Thailand Company Guide
Siam Commercial Bank Version 6
Refer to important disclosures at the end of this report
| Bloomberg: SCB TB | Reuters: SCB.BK
DBS Group Research . Equity
25 Jan 2017
BUY
Seeing 2017 as a much better year
Last Traded Price ( 24 Jan 2017): Bt151 (SET : 1,578.82) Price Target 12-mth: Bt167 (11% upside) Potential Catalyst: Rapid economic recovery Where we differ: N/A Analyst Thaninee SATIRAREUNGCHAI, CFA +662 657 7837
[email protected]
What’s New
Corporate and wealth management in focus
As management expects a better economy going forward, it will be more aggressive in 2017
FY17F earnings raised by 4% for lower credit cost assumption
Maintain BUY and TP of Bt167
Price Relative Bt
Banking on the government’s infrastructure investment projects. Loan demand from the corporate segment should rebound in 2017, thanks to infrastructure investment projects. However, as those large listed corporations have continued to shift their funding sources towards the capital market and away from banks (disintermediation), we believe the tenures of large corporate loans would rather be short term, until those corporations offer debentures in the capital market and refinance at banks. Asset-quality cycle approaching its end, but credit cost likely to be lower than FY16’s. SCB believes its NPL ratio could rise further, due to restructured housing and SME loans that may fall into NPLs; meanwhile, management has no concerns about NPLs on the corporate side. We believe its asset-quality cycle is reaching the end and should be at least stable vs 2016’s. With its coverage ratio staying above 130%, it is less necessary for SCB to set up high provision if its asset quality improves. This implies that credit cost is likely to be lower than FY16’s.
Relative Index 206
201.7
186
181.7
166
161.7
146
126
141.7
106 121.7
86
101.7 Jan-13
Jan-14
Jan-15
Siam Commercial Bank (LHS)
Forecasts and Valuation FY Dec (Btm) Pre-prov. Profit Net Profit Net Pft (Pre Ex.) Net Pft Gth (Pre-ex) (%) EPS (Bt) EPS Pre Ex. (Bt) EPS Gth Pre Ex (%) Diluted EPS (Bt) PE Pre Ex. (X) Net DPS (Bt) Div Yield (%) ROAE Pre Ex. (%) ROAE (%) ROA (%) BV Per Share (Bt) P/Book Value (x)
2015A 88,550 47,182 47,182 (11.5) 13.9 13.9 (12) 13.9 10.8 5.50 3.7 15.9 15.9 1.7 90.6 1.7
Earnings Rev (%): Consensus EPS (Bt): Other Broker Recs:
66 Jan-17
Jan-16
Relative SET (RHS)
2016A 81,701 47,612 47,612 0.9 14.0 14.0 1 14.0 10.7 5.50 3.7 14.8 14.8 1.7 98.4 1.5
2017F 81,818 49,552 49,552 4.1 14.6 14.6 4 14.6 10.3 5.50 3.7 14.2 14.2 1.7 107 1.4
2018F 85,655 53,581 53,581 8.1 15.8 15.8 8 15.8 9.5 6.00 4.0 14.0 14.0 1.7 118 1.3
13.6 B: 19
4 15.0 S: 3
n/a 16.8 H: 7
Source of all data on this page: Company, DBS Vickers, Bloomberg Finance L.P.
