Siam Commercial Bank

Siam Commercial Bank Plc (SCB)
 

SCB’s shift in focus to wholesales will continue to drive growth in CY12. Together with the benefits of a lower tax rate, SCB will post the strongest earnings growth among major banks. We believe SCB will outperform the sector in terms of loans growth and ROE in CY12. Strong corporate loans and fee income growth will be its main earnings drivers. We continue to rate it OUTPERFORM with an unchanged target price based on 2.1x CY12 P/BV.