Krungsri Securities (KSS) has maintained a ‘Buy’ recommendation on Krungthai Card Public Company Limited (SET: KTC), raising the target price for 2027 to THB 54.00 per share from the previous THB 50.00. KTC continues to be highlighted as a top pick among lending stocks, attributed to the company’s robust balance sheet and an attractive dividend yield, which is expected to remain at 5-6%.
Furthermore, Krungsri anticipates that KTC’s net profit in 2026 will reach a new record high, continuing the positive momentum from 2025. The company is also preparing to enter the insurance sales business, which is expected to strengthen future revenue growth.
Regarding asset quality, KTC believes it can maintain tight control over the loan portfolio, estimating credit costs for the full year 2026 to be between 5% and 5.3%, which is consistent with the 5% level recorded in the first half of 2026.
Likewise, Finansia Syrus Securities (FSS) also reiterated a ‘Buy’ rating, setting a target price of THB 46.00 per share. Finansia projects KTC’s net profit to grow at a compound annual growth rate of 3.9% during 2026-2028, achieving new highs each year in line with management’s targets.
The company’s loan growth is forecast to range from 1.1-2.9% over this period. Net interest margin is projected to remain strong at 13.32-13.54%. However, the cost-to-income ratio is expected to rise, reaching 36.6% in 2026 and stabilising at 36.7-36.9% in 2027-2028, while credit costs are forecast to stay within 5.27-5.33% throughout the projection period.
In the second half of 2026, KTC is entering its peak spending season, buoyed by strong growth drivers in the credit card segment. Benefits are expected from the company’s focus on high-income customers, young generations (Gen Z), and new entrants to the workforce, alongside increasing engagement via digital channels and a clearer segmentation of targeted spending categories.
Meanwhile, personal loan growth is expected to accelerate, particularly in the ‘KTC P Berm’ product segment, following product enhancements and greater pricing alignment to risk levels.
KTC is also maintaining its full-year cost-to-income target at 36-37% to support planned investments, with confidence that ongoing enhancements to technology will help reduce costs in the long term. These benefits are expected to be increasingly evident from 2027 onwards.
