CSB Bank Q1 Review - Temporary Blip In Asset Quality: Dolat Capital
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Dolat Capital Report
CSB Bank Ltd. reported healthy operating metrics with net interest income and pre provision operating profit growing by 45% and 39% YoY led by net interest margin expansion and controlled opex.
Core pre provision operating profit/assets at 2.8% were at its highest in the last several quarters.
However, asset quality deteriorated with sharp rise in sequential gross non performing assets by 220 basis points to 4.88% with elevated quarterly slippages at 12%.
With over three-fourth of delinquencies from the gold book, CSB Bank's management expects significant recoveries over the next two quarters and maintained its full year credit cost guidance of ~1%.
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