Kasikornbank Public Company Limited (SET: KBANK) reported a net profit of THB 12.7 billion for 3Q26, down 2% year-on-year and 4% quarter-on-quarter, surpassing analysts’ expectations. The outperformance was attributed to higher investment-related income and disciplined cost management, while nine-month normalized earnings reached 78% of the full-year forecast.
Kiatnakin Phatra Securities (KKPS) maintains its estimate for KBANK, expecting a softer performance in 4Q26 due to seasonally higher expenses. The bank has kept its capital management framework steady, and KKPS reiterates a ‘Buy’ recommendation with a target price of THB 270 per share.
Loan growth has remained healthy, rising 3.7% year-to-date, supported by robust corporate and quality housing loans. Net interest margins held steady, while non-performing loans increased 1% quarter-on-quarter, bringing the NPL ratio to 3.6%. NPL formation improved to 1.2%, down from 1.6% in the previous quarter. KBANK continued to bolster its provisioning buffers with a credit cost of 1.6%, and expects limited asset quality impact from recent flooding.
Net fee income rose 5% year-on-year, but declined 5% quarter-on-quarter, as the Bank of Thailand’s standardized fee structure weighed on growth. KBANK expects continued fee pressure in the final quarter, though recurring fees from wealth management and digital payments should provide support, according to the brokerage.
Despite a drop in mark-to-market gains, nine-month fee income was up 16% year-on-year, positioning KBANK to surpass its growth target.
Operating expenses remained under control with a cost-to-income ratio of 42%, even as non-interest income dipped. Marketing expenditures are set to rise in the next quarter, while IT investments are ongoing.
