PABC.N0000 (Pan Asia Banking Corporation PLC)

[yellow knifeTop contributor]

Eventhough Pan Asia Bank is a commercial bank its revenue has been lower than two NBFIs .

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Revenue has been growing steadily over a decade.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Profit was not recorded in a steady line.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Term Loans, ODs and LRR were the main assets .

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Once Term Loans and ODs removed rest of the loans and assets can be highlighted as following.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Bank has strategically moving out of Pawning to Leases. However 2016 Budget proposal if implemented in the original spirit, that would have been a very negative factor to the bank.

As there is no ruling to cease leasing operations by banks as initially proposed there won't be any impact as expected.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

This is the first commercial bank to be analyzed by me. However when evaluating Capital Adequacy ratio, if the company prefers to grow more it may consider rights issues to enhance paid up authorized capital or another debenture issue..

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Net Assets position is growing steadily...

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Non Performing Loan ratios

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

PABC is aggressively into credit cards.



Pan Asia Bank’s credit card portfolio

grew by 150% compound annual

growth rate during the last 3

years faster than the industry by

maintaining a much higher quality

portfolio than the industry

[You must be registered and logged in to see this image.]

[First Guy]

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Compared to the size of the business portfolio and PAT, PABC is involved in a different strategy and focus more on businesses with high return like credit cards, margin trading, leasing etc.

Following is a comaprision between SEYB and PABC

[You must be registered and logged in to see this image.]

**********************************************************

[You must be registered and logged in to see this image.]

******************************************************

Even though I have not done a complete research on Margin providers, at a glance ( among top twenty lists of listed companies ) SEYB, PABC and PLC.N appears quite often.

[You must be registered and logged in to see this image.]

**********************************************************

[You must be registered and logged in to see this image.]

[First Guy]

[You must be registered and logged in to see this image.]

After March 2016 results

P/E - 6.4x
P/B - 1.3x

[yellow knifeTop contributor]

Thanks FG

Seems PABC is attractive.

[yellow knifeTop contributor]

Rating agency downgrades PABC to BBB-lka with stable out look, from BBB lka with a negative out look.

Warns volatility in working conditions to add pressure to credit metrics

Capital raising likely to be problematic amid increased country risk

PABC says above average growth improved profitability and NPL.

Source : daily ft

[yellow knifeTop contributor]

Year 2016

We are going to highlight the performance of PABC for 2016 based on its annual report.

First I like to quote from another discussion we had.

by [You must be registered and logged in to see this link.] on Sat Mar 18, 2017 4:45 am

Is that possible you to include all the banks in one chart as you did for total revenue. If we do so, I sense PABC will be out performing followed by Sampath as per my past studies.

Now lets look at whether PABC has out performed the rest of banks.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

It appears that the whole banking industry is moving in a similar pattern and we have to evaluate many banks to arrive at a conclusion.

****************************************

Now if we see the revenue of PABC separately.

Yes , PABC is recording an exponential growth..

[You must be registered and logged in to see this image.]

Comparison of Sampath at a glance

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

I preferred to compare PABC with two leading NBFIs than with banks. Once PABC is compared with commercial banks, it gets dwarfed by other Gullivers.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

As PABC is a small bank it has to focus mostly on areas where NBFIs are strong like Leasing, Pawning, Margin Trading and it has increased Gold Loans again in 2016 reversing the downward trend.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

AS LTV ( Loan to value ) ratio hits the vehicle leasing market , gold is becoming the saviour again. Very soon we may find all small banks and NBFIs fighting in Gold Pawning and Gold Loan business.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Credit Cards and Personal loans provide very high returns to banks..

PABC has focused efficiently on credit cards and the portfolio is growing faster.

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

EPS of PABC

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

Net assets of the bank

[You must be registered and logged in to see this image.]

[yellow knifeTop contributor]

No of Branches and No of employees growth.

[You must be registered and logged in to see this image.]