Even strong profit results posted by most top lenders especially our favorite ABC – Agriculture Bank of China. ABC profits surged 15% to RMB 45 billions. However Non performing loan increases close to 3% as well.
We will keep an eye on the development but the current valuation at merely 6 times of its earning ratio around RMB 3.7 closing yesterday is still very low compare to local and regional banks.
For lenders beside of both Affin and RHBCap that may invite our interest. If we were to put money further in lender we will still like ABC.