ASIAN INSIGHTS ed: CK / sa: CS, PY
To have the largest customer bases across all segments. The bank’s longer-term strategies are to expand its customer base and to enhance its engagement with existing customers. This is aimed at clinching the largest customer bases across all segments and is supported by the bank’s new single platform for the wealth management business and the transformation project, implemented in 2016, to improve the bank’s efficiency, which would result in a higher cost-to-income ratio (to c.4043% vs. a normal level of below 40%) during the period; the transformation project is expected to complete at end-2018. Valuation: We maintain our BUY rating on SCB with a new TP of Bt167, based on the Gordon Growth Model, implying 1.6x FY17F BV. Key Risks to Our View: If the economy takes too long to recover or the investment cycle is delayed, there could be downside risks to loan and earnings growth. At A Glance Issued Capital (m shrs) Mkt. Cap (Btm/US$m) Major Shareholders (%) Vayupak Fund The Crown Property Bureau Chase Nominees Limited 42 Free Float (%) 3m Avg. Daily Val (US$m) ICB Industry : Financials / Banks
3,395 510,993 / 14,495 23.1 21.3 8.9 60.8 29.4
VICKERS SECURITIES
Company Guide Siam Commercial Bank
WHAT’S NEW Seeing 2017 as a much better year 2017 strategy: Corporate and wealth management in focus. Management has revealed its strategy in 2017. Specifically, the bank will focus on two segments, i.e. corporate clients and (retail) wealth management, as the key growth drivers for this year. This is based on the bank’s expectation of a better economic outlook in 2017, driven by infrastructure projects going on track and better commodity prices. The corporate segment should be the loan growth driver, while the wealth management business should be the key driver for fee and non-NII. The bank’s longer-term strategies are to expand its customer base and to enhance its engagement with existing customers. It aims to have the largest customer bases across all segments, and this will be supported by the transformation project, implemented in 2016, to improve the bank’s efficiency. Transformation will be carried out on both the hardware (physical to digital) and software (thinking and processing) fronts, and would result in a higher cost-toincome ratio (to c.40-43% vs. a normal level of below 40%) during the period; the project is expected to complete at end2018. Business targets set for 2017. SCB set to grow its loan book at 4-6%, following the 5.8% growth achieved in 2016. NIM is expected to be in the 3.1-3.3% range (vs. 3.27% in 2016), Non-NII to grow 3-4%, and cost-to-income ratio is expected to be in the range of 40-43%. The bank targets to maintain its NPL ratio below 3% and coverage ratio in the 130% range. However, credit cost may not return to the normal level, but management believes the ratio should be lower than last year’s. FY17F earnings raised by 4%, from lower credit cost assumption. With the bank’s coverage ratio standing above 130% target and its guidance for lower credit cost in 2017, we cut our credit cost assumption to 100bps, from 120bps previously. After the revision, our FY17F earnings stand at Bt49.6bn (+4% y-o-y). We maintain our BUY rating and TP of Bt167 for SCB.
ASIAN INSIGHTS Page 2
VICKERS SECURITIES
Company Guide Siam Commercial Bank Margin Trends
CRITICAL DATA POINTS TO WATCH Earnings Drivers: NIM to maintain in 2017. Thanks to the declining costs of fund (on deposit repricing and slower growth of deposit portfolio, compared with loan growth), NIM continued to expand over the course of 2016. SCB believes there is some room for funding costs to go down in 2017; however, yields may also decline, given the potential shift in its loan mix towards lower-yield corporate loans. Net-net, NIM is likely to stay in the same range as in 2016, i.e. 3.1-3.3%.
Bt m
90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0
3.5% 3.4% 3.3% 3.2% 3.1% 3.0%
2014A
2015A
2016A
Net Interest Income
2017F
2018F
Net Interest Income Margin
Gross Loan & Growth Bt m
Loan growth expected at 4-6%. Banking on the government’s infrastructure investment projects in 2017, loan demand from the corporate segment should rebound. However, as those large listed corporations have continued to shift their funding sources towards the capital market and away from banks, we believe the tenures of large corporate loans would rather be short term, before those corporations offer debentures in the capital market and refinance at banks. Non-interest income to be better than in 2016. In 2015, SCB realised a huge one-off gain on sale of investment, making its non-interest income (non-NII) growth negative in 2016. We believe its non-NII growth will turn positive in 2017, albeit at a rather low rate of c.2%. Cost-to-income ratio to rise, on the bank’s transformation project. The bank has guided for high cost-to-income ratio (potentially in the range of 40-43%) due to the three-year transformation project that started in 2016. The project aims to increase efficiency at the bank, and the transformation will be done on both the hardware (physical to digital) and software (thinking and processing) fronts.
