Earnings Report /
Thailand

Bangkok Commercial Asset Management PCL: Deep miss; lower NII and heavier LLPs than assumed

  • 1Q21 profit was 65% below our estimate

  • BAM posted 1Q21 earnings of Bt247m

  • The 1Q21 top-line was Bt.2.1bn

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
14 May 2021

The company should do better in 2H21, when the current COVID-19 outbreak has passed. Furthermore, we expect higher NII and bigger gains from NPA sales this year.

1Q21 profit was 65% below our estimate

BAM posted 1Q21 earnings of Bt247m, down by 65% YoY and 65% QoQ. The result was 65% below our estimate, due to lower NII and non-NII and heavier LLPs than assumed. The firm marked NII of just Bt1.5bn; we had assumed Bt2.0bn. Pre-provisioning operating profit was Bt1.6bn, down by 24% YoY and 30% QoQ, due to lower NII and non-NII. Earnings for 1Q21 comprise 9% of our full-year projection of Bt2.8bn.