KTB Jumps 7.6% after Outstanding 1Q22 Earnings with Lower-Than-Expected ECL

The share price of Krung Thai Bank Public Company Limited (SET: KTB) rose 7.63% to THB14.10 per share after the announcement of its earnings late yesterday.

In 1Q2022, KTB reported net profit of THB8,780 million, an increase of 57.4% YoY, as the result of an improvement in total operating income from both net interest income of 5.6% from substantial loan growth focusing on quality loans during economic uncertainties. Hence, loan growth was driven by government, corporates and retail loans. Additionally, total operating income was supported by the continual managed cost of fund, an increase of other operating income, together with the effective control of total operating expenses with a-3.5% YoY decline. Therefore, cost to income ratio stood at 41.25%, decreased from 44.25% in 1Q2021.

Phillip Securities Thailand stated that KTB reported lower-than-expected expected credit loss in the quarter with a profit growth of 57.4% YoY and 77.6% QoQ. KTB is still outstanding in terms of government sector loan, recording 1.1% YoY increase in loan in 1Q22. Due to lower-than-expected ECL, Phillip Securities revised up its net income estimate for KTB to 34 billion baht in 2022, representing an increase by 57.1%, and also revised up target price to THB16 per share, citing outstanding loan and dividend yield.