Land and Houses Securities (LHS) stated that Kasikornbank Public Company Limited (SET: KBANK) reported an increase in net profit in 3Q24 of 6.1% compared to the same period last year, mainly attributed to non-interest income from businesses in the capital market, along with a reduction in provisions that bolstered the bank’s profit by 15.4% during the first nine months of 2024 compared to the same period last year.
Meanwhile, the analyst retained nearly all segments within KBANK’s 2024 full-year target, with the exceptions being credit growth due to stringent approval processes by the bank, and the year-end goal of cleaning up the balance sheet.
LHS further forecasted that KBANK would establish provisions ranging from 140 to 160 basis points of average credit in 2025, along with achieving a double-digit Return on Equity (ROE) in 2026.
The analyst predicted an improved outlook for the 2024 full year projection, foreseeing a growth rate of 12%, while also anticipating that the bank will provide a more substantial dividend payment, estimated at around 5.5%, to achieve its goal by enhancing Long-Term ROE.
LHS gave a ‘BUY’ recommendation for KBANK, with a target price of THB 174 per share.
