Kiatnakin Bank Underperform (17E TP Bt67.00)
Kiatnakin Bank Underperform (17E TP Bt67.00)
Company Update
Close Bt69.75
Banking July 25, 2017
Earnings upgrade/Earnings downgrade/Overview unchanged
Asset quality issue needs a closer watch Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
6.989
7.290
KT ZMICO vs. consensus Share data
‐3.7%
‐0.5%
Reuters / Bloomberg
KKP.BK/KKP TB
Paid‐up Shares (m)
846.75
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
59.00/1,768.00
Foreign limit / actual (%)
44.00/31.25
52 week High / Low (Bt)
75.00/46.75
Avg. daily T/O (shares 000)
5,202.00
NVDR (%)
15.50
Estimated free float (%)
84.71
Beta
0.93
URL
www.kiatnakin.co.th
CGR
Anti‐corruption
Level 4 (Certified)
Prapharas Nonthapiboon Analyst, no 17836 [email protected] 66 (0) 2695‐5872
Solid dividend yield the near‐term price support We maintain an Underperform rating for KKP following our earnings cut. We view that the asset quality issue for KKP still needs to be kept in check given its policy to gear to high yield/higher risk assets. However, the potential near‐term price catalyst could come from a sound dividend yield of 2‐3% (expect DPS of Bt2.0/share for the 1H17 performance). 2Q17 net profit fell short of both our forecast and the street estimate KKP’s 2Q17 net profit (NP) of Bt1.2bn (‐9%YoY, ‐22%QoQ) fell short of both our projection of Bt1.54bn and the street forecast of Bt1.48bn. The lower‐than‐expected NP was attributable mainly to 1) the booking of a Bt163mn loss from the revaluation of foreclosed assets; 2) a loss from the hedge fund unit (Bt71mn); and 3) a higher‐than‐expected provision. NPLs for 2Q17 increased QoQ The NPL ratio for 2Q17 increased to 5.8% of total loans vs. 5.6% both in 1Q17 and 4Q16, owing mainly to the increases in NPLs from the real estate development and SME sectors as well as in the used car segment. Long‐term strategy still gearing toward higher yield assets KKP maintained its loan growth target of >5% although it expects repayments of corporate loans (bridging loans booked in May‐17) in 3Q17. Meanwhile, the bank gave credit cost guidance plus losses on repossessed cars for 2017 at 1.0‐1.2% vs. the original indication of ~1% given weaker asset quality. Also note that KKP expects its investment banking business to improve from 2016 as it sees some IPO deals in the pipeline (e.g. BGRIM IPO in 3Q17E). Meanwhile, the group’s L‐T strategy still aims at 1) reducing the dependency on auto hire purchase loans; 2) gearing toward higher yield loans, e.g., in used‐car hire purchase loans, collateralized auto loans (Car Quick Cash), personal loans and small SME (including micro SME under the TCG guarantee program), along with penetrating lower risk loans (housing loans and corporate loans). Trimmed net profit estimates for 17‐19E by 5‐8% We cut our net profit estimates for 2017‐19E by 5‐8%, mainly to fine‐ tune with the latest weaker‐than‐expected results and operating environment. The key revisions are 1) lower income/gain on trading and FX transactions (especially to reflect the lower income from the hedge fund (HF) unit given the loss of ~Bt67mn from this unit in 1H17); 2) a higher provision given its weakened asset quality outlook; and 3) lower NIM. On the other hand, we also raised the fee income growth assumption, mainly to reflect its solid investment banking fees and asset management fees. Following our NP cut, we lowered our 17E target price to Bt67/share (from Bt70/share) for implied target P/BV of 1.4x. Financials and Valuation FY Ended 31 Dec PPOP (Btm) Net profit (Btm) EPS (Bt) EPS growth (%) Book value (Bt) Dividend (Bt)
