Bangkok Bank
Bangkok Bank Buy (15E TP Bt245.00)
Earnings Review
Close Bt185.00
Banking January 21, 2015
Beat forecast/Below forecast/In line
4Q14 earnings in line; potential earnings cut for 2015‐16E
Consensus EPS (Bt)
FY15
FY16
20.721
22.905
7.0%
10.6%
KT ZMICO vs. consensus Share data Reuters / Bloomberg
BBL.BK/BBL TB
Paid‐up Shares (m)
1,908.84
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
353.00/10,798.00
Foreign limit / actual (%)
25.00/34.86
52 week High / Low (Bt)
216.00/167.50
Avg. daily T/O (shares 000)
5,774.00
NVDR (%)
31.73
Estimated free float (%)
97.54
Beta
0.95
URL
www.bangkokbank.com
CGR
Cheap valuations and solid balance sheet are main appeals We maintain a BUY for BBL although we see potential downside risk for our earnings forecasts for 15‐16E. We see its cheap valuations (with 2015E P/BV of 1x and PER of 8x vs. the sector averages of 1.4x and 10x, respectively) and its more solid balance sheet vs. peers as the main appeals. 4Q14 net profit in line with our forecast and the street BBL’s 4Q14 net profit (NP) of Bt8.7bn (+14% YoY, ‐8% QoQ) was in line with our forecast (Bt8.7bn) and the street estimate (Bt9.0bn). The main driver for the higher NP YoY was a much lower provision, while the lower NP QoQ was due mainly to lower extra gain as BBL booked huge extra investment gain of ~Bt2.5bn in 3Q14. 2014 net profit flat YoY on slow growth in loans and fee income BBL reported 2014 net profit of Bt36.3bn (+1% YoY) while PPOP contracted by 4% YoY. The overall 2014 performance for BBL was quite lagged compared to its direct peers (KBANK’s NP +12%, SCB +6%) even though it recorded huge investment gain as mentioned earlier. Loans ended up with slight growth of 1.7% (vs. its target of 3‐5% for 2014) due to some repayment of corporate clients at yearend, while net fee income grew by only 2% YoY (vs. its target of
Earnings Review
Close Bt185.00
Banking January 21, 2015
Beat forecast/Below forecast/In line
4Q14 earnings in line; potential earnings cut for 2015‐16E
Consensus EPS (Bt)
FY15
FY16
20.721
22.905
7.0%
10.6%
KT ZMICO vs. consensus Share data Reuters / Bloomberg
BBL.BK/BBL TB
Paid‐up Shares (m)
1,908.84
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
353.00/10,798.00
Foreign limit / actual (%)
25.00/34.86
52 week High / Low (Bt)
216.00/167.50
Avg. daily T/O (shares 000)
5,774.00
NVDR (%)
31.73
Estimated free float (%)
97.54
Beta
0.95
URL
www.bangkokbank.com
CGR
Cheap valuations and solid balance sheet are main appeals We maintain a BUY for BBL although we see potential downside risk for our earnings forecasts for 15‐16E. We see its cheap valuations (with 2015E P/BV of 1x and PER of 8x vs. the sector averages of 1.4x and 10x, respectively) and its more solid balance sheet vs. peers as the main appeals. 4Q14 net profit in line with our forecast and the street BBL’s 4Q14 net profit (NP) of Bt8.7bn (+14% YoY, ‐8% QoQ) was in line with our forecast (Bt8.7bn) and the street estimate (Bt9.0bn). The main driver for the higher NP YoY was a much lower provision, while the lower NP QoQ was due mainly to lower extra gain as BBL booked huge extra investment gain of ~Bt2.5bn in 3Q14. 2014 net profit flat YoY on slow growth in loans and fee income BBL reported 2014 net profit of Bt36.3bn (+1% YoY) while PPOP contracted by 4% YoY. The overall 2014 performance for BBL was quite lagged compared to its direct peers (KBANK’s NP +12%, SCB +6%) even though it recorded huge investment gain as mentioned earlier. Loans ended up with slight growth of 1.7% (vs. its target of 3‐5% for 2014) due to some repayment of corporate clients at yearend, while net fee income grew by only 2% YoY (vs. its target of