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
2,000,000 1,500,000 1,000,000
500,000 0 2014A
2015A
Gross Loan (LHS)
2016A
2017F
2018F
Gross Loan Growth (%) (YoY) (RHS)
Customer Deposit & Growth Bt m
10% 9% 8% 7% 6% 5% 4% 3% 2% 1% 0%
2,000,000
1,500,000 1,000,000 500,000 0 2014A
2015A
2016A
2017F
2018F
Customer Deposits (LHS)
Customer Deposits Growth (%) (YoY) (RHS)
Loan-to-Deposit Ratio Trend Bt bn 2,549,741
Credit cost likely to go lower. With improving asset quality and the bank’s coverage ratio standing above its 130% target, we expect SCB to set aside lower provisions for FY17. We estimate FY17F credit cost at 100bps (c.Bt5bn/quarter), vs. 119bps in FY16.
101% 2,349,741
96% 2,149,741 91%
1,949,741
86%
1,749,741 1,549,741
81%
2014A Loans
2015A Deposit
2016A
2017F
2018F
Loan-to-Deposit Ratio (RHS)
Cost & Income Structure Bt m 0.42 0.41 0.4 0.39 0.38 0.37 0.36 0.35 0.34 0.33 0.32
140,000 120,000 100,000 80,000
60,000 40,000 20,000 0 2014A
2015A
Net Interest Income
2016A
2017F
Non-interest Income
2018F
Cost-to-income Ratio
Source: Company, DBS Vickers
ASIAN INSIGHTS
VICKERS SECURITIES Page 3
Company Guide Siam Commercial Bank Asset Quality
Balance Sheet: Asset-quality cycle approaching its end. SCB believes its NPL ratio could rise further, due to restructured housing and SME loans that may fall into NPLs; meanwhile, management has no concerns about NPLs on the corporate side. We believe its assetquality cycle is reaching the end and should be at least stable vs 2016’s. Note that SCB normally manages its NPLs by selling and restructuring.
4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0%
0.5% 0.0% 2014A
Banking on the government’s infrastructure investment projects. Loan demand from the corporate segment should rebound in 2017, thanks to infrastructure investment projects. However, as those large listed corporations have continued to shift their funding sources towards the capital market and away from banks (disintermediation), we believe the tenures of large corporate loans would rather be short term, until those corporations offer debentures in the capital market and refinance at banks. SCB’s loan portfolio comprises 45% retail, 37% corporate, and 19% SME.
2015A
2016A
NPL Ratio
2017F
2018F
Provision Charge-Off Rate
Capitalisation (%) 19.0%
18.0% 17.0% 16.0% 15.0%
14.0% 13.0% 12.0%
Capital ratio remains robust. Capital adequacy remains sufficient to support business growth, and its CAR is among the strongest. Its CAR ratio remains higher than the 9.125% required by the Bank of Thailand, while its CET 1 and Tier 1 capital ratios are also higher than the minimum requirements of 5.125% and 6.125%, respectively, under Basel III.
2014A
2015A
2016A
Tier-1 CAR
2017F
2018F
Total CAR
ROE (%) 20.0%
15.0%
10.0%
Share Price Drivers: The government’s infrastructure investment projects. The growth of Thailand’s economy and the banking sector in 2017 looks set to depend mainly on the execution of the infrastructure investments.
5.0%
0.0% 2014A
2015A
2016A
2017F
2018F
Forward PE Band (x) (x) 15.2
Key Risks: Prolonged weakness of the economy. If the economy takes too long to recover or the investment cycle is delayed, there could be downside risks to SCB’s asset quality, loan growth, and earnings growth.