2015 5,514 3,317 3.92 21% 44.79 3.00
2016 5,767 5,547 6.55 67% 47.59 6.00
2017E 5,774 5,700 6.73 3% 48.32 4.50
2018E 5,829 6,139 7.25 8% 51.07 4.60
2019E 6,232 6,648 7.85 8% 54.32 4.71
FY Ended 31 Dec PER (X) PBV (X) Dividend yield (%) ROE (%)
2015 17.80 1.56 4.30 8.9%
2016 10.65 1.47 8.60 14.2%
2017E 10.36 1.44 6.45 14.0%
2018E 9.62 1.37 6.60 14.6%
2019E 8.88 1.28 6.75 14.9%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 6
Figure 1: Key changes in our earnings revision 2017E Net profit (Btmn) Net profit change from previous forecasts (%) Net profit change YoY (%) Provision for loan loss (% of loans) Provision including loss from sale of repossessed cars (% of loans) Gain (loss) on trading and FX transactions
New 5,700 ‐8% 3% 0.84% 1.13% 371
2018E
Previous 6,229
0.80% 1.09% 571
New 6,139 ‐6% 8% 0.85% 1.11% 573
2019E
Previous 6,529
0.80% 1.03% 727
New 6,648 ‐5% 8% 0.83% 1.05% 678
Previous 6,987
0.80% 0.98% 872
760
850
800
800
800
800
Net interest margin (NIM)
4.62%
4.76%
4.53%
4.74%
4.53%
4.70%
Net fee income growth (%) Source: KT ZMICO Research
3%
‐3%
5%
‐2%
8%
2%
Gain (loss) from sale of foreclosed assets
2Q17 earnings wrap up 2Q17 net profit fell short of both our projection and the street estimate KKP posted 2Q17 net profit of Bt1.2bn (‐9%YoY, ‐22%QoQ). The result fell short of both our projection of Bt1.54bn and the street forecast of Bt1.48bn. The lower‐than‐expected earnings were attributable mainly to i) a higher‐than‐expected loan provision; ii) the booking of a Bt163mn loss from the revaluation of foreclosed assets in 2Q17; iii) a loss on trading and foreign exchange transactions amounting to Bt21mn (vs. our projection calling for a gain of Bt80mn from these transactions) vs. gains of Bt151mn and Bt63mn in 2Q16 and 1Q17, respectively. Note that the loss on trading transactions in this quarter was mainly due to the loss of the hedge fund unit of Bt71mn in 2Q17. 2Q17 net profit came in at Bt1.2bn (‐9% YoY, ‐22% QoQ) 2Q17 net profit fell both YoY and QoQ mainly due to the aforementioned reasons as well as lower income related to the capital market unit, especially the securities brokerage unit as the market’s daily turnover fell to Bt42bn (‐10%YoY, ‐17%QoO). Also, the income from sales of foreclosed assets declined both YoY and QoQ to Bt75mn vs. Bt142mn in 2Q16 and Bt186mn in 1Q17. 2Q17 loan growth still held up well at 5%YoY, 3%QoQ and 4%YTD, driven by corporate loans (+107%YTD), home loans (+93%YTD) and small SME (+52%YTD). Meanwhile, auto hire purchase loans fell by 5%YTD. NPLs for 2Q17 increased QoQ The NPL ratio during 2Q17 increased to 5.8% of total loans vs. 5.6% both in 1Q17 and 4Q16, owing mainly to the increases in NPLs from the real estate development and SME segments. Also, the NPLs from used car hire purchase loans also increased given its larger exposure to the used car portfolio. Meanwhile, the loan loss reserve (LLR) to NPLs and the BOT’s minimum requirement as of 2Q17 dropped slightly QoQ to 104% and 185%, respectively, vs. 110% and 188%, respectively, in 1Q17.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 6
