Earnings Report /
Thailand

Kasikornbank PCL: Profit in line with our estimate

  • Result was in line our expectation

  • KBANK posted 3Q22 earnings of Bt10.5bn

  • Gross loans were down 1.0% QoQ as of end-Sep 2022

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
25 October 2022

Our BUY call is premised on loan growth in 2023 (driven by corporate and retail business), a slightly fatter NIM (supported by high-yield lending business expansion and higher interest rates), and higher NII (led by bancassurance sales commissions and brokerage fees). We project 2023 earnings of Bt48.9bn, up 15% YoY. And we expect KBANK to pay a generous dividend for 2023 of 3.4%. Our investment horizon rolls over to YE23 with a new target price of Bt185, pegged to a PBV of 0.71x.

Result was in line our expectation

KBANK posted 3Q22 earnings of Bt10.5bn, up 22.5% YoY but down 2.0% QoQ. The result was in line with our projection (and the Bloomberg consensus). Pre-provision operating profit came to Bt23.5bn, up 4% YoY but flattish QoQ. 9M22 earnings comprise 77% of our full-year forecast of Bt42.6bn.