Land and Houses Securities (LHS) predicts that Krungthai Card Public Company Limited (SET: KTC) will maintain its upward profit trajectory in the fourth quarter of 2024, with a projected 2.4% increase in the 2024 full-year profit compared to the previous year. The analyst suggests that despite facing a tough economic environment, KTC’s ability to reach a new record profit level is commendable.
Looking ahead to 2025, KTC is targeting a continuation of its record-breaking profit run, with expectations for a net profit that surpasses 2024 levels. The growth is expected to be bolstered by a 4-5% expansion in the credit portfolio, a 10% upsurge in credit card disbursements, a 3% increase in the personal credit portfolio, and the addition of the ‘KTC P-Berm’ credit amounting to THB 3,000 million, based on non-performing loans (NPL) ratio less than 2%.
In addition, the company’s operating expenses are expected to increase next year due to expanded activities and IT system development costs, which is anticipated to push up the cost-to-income ratio beyond this year’s level, though it is foreseen to stay under 40%.
KTC will have the potential to sustain its record profits through the growing loan portfolio, particularly in an economy poised for recovery. The decline in interest rates is expected to mitigate the impact of the anticipated upsurge in operating costs.
As a result, LHS maintains a ‘BUY’ recommendation for KTC, setting a target price of THB 51 per share.
