Date: 24 October 2024
Broker: UOB Kay Hian

Overview

Kiatnakin Phatra Bank (KKP) reported a net profit of Bt1.3 billion for the third quarter of 2024, which represents a 2% increase year-on-year and a significant 70% increase quarter-on-quarter. The results were well above UOB Kay Hian’s and consensus expectations by 63% and 42%, respectively.

Financial Performance

• Net Profit: Bt1.3 billion
• Year-on-Year Change: +2%
• Quarter-on-Quarter Change: +70%
• PPOP: Declined by 28% year-on-year and 17% quarter-on-quarter, reflecting lower provision expenses.

Key Drivers of Performance

The substantial quarter-on-quarter increase in KKP’s profit can be attributed to a significant drop in provision expenses. This reflects the bank’s effective management of credit risks and operational costs.

Share Repurchase Program

KKP has repurchased 11 million shares, which represents 50% of its total planned repurchase. The shares were acquired at prices ranging from Bt45.00 to Bt50.00. Analysts anticipate that KKP’s share price will remain above Bt49.00, supported by the remaining 50% of the share repurchase program scheduled until 28 November 2024.

Outlook

KKP’s strong performance, bolstered by effective credit cost management and proactive share repurchase strategies, positions the bank favorably for future growth.

Conclusion

KKP stands out in the Thai banking sector with impressive profit growth and strategic initiatives that enhance its financial stability and shareholder value.