14.2
13.2
+2sd: 13.5x
12.2
+1sd: 12.2x
11.2
Avg: 10.9x
10.2
-1sd: 9.5x
9.2
-2sd: 8.2x
8.2
Company Background Siam Commercial Bank Public Company Limited (SCB) provides a full range of banking and financial services. The bank offers corporate and personal lending, retail and wholesale banking, international trade financing, and investment banking services to its clients.
7.2 Jan-13
Jan-14
Jan-15
Jan-16
Jan-17
PB Band (x) (x) 3.0
+2sd: 2.8x 2.5
+1sd: 2.38x
2.0
Avg: 1.96x
1.5
-1sd: 1.54x
1.0 Jan-13
-2sd: 1.13x Jan-14
Jan-15
Jan-16
Jan-17
Source: Company, DBS Vickers
ASIAN INSIGHTS Page 4
VICKERS SECURITIES
Company Guide Siam Commercial Bank
Key Assumptions FY Dec Gross Loans Growth Customer Deposits Growth Yld. On Earnings Assets Avg Cost Of Funds Income Statement (Btm) FY Dec Net Interest Income Non-Interest Income Operating Income Operating Expenses Pre-provision Profit Provisions Associates Exceptionals Pre-tax Profit Taxation Minority Interests Preference Dividend Net Profit Net Profit bef Except Growth (%) Net Interest Income Gth Net Profit Gth Margins, Costs & Efficiency (%) Spread Net Interest Margin Cost-to-Income Ratio Business Mix (%) Net Int. Inc / Opg Inc. Non-Int. Inc / Opg inc. Fee Inc / Opg Income Oth Non-Int Inc/Opg Inc Profitability (%) ROAE Pre Ex. ROAE ROA Pre Ex. ROA
2014A
2015A
2016A
2017F
2018F
2.4 4.0 4.9 2.0
3.2 (0.2) 4.7 1.8
5.7 7.2 4.5 1.5
4.1 4.1 4.5 1.6
5.2 6.1 4.5 1.6
2014A
2015A
2016A
2017F
2018F
81,100 47,109 128,209 (48,089) 80,120 (13,214) (79.0) 0.0 66,827 (13,175) (317) 0.0 53,335 53,335
82,834 54,620 137,454 (48,904) 88,550 (29,723) (89.1) 0.0 58,738 (11,498) (57.5) 0.0 47,182 47,182
88,449 44,895 133,345 (51,644) 81,701 (22,528) (10.5) 0.0 59,162 (11,493) (57.2) 0.0 47,612 47,612
92,722 45,895 138,617 (56,799) 81,818 (19,829) (16.6) 0.0 61,973 (12,395) (26.4) 0.0 49,552 49,552
97,298 47,828 145,126 (59,471) 85,655 (18,626) (16.6) 0.0 67,013 (13,403) (28.6) 0.0 53,581 53,581
11.1 6.2
2.1 (11.5)
6.8 0.9
4.8 4.1
4.9 8.1
2.9 3.3 37.5
2.9 3.2 35.6
3.0 3.3 38.7
2.9 3.2 41.0
2.9 3.2 41.0
63.3 36.7 20.5 16.2
60.3 39.7 19.7 20.0
66.3 33.7 21.3 12.4
66.9 33.1 22.1 11.0
67.0 33.0 22.2 10.8
20.1 20.1 2.1 2.1
15.9 15.9 1.7 1.7
14.8 14.8 1.7 1.7
14.2 14.2 1.7 1.7
14.0 14.0 1.7 1.7
Source: Company, DBS Vickers
ASIAN INSIGHTS
VICKERS SECURITIES Page 5
Company Guide Siam Commercial Bank
Quarterly / Interim Income Statement (Btm) FY Dec 4Q2015 1Q2016
2Q2016
3Q2016
4Q2016
Net Interest Income Non-Interest Income Operating Income Operating Expenses Pre-Provision Profit Provisions Associates Exceptionals Pretax Profit Taxation Minority Interests Net Profit
