On Thursday, the share price of Krung Thai Bank Public Company Limited (SET: KTB) at the time of 11.37 a.m. was at THB 29, a THB 1.25 or 4.5% increase with a total trading value of THB 2,262.72 million.
Daol Securities (Thailand) stated that KTB reported operating results for 4Q25, with a net profit of THB 10.8 billion, down 2% year-on-year and down 26% quarter-on-quarter, in line with market and analyst expectations.
A key factor was operating expenses (OPEX), which were lower than expected at THB 15.5 billion, below analysts’ estimate of THB 16.5 billion—a decrease of 11% year-on-year and an increase of 4% quarter-on-quarter. This was mainly due to asset management expenses returning to normal. Meanwhile, investment gains were lower than anticipated at THB 348 million, compared to the forecast of THB 1 billion, owing to a shift in bond yield.
Net fee income was as expected at THB 6.1 billion, up 5% year-on-year and quarter-on-quarter, supported by wealth management business. Allowance for expected credit loss (ECL) expenses declined as expected to THB 7.1 billion, up 6% year-on-year and down 2% quarter-on-quarter. Total loans grew by 0.5% year-on-year and increased by 4.6% quarter-on-quarter, mainly driven by public sector lending.
Regarding asset quality, the non-performing loan (NPL) ratio increased slightly to 2.90% from 2.88% in the previous quarter. There were THB 5.5 billion in write-offs this quarter, up from THB 1.6 billion last quarter. However, the bank maintains a high coverage ratio for non-performing loans at 204%.
Daol maintains a net profit forecast for 2026 at THB 46 billion, down 4% year-on-year, reflecting continued narrowing net interest margin (NIM). The recommendation remains “BUY” for KTB with a target price of THB 30, based on the 2026 book value at a price-to-book value (PBV) ratio of 0.85x—below the ten-year average by -0.25 standard deviation.
