On Friday at 2:13 PM (Bangkok time), the share price of Bangkok Bank Public Company Limited (SET: BBL) surged by 0.30% or THB 0.50 to THB 168.50, with a trading value of THB 403.79 million.
Finansia Syrus Securities (FSS) wrote that BBL has gained 11% year-to-date, lagging behind the banking sector average of 17% year-to-date. The slower performance is attributed to the offering of a lower dividend yield compared to peers, a result of its relatively low payout ratio.
On the monetary policy front, the analyst expects the policy interest rate to remain stable at 1.25% for a period of time, indicating that the interest rate cut cycle has likely concluded in the near term. As a result, there should be no further pressure on the bank’s net interest margin (NIM) going forward.
Regarding valuation, BBL is currently trading at a discount to the sector, with a price-to-book value (PBV) of 0.5 times, compared to the sector average of 1.1 times. Finansia notes that if BBL demonstrates a trend toward increasing its dividend payout ratio, it could serve as a catalyst for the stock price.
For the investment strategy, the recommended support levels are at THB 166.50 and THB 163, while resistance is seen at THB 170 and THB 175.
