Equity Analysis /

Muangthai Capital PCL: Size DOES matter for the mid-term

  • Ongoing loan growth is the driver

  • NPLs/loans ratio likely to rise further in 2023

  • Slimmer NIM, but flattish cost/income ratio assumed for 2023

Poramet Tongbua
Poramet Tongbua

Equity Research Analyst

Bualuang Securities
19 January 2023

MTC executives spoke at our Thai Corporate Day last week. We expect the lender to unbanked markets to continue building business and earnings through sales-point expansion (its strategic focus).

Ongoing loan growth is the driver

Following impressive lending expansion of 25% YTD as of end-Sep 2022, we expect MTC to build its loan portfolio further—YoY growth of 29% for 2022 and 16% for 2023 (our assumptions are lower than MTC’s targets of 30-35% for 2022 and 20% for 2023)—enabled by new sales points. The finco targets adding about 600 sales points annually, 2023-25. It intends to build its loan portfolio to Bt200bn within a couple of years.