ASL Securities said KTB reported net profit of 12.1 billion baht for 2069, up 9% year-on-year, even though net interest income fell 13.5% year-on-year and net interest margin dropped to 2.45%. The decline was offset by fee income that grew 10.3% year-on-year on wealth management and credit card fees, along with cost controls and the effect of lower NPA impairment losses, which brought the cost-to-income ratio down to 38.9% from 42.3% a year earlier. Expected credit losses fell 19.6% year-on-year, putting credit cost at 0.95% for the period on improved asset quality. The NPL ratio eased to 2.92%, lifting the coverage ratio to 205%. Total loans grew 3.6% year-to-date and 5.1% year-on-year, above the 0-2% target, led by government and state enterprise loans, which rose 12.9% year-to-date. Net fee income in the second quarter of 2026 rose 10.3% year-on-year to 6.1 billion baht, driven by growth in wealth management through digital channels, product innovation, and distribution. The research team raised its net profit forecast for this year to 47.7 billion baht, down 1% year-on-year, and maintained its buy recommendation with a target price of 50 baht, based on a price-to-book value of 144 times. It expects the bank to sustain a dividend yield of about 6% over the next three years. KTB announced an interim dividend for the first half of 2026 of 0.48 baht per share, a dividend yield of about 1.1%, above the previous estimate of 0.43 baht per share. The ex-dividend date is September 22, 2026, and payment is on October 8, 2026.
Krung Thai Bank Public Company LimitedASL Securities raised its net profit forecast and maintained a buy rating with a 50 baht target price on KTB's strong earnings, fee income growth, and improved asset quality.