Figure 2: 2Q17 earnings results
Statement of comprehensive income (Btmn) Fiscal Year‐Ended December
2Q16
1Q17
2Q17 % YoY % QoQ
1H16
1H17 % YoY
2016
2017E % YoY % 1H to 17E
Net Interes t Income
2,535
2,546
2,648
4%
4% 4,872
5,194
7% 10,433
10,351
‐1%
50%
Non Interes t Income
1,496
1,370
1,095
‐27%
‐20% 2,940
2,464
‐16% 6,242
5,868
‐6%
42%
Opera ti ng Income
4,031
3,916
3,743
‐7%
‐4% 7,812
7,659
‐2% 16,675
16,218
‐3%
47%
Opera ti ng Expens es
1,910
1,881
1,904
0%
1% 3,719
3,785
2% 7,872
8,011
2%
47%
Opera ti ng Profi t Provi s i on for l oa n l os s (Revers a l )
1,646 618
1,734 167
1,882 456
14% ‐26%
9% 3,186 173% 1,202
3,617 623
14% 6,710 ‐48% 2,313
6,746 1,535
1% ‐34%
54% 41%
Ta xes expens es (Revers a l )
178
337
177
0%
‐47% 454
514
13% 879
901
2%
57%
Net Profi t PPOP‐a fter ta x
1,297 1,440
1,524 1,390
1,185 1,685
‐9% 17%
‐22% 2,404 21% 2,699
2,709 3,075
13% 5,547 14% 5,767
5,700 5,774
3% 0%
48% 53%
EPS (Bt)
1.53
1.80
1.40
‐9%
‐22% 2.84
3.20
13% 6.55
6.73
3%
48%
Key Statistics & Ratios Gros s NPLs (Btmn) Gros s NPLs /Loa ns Loa n Los s Res erve/NPLs Loa n Los s Res erve/Requi red Res erve Ti er I/Ri s k As s et Ca pi ta l Adequa cy Ra ti o Loa n to Depos i t Ra ti o Loa n to Depos i t & ST borrowi ng Provi s i on to l oa ns
2Q16 10,662 6.1% 95.5% 169.8% 15.1% 17.8% 176.0% 113.6% 1.41%
1Q17 9,933 5.6% 109.9% 188.1% 14.9% 18.4% 150.8% 113.7% 0.37%
2Q17 10,616 5.8% 104.4% 185.1% 14.2% 17.5% 162.2% 126.3% 0.99%
47.4% 37.1%
48.0% 35.0%
50.9% 29.2%
Cos t to Income Non‐i nteres t Income/Tota l Income
1H16 10,662 6.1% 95.5% 169.8% 15.1% 17.8% 176.0% 113.6% 1.37%
1H17 10,616 5.8% 104.4% 185.1% 14.2% 17.5% 162.2% 126.3% 0.68%
2016 2017E 9,968 10,965 5.6% 6.0% 110.0% 106.5% 187.8% N.A. 15.0% 15.8% 18.5% 18.3% 170.9% 147.6% 113.2% 112.2% 1.31% 0.84%
47.6% 49.4% 37.6% 32.2%
47.2% 37.4%
49.4% 36.2%
Net Interes t Ma rgi n
4.79%
4.60%
4.50%
4.60% 4.55%
4.84%
4.62%
Interes t Sprea d Ta x ra te
4.36% 11.8%
4.81% 18.0%
4.63% 12.8%
4.42% 4.72% 15.9% 15.4%
4.64% 13.5%
4.74% 13.5%
Loa n growth YoY Loa n growth QoQ
‐0.3% ‐0.4%
1.6% 1.3%
5.3% 3.2%
‐0.3% ‐0.4%
‐0.9%
3.6%
5.3% 3.2%
Source: Bloomberg and KTZMICO Research
Figure 3: KKP's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X) 1.8 1.6 1.4 1.2 1.0
Avg.
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-05
0.4
Jan-07
0.6
Jan-06
-0.5 S.D. -1 S.D. -1.5 S.D. -2S.D.
0.8
0.2
2017E +3 S.D. +2.5 S.D. +2 S.D. +1.5 S.D. +1 S.D. +0.5 S.D.
Source: Bloomberg, KT ZMICO Research
PBV (x)
Implied market
Upside/ Downside
price (Bt)
to current price (%) 12
+3.0SD
1.6
78
+2.5SD
1.5
72
4
+2.0SD
1.4
67
-4
+1.5SD
1.3
61
-12
+1.0SD
1.1
56
-20
+0.5SD
1.0
50
-28
Average
0.9
44
-36
-0.5SD
0.8
39
-44
-1.0SD
0.7
33
-52
-1.5SD
0.6
28
-61
-2.0SD
0.5
22
-69
Figure 4: KKP's PER band and sensitivity of market prices based on PER at different standard deviation levels (X)
2017E
16 14
PER (x)
+2 S.D.
12
+1 S.D.
10 Avg.
8 6
-1 S.D.
Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
12.9
87
25
+1.5SD
11.7
79
13
+1.0SD
10.5
71
1
+0.5SD
9.2
62
-11
Average
8.0
54
-23
2
-0.5SD
6.8
46
-35
0
-1.0SD
5.6
37
-46
-1.5SD
4.3
29
-58
-2.0SD
3.1
21
-70
4
Source: Bloomberg, KT ZMICO Research
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
-2 S.D.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 6
Statement of Comprehensive Income (Btmn) Year‐end 31 Dec Interest on Loans and Deposits
2015 4,754
2016 4,554
2017E 5,069
2018E 6,419
2019E 8,031
Hire Purchase Income
8,910
8,928
8,438
8,088
8,506
Interest & Dividend on Securities
578
402
401
440
503
Investment in FRA Unit trusts
534
985
522
524
461
14,776
14,869
14,430
15,471
17,501
5,328
4,436
4,079
4,745
5,843
20,104
19,305
18,508
20,215
23,344
Total Interest Income Interest Expenses on Borrowing Net Interest Income Non‐Interest Income
4,804
6,242
5,868
6,630
7,256
24,908
25,547
24,376
26,845
30,600
Operating Expenses
7,017
7,872
8,011
8,411
9,170
Operating Profit
6,224
6,710
6,746
6,965
7,515
Provision (Reversal) for loan loss
Operating Income
3,208
2,313
1,535
1,670
1,813
Taxes
602
879
901
1,055
1,190
Minority Interest
‐108
‐64
‐71
‐81
‐94
Net Profit
3,317
5,547
5,700
6,139
6,648
PPOP
5,514
5,767
5,774
5,829
6,232
3.92
6.55
6.73
7.25
7.85
2015 10,833
2016 12,652
2017E 15,082
2018E 15,842
2019E 16,677
EPS (Bt)
Statement of Financial Position (Btmn) Year‐end 31 Dec Cash & Money Market Items Net Investment
24,033
31,770
32,218
33,954
35,868
Finance & Securities Loans ‐ Gross
61,720
63,305
78,734
91,370
108,086
Hire Purchase Loans ‐ Gross
116,246
113,049
104,005
105,045
110,297
Net Loans
169,356
166,311
172,026
184,966
206,190
Total Assets
236,144
233,776
243,587
260,015
285,130
Deposits
104,327
109,923
133,117
142,701
159,397
Total Borrowings
174,621
174,337
182,708
195,932
217,361
Total Liabilities
30,891
22,414
23,505
24,347
25,308
Paid‐up Capital
8,468
8,468
8,468
8,468
8,468
18,346
20,505
20,628
22,281
24,105
37,929
40,298
40,918
43,246
45,996
Retained Earning Total Equity
Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 6
Valuations and Ratio Analysis Year‐end 31 Dec
2015
2016
2017E
2018E
2019E
EPS
3.92
6.55
6.73
7.25
7.85
DPS
3.00
6.00
4.50
4.60
4.71
BVPS
44.79
47.59
48.32
51.07
54.32
Per/Share Data (Bt)
Multiplier PE (X)
17.80
10.65
10.36
9.62
8.88
P/BV (X)
1.56
1.47
1.44
1.37
1.28
Dividend yield (%)
4.30
8.60
6.45
6.60
6.75
Net Profit
21.3
67.2
2.8
7.7
8.3
EPS
Percentage Growth (%) 20.8
67.2
2.8
7.7
8.3
Net Interest Income
6.0
10.4
‐0.8
3.6
8.7
Non Interest Income
21.0
29.9
‐6.0
13.0
9.4
7.6
12.2
1.8
5.0
9.0
Operating Expense Operating Profit
1.6
7.8
0.5
3.3
7.9
Loans
‐3.6
‐0.9
3.6
7.5
11.2
Deposits
‐21.2
5.4
21.1
7.2
11.7
0.5
‐4.2
10.0
5.3
‐5.0
NPLs (Btmn)
10,408
9,968
10,965
11,546
10,969
NPLs/Loans
5.8
5.6
6.0
5.9
5.0
91.7
110.0
106.5
108.0
121.2
Equity/Asset
16.1
17.2
16.8
16.6
16.1
Tier I to Risk Assets
14.6
15.0
15.8
15.6
15.1
Total Capital Adequacy Ratio
16.5
18.5
18.3
18.2
17.7
Loan to Deposit & Borrowing
113.5
113.2
112.2
111.7
111.5
NPLs Asset Quality Ratio (%)
Loan Loss Reserve/NPLs Capital & Liquidity Ratio (%)
Profitability Ratio (%) ROA
1.4
2.4
2.4
2.4
2.4
ROE
8.9
14.2
14.0
14.6
14.9
Cost to Income
49.2
47.2
49.4
48.5
48.5
Loan spread
4.24
4.64
4.74
4.62
4.61
Net Interest margin
4.33
4.84
4.62
4.53
4.53
Key Assumptions
2015
2016
2017E
2018E
2019E
Loan Growth ‐ Net
‐3.6
‐0.9
3.6
7.5
11.2
Cost to Income
49.2
47.2
49.4
48.5
48.5
Net Interest margin
4.3 1.81
4.8 1.31
4.6 0.84
4.5 0.85
4.5 0.83
2.49
1.68
1.13
1.11
1.05
Provision (% of loans) Provision plus loss from sale of repossessed cars (% of loans)
Source: KTZMICO Research
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, TTL, NMG, SAWAD.
