NTB 1H2013 Earnings Note – REITERATING A BUY - CAL

hariesha Tue Aug 27, 2013 4:13 pm

NTB’s 1H2013 profits came below expectations at LKR980mn (+5% YoY) as lower loan
growth (5% YoY), trading losses and higher impairment charges hurt profitability.
However, NTB’s 1H2013 core profits* grew 37% YoY to LKR2bn, higher than CAL’s
expectations (31% YoY for 2013E). CAL anticipates net profitability to gain 14% YoY to
LKR 2.23bn (vs. our previous LKR 2.37bn), factoring into account the reduction in
interest rates, an imposition of a cap on penal interest and reduction in credit card
interest rates. CAL maintains a BUY on NTB with a target price of LKR78/share and
expects a 1-year total return of 33% which includes a 4.2% dividend yield. BUY

Attachments

: NTB - 1H2013 Earnings Note - BUY - 27 August 2013.pdf You don't have permission to download attachments.(415 Kb) Downloaded 38 times