Financials
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.
Edition: 172
- 27 October, 2023
TMBThanachart Bank (TTB TB) TB
Financials
TTB’s PH Score™ of 9.45 (out of 10) is indicative of superior relative returns going forward. The Thai bank has seen improvements across all key variables - in Profitability, in Capitalisation, in Margin/Spread, in Asset Quality, in Provisioning and in Liquidity. The shares trade on a PBV and FV of 0.64x and 10%, respectively. The Earnings Yield utilised in Paul Hollingworth’s Score stands at 11.0%. The Dividend Yield is 4.9%. The Total Return Ratio stands at 1x. Re. technical momentum, the shares show some traction - as do Krung Thai Bank and Bangkok Bank which Paul also rates relative to other EM banks.
Edition: 160
- 12 May, 2023
Financials
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.
Edition: 153
- 03 February, 2023
Financials
Galliano's Financials Research
On the back of 2Q22 results, Victor Galliano reviews six Thai banks’ core profitability, and their credit quality and coverage, to identify banks that are attractive value, have good earnings growth prospects and have the potential to deliver sustainably higher returns going forward. Krung Thai stands out with its low cost of risk, healthy post provision profitability vs. peers and its undemanding valuation multiples along with its low PEG ratio. Elsewhere, TMBThanachart is one to watch in the deep value category, especially given its attractive cost of risk trends over the last three quarters.
Edition: 141
- 05 August, 2022