Profit Takers Plunge BFIT by 5.5% after a 46% Gain in 5 Days
Profit Takers Plunge BFIT by 5.5% after Gaining 46% in 5 Days and Reporting Lower 1Q Earnings.
The share price of Srisawad Finance Public Company Limited (BFIT) fell ฿2.50/share or 5.43% to ฿43.50/share as of 10:13 local time in Thailand on April 22, 2021 after a series of gain in the last few days, and a report of lower earnings in 1Q21 last night.
BFIT gained a total of 46% within the last five days after the speculation from investors of joining the Government Saving Bank (GSB) to initiate a home loan business with a low-interest rate at 15%, compared to other operators at 20-30%.
However, GSB came out and stated that the bank has yet to negotiate with any companies, including BFIT, but admitted that the bank has a concept to expand to low-interest rate home loans.
BFIT reported a net profit of 303 million baht in 1Q21, decreased 18.19% from a net profit of 371 million baht in 1Q20, mainly due to a decrease of net interest income by 336.98 million baht, largely from a decline in loans to customers.
Meanwhile, fee income relating to loans to customers dropped by 12.84 million baht due to the revised guidelines of the Bank of Thailand regarding interest rates and fees.
Nevertheless, the company recorded a decrease in expected credit losses by 159.81 million baht.