In 2022, investors have shown a certain apathy towards GTCO, which has experienced a material YTD decline of 17.3%. This apathy appeared to have worsened after the release of its relatively weak Q1'22 financials compared to its peers. Even though the drivers differed, the first-quarter weakness represented an extension of the PAT contraction reported in FY'21. However, in our view, the bank may experience a turnaround on the potential impact of higher yields in the coming quarters. This projected recovery and the competitive profitability and capital ratios support an unchanged BUY recommendation on the ticker.

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