kasikornbank
KASIKORNBANK Underperform (17E TP Bt189.00)
Company Update
Close Bt188.50
Banking April 21, 2017
Earnings upgrade/Earnings downgrade/Overview unchanged
Asset quality issue remains the main challenge Price Performance (%)
Switch to Underperform We switch our rating for KBANK to Underperform from Outperform as we see that it will be more challenging for the bank to handle asset quality given continuing system NPL risks for this cycle, mainly from the SME segment, despite the bank’s prudent risk management and provisioning. 1Q17 net profit in line with our forecast but 7% ahead of the street KBANK’s 1Q17 net profit (NP) of Bt10.2bn was quite in line with our forecast (Bt9.8bn) but 7% ahead of the street estimate (Bt9.5bn). 1Q17 net profit stood at Bt10.2bn (+5% YoY, ‐1% QoQ) The main earnings support YoY came from a much lower provision YoY to 215bps vs. 280bps in 1Q16, with the bank intending to set a higher provision in 1H16 vs. 2H16. Note that the provision in 1Q17 was still in line with the bank’s guidance of 200‐225bps. Loans were quite flat QoQ at +0.2%, but up 5.5% YoY. NIM weakened slightly QoQ to 3.39% from 3.44%. Net fee income grew slowly at 3.7% YoY and 2% QoQ.
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
16.677
20.007
KT ZMICO vs. consensus Share data
‐2.2%
‐9.1%
Reuters / Bloomberg
KBANK.BK/KBANK TB
Paid‐up Shares (m)
2,393.26
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
451.00/13,129.00
Foreign limit / actual (%)
48.98/48.97
52 week High / Low (Bt)
203.00/157.50
Avg. daily T/O (shares 000)
7,956.00
NVDR (%)
25.47
Estimated free float (%)
66.02
Beta
1.12
URL
www.kasikornbank.com
CGR
Anti‐corruption
Level 4 (Certified)
NPL ratio was stable QoQ due to large loan write‐offs in the quarter The NPL ratio for 1Q17 was quite stable QoQ at 3.31%, in line with the bank’s earlier indication that its NPL ratio would peak in 3Q16 (3.35%) and be in the range of 3.3‐3.4% for 2017. This should follow the bank’s effort to resolve NPLs, especially through loan write‐offs. The stable NPL ratio in 1Q17 was due in part to its aggressive NPL write‐offs of Bt6.1bn in 1Q17. Including the write‐offs, its NPL ratio would stand at 3.6%. Its ratios for both the reserve to NPL and to the BoT’s required reserve for 1Q17 still improved QoQ to 135% (from 131%) and 232% (from 213%), respectively, and remained quite solid vs. direct peers. Maintain 2017 targets; Non‐NII growth the most challenging target KBANK has maintained all the financial targets for 2017F announced in late Oct‐16; see Figure 3. The bank, however, admits again that its non‐ interest income (Non‐NII) growth target of up to 5% seems to be its most challenging target. Fine‐tune earnings with latest operating environment and guidance We made a slight adjustment to the 2017‐18E NP forecasts by raising earnings for 2017E by 2% but cutting NP by 4% for 2018E. The main revisions for 2017‐18E are 1) the potential for a higher‐than‐expected provision than our earlier estimate; and 2) lower non‐interest income growth. However, the main earnings support could come from the bank’s efficient operating cost control, with the likelihood that its cost to income will be below its guidance. Following our NP revision, we lowered our 17E target price to Bt189/share for implied target P/BV 1.4x from Bt193/share. Financials and Valuation
Prapharas Nonthapiboon Analyst, no 17836 [email protected] 66 (0) 2695‐5872
FY Ended 31 Dec Provision (Btm) Net profit (Btm) EPS (Bt) EPS growth (%) Book value (Bt) Dividend (Bt) FY Ended 31 Dec PER (X) PBV (X) Dividend yield (%) ROE (%)
2015 26,377 39,474 16.49 ‐14% 119.42 4.00 2015 11.43 1.58 2.12 15%
2016 33,753 40,174 16.79 2% 134.44 4.00 2016 11.23 1.40 2.12 13%
2017E 39,213 39,037 16.31 ‐3% 131.73 4.00 2017E 11.56 1.43 2.12 12%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 6
2018E 39,675 43,504 18.18 11% 145.91 4.00 2018E 10.37 1.29 2.12 13%
2019E 40,808 50,195 20.97 15% 162.88 4.50 2019E 8.99 1.16 2.39 14%
Figure 1: 1Q17 earnings results
Statement of comprehensive income (Btmn) 1Q16
4Q16
1Q17
% YoY
Net Interest Income
Fiscal Year‐Ended Dec.
22,200
23,004
23,088
4%
% QoQ
0% 89,678
2016
94,501
2017E
% YoY % 1Q to 17E 5%
24%
Non Interest Income
17,552
15,153
15,517
‐12%
2% 63,725
65,284
2%
24%
Operating Income
39,751
38,157
38,605
‐3%
1% 153,403
159,785
4%
24%
Operating Expenses
14,793
17,606
15,224
3%
‐14% 63,854
65,174
2%
23%
Operating Profit
24,032
20,401
23,137
‐4%
13% 89,548
94,611
6%
24%
Provision Expenses (Reversal)
11,293
6,871
9,132
‐19%
33% 33,753
39,213
16%
23%
Tax Expenses
2,717
2,342
2,717
0%
16% 10,456
10,803
3%
25%
Net Profit
9,646
10,244
10,171
5%
‐1% 40,174
39,037
‐3%
26%
PPOP‐after tax
21,316
18,059
20,420
‐4%
13% 77,509
82,509
6%
25%
EPS (Bt)
4.03
4.28
4.25
5%
‐1% 16.79
16.31
‐3%
26%
Key Statistics & Ratios Gross NPLs (Btmn)
1Q16
4Q16
1Q17
2016
52,927
65,087
65,393
65,087
2017E 69,197
Gross NPLs/Loans Loan loss reserve/NPLs
2.81%
3.32%
3.31%
3.32%
3.38%
135.1%
130.9%
134.9%
130.9%
157.1%
LLR/BoT required reserve
210.5%
213.4%
232.4%
N.A.
