CLSA Securities has reaffirmed its ‘Outperform’ recommendation on Krung Thai Bank (SET: KTB), citing stable asset quality and prudent management practices. The firm has set a target price of THB 26.00 for KTB, reflecting confidence in the bank’s resilience amid a challenging economic landscape.
Looking ahead to the second quarter of 2025, CLSA projects KTB to report a net profit of THB 11.0 billion, representing a 2% decline year-on-year and a 6% decrease compared to the previous quarter.
Credit costs are anticipated at 121 basis points for the quarter—a slight reduction from the preceding quarter. CLSA attributes the stabilization to the bank’s robust asset quality, aligning with management’s recent guidance that credit costs had peaked in the prior period.
Asset quality at KTB continues to be described as manageable, with a coverage ratio surpassing 180%. This high provisioning buffer underscores the bank’s preparedness to weather potential macroeconomic headwinds.
In light of recent trends and updated management commentary, CLSA has made minor adjustments to its earnings outlook for 2025 to 2027 but has reiterated its positive stance. The ‘Outperform’ rating remains unchanged, reflecting confidence in KTB’s ability to maintain stable performance in the years ahead.
