Kasikorn Securities maintains a positive view on Kiatnakin Phatra Bank Public Company Limited (SET: KKP) following its recent analyst meeting, citing several upward revisions to the bank’s 2026 targets and ongoing business improvements.
Management has revised three key targets for 2026:
- Reducing the credit cost target to 1.3-1.5% (from 1.6-1.8%), backed by improved asset quality, with credit cost reported at 1.46% in 1H26.
- Increasing the loan spread forecast to 4.5-4.6% (from 4.3-4.4%), with the loan spread already reaching 4.6% in the first half of 2026.
- Raising ROAE (comprehensive income) guidance to 12-13% from 10-11%.
In the second quarter of 2026, KKP has accelerated the write-off process for its SME portfolio pending claims from the Thai Credit Guarantee Corporation (TCG), impacting provisions by approximately THB 500 million. However, Kasikorn Securities expects this effect to dissipate in the second half of the year.
KKP will focus on tighter operating expense (Opex) control in 2H26, and the cost-to-income ratio is projected to gradually decline further.
The Dime business continues to show growth, with a long-term target of four million customers, up from the current two million. KKP is also expanding its financial product offerings, such as an international-use Dime card and additional digital asset classes planned for next year.
The bank also sees opportunities in new service areas, including prime brokerage offering comprehensive investment services and leverage and securities borrowing/lending (SBL) services. There is room for further capital management, with added capital from ESOPs enhancing flexibility.
Kasikorn Securities remains optimistic about KKP’s profit outlook in 2H26, expecting positive impact from lower credit costs, ongoing fee income growth, effective expense control, and steady net interest income (NII). The firm maintains its “Buy” recommendation and is in the process of updating its earnings forecast.