N.A.
Tier I/Risk Assets
14.9%
15.2%
15.0%
15.2%
14.7%
Capital Adequacy Ratio
18.4%
18.8%
17.5%
18.8%
17.5%
Loan to Deposit Ratio
92.3%
94.6%
94.8%
94.6%
93.7%
Loan to Deposit & borrowing
87.8%
89.8%
91.1%
89.8%
89.0%
Provision to loans
2.80%
1.62%
2.15%
1.99%
2.20%
Provision to average loans
2.86%
1.66%
2.20%
2.04%
2.25%
Cost to Income
37.2%
46.1%
39.4%
41.6%
40.8%
Non Interest Income/Total Income
44.2%
39.7%
40.2%
41.5%
40.9%
Net Interest Margin
3.63%
3.44%
3.39%
3.49%
3.39%
Tax rate
19.9%
17.1%
19.1%
18.7%
19.5%
Loan Growth YoY
4.2%
5.4%
5.5%
5.4%
5.0%
Loan Growth QoQ Source: KTZMICO Research
0.2%
1.6%
0.2%
Figure 2: Key changes in our earnings revision 2017E Net Profit (Btmn) % Change from previous forecasts % Change YoY Loan growth (%) Provision for loan loss (Btmn) Provision for loan loss (% to loans) Provision to average loans Non interest income growth (%) Cost to income ratio (%) Source: KT ZMICO Research
New 39,037 2% ‐3% 5% 39,213 2.20% 2.25% 2% 40.8%
2018E Previous 38,094
6% 37,919 2.10% 2.16% 5% 42.7%
New 43,504 ‐4% 11% 6% 39,675 2.10% 2.16% 6% 40.3%
Previous 45,485
7% 36,709 1.90% 1.96% 6% 41.6%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 6
Figure 3: KBANK’s financial targets for 17E vs. our forecasts
ROE ROA Net i nteres t ma rgi n (NIM) Loa n growth YoY Non‐i nteres t i ncome growth Provi s i on/yea r (bps ) Cos t to i ncome ra ti o Gros s NPL ra ti o
2015 2016E 2016 2017E* 2017E Actual KBANK's Targets KTZ Forecasts KBANK's Targets KTZ Forecasts 14.5% N/A 13.2% N/A 12.3% 1.6% N/A 1.5% N/A 1.4% 3.68% 3.3‐3.5% 3.49% 3.3‐3.5% 3.39% 5.4% 6‐7% 5% 4‐6% 5% 12.6% Up to 10% 2% Up to 5% 2% 164 Up to 190 bps 199 200‐225 bps 220 45.2% 45‐47% 42% Mi d‐40s 41% 2.7% 3.5‐3.6% 3.32% 3.3‐3.4% 3.38%
Source: KT ZMICO Research *Note that 2017 targets were based on the bank’s Thai GDP growth forecast of 3.3% for 2017E (with a forecast range of 3.0‐3.6%).
Figure 4: KBANK's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X) 3.0 2.5 2.0
2017E +2 S.D. +1 .5 S.D. +1 S.D. +0.5S.D. Avg.
-0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
1.5 1.0
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
Jan-05
0.5
PBV (x) Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
2.4
321
69
+1.5SD
2.2
299
58
+1.0SD
2.1
276
46
+0.5SD
1.9
254
34
Average
1.7
232
22
-0.5SD
1.6
210
11
-1.0SD
1.4
187
-1
-1.5SD
1.2
165
-13
-2.0SD
1.1
143
-25
Source: Bloomberg, KT ZMICO Research
Figure 5: KBANK's PER band and sensitivity of market prices based on PER at different standard deviation levels 2017E
Source: Bloomberg, KT ZMICO Research
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
-1 S.D.
