Financials

Report by Galliano's Financials Research

On the back of 3Q23 results, Victor Galliano screens several Thai banks’ core profitability, and their credit quality and coverage, to identify those that are attractive value, have good earnings growth prospects and have the potential to deliver sustainably higher returns going forward. Although he likes Ayudhya, his top pick remains KTB, given its much better CASA ratio and less stretched LDR from its funding metrics, its healthy credit quality coverage and its premium ROE. While KTB's share price performance has been lacklustre recently - perhaps impacted by negative EPS revisions - sound Q3 performance metrics should drive its re-rating supported by undemanding valuations.

Financials

Report by Galliano's Financials Research

Post 4Q22 results, Victor Galliano screens 6 large / mid-cap Thai banks to identify those that are attractive value, have good earnings growth prospects and have the potential to deliver sustainably higher returns going forward. KTB is Victor’s preferred pick; it ranks top in terms of post-provision profitability, as well as screening well on NPL coverage and valuations, including its low PEG ratio. He also likes Bank of Ayudhya, with its strong pre and post-provision profitability in 4Q22, and strong credit quality metrics. In the wake of its poor results (due to its very high cost of risk), Kasikornbank should continue to be avoided.