The share price of TmbthanachartBank Public Company Limited (SET: TTB) rose THB0.06/share or 4.58% to THB1.37/share as of 16.28 hrs. local time in Thailand, with a trading value of THB751 million.
KTBST Securities (KTBST) hold a “BUY” rating on TTB but raise a target price to THB1.60 from THB1.35 and 2022E PBV to 0.7x (-1.25 SD below its 10-yr average) from -0.6x (-1.5 SD), as it upgrades 2022E earnings forecast.
KTBST forecasts TTB’s 4Q21E net profit to grow +96% YoY, +3% QoQ to THB2.42 billion as 1) loan-loss provision is expected to drop dramatically and 2) fee-based income would improve, although NPL ratio would increase to 3.25% from 2.98% in 3Q21 due to the deteriorated economy. KTBST maintains 2021E net profit forecast at THB10.0 billion, flat YoY, given a one-time integration expense, but upgrades 2022E forecast by 4% to reflect a lack of the integration expense and synergies from the integration. In 2022E, the bank will shift focus to high-yield HP loans and thus will launch a mobile application in 1Q22E.
