Siam Commercial Bank

Siam Commercial Bank Plc (SCB)
 

SCB’s Q4 2011 profit came in 4% below our expectations due to a surge in loan loss provisions. But having booked most of its flood-related costs,
the bank is now set to start FY 2012 with a clean slate. It remains one of our favourite banks for its earnings growth outlook.
Building in a 10bp FIDF tax on deposits, we trim our profit forecasts. However, our price target, which is based on 2.6x FY 2012F P/BV (GGM;
long-term assumptions of 17% ROE, 11.7% COE, 8% growth), is unchanged. We maintain our Outperform call.