The share price of Tisco Financial Group Public Company Limited (SET: TISCO) fell 2% at the open in the morning session on Wednesday after the bank reported slightly lower-than-expected performance for its 1Q23 operations.
TISCO reported a net profit of 1,792 million baht in 1Q23, decreased 0.16% from the same period of last year.
TISCO stated that the decline was mainly caused by rising cost of funds in accordance with the market rate uptrend and the resumption of contribution rate to Financial Institutions Development Fund (FIDF) back to 0.46% per year, together with an increase in operating expenses in relation to the long-term investment plan for business expansion.
The 1Q23 top and bottom line was roughly 3% lower than the consensus from Refinitiv.
Yuanta Securities still recommended “BUY” TISCO at a target price of THB 116 per share, expecting better performance in the second quarter, especially from its loan portfolio. The brokerage firm believed that the performance in 1Q would not impact TISCO’s dividend yield as the bottom line was relatively the same as last year and there is potential that operations will surge in the next three quarters.
Meanwhile, Pi Securities recommended “HOLD”, saying that the current price of TISCO is not that attractive, while projecting that the company will record 5% profit growth this year. The brokerage firm gave a fair price of THB 102 per share, adding that the stock is best hold for dividend payout.
