Credit Bureau Asia - CGS-CIMB Research 2022-06-12: Digital Banks Kick Off New Revenue Stream

Credit Bureau Asia - Digital Banks Kick Off New Revenue Stream

CREDIT BUREAU ASIA LIMITED (SGX:TCU) | SGinvestors.ioCREDIT BUREAU ASIA LIMITED (SGX:TCU)
  • Two of the four digital banking licence awardees in Singapore (Green Link Digital Bank [GLDB] by Greenland Financial’s consortium and ANEXT Bank by Ant Group) launched their digital wholesale banking (DWB) businesses in the past week. Including the two digital full banks (DFBs, Grab and SingTel (SGX:Z74)’s GXS Bank and Sea Limited’s digital bank) and Trust Bank (rebranded from SC Digital Bank), Credit Bureau Singapore’s (CBS) count of bureau members will rise to 36 once these banks are approved to commence operations by the Monetary Authority of Singapore.
  • As Credit Bureau Singapore drives the lion’s share of Credit Bureau Asia (SGX:TCU)’s revenues (~44% of FY21 revenue), additional bureau members offer scope for incremental revenue contribution based on the volume of credit enquiries from these banks and portfolio risk reviews the banks undertake.
  • We think that DFBs could add at least ~3-6% in incremental revenue by end-FY26F depending on the banks’ ramp-up. DWBs will augment this further.
  • Reiterate ADD call on Credit Bureau Asia. Growth prospects abound, though earnings accretion may take time. Meanwhile, ASEAN border reopenings will support growth.




Above is the excerpt from research report by CGS-CIMB.
Clients of CGS-CIMB may access the full report in PDF @ https://www.itradecimb.com.sg/.




Andrea CHOONG CGS-CIMB Research | https://www.cgs-cimb.com 2022-06-12
SGX Stock Analyst Report ADD MAINTAIN ADD 1.200 SAME 1.200




Read also CGS-CIMB's most recent report:
2022-08-09 Credit Bureau Asia - Steady Growth

Relevant links:
Credit Bureau Asia Analyst Report,
Credit Bureau Asia Target Price,

Credit Bureau Asia Share Price History,
Credit Bureau Asia Announcements,
Credit Bureau Asia Dividends/ Corp Actions,
Credit Bureau Asia News Articles





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