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)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator 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 returns over a six‐month period due to specific UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant catalysts SELL: Expecting negative total returns of 10% or more primary market index by 10% over the next 12 months. 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 Bt69.75
Banking July 25, 2017
Earnings upgrade/Earnings downgrade/Overview unchanged
Asset quality issue needs a closer watch Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
6.989
7.290
KT ZMICO vs. consensus Share data
‐3.7%
‐0.5%
Reuters / Bloomberg
KKP.BK/KKP TB
Paid‐up Shares (m)
846.75
Par (Bt)
10.00
Market cap (Bt bn / US$ m)
59.00/1,768.00
Foreign limit / actual (%)
44.00/31.25
52 week High / Low (Bt)
75.00/46.75
Avg. daily T/O (shares 000)
5,202.00
NVDR (%)
15.50
Estimated free float (%)
84.71
Beta
0.93
URL
www.kiatnakin.co.th
CGR
Anti‐corruption
Level 4 (Certified)
Prapharas Nonthapiboon Analyst, no 17836 [email protected] 66 (0) 2695‐5872
Solid dividend yield the near‐term price support We maintain an Underperform rating for KKP following our earnings cut. We view that the asset quality issue for KKP still needs to be kept in check given its policy to gear to high yield/higher risk assets. However, the potential near‐term price catalyst could come from a sound dividend yield of 2‐3% (expect DPS of Bt2.0/share for the 1H17 performance). 2Q17 net profit fell short of both our forecast and the street estimate KKP’s 2Q17 net profit (NP) of Bt1.2bn (‐9%YoY, ‐22%QoQ) fell short of both our projection of Bt1.54bn and the street forecast of Bt1.48bn. The lower‐than‐expected NP was attributable mainly to 1) the booking of a Bt163mn loss from the revaluation of foreclosed assets; 2) a loss from the hedge fund unit (Bt71mn); and 3) a higher‐than‐expected provision. NPLs for 2Q17 increased QoQ The NPL ratio for 2Q17 increased to 5.8% of total loans vs. 5.6% both in 1Q17 and 4Q16, owing mainly to the increases in NPLs from the real estate development and SME sectors as well as in the used car segment. Long‐term strategy still gearing toward higher yield assets KKP maintained its loan growth target of >5% although it expects repayments of corporate loans (bridging loans booked in May‐17) in 3Q17. Meanwhile, the bank gave credit cost guidance plus losses on repossessed cars for 2017 at 1.0‐1.2% vs. the original indication of ~1% given weaker asset quality. Also note that KKP expects its investment banking business to improve from 2016 as it sees some IPO deals in the pipeline (e.g. BGRIM IPO in 3Q17E). Meanwhile, the group’s L‐T strategy still aims at 1) reducing the dependency on auto hire purchase loans; 2) gearing toward higher yield loans, e.g., in used‐car hire purchase loans, collateralized auto loans (Car Quick Cash), personal loans and small SME (including micro SME under the TCG guarantee program), along with penetrating lower risk loans (housing loans and corporate loans). Trimmed net profit estimates for 17‐19E by 5‐8% We cut our net profit estimates for 2017‐19E by 5‐8%, mainly to fine‐ tune with the latest weaker‐than‐expected results and operating environment. The key revisions are 1) lower income/gain on trading and FX transactions (especially to reflect the lower income from the hedge fund (HF) unit