Jan-08
Jan-07
Jan-06
Jan-05
(X) 17 16 +2 S.D. 15 14 +1 S.D. 13 12 Avg. 11 10 9 -2 S.D. 8 7 6 5
PER (x) Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
14.4
234
24
+1.5SD
13.6
221
17
+1.0SD
12.8
208
10
+0.5SD
12.0
195
3
Average
11.1
182
-4
-0.5SD
10.3
169
-11
-1.0SD
9.5
156
-18
-1.5SD
8.7
142
-25
-2.0SD
7.9
129
-32
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 6
Statement of Comprehensive Income (Btmn) Year‐end 31 Dec Total Interest Income Total Interest Expenses Net Interest Income
2015 114,354 29,341 85,012 37,526 8,887 16,089 62,503 147,515 28,929 13,235 24,493 66,656 82,395 ‐ 26,377 10,527 (4,481) 39,474 16.49 71,867 65,851
2016 115,873 26,195 89,678 38,943 8,746 16,035 63,725 153,403 30,201 12,434 21,219 63,854 87,965 ‐ 33,753 10,456 (5,166) 40,174 16.79 77,509 73,927
2017E 121,611 27,110 94,501 41,084 9,184 15,017 65,284 159,785 31,108 11,999 22,068 65,174 93,311 ‐ 39,213 10,803 (5,559) 39,037 16.31 82,509 78,250
2018E 129,718 29,110 100,607 43,749 9,826 15,468 69,043 169,651 32,694 12,119 23,517 68,329 100,121 ‐ 39,675 12,021 (6,121) 43,504 18.18 88,100 83,179
2019E 146,329 34,822 111,507 46,144 10,612 17,120 73,877 185,384 34,983 12,603 25,480 73,066 111,018 ‐ 40,808 14,302 (7,014) 50,195 20.97 96,716 91,002
2015
2016
2017E
2018E
2019E
Cash Interbank & Money Market REPO Net Investment in Securities Loans Accrued Interest Receivables Loans & Accrued Int.Rec. Less: Loan Loss Reserves Net Loans and Receivables Properties Foreclosed Premises and Equipment, Net Other Assets Total Assets
56,226 308,744 ‐ 477,862 1,609,887 3,088 1,612,975 (64,317) 1,548,658 14,197 45,284 104,333 2,555,305
60,589 394,207 ‐ 650,379 1,697,581 3,492 1,701,073 (85,212) 1,615,861 15,444 49,728 59,661 2,845,868
61,801 374,496 ‐ 682,937 1,782,392 3,488 1,785,880 (108,735) 1,677,146 17,760 52,214 69,279 2,935,633
63,037 393,221 ‐ 737,589 1,889,308 3,508 1,892,816 (133,417) 1,759,399 19,181 54,825 78,385 3,105,638
64,297 405,018 ‐ 796,615 2,040,378 3,585 2,043,963 (159,232) 1,884,731 19,373 55,921 87,810 3,313,766
Liabilities & Equity Total Deposits Interbank & Money Market Total Borrowings Other Liabilities Total Liabilities
1,705,379 71,466 85,578 380,670 2,243,092
1,794,835 160,052 96,376 440,693 2,491,956
1,902,525 172,857 100,231 409,696 2,585,309
1,997,651 146,928 103,238 470,059 2,717,876
2,117,511 117,542 106,335 539,367 2,880,755
23,933 18,103 225,871 14,843 3,050 285,800
23,933 18,103 225,871 14,843 38,996 321,746
23,933 18,103 254,890 15,288 3,050 315,264
23,933 18,103 288,362 15,747 3,050 349,195
23,933 18,103 328,511 16,220 3,050 389,817
Net Fee and Service income Gain on exchange Other Income Total Non‐Interest Income Operating Income Personnel Expenses Premises and Equipment Expenses Other Expenses Total Operating Expenses Operating Profit Extraordinary Items Provision for Loan Losses Taxation Minority Interests Net Profit EPS (Bt) Pre Provisioning Operating Profit (PPOP) Pre Provisioning Profit (PPP) Statement of Financial Position (Btmn) As at 31 Dec Assets
Paid‐up Capital (Bt10 Par) Premium on Share Capital Retained Earnings Other reserves Other Equity Items Total Shareholders' Equity Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 6
Valuation and Ratio Analysis Year‐end 31 Dec Per share Data (Bt) EPS DPS BVPS Multiplier (X) PER P/BV Dividend yield (%)
2015
2016
2017E
2018E
2019E
16.49 4.00
16.79 4.00
16.31 4.00
18.18 4.00
20.97 4.50
119.42
134.44
131.73
145.91
162.88
11.43 1.58 2.12
11.23 1.40 2.12
11.56 1.43 2.12
10.37 1.29 2.12
8.99 1.16 2.39
‐14.5% ‐14.5% 2.3% 12.6% 10.6% 6.4% 8.5% 8.3% 13.4% 9.0%
1.8% 1.8% 5.5% 2.0% 3.8% 4.0% ‐4.2% 6.8% 7.8% 12.3%
‐2.8% ‐2.8% 5.4% 2.4% 5.5% 4.2% 2.1% 6.1% 6.5% 5.8%
11.4% 11.4% 6.5% 5.8% 6.5% 6.2% 4.8% 7.3% 6.8% 6.3%
15.4% 15.4% 10.8% 7.0% 5.5% 9.3% 6.9% 10.9% 9.8% 9.4%
5.4%
5.4%
5.0%
6.0%
8.0%
4.6%
5.2%
6.0%
5.0%
6.0%
49,490 2.7% 130.0% 0.2% 4.0% 0.9%
65,087 3.3% 130.9% 0.2% 5.0% 0.9%
69,197 3.4% 157.1% 0.2% 6.1% 1.0%
70,911 3.3% 188.1% 0.2% 7.1% 1.0%
69,372 3.0% 229.5% 0.2% 7.8% 0.9%
Loan to Deposit Ratio (LDR) Loan to Deposit and Borrowing Ratio
11.2% 14.5% 18.0% 94.4% 89.9%
11.3% 15.2% 18.8% 94.6% 89.8%
10.7% 14.7% 17.5% 93.7% 89.0%
11.2% 15.0% 17.6% 94.6% 89.9%
11.8% 15.4% 17.6% 96.4% 91.8%
Profitability Ratio ROA ROE Cost to Income Non Interest Income/Total Income
1.6% 14.5% 45.2% 42.4%
1.5% 13.2% 41.6% 41.5%
1.4% 12.3% 40.8% 40.9%
1.4% 13.1% 40.3% 40.7%
1.6% 13.6% 39.4% 39.9%
Net Interest Margin (NIM)
3.68%
3.49%
3.39%
3.43%
3.56%
2015
2016
2017E
2018E
2019E
Growth (%) Net Profit EPS Net Interest Income Non Interest Income Net Fee & Service Income Operating Income Operating Expenses Operating Profit Pre Provisioning Operating Profit (PPOP) Pre Provisioning Profit (PPP) Loans Deposits Key Financial Ratios Gross NPLs (Btmn) Gross NPL/Loans Loan Loss Reserve/NPLs Accrued Interest/Loans Loan Loss Reserve/Loans Property Foreclosed/Loans Capital & Liquidity Ratio Equity/Asset Tier I to Risk Assets Capital Adequacy Ratio (CAR)
