TISCO can expand earnings through lighter LLPs (we expect asset quality to improve as the economic impact of COVID-19 eases) and loan growth of 2.8% YoY (especially cash-for-car loans and HP-for-motorbikes). The stock currently trades at a 2021 PER of 11.7x with a high expected dividend yield for 2021 of 7.1%. Our BUY call stands.
Profit was 8% above our estimate
TISCO posted 1Q21 earnings of Bt1.76bn, up by 18.7% YoY and 7.8% QoQ. The result was 4% above the Bloomberg consensus and 8% ahead of our projection, due to higher fee & service income and gains on investments than assumed. We had expected fee & service income and gains on investments totaling Bt1.4bn for the quarter; TISCO reported Bt1.9bn. 1Q21 earnings comprise 26.2% of our full-year forecast of Bt6.7bn.