given the loss of ~Bt67mn from this unit in 1H17); 2) a higher provision given its weakened asset quality outlook; and 3) lower NIM. On the other hand, we also raised the fee income growth assumption, mainly to reflect its solid investment banking fees and asset management fees. Following our NP cut, we lowered our 17E target price to Bt67/share (from Bt70/share) for implied target P/BV of 1.4x. Financials and Valuation FY Ended 31 Dec PPOP (Btm) Net profit (Btm) EPS (Bt) EPS growth (%) Book value (Bt) Dividend (Bt)
2015 5,514 3,317 3.92 21% 44.79 3.00
2016 5,767 5,547 6.55 67% 47.59 6.00
2017E 5,774 5,700 6.73 3% 48.32 4.50
2018E 5,829 6,139 7.25 8% 51.07 4.60
2019E 6,232 6,648 7.85 8% 54.32 4.71
FY Ended 31 Dec PER (X) PBV (X) Dividend yield (%) ROE (%)
2015 17.80 1.56 4.30 8.9%
2016 10.65 1.47 8.60 14.2%
2017E 10.36 1.44 6.45 14.0%
2018E 9.62 1.37 6.60 14.6%
2019E 8.88 1.28 6.75 14.9%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 6
Figure 1: Key changes in our earnings revision 2017E Net profit (Btmn) Net profit change from previous forecasts (%) Net profit change YoY (%) Provision for loan loss (% of loans) Provision including loss from sale of repossessed cars (% of loans) Gain (loss) on trading and FX transactions
New 5,700 ‐8% 3% 0.84% 1.13% 371
2018E
Previous 6,229
0.80% 1.09% 571
New 6,139 ‐6% 8% 0.85% 1.11% 573
2019E
Previous 6,529
0.80% 1.03% 727
New 6,648 ‐5% 8% 0.83% 1.05% 678
Previous 6,987
0.80% 0.98% 872
760
850
800
800
800
800
Net interest margin (NIM)
4.62%
4.76%
4.53%
4.74%
4.53%
4.70%
Net fee income growth (%) Source: KT ZMICO Research
3%
‐3%
5%
‐2%
8%
2%
Gain (loss) from sale of foreclosed assets
2Q17 earnings wrap up 2Q17 net profit fell short of both our projection and the street estimate KKP posted 2Q17 net profit of Bt1.2bn (‐9%YoY, ‐22%QoQ). The result fell short of both our projection of Bt1.54bn and the street forecast of Bt1.48bn. The lower‐than‐expected earnings were attributable mainly to i) a higher‐than‐expected loan provision; ii) the booking of a Bt163mn loss from the revaluation of foreclosed assets in 2Q17; iii) a loss on trading and foreign exchange transactions amounting to Bt21mn (vs. our projection calling for a gain of Bt80mn from these transactions) vs. gains of Bt151mn and Bt63mn in 2Q16 and 1Q17, respectively. Note that the loss on trading transactions in this quarter was mainly due to the loss of the hedge fund unit of Bt71mn in 2Q17. 2Q17 net profit came in at Bt1.2bn (‐9% YoY, ‐22% QoQ) 2Q17 net profit fell both YoY and QoQ mainly due to the aforementioned reasons as well as lower income related to the capital market unit, especially the securities brokerage unit as the market’s daily turnover fell to Bt42bn (‐10%YoY, ‐17%QoO). Also, the income from sales of foreclosed assets declined both YoY and QoQ to Bt75mn vs. Bt142mn in 2Q16 and Bt186mn in 1Q17. 2Q17 loan growth still held up well at 5%YoY, 3%QoQ and 4%YTD, driven by corporate loans (+107%YTD), home loans (+93%YTD) and small SME (+52%YTD). Meanwhile, auto hire purchase loans fell by 5%YTD. NPLs for 2Q17 increased QoQ The NPL ratio during 2Q17 increased to 5.8% of total loans vs. 5.6% both in 1Q17 and 4Q16, owing mainly to the increases in NPLs from the real estate development and SME segments. Also, the NPLs from used car hire purchase loans also increased given its larger exposure to the used car portfolio. Meanwhile, the loan loss reserve (LLR) to NPLs and the BOT’s minimum requirement as of 2Q17 dropped slightly QoQ to 104% and 185%, respectively, vs. 110% and 188%, respectively, in 1Q17.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 6