Key Assumptions Loan Growth ‐ Net Non Interest Income Growth Cost to Income Net Interest Margin Provision expenses (Btmn) Provision to loans Provision to average loans Source: KTZMICO Research
5.4% 5.4% 5.0% 6.0% 8.0% 12.6% 2.0% 2.4% 5.8% 7.0% 45.2% 41.6% 40.8% 40.3% 39.4% 3.68% 3.49% 3.39% 3.43% 3.56% 26,377 33,753 39,213 39,675 40,808 1.64% 1.99% 2.20% 2.10% 2.00% 1.68% 2.04% 2.25% 2.16% 2.08%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 6
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, POMPUI, TFD, CI, TTL, NMG.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD)
Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Anti‐corruption Progress Indicator
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy DISCLAIMER
This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 6
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
Company Update
Close Bt188.50
Banking April 21, 2017
Earnings upgrade/Earnings downgrade/Overview unchanged
Asset quality issue remains the main challenge Price Performance (%)
Switch to Underperform We switch our rating for KBANK to Underperform from Outperform as we see that it will be more challenging for the bank to handle asset quality given continuing system NPL risks for this cycle, mainly from the SME segment, despite the bank’s prudent risk management and provisioning. 1Q17 net profit in line with our forecast but 7% ahead of the street KBANK’s 1Q17 net profit (NP) of Bt10.2bn was quite in line with our forecast (Bt9.8bn) but 7% ahead of the street estimate (Bt9.5bn). 1Q17 net profit stood at Bt10.2bn (+5% YoY, ‐1% QoQ) The main earnings support YoY came from a much lower provision YoY to 215bps vs. 280bps in 1Q16, with the bank intending to set a higher provision in 1H16 vs. 2H16. Note that the provision in 1Q17 was still in line with the bank’s guidance of 200‐225bps. Loans were quite flat QoQ at +0.2%, but up 5.5% YoY. NIM weakened slightly QoQ to 3.39% from 3.44%. Net fee income grew slowly at 3.7% YoY and 2% QoQ.
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
16.677
20.007
KT ZMICO vs. consensus Share data
‐2.2%
‐9.1%
Reuters / Bloomberg
KBANK.BK/KBANK TB
Paid‐up Shares (m)
2,393.26
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
451.00/13,129.00
Foreign limit / actual (%)
48.98/48.97
52 week High / Low (Bt)
203.00/157.50
Avg. daily T/O (shares 000)
7,956.00
NVDR (%)
25.47
Estimated free float (%)
66.02
Beta
1.12
URL
www.kasikornbank.com
CGR
Anti‐corruption
Level 4 (Certified)
NPL ratio was stable QoQ due to large loan write‐offs in the quarter The NPL ratio for 1Q17 was quite stable QoQ at 3.31%, in line with the bank’s earlier indication that its NPL ratio would peak in 3Q16 (3.35%) and be in the range of 3.3‐3.4% for 2017. This should follow the bank’s effort to resolve NPLs, especially through loan write‐offs. The stable NPL ratio in 1Q17 was due in part to its aggressive NPL write‐offs of Bt6.1bn in 1Q17. Including the write‐offs, its NPL ratio would stand at 3.6%. Its ratios for both the reserve to NPL and to the BoT’s required reserve for 1Q17 still improved QoQ to 135% (from 131%) and 232% (from 213%), respectively, and remained quite solid vs. direct peers. Maintain 2017 targets; Non‐NII growth the most challenging target KBANK has maintained all the financial targets for 2017F announced in late Oct‐16; see Figure 3. The bank, however, admits again that its non‐ interest income (Non‐NII) growth target of up to 5% seems to be its most challenging target. Fine‐tune earnings with latest operating environment and guidance We made a slight adjustment to the 2017‐18E NP forecasts by raising earnings for 2017E by 2% but cutting NP by 4% for 2018E. The main revisions for 2017‐18E are 1) the potential for a higher‐than‐expected provision than our earlier estimate; and 2) lower non‐interest income growth. However, the main earnings support could come from the bank’s efficient operating cost control, with the likelihood that its cost to income will be below its guidance. Following our NP revision, we lowered our 17E target price to Bt189/share for implied target P/BV 1.4x from Bt193/share. Financials and Valuation
Prapharas Nonthapiboon Analyst, no 17836 [email protected] 66 (0) 2695‐5872
FY Ended 31 Dec Provision (Btm) Net profit (Btm) EPS (Bt) EPS growth (%) Book value (Bt) Dividend (Bt) FY Ended 31 Dec PER (X) PBV (X) Dividend yield (%) ROE (%)
2015 26,377 39,474 16.49 ‐14% 119.42 4.00 2015 11.43 1.58 2.12 15%
2016 33,753 40,174 16.79 2% 134.44 4.00 2016 11.23 1.40 2.12 13%
2017E 39,213 39,037 16.31 ‐3% 131.73 4.00 2017E 11.56 1.43 2.12 12%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 6
2018E 39,675 43,504 18.18 11% 145.91 4.00 2018E 10.37 1.29 2.12 13%
2019E 40,808 50,195 20.97 15% 162.88 4.50 2019E 8.99 1.16 2.39 14%
Figure 1: 1Q17 earnings results
Statement of comprehensive income (Btmn) 1Q16
4Q16
1Q17
% YoY
Net Interest Income
Fiscal Year‐Ended Dec.
