BIAT (BIAT TU) Thailand
Financials
Tunisia’s largest lender posted a modest 6.8% growth in its H1 net profit amid a rising loan loss provisions to comply with the expected change in the regulatory framework (transition toward IFRS requirement from 2023). The solid revenue momentum was helpful to manage the increase in its NPLs rate to 7.2% vs. 6.4% as of 31st Dec 2022. However, the BCT's key interest rate outlook is less favourable with the recent signs of cooling inflation. AlphaMena expects an ongoing impairment in asset quality given the still challenging economic environment. Thus, their earnings targets are expected to decline from 2024 leading to a negative stance on the stock, which is already expensive from a P/B standpoint: 1.44x in 2023 vs. 0.81x average for the Tunisian banks.
Edition: 170
- 29 September, 2023