Figure 2: 2Q17 earnings results
Statement of comprehensive income (Btmn) Fiscal Year‐Ended December
2Q16
1Q17
2Q17 % YoY % QoQ
1H16
1H17 % YoY
2016
2017E % YoY % 1H to 17E
Net Interes t Income
2,535
2,546
2,648
4%
4% 4,872
5,194
7% 10,433
10,351
‐1%
50%
Non Interes t Income
1,496
1,370
1,095
‐27%
‐20% 2,940
2,464
‐16% 6,242
5,868
‐6%
42%
Opera ti ng Income
4,031
3,916
3,743
‐7%
‐4% 7,812
7,659
‐2% 16,675
16,218
‐3%
47%
Opera ti ng Expens es
1,910
1,881
1,904
0%
1% 3,719
3,785
2% 7,872
8,011
2%
47%
Opera ti ng Profi t Provi s i on for l oa n l os s (Revers a l )
1,646 618
1,734 167
1,882 456
14% ‐26%
9% 3,186 173% 1,202
3,617 623
14% 6,710 ‐48% 2,313
6,746 1,535
1% ‐34%
54% 41%
Ta xes expens es (Revers a l )
178
337
177
0%
‐47% 454
514
13% 879
901
2%
57%
Net Profi t PPOP‐a fter ta x
1,297 1,440
1,524 1,390
1,185 1,685
‐9% 17%
‐22% 2,404 21% 2,699
2,709 3,075
13% 5,547 14% 5,767
5,700 5,774
3% 0%
48% 53%
EPS (Bt)
1.53
1.80
1.40
‐9%
‐22% 2.84
3.20
13% 6.55
6.73
3%
48%
Key Statistics & Ratios Gros s NPLs (Btmn) Gros s NPLs /Loa ns Loa n Los s Res erve/NPLs Loa n Los s Res erve/Requi red Res erve Ti er I/Ri s k As s et Ca pi ta l Adequa cy Ra ti o Loa n to Depos i t Ra ti o Loa n to Depos i t & ST borrowi ng Provi s i on to l oa ns
2Q16 10,662 6.1% 95.5% 169.8% 15.1% 17.8% 176.0% 113.6% 1.41%
1Q17 9,933 5.6% 109.9% 188.1% 14.9% 18.4% 150.8% 113.7% 0.37%
2Q17 10,616 5.8% 104.4% 185.1% 14.2% 17.5% 162.2% 126.3% 0.99%
47.4% 37.1%
48.0% 35.0%
50.9% 29.2%
Cos t to Income Non‐i nteres t Income/Tota l Income
1H16 10,662 6.1% 95.5% 169.8% 15.1% 17.8% 176.0% 113.6% 1.37%
1H17 10,616 5.8% 104.4% 185.1% 14.2% 17.5% 162.2% 126.3% 0.68%
2016 2017E 9,968 10,965 5.6% 6.0% 110.0% 106.5% 187.8% N.A. 15.0% 15.8% 18.5% 18.3% 170.9% 147.6% 113.2% 112.2% 1.31% 0.84%
47.6% 49.4% 37.6% 32.2%
47.2% 37.4%
49.4% 36.2%
Net Interes t Ma rgi n
4.79%
4.60%
4.50%
4.60% 4.55%
4.84%
4.62%
Interes t Sprea d Ta x ra te
4.36% 11.8%
4.81% 18.0%
4.63% 12.8%
4.42% 4.72% 15.9% 15.4%
4.64% 13.5%
4.74% 13.5%
Loa n growth YoY Loa n growth QoQ
‐0.3% ‐0.4%
1.6% 1.3%
5.3% 3.2%
‐0.3% ‐0.4%
‐0.9%
3.6%
5.3% 3.2%
Source: Bloomberg and KTZMICO Research
Figure 3: KKP's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X) 1.8 1.6 1.4 1.2 1.0
Avg.
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-05
0.4
Jan-07
0.6
Jan-06
-0.5 S.D. -1 S.D. -1.5 S.D. -2S.D.
0.8
0.2
2017E +3 S.D. +2.5 S.D. +2 S.D. +1.5 S.D. +1 S.D. +0.5 S.D.
Source: Bloomberg, KT ZMICO Research
PBV (x)
Implied market
Upside/ Downside
price (Bt)
to current price (%) 12
+3.0SD
1.6
78
+2.5SD
1.5
72
4
+2.0SD
1.4
67
-4
+1.5SD
1.3
61
-12
+1.0SD
1.1
56
-20
+0.5SD
1.0
50
-28
Average
0.9
44
-36
-0.5SD
0.8
39
-44
-1.0SD
0.7
33
-52
-1.5SD
0.6
28
-61
-2.0SD
0.5
22
-69
Figure 4: KKP's PER band and sensitivity of market prices based on PER at different standard deviation levels (X)
2017E
16 14
PER (x)
+2 S.D.
12
+1 S.D.
10 Avg.
8 6
-1 S.D.
Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
12.9
87
25
+1.5SD
11.7
79
13
+1.0SD
10.5
71
1
+0.5SD
9.2
62
-11
Average
8.0
54
-23
2
-0.5SD
6.8
46
-35
0
-1.0SD
5.6
37
-46
-1.5SD
4.3
29
-58
-2.0SD
3.1
21
-70
4
Source: Bloomberg, KT ZMICO Research
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
-2 S.D.
