Earnings Report /
Thailand

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

  • Earnings were 6% above our expectation

  • BAY posted 1Q21 earnings of Bt6.5bn

  • Pre-provision operating profit came to Bt15.5bn

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
21 April 2021

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.