Shares in TMB Bank Pcl gained as much as 5.8 percent in strong trade, hitting their highest since May 2011, after it reported a better-than-expected operating profit for the fourth quarter and amid expectations of strong growth in 2013.
TMB Bank shares were up 4.9 percent at 2.16 baht, having hit 2.18 baht, with about 562 million shares changed hands, 4.9 times the average full-day volume in the last 30 days.
TMB Bank reported a net loss of 2.1 billion baht ($69.35 million) for the fourth quarter due to extra provisioning but it posted a higher-than-expected core profit of 1.7 billion baht, broker Maybank Kim Eng Securities said in a report.
The broker reiterated its 'buy' rating on the stock, with a target price of 2.50 baht.
"After an aggressive non performing loan (NPL) solution and extra provisioning, the TMB balance sheet looks stronger. We believe that TMB will begin a growth phase from now," it said.
TMB Bank shares had risen 16 percent so far this year, outperforming a 1.2 percent gain of the broader banking subindex .
1601 (0901 GMT)
For the company statement, click (Reporting by Viparat Jantraprap in Bangkok; Editing by Anand Basu)
09:50 STOCKS NEWS THAILAND-CIMB raises Tisco price target after Q4
CIMB Research raised its price target for Tisco Financial Group Pcl TISCO.BK to 57 baht from 55 baht after the financial firm reported a better-than-expected fourth quarter net profit. It maintained a 'neutral' rating.
On Friday, Tisco shares closed down 0.5 percent at 54.25 baht before it announced the quarterly earnings. It was up 4.3 percent since the start of the year versus a 0.3 percent gain of the broader banking subindex .SETB.
Tisco reported a quarterly net profit of 995 million baht ($32.86 million), up 47 percent year-on-year and up 4 percent quarter on quarter. The result was 4 percent higher than the broker estimate because of a strong fee income.
"The quarter was fairly representative of the full year which saw explosive loan growth but net interest margin (NIM) stress. From mid-13, the reverse could be the case as new loans will be scarcer but NIM should improve," it said in a report.
"Despite the near-term attractive earnings outlook and tempting valuations, we keep the stock at neutral as its longer-term return on equity (ROE) sustainability is in doubt," it said.
0933 (0233 GMT)
For the company statement, click (Reporting by Viparat Jantraprap in Bangkok; Editing by G.Ram Mohan)