Bank stocks hope to continue, large loans – government sector recover – Miti Stocks

2024-03-24 03:59:44

Stock dimension – Dao Securities (Thailand)’s analysis stated that the overall loan portfolio for February 2024 for all 7 banks, SCB, KTB, TISCO, BBL, TTB, KBANK, KKP, was at 10.8 trillion baht, an increase of 0.2% MoM from the month. Jan. 24, which decreased by 0.4% MoM, which large and government sector loans began to recover. The banks with the largest increase in loans were SCB, which grew from large corporate loans, KTB, which grew from government loans, and TISCO, which grew from floor plan SMEs, with loans increasing at the same rate of 0.4% MoM.

Looking positively at the banking group, it is expected that large and government sector loans will return to accelerate significantly following government investment in the second half of the year. Total loan estimates for 2024 grow 3% YoY, while NPLs are likely to increase to 3.17% from 2.92% in 2023, but this is not much of a concern. Because each bank has reserves. A large number of loans have been continuously coming in over the past 2 years and bad debts have been gradually sold off continuously.

However, the top pick stock is KBANK with a target price of 155 baht because the quality of the assets looks better and has an interesting valuation. Currently trading at only 0.55x PBV and TTB has a target price of 2.10 baht. Net profit is expected in 2024 at 21 billion baht, the best growth in the group at approximately 13% YoY, while Q1/24 is expected to increase both YoY and QoQ from penetration of retail loans with high returns. In this regard, SCB, KTB, TISCO, BBL also received positive results from good loan growth in February 2024.

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