Kiatnakin Phatra Securities raised its earnings forecast for Bangkok Bank (SET: BBL) from 2023 to 2025 in response to the company’s stronger-than-expected earnings momentum and the post-result amended guidance on the NIM trend; the brokerage also increased its price target for BBL shares, from THB165.0 to THB192.0.
The brokerage firm has revised its earnings forecast for BBL from 2023-2025 upward by 15%, 6%, and 4%, respectively, and the NIM forecast has been raised to 2.82%, 2.81%, and 2.78%. The credit cost increases from 90bps to 120bps for the years 2023–25, to 110bps for 2023 and to 120bps for the years 2024–25.
The price target for BBL stock is now raised from THB165.0 to THB192.0. KKPS ranked BBL as its top pick due to its strong balance sheet, substantial liquid assets, and low retail asset quality risk.
The BBL management believed the 2.5% policy rate and 2023 cost-to-income ratio would boost NIM. Cost-to-income ratios should be below the low 50s, but net interest margins (NIMs) should be closer to the 1H23 NIM of 2.88% than the 2023 goal of more than 2.5%.
BBL’s asset quality portfolio displays no concern indicators, unlike other banks, according to KKPS, although the SME, upcountry, and retail lending sectors showed a negative signal.
