Bank of Ayudhya PCL: Beat, due to light LLPs and OPEX

We are confident that (exclusive of the IPO of Ngern Tid Lor) BAY’s earnings will grow, supported by high-yield lending (our loan growth assumption is 3.5% YoY, in line with the bank’s target range of 3-5% YoY), non-NII expansion, and lighter LLPs. But the stock price already exceeds our YE21 target of Bt35, so we maintain a HOLD call.