Earnings Report /

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

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.