22,200
23,004
23,088
4%
% QoQ
0% 89,678
2016
94,501
2017E
% YoY % 1Q to 17E 5%
24%
Non Interest Income
17,552
15,153
15,517
‐12%
2% 63,725
65,284
2%
24%
Operating Income
39,751
38,157
38,605
‐3%
1% 153,403
159,785
4%
24%
Operating Expenses
14,793
17,606
15,224
3%
‐14% 63,854
65,174
2%
23%
Operating Profit
24,032
20,401
23,137
‐4%
13% 89,548
94,611
6%
24%
Provision Expenses (Reversal)
11,293
6,871
9,132
‐19%
33% 33,753
39,213
16%
23%
Tax Expenses
2,717
2,342
2,717
0%
16% 10,456
10,803
3%
25%
Net Profit
9,646
10,244
10,171
5%
‐1% 40,174
39,037
‐3%
26%
PPOP‐after tax
21,316
18,059
20,420
‐4%
13% 77,509
82,509
6%
25%
EPS (Bt)
4.03
4.28
4.25
5%
‐1% 16.79
16.31
‐3%
26%
Key Statistics & Ratios Gross NPLs (Btmn)
1Q16
4Q16
1Q17
2016
52,927
65,087
65,393
65,087
2017E 69,197
Gross NPLs/Loans Loan loss reserve/NPLs
2.81%
3.32%
3.31%
3.32%
3.38%
135.1%
130.9%
134.9%
130.9%
157.1%
LLR/BoT required reserve
210.5%
213.4%
232.4%
N.A.
N.A.
Tier I/Risk Assets
14.9%
15.2%
15.0%
15.2%
14.7%
Capital Adequacy Ratio
18.4%
18.8%
17.5%
18.8%
17.5%
Loan to Deposit Ratio
92.3%
94.6%
94.8%
94.6%
93.7%
Loan to Deposit & borrowing
87.8%
89.8%
91.1%
89.8%
89.0%
Provision to loans
2.80%
1.62%
2.15%
1.99%
2.20%
Provision to average loans
2.86%
1.66%
2.20%
2.04%
2.25%
Cost to Income
37.2%
46.1%
39.4%
41.6%
40.8%
Non Interest Income/Total Income
44.2%
39.7%
40.2%
41.5%
40.9%
Net Interest Margin
3.63%
3.44%
3.39%
3.49%
3.39%
Tax rate
19.9%
17.1%
19.1%
18.7%
19.5%
Loan Growth YoY
4.2%
5.4%
5.5%
5.4%
5.0%
Loan Growth QoQ Source: KTZMICO Research
0.2%
1.6%
0.2%
Figure 2: Key changes in our earnings revision 2017E Net Profit (Btmn) % Change from previous forecasts % Change YoY Loan growth (%) Provision for loan loss (Btmn) Provision for loan loss (% to loans) Provision to average loans Non interest income growth (%) Cost to income ratio (%) Source: KT ZMICO Research
New 39,037 2% ‐3% 5% 39,213 2.20% 2.25% 2% 40.8%
2018E Previous 38,094
6% 37,919 2.10% 2.16% 5% 42.7%
New 43,504 ‐4% 11% 6% 39,675 2.10% 2.16% 6% 40.3%
Previous 45,485
7% 36,709 1.90% 1.96% 6% 41.6%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 6
Figure 3: KBANK’s financial targets for 17E vs. our forecasts
ROE ROA Net i nteres t ma rgi n (NIM) Loa n growth YoY Non‐i nteres t i ncome growth Provi s i on/yea r (bps ) Cos t to i ncome ra ti o Gros s NPL ra ti o
2015 2016E 2016 2017E* 2017E Actual KBANK's Targets KTZ Forecasts KBANK's Targets KTZ Forecasts 14.5% N/A 13.2% N/A 12.3% 1.6% N/A 1.5% N/A 1.4% 3.68% 3.3‐3.5% 3.49% 3.3‐3.5% 3.39% 5.4% 6‐7% 5% 4‐6% 5% 12.6% Up to 10% 2% Up to 5% 2% 164 Up to 190 bps 199 200‐225 bps 220 45.2% 45‐47% 42% Mi d‐40s 41% 2.7% 3.5‐3.6% 3.32% 3.3‐3.4% 3.38%
Source: KT ZMICO Research *Note that 2017 targets were based on the bank’s Thai GDP growth forecast of 3.3% for 2017E (with a forecast range of 3.0‐3.6%).
Figure 4: KBANK's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X) 3.0 2.5 2.0
2017E +2 S.D. +1 .5 S.D. +1 S.D. +0.5S.D. Avg.
-0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
1.5 1.0
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
Jan-05
0.5
PBV (x) Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
2.4
321
69
+1.5SD
2.2
299
58
+1.0SD
2.1
276
46
+0.5SD
1.9
254
34
Average
1.7
232
22
-0.5SD
1.6
210
11
-1.0SD
1.4
187
-1
-1.5SD
1.2
165
-13
-2.0SD
1.1
143
-25
Source: Bloomberg, KT ZMICO Research
Figure 5: KBANK's PER band and sensitivity of market prices based on PER at different standard deviation levels 2017E
Source: Bloomberg, KT ZMICO Research
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
-1 S.D.
