Kasikornbank

Kasikornbank Plc (KBANK)

KBANK’s Q4 2011 core profit came in 10% below our expectations. But the worst of the floods may have already been accounted for. We believe earnings will resume growing by 16% this year, driven by post-flood reconstruction, the resumed capex cycle and a domestic demand boost. Maintain OUTPERFORM, with a fine-tuned forecast (building in an assumed 10bp FIDF fee on deposits) and an unchanged target price, which is set to 2.2x FY12F P/BV (GGM with long-term assumptions of 16% ROE, 11.7% COE, 8% growth).