Earnings Report /
Thailand

Bangkok Bank PCL: Profit miss! Heavier OPEX and LLPs than assumed

  • Earnings were 14% below our expectation

  • BBL reported a 2Q22 profit of Bt7.0bn

  • The loan portfolio at end-June 2022 was up 2.5% QoQ

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
22 July 2022

We have a BUY call, premised on loan growth (driven by corporate and retail business), a fatter NIM, and lighter LLPs. BBL is currently one of our top picks among the big banks for its inexpensive valuation metrics and good dividend yield. BUY!

Earnings were 14% below our expectation

BBL reported a 2Q22 profit of Bt7.0bn, up 10% YoY but down 2% QoQ. The result was 14% below our projection (and 5% shy of the Bloomberg consensus), due to heavier OPEX and LLPs than assumed. Pre-provision operating profit came to Bt17.6bn, down 1% YoY but up 13% QoQ. 1H22 earnings comprise only 43% of our old full-year forecast of Bt32.6bn.