reports
- Kavinda Perera
Sri Lanka: Banking SL - Rising above the clouds
* Sector valuations at a decade low, driven by weakening ROEs and foreign investor exits * Major factors which weighed down profitability to fall away in CY21E, paving the way for better ROE * The banks index took the biggest hit during the pandemic; potential for a rerating with improving fundamentals * Top line to pick up on loan growth and NIM expansion * Gradual improvement in asset quality to lead to lower Cost of Risk * Normalising cost efficiency, tax savings ...
- Kavinda Perera
National Development Bank: Sri Lanka: NDB SL - Heavy impairment costs ...
We upgrade our TP for NDB at LKR 100.00 share (+17.6% to old; +12.4% upside; +19.1% TSR) whilst retaining our BUY recommendation. NDB’s 4Q CY21 net profit dropped to LKR 1.2bn (-32.1% YoY; -17.1% QoQ) mainly due to the heavy impairment charges incurred during the quarter. We believe NDB will bounce back from its weak growth due to a recovery in credit growth, followed by an expected capital infusion by means of a rights issue in CY21E. Accordingly, we expect NP to come in at LKR 6.7bn in CY21...
- Kavinda Perera
National Development Bank: 3Q CY20 - Ambitious growth sees strong 3Q r...
Our TP moves to LKR 85.00/share (-5.6% to old; +14.2% upside; +22.3% TSR) given the potential rights issue dilution. We retain our BUY rating on the weak valuation which discounts NDB’s strong growth momentum. Net profit of LKR 1.5bn (+31.1% YoY; +34.2% QoQ) in 3Q CY20 benefited from strong NII and NBT/DRL removal. Impairment charges saw a 64.3% YoY rise, while NPL stock grew 6.5% QoQ. NDB announced a rights issue of LKR 8.0bn to boost tier 1 capital at LKR 75.00/share (10% discount to pre-ri...
- Kavinda Perera
National Development Bank: Q2 CY 20 – Strong results support earning...
We maintain our TP for NDB at LKR 90.00/share (+13.6% upside; +21.2% TSR) valuing the stock at a conservative 0.4x CY20E BV. We retain our Buy rating given the strong 2Q result, which supports an earnings upgrade for CY20E. NDB’s 2Q CY20 net profit of LKR 1.1bn (+43.4% YoY; -9.8% QoQ) benefited from robust deposit repricing and the removal of NBT and DRL. This comes after booking a day-one impact of LKR 626mn in impairments coming from moratoriums. While NDB’s thin capitalisation is a conce...
- Kavinda Perera
Sri Lanka banks: Muted profitability, but limited systemic pressure
In this report, we highlight the pressing current themes around the banking sector. Overall, majority of the Sri Lankan government’s key support measures for the economy are implemented through the banking system, and the banks are expected to absorb the economic shock partially. In return, banks have received several concessions to maintain the systemic stability. We expect sector profitability to be muted in CY 20e, with (1) weak credit growth, (2) contracting margins, (3) lower supplementa....
1 director bought
A director at National Development Bank PLC bought 227,000 shares at 107.000LKR and the significance rating of the trade was 62/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last...
- Pasindu Perera
- Pasindu Perera
- Pasindu Perera
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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