Our BUY call is premised on loan growth (retail and corporate business), a fatter NIM, and lighter LLPs. We expect the bank to mark lending expansion through 2H22 and achieve our 2022 loan growth target of 3.0% YoY (despite only 0.2% YTD loan growth as of end-June).
Result was far above our expectation
KTB posted 2Q22 earnings of Bt8.4bn, up 39% YoY but down 5% QoQ. The result was 43% above our projection (and 29% ahead of the Bloomberg consensus), due to lighter LLPs and OPEX than assumed. Pre-provision operating profit came to Bt16.9bn, up 4% YoY but down 3% QoQ. 1H22 earnings comprise 65% of our old full-year forecast of Bt26.1bn.