TISCO’s bottom-line should expand QoQ through 2H22, driven by a recovery in lending (led by motorbike title loans and HP-for-used cars) and lighter LLPs (we expect asset quality to improve, due to tighter loan approval standards). Furthermore, we anticipate that NIM will fatten (led by high-yield lending expansion). The stock currently trades at a 2022 PER of 11.0x with high expected dividend yields of 7.2% for 2021 and 7.8% for this year. BUY!
Earnings were 8% above our expectation
TISCO posted a 1Q22 profit of Bt1.795bn, up by 1.8% YoY and 0.3% QoQ. The result was 8% above our projection (but was in line with the Bloomberg consensus), due to lighter LLPs than assumed. 1Q22 earnings comprise 24% of our full-year forecast of Bt7.4bn.