Jan-08
Jan-07
Jan-06
Jan-05
(X) 17 16 +2 S.D. 15 14 +1 S.D. 13 12 Avg. 11 10 9 -2 S.D. 8 7 6 5
PER (x) Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
14.4
234
24
+1.5SD
13.6
221
17
+1.0SD
12.8
208
10
+0.5SD
12.0
195
3
Average
11.1
182
-4
-0.5SD
10.3
169
-11
-1.0SD
9.5
156
-18
-1.5SD
8.7
142
-25
-2.0SD
7.9
129
-32
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 6
Statement of Comprehensive Income (Btmn) Year‐end 31 Dec Total Interest Income Total Interest Expenses Net Interest Income
2015 114,354 29,341 85,012 37,526 8,887 16,089 62,503 147,515 28,929 13,235 24,493 66,656 82,395 ‐ 26,377 10,527 (4,481) 39,474 16.49 71,867 65,851
2016 115,873 26,195 89,678 38,943 8,746 16,035 63,725 153,403 30,201 12,434 21,219 63,854 87,965 ‐ 33,753 10,456 (5,166) 40,174 16.79 77,509 73,927
2017E 121,611 27,110 94,501 41,084 9,184 15,017 65,284 159,785 31,108 11,999 22,068 65,174 93,311 ‐ 39,213 10,803 (5,559) 39,037 16.31 82,509 78,250
2018E 129,718 29,110 100,607 43,749 9,826 15,468 69,043 169,651 32,694 12,119 23,517 68,329 100,121 ‐ 39,675 12,021 (6,121) 43,504 18.18 88,100 83,179
2019E 146,329 34,822 111,507 46,144 10,612 17,120 73,877 185,384 34,983 12,603 25,480 73,066 111,018 ‐ 40,808 14,302 (7,014) 50,195 20.97 96,716 91,002
2015
2016
2017E
2018E
2019E
Cash Interbank & Money Market REPO Net Investment in Securities Loans Accrued Interest Receivables Loans & Accrued Int.Rec. Less: Loan Loss Reserves Net Loans and Receivables Properties Foreclosed Premises and Equipment, Net Other Assets Total Assets
56,226 308,744 ‐ 477,862 1,609,887 3,088 1,612,975 (64,317) 1,548,658 14,197 45,284 104,333 2,555,305
60,589 394,207 ‐ 650,379 1,697,581 3,492 1,701,073 (85,212) 1,615,861 15,444 49,728 59,661 2,845,868
61,801 374,496 ‐ 682,937 1,782,392 3,488 1,785,880 (108,735) 1,677,146 17,760 52,214 69,279 2,935,633
63,037 393,221 ‐ 737,589 1,889,308 3,508 1,892,816 (133,417) 1,759,399 19,181 54,825 78,385 3,105,638
64,297 405,018 ‐ 796,615 2,040,378 3,585 2,043,963 (159,232) 1,884,731 19,373 55,921 87,810 3,313,766
Liabilities & Equity Total Deposits Interbank & Money Market Total Borrowings Other Liabilities Total Liabilities
1,705,379 71,466 85,578 380,670 2,243,092
1,794,835 160,052 96,376 440,693 2,491,956
1,902,525 172,857 100,231 409,696 2,585,309
1,997,651 146,928 103,238 470,059 2,717,876
2,117,511 117,542 106,335 539,367 2,880,755
23,933 18,103 225,871 14,843 3,050 285,800
23,933 18,103 225,871 14,843 38,996 321,746
23,933 18,103 254,890 15,288 3,050 315,264
23,933 18,103 288,362 15,747 3,050 349,195
23,933 18,103 328,511 16,220 3,050 389,817
Net Fee and Service income Gain on exchange Other Income Total Non‐Interest Income Operating Income Personnel Expenses Premises and Equipment Expenses Other Expenses Total Operating Expenses Operating Profit Extraordinary Items Provision for Loan Losses Taxation Minority Interests Net Profit EPS (Bt) Pre Provisioning Operating Profit (PPOP) Pre Provisioning Profit (PPP) Statement of Financial Position (Btmn) As at 31 Dec Assets
Paid‐up Capital (Bt10 Par) Premium on Share Capital Retained Earnings Other reserves Other Equity Items Total Shareholders' Equity Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 6
Valuation and Ratio Analysis Year‐end 31 Dec Per share Data (Bt) EPS DPS BVPS Multiplier (X) PER P/BV Dividend yield (%)
2015
2016
2017E
2018E
2019E
16.49 4.00
16.79 4.00
16.31 4.00
18.18 4.00
20.97 4.50
119.42
134.44
131.73
145.91
162.88
11.43 1.58 2.12
11.23 1.40 2.12
11.56 1.43 2.12
10.37 1.29 2.12
8.99 1.16 2.39
‐14.5% ‐14.5% 2.3% 12.6% 10.6% 6.4% 8.5% 8.3% 13.4% 9.0%
1.8% 1.8% 5.5% 2.0% 3.8% 4.0% ‐4.2% 6.8% 7.8% 12.3%
‐2.8% ‐2.8% 5.4% 2.4% 5.5% 4.2% 2.1% 6.1% 6.5% 5.8%
11.4% 11.4% 6.5% 5.8% 6.5% 6.2% 4.8% 7.3% 6.8% 6.3%
15.4% 15.4% 10.8% 7.0% 5.5% 9.3% 6.9% 10.9% 9.8% 9.4%
5.4%
5.4%
5.0%
6.0%
8.0%
4.6%
5.2%
6.0%
5.0%
6.0%
49,490 2.7% 130.0% 0.2% 4.0% 0.9%
65,087 3.3% 130.9% 0.2% 5.0% 0.9%
69,197 3.4% 157.1% 0.2% 6.1% 1.0%
