Phillip Securities (Thailand) expects Kiatnakin Phatra Bank Public Company Limited (SET: KKP) to report a second quarter 2026 net profit of THB 2.1 billion, reflecting a significant increase of 46.8% year-on-year and 5.8% quarter-on-quarter.
This is attributed to lower interest expenses, higher fee income, and a reduction in losses from the sale of non-performing assets. Additionally, the anticipated quarter-on-quarter profit growth is due to an increase in interest income, driven by expanding loans, alongside a reduction in provisions.
The growth in KKP’s loan portfolio is projected to continue in the second quarter of 2026. Loans recorded in May showed a further month-on-month increase of 1.4%, and total loans for the quarter are expected to expand by 3.5% quarter-on-quarter.
This continued growth is likely to be supported by floor plan loans and large corporate lending, in line with trends observed in the first quarter of 2026. Furthermore, the bank may see incremental benefits in its hire purchase loan segment following the Motor Expo event held in Q1.
Phillip has revised its growth forecast for KKP’s full-year 2026 loan portfolio, increasing the expected loan growth to 5% from the previous estimate of 3%. Consequently, the net profit forecast has also been raised to THB 7.5 billion, representing an increase of 50.5% year-on-year, up from the previous estimate of THB 6.8 billion.
The brokerage maintains a ‘Gradual Buying’ recommendation for KKP, revising a target price to THB 94.00 per share and a dividend estimate of THB 6.90.
