Earnings Report /
Thailand

Kiatnakin Bank PCL: Profit much lower than expected! Heavier LLPs than assumed

  • Result was 29% below our expectation

  • KKP posted a 4Q22 profit of Bt1.43bn

  • Lending expanded 3.5% QoQ in the quarter

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
23 January 2023

KKP’s bottom-line will expand YoY through 2023, we believe, driven by lending and non-NII growth. We expect a generous dividend for 2023 of 6.8%. BUY!

Result was 29% below our expectation

KKP posted a 4Q22 profit of Bt1.43bn, down by 29.3% YoY and 31.4% QoQ. The result missed our estimate by 29% (and the Bloomberg consensus by 25%), due to heavier LLPs than expected (we had assumed LLPs of Bt1.4bn; the bank reported Bt2.1bn). 2022 earnings comprise only 93% of our full-year forecast of Bt8.2bn.