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ACB [O-PF +18.1%] - Preparation for growth taking place while legacy issues shrink - Update

Company Research

10 Nov 2016

We issue an OUTPERFORM rating on ACB due to its ability to generate high growth from non-legacy banking operations, which in turn facilitates the process of solving problematic assets. The bank should be able to generate high ROE of 14%-16% from current ROE of 8.9%, and distribute dividends to shareholders from 2018 at around 15% of par value, when all issues are expected to be solved. ACB has consistently traded above its peers on a P/B basis due to its stronger growth prospects
Tags: ACB

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