Bangkok Bank
Bangkok Bank Outperform (17E TP Bt185.00)
Earnings Review
Close Bt182.50
Banking July 21, 2017
Beat forecast/Below forecast/In line
2Q17 net profit in line Results date: July 20, 2017
Price Performance (%)
Asset quality issue still needs to be kept in check We maintain an Outperform rating as we see BBL being well positioned to handle the headwinds given its better balance sheet cushion vs. peers. Moreover, its attractive valuation (with 2017E P/BV of just 0.89x) remains its main price support. However, the asset quality issue still needs to be kept in check as well. 2Q17 net profit quite in line with both our forecast and the street BBL’s 2Q17 net profit (NP) of Bt8.05bn was quite in line with our forecast (Bt8.2bn) and the street estimate (Bt8.1bn). BBL’s 2Q17 net profit (NP) of Bt8.05bn (+12% YoY and ‐3% QoQ) The solid NP growth YoY was due in part to its low base NP effect in 2Q16 when it recorded unusually low gain on investments of just Bt51mn vs. Bt1.6bn and Bt1.3bn gains in 2Q17 and 1Q17, respectively. The bank’s net fee income for 2Q17 and 1H17 grew 7% and 8%, respectively, slightly ahead of the bank’s target of
Earnings Review
Close Bt182.50
Banking July 21, 2017
Beat forecast/Below forecast/In line
2Q17 net profit in line Results date: July 20, 2017
Price Performance (%)
Asset quality issue still needs to be kept in check We maintain an Outperform rating as we see BBL being well positioned to handle the headwinds given its better balance sheet cushion vs. peers. Moreover, its attractive valuation (with 2017E P/BV of just 0.89x) remains its main price support. However, the asset quality issue still needs to be kept in check as well. 2Q17 net profit quite in line with both our forecast and the street BBL’s 2Q17 net profit (NP) of Bt8.05bn was quite in line with our forecast (Bt8.2bn) and the street estimate (Bt8.1bn). BBL’s 2Q17 net profit (NP) of Bt8.05bn (+12% YoY and ‐3% QoQ) The solid NP growth YoY was due in part to its low base NP effect in 2Q16 when it recorded unusually low gain on investments of just Bt51mn vs. Bt1.6bn and Bt1.3bn gains in 2Q17 and 1Q17, respectively. The bank’s net fee income for 2Q17 and 1H17 grew 7% and 8%, respectively, slightly ahead of the bank’s target of