21,418 10,907 32,325 (12,769) 19,556 (4,989) (10.2) 0.0 14,557 (2,747) (14.7) 11,795
21,670 7,975 29,646 (11,541) 18,104 (5,010) (0.3) 0.0 13,094 (2,558) 9.90 10,546
21,761 15,141 36,902 (12,508) 24,394 (8,512) (3.2) 0.0 15,878 (3,018) (42.9) 12,818
22,214 11,978 34,192 (12,755) 21,437 (7,012) (2.9) 0.0 14,423 (2,872) (17.4) 11,533
22,804 9,801 32,605 (14,839) 17,766 (1,994) (4.2) 0.0 15,768 (3,045) (6.8) 12,716
Growth (%) Net Interest Income Gth Net Profit Gth
6.7 30.8
1.2 (10.6)
0.4 21.5
2.1 (10.0)
2.7 10.3
Balance Sheet (Btm) FY Dec
2014A
2015A
2016A
2017F
2018F
Cash/Bank Balance Government Securities Inter Bank Assets Total Net Loans & Advs. Investment Associates Fixed Assets Goodwill Other Assets Total Assets
42,132 6,059 291,615 1,721,935 502,111 697 33,776 0.0 101,379 2,699,703
38,979 4,545 260,943 1,773,174 536,655 344 39,988 0.0 119,681 2,774,309
40,489 0.0 257,256 1,865,819 590,587 334 40,888 0.0 117,651 2,913,023
32,521 0.0 306,073 1,942,497 590,587 334 40,888 0.0 117,651 3,030,551
50,440 0.0 358,062 2,042,586 590,587 334 40,888 0.0 117,651 3,200,548
Customer Deposits Inter Bank Deposits Debts/Borrowings Others Minorities Shareholders' Funds Total Liab& S/H’s Funds
1,895,343 140,286 135,443 242,333 966 285,332 2,699,703
1,890,729 142,937 139,995 292,956 230 307,463 2,774,309
2,026,272 100,953 127,806 323,694 209 334,089 2,913,023
2,108,547 100,953 132,144 323,694 236 364,977 3,030,551
2,237,935 100,953 137,807 323,694 264 399,895 3,200,548
Source: Company, DBS Vickers
ASIAN INSIGHTS Page 6
VICKERS SECURITIES
Company Guide Siam Commercial Bank
Financial Stability Measures (%) FY Dec Balance Sheet Structure Loan-to-Deposit Ratio Net Loans / Total Assets Investment / Total Assets Cust . Dep./Int. Bear. Liab. Interbank Dep / Int. Bear. Asset Quality NPL / Total Gross Loans NPL / Total Assets Loan Loss Reserve Coverage Provision Charge-Off Rate Capital Strength Total CAR Tier-1 CAR
2014A
2015A
2016A
2017F
2018F
90.9 63.8 18.6 87.6 6.5
93.8 63.9 19.3 87.2 6.6
92.1 64.1 20.3 90.3 4.5
92.1 64.1 19.5 90.4 4.3
91.3 63.8 18.5 90.7 4.1
2.4 1.6 138.1 0.7
3.2 2.1 109.8 1.6
2.7 2.0 134.3 1.2
2.8 1.9 143.0 1.0
2.7 1.8 148.9 0.9
15.6 12.2
17.2 14.1
17.4 14.5
18.7 15.8
18.2 15.4
Source: Company, DBS Vickers Target Price & Ratings History 173.00
Bt
10
153.00 143.00
1516
12
14
8 11 9
2
17 13
3
6 4
133.00
7
5 123.00
1
113.00 Jan-16
Mar-16
May-16
Jul-16
Sep-16
Nov-16
Jan-17
Not e : Share price and Target price are adjusted for corporate actions.
