commercial Bank (SCB.BK) – Expects Credit Cost To Decline In Fy22 E
- Maintain HOLD; prefer KBANK
- 4Q21 earnings missedMention this in the text and specify who is missed against, ie, MKE or consensus. due to higher credit cost
- SCB expects credit cost to decline materially in FY22E
- NIM under pressure due to debt-relief programme
SCB: Going More Digital Services
- Maintain BUY with a target price at Bt149. Our BUY call reflects steady earnings growth, resilient asset quality, and leadership in digital banking services
- Digital banking services remain a focus ahead. SCB expects moderate lending growth and credit costs to likely decline in 2022.
- SCB X will offer newly-issued shares and make a tender offer for all of SCB’s shares in 1Q22.
Before it’s here, it’s on Smartkarma
