Financials
March 06, 2014
Raiffeisen Bank Aval reported a net profit of UAH 730mn (USD90mn) for FY13, implying a return on equity of 10.3%. The bank’s P/E ratio for 2014E currently stands at 4.7x, while its P/Book ratio is at 0.6x, compared to corresponding median multiples of 10.4x and 1.1x for a selected international peer group. In our opinion, this demonstrates that Raiffeisen Aval is a clearly undervalued story in the Ukrainian stock universe. Additionally, we note that less than two months ago, Italian lender Intesa Sanpaulo sold its Ukrainian subsidiary Pravex Bank at a valuation of P/B 0.9x. With this note, we set a BUY recommendation for the BAVL stock with a target price of UAH 0.24, implying an upside of 53%.
