Bangkok Bank
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Dented by weak fee income Outperform, maintained Share price Bt133.00, target price: Bt178.00
Bangkok Bank Plc (BBL)
Due to weak fee income, BBL’s 3Q11 results were slightly below our forecast but above consensus. We believe strong corporate loan demand will continue to drive earnings growth. It is the only major bank that is trading below next year’s book value. Net profit was 4% below our forecast but 5% above consensus. The 9M11 net profit forms 74% of our full-year number. Although we revise up our earnings forecasts, we lower our target price (from 1.6x CY11 P/BV to 1.3x CY12) due to a weaker economic outlook. Maintain OUTPERFORM.
