BBL-KBANK stands out, broker increases share price target – Hoonsmart

HoonSmart.com>>Bank Group Choral Analyst Better performance than expected in the 3rd quarter of 2021 Nomura Securities maintains a yearly profit target of 140 billion baht, an increase of 24%. New target of 155 baht Krungsri Securities raised KBANK-TTB outstanding Maybank Kim Eng Securities cheered KASIKORNBANK raised the price by 170 baht to increase SCB’s profits, but suggested just holding, too expensive

Nomura Securities Pattanasin places more weight on banking investments than the market. After reporting a net profit in the 3rd quarter of 2021 at 35 billion baht, better than Nomura and the market forecast +8%, with profit growing +52% from the same period last year. This came from strong loan growth, non-interest income growth from fees. and investment, operating expenses and lower reserve expenses

The -2% drop in profit compared to Q2 was due to weaker fee income. from the temporary closure of the branch

Banks with higher profit growth than the group Bangkok Bank (BBL), Kiatnakin Phatra Bank (KKP) and Siam Commercial Bank (SCB) and TISCO Financial Group (TISCO) have weaker earnings than the group.

Profit outlook for the fourth quarter is growing compared to the same period last year. from reduced reserve expenses and better credit growth But profits will decline compared to the third quarter due to seasonally higher operating expenses. and the profit from investment decreased

“We maintain our earnings forecast for this year’s group at 140 billion baht, an increase of 24% from the previous year and maintain the Group’s investment weight as Bullish, choosing KBANK as a top pick with SCB,”Nomura Securities Pattana Sin stated

Bualuang Securities sees the three big banks with better-than-expected profits. Therefore, the 2021 earnings forecast has been revised up to BBL and KBANK with higher-than-expected non-interest income. Good growth prospects for the fourth quarter. In addition, KBANK’s expenses were lower than expected, while SCB’s earnings were better than expected due to lower-than-expected provisions. Outlook for the fourth quarter to grow well, but this year’s earnings forecast remains unchanged.

Yuanta Securities (Thailand) has revised BBL’s projection since 2021 to an average of 15.6% per year under the new projection, expecting a net profit of 28,178 million baht this year, a 64% increase from the previous year and a 17.7% growth in 2022. Better-than-expected third-quarter results, a total of 9 months accounted for 76% of the original full-year forecast. and better than expected

The fourth quarter is likely to grow from the third quarter. The domestic credit portfolio is expected to accelerate in line with the economy. and entering the high season of insurance sales will support fee income to grow back Including provisioning will begin to relax after the level of NPLs is at a manageable level. and has a reserve level of 198.9%, the highest among large banks

” Looking at BBL, it was driven by a good recovery performance. It has a distinctive feature that the credit portfolio has lower risk than other big banks. Because there are not very high retail and SME debtors, it is a low-risk bank. And the trading price is not expensive, only 0.5 times the book value (P/BV), there is still an upside from the new base value added in 2022 at 155 baht, so it is recommended to buy,” said Yuanta Securities.

In addition, we still view KBANK as the dominant stock in the group. Better than expected profit After setting a small increase in provisions and good interest income. The outlook for Q4 performance and new investments in technology Meanwhile, the current share price has a 27.2% upside from this year’s recovery of 180 baht.

SCB Securities analyzes BBL with better-than-expected profits Because of interest and non-interest income, KBANK’s earnings were slightly higher than expected, and LHFG’s earnings were better than expected. because dividend income is higher than expected

Krungsri Securities analyzes the bank group Excluding Krungsri Bank Earnings were 4% better than expected at Bt30bn and 11% higher than expected at Bt28bn. TTB and SCB were better than expected, but KTB was weaker than expected. Earning momentum remains weak from Q2 due to the impact of lockdown measures. but still growing strong from the same period last year from the recovery of core performance and set aside back to normal 9-month consolidated profit accounted for 78% of forecast.

“We expect the group’s core operating profit to recover along with the post-opening economy. We tend to place more weight on the banking sector than the market, with KBANK and TTB as the top stocks, while BBL recommends a buy with a target price of 136 baht,” said Krungsri Securities.

Maybank Kim Eng Securities (Thailand) still views KBANK as the dominant stock in the group. Better than expected profit After setting a small increase in provisions and good interest income. Based on the direction of recovery in 4th quarter performance and new investment in technology, while the current share price has 27.2% upside from this year’s recovery of 180 baht. SCB has reduced its weight to “Hold” with a target price of 135 baht. Value after a 42% rally, better than the market 29%, trading at 2022 P/E of 11x, prefer KBANK over 8.7x P/E and raised target price to Bt170 on this year’s P/BV of 0.85x. and 9.3% ROE is a top pick.

” SCB’s earnings were better than expected. We raise our 2021-2022 earnings per share forecast by 4-6% after lower credit cost assumptions. and expect revenue to recover 31% this year, then grow 7-8% per year in 2022-2023. ROE is expected to improve from 6.7% last year to 8.4-8.7% in 2021-2023. Fees from insurance and Wealth management will support earnings over the next three years before the bank can monetize businesses with high growth potential and high ROE.