Verdict: DRAW
My Recommendation: Avoid/Sell.
Due to strong headwinds facing these two banks;-
1. Shrinking interest rate spreads
2. Impairments which might result in deterioration of asset quality
3. Weak capital ratio’s which require some form of strengthening via capital calls i.e. debts, rights issues, bonds, retained earnings (sacrifice dividends) etc. otherwise lack of adequate capital will curtail growth at the two banks this year.
Read the entire report on this link
http://contrarianinvesti...tb-whos-hot-and-whos-not