Earnings Report /
Thailand

Krungthai Card PCL: Profit was 9% above our expectation

  • Earnings beat our estimate by 9%

  • KTC posted a 2Q22 profit of Bt1.9bn

  • Gross loans were up 5.4% QoQ at end-June 2022

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

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Bualuang Securities
22 July 2022

We expect KTC’s marketing & advertising spend to increase in 2022. In the post-COVID lockdown era, consumer confidence and spending should rise. Furthermore, we anticipate that KTC’s title loans-for-motorbikes and four-wheeled vehicles portfolio will become a new growth driver this year. Hence, our model points to 2022 earnings expanding 22% YoY. BUY!

Earnings beat our estimate by 9%

KTC posted a 2Q22 profit of Bt1.9bn, up by 13% YoY and 8% QoQ. The result was 9% above our projection (but was in line with the Bloomberg consensus), led by higher non-NII and lighter LLPs (including the reversal of bad debts). Pre-provision operating profit was Bt2.6bn, up by 5% YoY and 8% QoQ. 1H22 earnings comprise 51% of our full-year projection of Bt7.2bn.