70,911 3.3% 188.1% 0.2% 7.1% 1.0%
69,372 3.0% 229.5% 0.2% 7.8% 0.9%
Loan to Deposit Ratio (LDR) Loan to Deposit and Borrowing Ratio
11.2% 14.5% 18.0% 94.4% 89.9%
11.3% 15.2% 18.8% 94.6% 89.8%
10.7% 14.7% 17.5% 93.7% 89.0%
11.2% 15.0% 17.6% 94.6% 89.9%
11.8% 15.4% 17.6% 96.4% 91.8%
Profitability Ratio ROA ROE Cost to Income Non Interest Income/Total Income
1.6% 14.5% 45.2% 42.4%
1.5% 13.2% 41.6% 41.5%
1.4% 12.3% 40.8% 40.9%
1.4% 13.1% 40.3% 40.7%
1.6% 13.6% 39.4% 39.9%
Net Interest Margin (NIM)
3.68%
3.49%
3.39%
3.43%
3.56%
2015
2016
2017E
2018E
2019E
Growth (%) Net Profit EPS Net Interest Income Non Interest Income Net Fee & Service Income Operating Income Operating Expenses Operating Profit Pre Provisioning Operating Profit (PPOP) Pre Provisioning Profit (PPP) Loans Deposits Key Financial Ratios Gross NPLs (Btmn) Gross NPL/Loans Loan Loss Reserve/NPLs Accrued Interest/Loans Loan Loss Reserve/Loans Property Foreclosed/Loans Capital & Liquidity Ratio Equity/Asset Tier I to Risk Assets Capital Adequacy Ratio (CAR)
Key Assumptions Loan Growth ‐ Net Non Interest Income Growth Cost to Income Net Interest Margin Provision expenses (Btmn) Provision to loans Provision to average loans Source: KTZMICO Research
5.4% 5.4% 5.0% 6.0% 8.0% 12.6% 2.0% 2.4% 5.8% 7.0% 45.2% 41.6% 40.8% 40.3% 39.4% 3.68% 3.49% 3.39% 3.43% 3.56% 26,377 33,753 39,213 39,675 40,808 1.64% 1.99% 2.20% 2.10% 2.00% 1.68% 2.04% 2.25% 2.16% 2.08%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 6
Note: KT ZMICO has two major shareholders, Krungthai Bank PLC (KTB) and Seamico Securities PLC (ZMICO). Therefore, prior to making investments in the securities of KTB and ZMICO, investors should consider the risk factors carefully. An executive of KT ZMICO Securities is also a board member of BCP, BTC, CI, CPI, KBS, MAJOR, MK, PACE, PSL, SVH, VNG, ZMICO, SAWAD, TFG. A management member of KT ZMICO Securities is also a board member of BTC and NFC. KT ZMICO is a financial advisor for U, LOXLEY, ZMICO, MAKRO, CPALL, SAFARI, M‐CHAI, POMPUI, TFD, CI, TTL, NMG.
Corporate Governance Report (CGR) Source: Sec, Thai Institute of Directors Association (IOD)
Excellent (scores: 90 ‐ 100) Very Good (scores: 80 – 89) Good (scores: 70 – 79)
Anti‐corruption Progress Indicator
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Source: Sec, Thailand's Private Sector Collective Action Coalition Against Corruption programme (Thai CAC) Level 1 (Committed) : Organization’s statement or board's resolution to work against corruption and to be in compliance with all relevant laws. Level 2 (Declared) : Public declaration statement to participate in Thailand's private sector Collective Action Coalition Against Corruption (CAC) or equivalent initiatives Level 3 (Established) : Public out preventive measures, risk assessment, communication and training for all employees, including consistent monitoring and review processes Level 4 (Certified) : Audit engagement by audit committee or auditors approved by the office of SEC, and receiving certification or assurance by independent external assurance providers (CAC etc.) Level 5 (Extended) : Extension of the anti‐corruption policy to business partners in the supply chain, and disclosure of any current investigations, prosecutions or closed cases Insufficient or not clearly defined policy Data not available / no policy DISCLAIMER
This document is produced using open sources believed to be reliable. However, their accuracy and completeness cannot be guaranteed. The statements and opinions herein were formed after due and careful consideration for use as information for the purposes of investment. The opinions contained herein are subject to change without notice. This document is not, and should not be construed as, an offer or the solicitation of an offer to buy or sell any securities. The use of any information contained in this document shall be at the sole discretion and risk of the user.
