WOOD Flash – TBC Bank: notes from the road
We hosted TBC’s management in the US for a roadshow last week. The bank delivered a positive message overall and shared its thoughts on the Azerbaijan and Uzbekistan plans, which we see as inexpensive growth opportunities. TBC is sticking to its 20%+ ROE and 25-30% dividend payout ratio targets, despite the NIM headwinds on the back of tighter regulations. In our view, TBC is one of the next generation banks in the region, but management’s plans to leverage the digital platform fully in the new geographies could take this notion to another level. TBC has come off by 9% in the past four weeks, without a major change in its fundamentals or estimates. The bank’s current year P/E, at 6x, is close to its 24-month bottom. Our valuation yields 36% upside, with our GBP 19.1/share PT. We reiterate our BUY and see this as an attractive window to take exposure.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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