CLSA has delivered insights on the recent performance of two major Thai banks: TMBThanachart Bank (SET: TTB) and Kiatnakin Phatra Bank (SET: KKP), which posted surprising quarterly results, reflecting unexpected gains.
For TMBThanachart Bank (TTB), the 4Q24 net profit of THB5.1 billion aligned with market expectations. Despite the positive results from lower expected credit loss (ECL) and improved financial instruments from fair value through profit or loss (FVTPL) gains, the bank is expected to continue a cautious approach in 2025.
CLSA has adjusted its 2025-2026 net profit estimates up by approximately 6%, acknowledging improved net interest margin (NIM) and a lower cost-to-income ratio due to enhanced operational efficiency. Consequently, the target price has been raised from THB1.75 to THB1.90, while maintaining a Hold rating.
Kiatnakin Phatra Bank (KKP) reported a 4Q24 net profit of THB1.4 billion, surpassing analyst expectations with an 8% QoQ and a remarkable 110% YoY increase. This performance was driven by well-managed asset quality leading to lower credit costs and strong non-interest income growth from financial instruments measured at FVTPL.
However, while the loss on sales from repossessed cars has slightly decreased QoQ, it still indicates a need for ongoing monitoring. CLSA continues to recommend a Hold on KKP, maintaining the target price at THB48.00.
