On Wednesday at 11:19 AM (Bangkok time), the share price of Krungthai Card Public Company Limited (SET: KTC) expanded by 1.75% or THB 0.50 to THB 29.00, with a trading value of THB 225.61 million.
Krungsri Securities (KSS) has reiterated its ‘Buy’ recommendation for KTC, with a target price of THB 42 per share. The company’s net profit for the first quarter of 2026 is expected to reach approximately THB 2 billion, representing an increase of 8% compared to the same period last year, although marking a 4% decline from the previous quarter.
This suggests a recovery that remains uneven amid continued pressure from a challenging economic environment and seasonal variations in consumer spending.
The year-on-year earnings growth is mainly attributed to a decrease in funding costs, in line with policy rate trends, which has allowed KTC’s net interest margin (NIM) to remain robust. Additionally, the provision expense for expected credit losses (ECL) is anticipated to decline due to fewer bad debt write-offs compared to the prior year.
Non-performing loans (NPL) are projected to edge up to 1.90%, rising from 1.79% in the previous quarter but remaining at a manageable level. KTC’s coverage ratio stands at approximately 416%, considered high relative to industry peers, underscoring the company’s solid financial position.
Looking ahead, KSS expects KTC’s net profit in the second quarter of 2026 to improve on a year-over-year basis. Full-year net profit for 2026 is anticipated to reach a record THB 7.98 billion, signalling stable growth. While the expansion is not accelerating, the company continues to demonstrate sustained earnings strength.
KTC’s dividend policy also remains a key attraction. The company is expected to pay a dividend of THB 1.77 per share for 2025 results, equating to a yield of roughly 6%, while the stock will go ex-dividend (XD) on April 10, 2026.
Previously, CEO Pittaya Vorapanyasakul indicated during the company’s Opportunity Day event that KTC is targeting net profit growth above the 2025 figure of THB 7.78 billion, with quality-driven growth alongside prudent risk management.
For 2026, KTC expects overall loan portfolio growth in the range of 1–2%, with NPLs controlled below 2%. Credit card spending volume is projected to expand by around 5%, and personal loan portfolio growth is targeted at 2%, aligning with the steady, gradual recovery of the broader economy.
