We have a BUY call on KTB, premised on loan growth in 2023 (driven by corporate and retail business) and higher NII (bancassurance sales, loan-related fee income, and other revenue). Our 2023 earnings forecast upsizes 4% to Bt35.8bn (up 6.5% YoY), as we now have an expanded expectation for non-NII. And we expect KTB to pay a good dividend for 2023 of 4.6%. Our investment horizon rolls over to YE23 with a new target price of Bt19, pegged to a PBV of 0.63x.
Result was 15% above our expectation
KTB posted 3Q22 earnings of Bt8.5bn, up by 67.2% YoY and 1.1% QoQ. The result was 15% above our projection (and 14% ahead the Bloomberg consensus). Pre-provision operating profit came to Bt17.2bn, up by 13% YoY and 2% QoQ. 9M22 earnings comprise 80% of our old full-year forecast of Bt31.9bn.