Bank Forum Posted 4Q Financials
OREANDA-NEWS. January 24,
Millennium Capital views the results as NEGATIVE in the short-term but find some positive implications for earnings post 2011. Despite a depressed picture of the bottom line exacerbated by the loan portfolio contraction along with higher NPLs (~50% vs 40% in 3Q10), Millennium Capital assumes a positive stance on the current provisioning policy of the bank since an accelerated cleanup of the balance sheet should improve the near-term profit outlook for FORM, while FY2010 results would have been terrible anyway. Millennium Capital attributes a sizeable increase in opex to restructuring related costs and therefore perceive it as a one-off loss, but still believe it should impact the stock negatively in the ST.
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