Earnings Report /
Thailand

Kiatnakin Bank PCL: Big beat! Lighter LLPs

  • Result was 20% above our expectation

  • KKP posted 2Q22 earnings of Bt2.0bn

  • Lending increased 2.9% QoQ for the quarter

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Follow
Bualuang Securities
21 July 2022

Our BUY call is premised on loan growth (driven by the corporate and retail portfolios), lighter LLPs, and a high dividend yield of 7.5% for this year. Moreover, 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 20% above our expectation

KKP posted 2Q22 earnings of Bt2.0bn, up 50% YoY but down 1% QoQ. The result beat our projection by 20% (and the Bloomberg consensus by 10%), due to lighter LLPs than expected (we had assumed LLPs of Bt1.2bn; the bank set Bt812m in provisions). The 1H22 profit comprises 57.5% of our old full-year forecast of Bt7.1bn.