Kiatnakin Phatra Securities (KKPS) wrote that Krung Thai Bank Public Company Limited (SET: KTB) is undertaking efforts to centralize its collections and recovery operations through Krungthai Alliance Holding (KTAH), a newly established subsidiary with an initial paid-up capital of THB 1 million.
This consolidation aims to enhance coordination and improve recoveries of bad debts across KTB Group, leveraging an extensive pool of legacy written-off non-performing loans and non-performing assets totalling THB 19 billion as of 3Q26. The move also aligns with KTB’s significant ownership stakes in KTC and its virtual bank, ‘Clicx.’
To strengthen its recovery platform, KTAH has announced three strategic investments. First, it acquired a 50% stake in Win Performance (WIN) from KTC, thereby enhancing the group’s debt collection capabilities. WIN is recognized for its strong performance and expertise in debt collection.
Second, KTAH purchased a 25.05% stake in KTB Leasing (KTBL), intended to facilitate the collection of KTBL’s remaining loan portfolio. Third, KTAH announced a significant partnership—a 50:50 joint venture with Bangkok Commercial Asset Management (SET: BAM) to acquire and manage both secured and unsecured distressed loans.
The BAM joint venture asset management company (JVAMC) will start with a paid-up capital of THB 25 million and has a targeted ramp-up to THB 2 billion as operations expand. Licensing for the JVAMC is expected by 1Q27, with full operations launching in 2Q27. The JV aims for an initial NPL acquisition of THB 10 billion in 2Q27 and targets distressed assets under management of THB 50 billion within five years, focusing on both secured and unsecured corporate loans.
The brokerage views these developments as strategically positive for KTB, enhancing group-wide collection efficiencies and providing a scalable platform for distressed-asset management. The track record of BAM in joint ventures further supports expectations for potential earnings growth.
However, the degree and timing of earnings accretion will depend on acquisition pricing, recovery performance, and execution. As a result, Kiatnakin maintains a ‘Buy’ rating on KTB, with a target price of THB 47.00 per share.
