By DLM Research
With new management team and strong geographical diversification, FBNH has made some headway over recent quarters to improve its profitability, asset quality and capital level. It has reported improved financial results even though capital level is still low compared to its peers.
Nevertheless, we believe that FBNH’s exposure to non-performing assets is still sizable and a further reduction of this legacy issue is key to achieving higher profitability. We believe that a further rise in price is possible due to higher profitability in the coming years, as the bank continues to fix its balance sheet and focus on creating value for shareholders.