Equity Analysis /
Thailand

TH : Kasikornbank - Improving credit quality visibility

    CGS-CIMB
    21 January 2021
    Published byCGS-CIMB

    We remain cautious on FY21F net profit – a modest 3% growth – given the economic uncertainty, with PPOP recovery driven by a stabilising NIM. FY20 net profit made up 125% of our forecast, as 4Q20 far exceeded our expectations from limited provisioning due to sufficient reserves set in 9M20. KBANK remains an Add as we think its 2H21F turnaround amid a gradual economic recovery is not fully priced in. KBANK remains our sector top pick.