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NDB has posted a healthy performance reflecting an increase in NIM. It is trading almost 10 times of their earnings. Analyzing the balance sheet I noticed debt securities and other borrowed funds to fund loans. Further NDB asset quality is on a mixed note(high portion on project funding and unsecured lending on professional segment).
DFCC has done well.But noticeably DFCC net interest income has decreased substantially and with other investment/trading income they have performed well.Also I have noticed Rs 30bn reserves to fund loans in balance sheet.
Analyzing these,We have to invest shares with high growth potential and undervalued in current valuations. Considering the performance of major banks HNB and SAMP has a high potential to showcase strong performance in future. Specially SAMP with high level of liquidity in BS. Further newly formed strategic management unit is in business to growth its Super branch concept which has revolutionized the branch banking in industry. However HNB is correctly priced for their earnings.But it has growth opportunities with excess liquidity.
Further SAMP has reduced its exposure in pawning from 23% to 13% which extended only for short term lending to minimize the risk in gold price changes. They have fully absorbed the losses of lending in gold as at date.
Mean time COMB with 2 times asset portfolio of SAMP has to grow its deposit base or should come up with debenture to fund its capital base and to grow loans. Further COMB is trading over 14 times - PE.
Hence considering improvement in NAV and EPS annualized (Rs 29.3) SAMP is undervalued(PE - 8.2 times). Further with above facts the bank is on safe hands and right direction to grow its asset base to show impressive results in future compared to other major banks.
Most importantly SAMP gave ESOP and most of them are sold at current prices. Hence counter remains around Rs 240/- and which is a bargain price.
I am analyzing the potential of UBC and SEYB in medium scale banks. Will post valuable information soon medium scale investments in banking sector.
DFCC has done well.But noticeably DFCC net interest income has decreased substantially and with other investment/trading income they have performed well.Also I have noticed Rs 30bn reserves to fund loans in balance sheet.
Analyzing these,We have to invest shares with high growth potential and undervalued in current valuations. Considering the performance of major banks HNB and SAMP has a high potential to showcase strong performance in future. Specially SAMP with high level of liquidity in BS. Further newly formed strategic management unit is in business to growth its Super branch concept which has revolutionized the branch banking in industry. However HNB is correctly priced for their earnings.But it has growth opportunities with excess liquidity.
Further SAMP has reduced its exposure in pawning from 23% to 13% which extended only for short term lending to minimize the risk in gold price changes. They have fully absorbed the losses of lending in gold as at date.
Mean time COMB with 2 times asset portfolio of SAMP has to grow its deposit base or should come up with debenture to fund its capital base and to grow loans. Further COMB is trading over 14 times - PE.
Hence considering improvement in NAV and EPS annualized (Rs 29.3) SAMP is undervalued(PE - 8.2 times). Further with above facts the bank is on safe hands and right direction to grow its asset base to show impressive results in future compared to other major banks.
Most importantly SAMP gave ESOP and most of them are sold at current prices. Hence counter remains around Rs 240/- and which is a bargain price.
I am analyzing the potential of UBC and SEYB in medium scale banks. Will post valuable information soon medium scale investments in banking sector.
