Earnings Report /
Thailand

Krung Thai Bank PCL: Profit beat; lighter LLPs than modeled

  • Profit was significantly above our expectation

  • KTB posted 3Q21 earnings of Bt5.1bn

  • 3Q21 lending increased 3.0% QoQ

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
21 October 2021

Our BUY call is premised on loan growth (driven by SOE and corporate business) and lighter LLPs (we assume a credit cost peg of 1.3%, down substantially from 1.9% for 2020). Moreover, there could be upside to our NPAT projection if KTB’s OPEX were to be lighter than our current assumption.

Profit was significantly above our expectation

KTB posted 3Q21 earnings of Bt5.1bn, up 65% YoY but down 16% QoQ. The result was 14% above our projection (but 11% below of the Bloomberg consensus), due to much lighter LLPs than assumed. Pre-provision operating profit came to Bt15.2bn, down by 8% YoY and 7% QoQ. Earnings for 9M21 comprise 80.1% of our old full-year forecast of Bt20.8bn.