Financials

Report by Tabbush Report

There are few banks like PNB which have seen NPL ratios decline from 10.9% to 6.8% over the past 12 months. Operationally, there are not many with such a robust delta in core NII, NFI, and given relatively pedestrian loan growth (+7% y/y to 1Q23 while NII was +23%). Despite all the positive developments the PNB story still appears hidden within Asian banking. Daniel Tabbush highlights m/cap to assets of several major banks in the region, where PNB is at 2.5% vs. others that are >10x higher. On more traditional metrics like PE and PB, PNB also appears overlooked (or more likely under covered), but with continued strong results Daniel is not convinced that it will remain hidden.