KT ZMICO RESEARCH – RECOMMENDATION DEFINITIONS STOCK RECOMMENDATIONS
SECTOR RECOMMENDATIONS
BUY: Expecting positive total returns of 15% or more OVERWEIGHT: The industry, as defined by the analyst's over the next 12 months coverage universe, is expected to outperform the relevant OUTPERFORM: Expecting total returns between ‐10% primary market index by at least 10% over the next 12 months. to +15%; returns expected to exceed market returns NEUTRAL: The industry, as defined by the analyst's coverage over a six‐month period due to specific catalysts universe, is expected to perform in line with the relevant UNDERPERFORM: Expecting total returns between primary market index over the next 12 months. ‐10% to +15%; returns expected to be below market UNDERWEIGHT: The industry, as defined by the analyst's returns over a six‐month period due to specific coverage universe, is expected to underperform the relevant catalysts primary market index by 10% over the next 12 months. SELL: Expecting negative total returns of 10% or more over the next 12 months
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 6
KT ZMICO Securities Company Limited Head Office
WWW.KTZMICO.COM
8th, 15th‐17th,19th, 21st Floor, Liberty Square Bldg., 287 Silom Road, Bangrak, Bangkok, Thailand 10500 Telephone: (66‐2) 695‐5000 Fax: (66‐2) 695‐5173 KT ZMICO Connect 662 695 5555
Central World Branch
Amarin Branch
22nd Floor, Amarin Building, 496‐502 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 018‐6200 Fax: (66‐2) 018‐6298, (66‐2) 018‐6299
8th Floor, Ton Son Tower, 900 Ploenchit Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 626‐6000 Fax: (66‐2) 626‐6111
Phaholyothin Branch
Sindhorn Branch
Viphavadee Branch
2nd Floor, Sindhorn Tower 1, 130‐132 Wireless Road, Lumpini, Pathumwan, Bangkok 10330 Telephone: (66‐2) 627‐3550 Fax: (66‐2) 627‐3582, 627‐3600
G Floor, Lao Peng Nguan 1 Bldg., 333 Soi Cheypuand, Viphavadee‐Rangsit Road, Ladyao, Jatujak, Bangkok 10900 Telephone: (66‐2) 013‐8600 Fax: (66‐2) 618‐8569
BangKhae Branch
Chiang Mai Branch
Pak Chong Branch
999/9 The Offices at Central World, 16th Fl., Rama 1 Rd, Pathumwan, Bangkok 10330 Telephone: (66‐2) 264‐5888 Fax: (66‐2) 264 5899
1291/1, Shinnawatra Tower II, 3rd Floor, Phaholyothin Road, Phayathai, Bangkok 10400 Telephone: (66‐2) 686‐1500 Fax: (66‐2) 686‐1666
Ploenchit Branch
518 The Mall Group Building Bangkhae Branch, 6th Floor, Petchkasem Road, North Bangkhae, Bangkhae, Bangkok 10160 Telephone: (66‐2) 454‐9979 Fax: (66‐2) 454‐9970
422/49 Changklan Road, Changklan Subdistrict, Amphoe Meuang, Chiang Mai 50100 Telephone: (053) 270‐072 Fax: (053) 272‐618
173 175, Mittapap Road, Nong Sarai, Pak Chong, Nakhon Ratchasima 30130 Telephone: (044) 279‐511 Fax: (044) 279‐574
Korat Branch
Khon Kaen Branch
Chonburi Branch
624/9 Changphuek Road, T.Naimaung, A.Maung, Nakhon Ratchasima 30000 Telephone: (044) 247222 Fax: (044) 247171
5th Floor, Charoen Thani Princess Hotel, 260 Srichan Road, T. Naimuang, A. Muang, Khon Kaen 40000 Telephone: (043) 389‐171‐193 Fax: (043) 389‐209
4th Floor, Forum Plaza Bldg., 870/52 Sukhumvit Road, T. Bangplasoy, A. Muang, Cholburi 20000 Telephone: (038) 287‐635 Fax: (038) 287‐637
Pattaya Branch
Chachoengsao Branch
Hat Yai Branch
Easy Point 2, 392/65 Moo.9, T.Nong Prue, A. Bang Lamung, Chonburi 20260 Telephone: (038) 420‐965 Fax: (038) 420‐968
108/34‐36 Mahajakkrapad Road, T.Namuang, A.Muang, Chachoengsao 24000 Telephone: (038) 813‐088 Fax: (038) 813‐099
200/301, 200/303 JULDIS HATYAI PLAZA Floor 3 , Niphat‐Uthit 3 Rd, Hatyai Songkhla 90110 Telephone: (074) 355530‐3 Fax: (074) 355534
Phuket Branch
22/61‐63, Luang Por Wat Chalong Road, Talat Yai, Mueang Phuket, Phuket 83000 Telephone: (076) 222‐811, (076) 222‐683 Fax: (076) 222‐861
Phitsanulok Branch
227/171 Borom Trilokkanat Road, Muang, Phitsanulok 65000 Telephone: 055‐219‐255 to 8 Fax: 055‐219‐259
Nakhon Pathom
Cyber Branch Ayutthaya
Cyber Branch @ North Nana
Cyber Branch Chiangrai
KrungThai Bank, Rojana Branch 253 Moo 5, Rojana Road, Phai Ling, Phra Nakhon Si Ayutthaya, Phra Nakhonsi Ayutthaya, 13000 Telephone: 035‐242‐477 Fax: 035‐242‐476
Krung Thai Bank PCL, 2 Floor, North Nana Branch 35 Sukhumvit Rd., Klong Toey Nua Subdistrict , Wattana District , Bangkok 10110 Telephone: 083‐490‐2871
River Hotel (Building 3rd),1156 Petchakasem Road, Sanamchan Subdistrict, Amphoe Meuang , Nakhon Pathom Province 73000 Telephone: (034) 271300 Fax: (034) 271300 #100
KrungThai Bank, Hayaek Phokhun Mengrai Branch 116/19 Moo 19, Highway 110 Road, Rop Wiang, Mueang Chiang Rai, Chiang Rai, 57000 Telephone: 053‐715‐067 Fax: 053‐715‐068
