TMBThanachart Bank (TTB TB) TB
Financials
Conservatively managed TTB produced a strong set of numbers in 2Q23 and the bank's elevated PH Score™ (9.4 out of 10) is indicative of superior relative returns going forward. Paul Hollingworth notes that there were improvements across almost all key variables - in Profitability, Capitalisation, Margin/Spread, Provisioning and in Liquidity. Management's strategy is focused on raising profitability via revenue synergies from the merger, adding a product for each customer (cross-selling of home and auto products plus other consumer offerings), widening digitalisation and continuing to get the CIR lower (40% target). The stock is up +46% since Paul turned bullish (vs. MSCI EM Index -24%).
Edition: 166
- 04 August, 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
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