
Bangkok Bank Plc (BBL)
BBL is enjoying blue-sky days for corporate lending. However, its retail and fee-based businesses have yet to catch fire. This could cap the bank’s ROE surge. Also, when the industry growth baton is passed to the retail segment, BBL could again find itself outpaced by peers. We reiterate our Neutral call and target price, based on 1.2x FY12 P/BV (GGM: long-term assumptions of 12.5% ROE, 11.7% COE, 6.3% growth). SCB and KBANK are our picks among the large banks for their superior growth prospects and more balanced loan portfolios.