Stock dimension – BBL by Asia Plus Securities stated that it reported a 4Q22 net profit of 7.56 billion baht (-1%.00 + 20% YoY), lower than Bloomberg Consensus, expected by 14% from investment value measurement (FVTPL), but Net interest income (NII) showed a significant improvement (+15% QoQ +40% YoY) in line with rising interest rates. While asset quality remained good.
In this period, provisions were set at 7.9 billion baht, down from 9.9 billion baht in the previous period and 8.1 billion baht in 4Q21, in line with lower NPL debt reflected through NPL/Loan at 3.6% 3Q22 at 3.8%). and drive Coverige Ratio 261% 3Q22 at 240%)
As for net profit in 2022, as expected, plus 11% YoY, while estimates for 2023 have upside from NIM, which the research department will revisit the forecast following the meeting. Analysts during 13 – 17 Feb. ’23, with the 1Q23 net profit trend growing QoQ (+ YoY) from receiving the M-Rate reservation during the full quarter of 4Q22 and OPEX tends to decline seasonally.
While assessing the credit cost is still under management, we would recommend “BUY” with a target of 159 baht. NII has a good development, including the strongest coverage ratio in the group in terms of valutation PBV at 0.55 times, with a 2H22 dividend expected at 2.75 baht. share
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