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 6
Statement of Comprehensive Income (Btmn) Year‐end 31 Dec Interest on Loans and Deposits
2015 4,754
2016 4,554
2017E 5,069
2018E 6,419
2019E 8,031
Hire Purchase Income
8,910
8,928
8,438
8,088
8,506
Interest & Dividend on Securities
578
402
401
440
503
Investment in FRA Unit trusts
534
985
522
524
461
14,776
14,869
14,430
15,471
17,501
5,328
4,436
4,079
4,745
5,843
20,104
19,305
18,508
20,215
23,344
Total Interest Income Interest Expenses on Borrowing Net Interest Income Non‐Interest Income
4,804
6,242
5,868
6,630
7,256
24,908
25,547
24,376
26,845
30,600
Operating Expenses
7,017
7,872
8,011
8,411
9,170
Operating Profit
6,224
6,710
6,746
6,965
7,515
Provision (Reversal) for loan loss
Operating Income
3,208
2,313
1,535
1,670
1,813
Taxes
602
879
901
1,055
1,190
Minority Interest
‐108
‐64
‐71
‐81
‐94
Net Profit
3,317
5,547
5,700
6,139
6,648
PPOP
5,514
5,767
5,774
5,829
6,232
3.92
6.55
6.73
7.25
7.85
2015 10,833
2016 12,652
2017E 15,082
2018E 15,842
2019E 16,677
EPS (Bt)
Statement of Financial Position (Btmn) Year‐end 31 Dec Cash & Money Market Items Net Investment
24,033
31,770
32,218
33,954
35,868
Finance & Securities Loans ‐ Gross
61,720
63,305
78,734
91,370
108,086
Hire Purchase Loans ‐ Gross
116,246
113,049
104,005
105,045
110,297
Net Loans
169,356
166,311
172,026
184,966
206,190
Total Assets
236,144
233,776
243,587
260,015
285,130
Deposits
104,327
109,923
133,117
142,701
159,397
Total Borrowings
174,621
174,337
182,708
195,932
217,361
Total Liabilities
30,891
22,414
23,505
24,347
25,308
Paid‐up Capital
8,468
8,468
8,468
8,468
8,468
18,346
20,505
20,628
22,281
24,105
37,929
40,298
40,918
43,246
45,996
Retained Earning Total Equity
Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 6
Valuations and Ratio Analysis Year‐end 31 Dec
2015
2016
2017E
2018E
2019E
EPS
3.92
6.55
6.73
7.25
7.85
DPS
3.00
6.00
4.50
4.60
4.71
BVPS
44.79
47.59
48.32
51.07
54.32
Per/Share Data (Bt)
Multiplier PE (X)
17.80
10.65
10.36
9.62
8.88
P/BV (X)
1.56
1.47
1.44
1.37
1.28
Dividend yield (%)
4.30
8.60
6.45
6.60
6.75
Net Profit
21.3
67.2
2.8
7.7
8.3
EPS
Percentage Growth (%) 20.8
67.2
2.8
7.7
8.3
Net Interest Income
6.0
10.4
‐0.8
3.6
8.7
Non Interest Income
21.0
29.9
‐6.0
13.0
9.4
7.6
12.2
1.8
5.0
9.0
Operating Expense Operating Profit
1.6
7.8
0.5
3.3
7.9
Loans
‐3.6
‐0.9
3.6
7.5
11.2
Deposits
‐21.2
5.4
21.1
7.2
11.7
0.5
‐4.2
10.0
5.3
‐5.0
NPLs (Btmn)
10,408
9,968
10,965
11,546
10,969
NPLs/Loans
5.8
5.6
6.0
5.9
5.0
91.7
110.0
106.5
108.0
121.2
Equity/Asset
16.1
17.2
16.8
16.6
16.1
Tier I to Risk Assets
14.6
15.0
15.8
15.6
15.1
Total Capital Adequacy Ratio
16.5
18.5
18.3
18.2
17.7
Loan to Deposit & Borrowing
113.5
113.2
112.2
111.7
111.5
NPLs Asset Quality Ratio (%)
Loan Loss Reserve/NPLs Capital & Liquidity Ratio (%)
Profitability Ratio (%) ROA
1.4
2.4
2.4
2.4
2.4
ROE
8.9
14.2
14.0
14.6
14.9
Cost to Income
49.2
47.2
49.4
48.5
48.5
Loan spread
4.24
4.64
4.74
4.62
4.61
Net Interest margin
4.33
4.84
4.62
4.53
4.53
Key Assumptions
2015
2016
2017E
2018E
2019E
Loan Growth ‐ Net
‐3.6
‐0.9
3.6
7.5
11.2
Cost to Income
49.2
47.2
49.4
48.5
48.5
Net Interest margin
4.3 1.81
4.8 1.31
4.6 0.84
4.5 0.85
4.5 0.83
2.49
1.68
1.13
1.11
1.05
Provision (% of loans) Provision plus loss from sale of repossessed cars (% of loans)
Source: KTZMICO Research
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, TTL, NMG, SAWAD.
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)
Satisfactory (scores: 60 – 69) Pass (scores: 50 – 59) No Logo N/A (scores: below 50)
Anti‐corruption Progress Indicator 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 returns over a six‐month period due to specific UNDERWEIGHT: The industry, as defined by the analyst's coverage universe, is expected to underperform the relevant catalysts SELL: Expecting negative total returns of 10% or more primary market index by 10% over the next 12 months. 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
