JPMorgan has reaffirmed Kasikornbank Public Company Limited (SET: KBANK) as its top pick among ASEAN banks, giving an ‘Overweight’ rating and upgrading the target price to THB 300, suggesting a potential 23% upside from the current price of THB 243.
The brokerage anticipates that the next phase of KBANK’s share price gains will be propelled by robust earnings growth instead of relying on dividend payouts alone.
Key drivers include a projected annual loan growth of 4.9% for the period 2026–2028, a sharp turnaround from the annual decline of 0.7% recorded between 2022 and 2025. JPMorgan notes the potential for improved net interest margins should the Bank of Thailand raise interest rates, highlighting KBANK’s strong 82.7% CASA ratio.
Credit costs are expected to drop from 160 basis points in 2026 to 130 basis points in 2027, and further to 100 basis points in 2028, enhancing overall profitability. Earnings per share are forecast to rise 12% in 2027 and 20% in 2028.
Despite these improvements, KBANK remains attractively valued, trading at approximately 10 times 2027 earnings and a price-to-book ratio between 0.9 and 1 times. Dividend yields are also compelling, projected at 6.2% for 2026 and 7% for 2027.
Return on equity is forecast to climb from 8.9% in 2026 to 11% in 2028. According to JPMorgan, KBANK is set to enter a sustained earnings upgrade cycle, supported by a recovery in loan growth, improving margins, and lower provisions.
