Krungsri Securities (KSS) has expressed a positive outlook on Muangthai Capital Public Company Limited (SET: MTC) following the company’s solid performance in the fourth quarter of 2025.
The standout factor this quarter was MTC’s improved asset quality driven by effective debt collection, resulting in a 2% quarter-on-quarter decline in gross non-performing loans (NPLs) and bringing the NPL ratio down to 2.53% from 2.60% in the previous quarter. Additionally, credit costs improved, dropping by 10 basis points QoQ.
MTC posted a 4Q25 net profit of THB 1,781 million, rising 15% year-on-year and up 3% QoQ, in line with both KSS’ estimates and the market consensus. This strong performance was primarily supported by total loan growth of 2% QoQ and 12% year-to-date. The increase in profitability was also underpinned by an 11% YoY and 2% QoQ rise in net interest income (NII), driven by robust expansion of MTC’s secured loan portfolio and branch network, now totaling 8,673 locations.
Non-interest income (Non-NII) improved by 6% QoQ on the back of higher other income, while expected credit loss (ECL) softened by 2% QoQ due to enhanced debt collection efficiency. Full-year net profit for 2025 climbed to THB 6,723 million, marking a 15% YoY increase, supported by higher NII and reduced ECL. The company also declared a 2025 dividend of THB 0.29 per share, with an ex-dividend date set for April 28, 2026, and payment date scheduled on 15 May 2026.
Looking ahead, KSS forecasts MTC’s net profit to grow by another 10% YoY in 2026. This is anticipated to be driven by sustained NII increases, ongoing loan growth — especially with MTC’s continued focus on expanding into lower-risk borrower segments — and improving funding costs as policy rates are expected to decline from the current 1.25% to 1%.
KSS reaffirms its BUY recommendation on MTC with a 2026 target price of THB 58, citing a combination of strong asset quality management, continued improvement in debt collection, and favorable interest rate trends.
MTC remains KSS’s top pick in the Consumer Finance sector, alongside Krungthai Card Public Company Limited (SET: KTC), which is also rated BUY with a 2026 target price of THB 42. The outlook anticipates a positive tailwind from the easing monetary policy and projects earnings to achieve a new all-time high in 2026.
