We forecast a 2022 Bank coverage aggregate profit (eight banks) of Bt198.8bn, up 11% YoY. The drivers are lighter LLPs and lending expansion. KKP, KBANK, and BBL are projected to achieve the strongest 2022 loan growth. We have an OVERWEIGHT sector call. BBL and KKP are our top picks.
BBL, KKP, and TTB topped lending growth for April
Our Bank coverage’s (seven banks excluding SCB) aggregate net-lending for April rose by 0.3% MoM (versus mean growth of 0.7% MoM for the past five years) and 1.1% YTD, supported by loan drawdowns at several big banks. BBL, KKP, and TTB posted the strongest MoM net-lending increases of 1.1%, 1.1%, and 0.4%, respectively, while KBANK and KTB marked MoM growth of 0.3%, and 0.0%, respectively. In contrast, BAY and TISCO reported MoM net-loan contractions of 0.5% and 0.4%, respectively.