Earnings Report /
Thailand

Next Capital: Deep miss! LLPs were heavier than assumed

  • Earnings were 85% below our expectation

  • NCAP posted a 2Q22 profit of Bt13m

  • Lending jumped by 71.2% YoY and 12.8% QoQ for the quarter

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
10 August 2022

Even though we assume strong 2022 loan growth of 35% YoY, we now have a SELL call on NCAP, as we have a sharply diminished expectation for earnings, due to heavier LLPs, brought on by deteriorating asset quality.

Earnings were 85% below our expectation

NCAP posted a 2Q22 profit of Bt13m, down by 81.6% YoY and 79.3% QoQ. The result was 85% below our projection, due to heavier LLPs than expected. 1H22 earnings comprise just 20% of our old full-year forecast of Bt383m.