12- mt h T arget Rat ing Pric e
Dat e of Report
Closing Pric e
1:
25 J an 16
120.00
165.00
BUY
2:
29 F eb 16
138.50
165.00
BUY
3:
25 Mar 16
142.50
165.00
BUY
4:
08 Apr 16
130.00
165.00
BUY
5:
22 Apr 16
131.00
165.00
BUY
6:
26 Apr 16
133.50
165.00
BUY
7:
24 J un 16
132.00
165.00
BUY
8:
08 J ul 16
145.00
165.00
BUY
9:
21 J ul 16
149.50
165.00
BUY
10:
22 J ul 16
150.50
165.00
BUY
11: 12: 13: 14: 15: 16: 17:
25 Jul 16 30 Sep 16 25 Oct 16 08 Nov 16 10 Jan 17 20 Jan 17 23 Jan 17
152.00 148.00 145.50 145.50 157.50 150.50 150.50
165.00 165.00 165.00 167.00 167.00 167.00 167.00
BUY BUY BUY BUY BUY BUY BUY
S.No.
163.00
Source: DBS Vickers Analyst: Thaninee SATIRAREUNGCHAI, CFA THAI-CAC Corporate Governance CG Rating 2016
Certified
THAI-CAC is Companies participating in Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) under Thai Institute of Directors (as of October 28, 2016) are categorised into: Corporate Governance CG Rating is based on Thai Institute of Directors (IOD)’s annual assessment of corporate governance practices of listed companies. The assessment covers 235 criteria in five categories including board responsibilities (35% weighting), disclosure and transparency (20%), role of stakeholders (20%), equitable treatment of shareholders (10%) and rights of shareholders (15%). The IOD then assigns numbers of logos to each company based on their scoring as follows:
ASIAN INSIGHTS
Score Declared Certified Score 90-100
Description Companies that have declared their intention to join CAC Companies certified by CAC. Range Number of Logo
80-89
Description Excellent Very Good
70-79
Good
60-69
Satisfactory
50-59 <50
No logo given
Pass N/A
VICKERS SECURITIES Page 7
Company Guide Siam Commercial Bank
DBS Vickers recommendations are based an Absolute Total Return* Rating system, defined as follows: STRONG BUY (>20% total return over the next 3 months, with identifiable share price catalysts within this time frame) BUY (>15% total return over the next 12 months for small caps, >10% for large caps) HOLD (-10% to +15% total return over the next 12 months for small caps, -10% to +10% for large caps) FULLY VALUED (negative total return i.e. > -10% over the next 12 months) SELL (negative total return of > -20% over the next 3 months, with identifiable catalysts within this time frame)
Share price appreciation + dividends Completed Date: 25 Jan 2017 06:24:45 (THA) Dissemination Date: 25 Jan 2017 06:25:54 (THA) GENERAL DISCLOSURE/DISCLAIMER This report is prepared by DBS Vickers Securities (Thailand) Co, Ltd. This report is solely intended for the clients of DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd, its respective connected and associated corporations and affiliates only and no part of this document may be (i) copied, photocopied or duplicated in any form or by any means or (ii) redistributed without the prior written consent of DBS Vickers Securities (Thailand) Co, Ltd. The research set out in this report is based on information obtained from sources believed to be reliable, but we (which collectively refers to DBS Bank Ltd, its respective connected and associated corporations, affiliates and their respective directors, officers, employees and agents (collectively, the “DBS Group”)) do not make any representation or warranty as to its accuracy, completeness or correctness. Opinions expressed are subject to change without notice. This document is prepared for general circulation. Any recommendation contained in this document does not have regard to the specific investment objectives, financial situation and the particular needs of any specific addressee. This document is for the information of addressees only and is not to be taken in substitution for the exercise of judgement by addressees, who should obtain separate independent legal or financial advice. The DBS Group accepts no liability whatsoever for any direct, indirect and/or consequential loss (including any claims for loss of profit) arising from any use of and/or reliance upon this document and/or further communication given in relation to this document. This document is not to be construed as an offer or a solicitation of an offer to buy or sell any securities. The DBS Group, along with its affiliates and/or persons associated with any of them may from time to time have interests in the securities mentioned in this document. The DBS Group may have positions in, and may effect transactions in securities mentioned herein and may also perform or seek to perform broking, investment banking and other banking services for these companies. Any valuations, opinions, estimates, forecasts, ratings or risk assessments herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments. The