Date: 24 October 2024
Broker: UOB Kay Hian

Overview

Kasikorn Bank (KBANK) reported a net profit of Bt12 billion for the third quarter of 2024, representing a 6% year-on-year increase but a 5% decrease compared to the previous quarter. The results were in line with both UOB Kay Hian’s and market expectations.

Financial Performance

• Net Profit: Bt12 billion
• Year-on-Year Change: +6%
• Quarter-on-Quarter Change: -5%
• PPOP: Flat year-on-year but down 5% quarter-on-quarter.
• Provisions: KBANK set aside provisions of Bt11.7 billion, stabilizing from the previous quarter.
• Credit Cost: Reported at 188 basis points, consistent with the previous quarter.

Outlook

KBANK indicated that the cleanup process of its balance sheet will conclude by the end of 2024. Additionally, the bank expects its credit costs to normalize to a range of 140-160 basis points in 2025, signaling a positive outlook for its asset quality.

Key Points

• The bank is committed to maintaining a cautious lending policy moving into 2025 due to the uneven economic recovery outlook.
• KBANK’s performance reflects resilience amid pressures from changing economic conditions and a cautious approach to lending.

Conclusion

KBANK remains a strong contender in the Thai banking sector, demonstrating stable financial performance and a commitment to improving credit quality as it navigates a challenging economic environment.