Earnings Report /
Thailand

Kiatnakin Bank PCL: Big beat! High non-NII

  • Result was far above our expectation

  • KKP posted 1Q22 earnings of Bt2.1bn

  • The 1Q22 profit comprises 29.7% of our old full-year forecast of Bt6.9bn

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
20 April 2022

Our BUY call is premised on loan growth (driven by the corporate and retail portfolios), lighter LLPs, ongoing non-NII expansion (led by stronger brokerage, wealth, and retail biz fee income), and a high dividend yield of 4.7% for this year. Because we have raised our 2022 profit forecast, our YE22 target price increases from Bt78 to Bt80, pegged to a PBV of 1.22x (KKP’s long-term mean is 1.1x). There would be scope for upside to our earnings projection if KKP were to set lighter LLPs and/or achieve stronger loan growth than we currently assume.

Result was far above our expectation

KKP posted 1Q22 earnings of Bt2.1bn, up by 41% YoY and 2% QoQ. The result beat our projection by 30% (and the Bloomberg consensus by 20%), due to substantially higher non-NII than expected (we had assumed non-NII of Bt1.8bn; the bank reported Bt2.2bn). The 1Q22 profit comprises 29.7% of our old full-year forecast of Bt6.9bn.