information in this document is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the company (or companies) referred to in this report and the DBS Group is under no obligation to update the information in this report. This publication has not been reviewed or authorized by any regulatory authority in Singapore, Hong Kong or elsewhere. There is no planned schedule or frequency for updating research publication relating to any issuer. The valuations, opinions, estimates, forecasts, ratings or risk assessments described in this report were based upon a number of estimates and assumptions and are inherently subject to significant uncertainties and contingencies. It can be expected that one or more of the estimates on which the valuations, opinions, estimates, forecasts, ratings or risk assessments were based will not materialize or will vary significantly from actual results. Therefore, the inclusion of the valuations, opinions, estimates, forecasts, ratings or risk assessments described herein IS NOT TO BE RELIED UPON as a representation and/or warranty by the DBS Group (and/or any persons associated with the aforesaid entities), that: (a) (b)
such valuations, opinions, estimates, forecasts, ratings or risk assessments or their underlying assumptions will be achieved, and there is any assurance that future results or events will be consistent with any such valuations, opinions, estimates, forecasts, ratings or risk assessments stated therein.
Please contact the primary analyst for valuation methodologies and assumptions associated with the covered companies or price targets. Any assumptions made in this report that refers to commodities, are for the purposes of making forecasts for the company (or companies) mentioned herein. They are not to be construed as recommendations to trade in the physical commodity or in the futures contract relating to the commodity referred to in this report. DBS Vickers Securities (USA) Inc ("DBSVUSA")"), a U.S.-registered broker-dealer, does not have its own investment banking or research department, has not participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months and does not engage in market-making.
ASIAN INSIGHTS Page 8
VICKERS SECURITIES
Company Guide Siam Commercial Bank
ANALYST CERTIFICATION The research analyst(s) primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views. The analyst(s) also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in the report. The DBS Group has procedures in place to eliminate, avoid and manage any potential conflicts of interests that may arise in connection with the production of research reports. As of 25 Jan 2017, the analyst(s) and his/her spouse and/or relatives who are financially dependent on the analyst(s), do not hold interests in the securities recommended in this report (“interest” includes direct or indirect ownership of securities). The research analyst(s) responsible for this report operates as part of a separate and independent team to the investment banking function of the DBS Group and procedures are in place to ensure that confidential information held by either the research or investment banking function is handled appropriately. COMPANY-SPECIFIC / REGULATORY DISCLOSURES 1. DBS Vickers Securities (Thailand) Co, Ltd and its subsidiaries do not have a proprietary position in the securities recommended in this report as of 24 Jan 2017. Compensation for investment banking services: 2.
DBSVUSA does not have its own investment banking or research department, nor has it participated in any public offering of securities as a manager or co-manager or in any other investment banking transaction in the past twelve months. Any US persons wishing to obtain further information, including any clarification on disclosures in this disclaimer, or to effect a transaction in any security discussed in this document should contact DBSVUSA exclusively.
Disclosure of previous investment recommendation produced: 3.
DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates may have published other investment recommendations in respect of the same securities / instruments recommended in this research report during the preceding 12 months. Please contact the primary analyst listed in the first page of this report to view previous investment recommendations published by DBS Bank Ltd, DBS Vickers Securities (Singapore) Pte Ltd (''DBSVS''), their subsidiaries and/or other affiliates in the preceding 12 months.
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ASIAN INSIGHTS
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Company Guide Siam Commercial Bank
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VICKERS SECURITIES