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TCB [BUY +49.4%] - Unique banking model fuels solid income stream - Initiation

Company Research

05 Jun 2018

We initiate TCB with a BUY rating and 49.4% total return. A unique banking model with conservative balance sheet growth as well as leverage, NOII is the key to deliver resilient income stream. We forecast a consolidated 20% Y-o-Y loan growth with a strong focus on profitable mortgages for PFS (retail) segment (+35% Y-o-Y), backed by strong relationships with well-known developers. TCB will shrink its Wholesale Banking portfolio as portion of loan book by pushing more medium/long-term funding
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