Krung Thai Bank
ju
Krung Thai Bank Unrated (17E TP Bt19.50)
Earnings Review
Close Bt18.40
Banking
Beat forecast/Below forecast/In line
January 20, 2017
4Q16 results in line with our forecast and the street Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
2.305
2.665
KT ZMICO vs. consensus Share data
‐1.5%
‐5.4%
Reuters / Bloomberg
KTB.BK/KTB TB
Paid‐up Shares (m)
13,976.06
Par (Bt)
5.15
Market cap (Bt bn / US$ m)
257.00/7,263.00
Foreign limit / actual (%)
25.00/12.37
52 week High / Low (Bt)
19.50/16.20
Avg. daily T/O (shares 000) NVDR (%)
49,751.00 6.41
Estimated free float (%)
44.93
Beta
1.08
URL
www.ktb.co.th
CGR
Anti‐corruption
Level 4 (Certified)
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. Prapharas Nonthapiboon
Sound dividend yield of 4‐5% the near‐term price catalyst We view that KTB’s inexpensive valuation and its sound dividend yield of 4‐5% should remain its main share price catalysts. However, the asset quality issue still needs to be kept in check. 4Q16 net profit quite in line with both our estimate and the street KTB’s 4Q16 net profit (NP) of Bt7.4bn (+10% YoY, ‐14% QoQ) came in quite in line with our estimate and the street’s at Bt7.1bn. Loans continued to contract by ‐0.1%QoQ and ‐6.1%YoY, due largely to the repayment of government loans and the bank’s more stringent credit criteria for SME lending. NIM was the main bright spot, which improved +12bps QoQ and 25bps YoY despite the rate cut impact. 2016 net profit stood at Bt32.3bn (+13% YoY) The main reason behind the higher NP YoY was 1) its well‐managed NIM that widened by 28bps YoY along with its efficient operating cost control, with the cost‐to‐income ratio for 2016 falling YoY to 41% from 44%. Meanwhile, credit cost was still higher YoY to 176bps vs. 151bps in 2015 following the bank’s policy to build up its reserve positions after being affected by the SSI case. Meanwhile, net fee income for 2016 grew 3%, below its target of
Krung Thai Bank Unrated (17E TP Bt19.50)
Earnings Review
Close Bt18.40
Banking
Beat forecast/Below forecast/In line
January 20, 2017
4Q16 results in line with our forecast and the street Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
2.305
2.665
KT ZMICO vs. consensus Share data
‐1.5%
‐5.4%
Reuters / Bloomberg
KTB.BK/KTB TB
Paid‐up Shares (m)
13,976.06
Par (Bt)
5.15
Market cap (Bt bn / US$ m)
257.00/7,263.00
Foreign limit / actual (%)
25.00/12.37
52 week High / Low (Bt)
19.50/16.20
Avg. daily T/O (shares 000) NVDR (%)
49,751.00 6.41
Estimated free float (%)
44.93
Beta
1.08
URL
www.ktb.co.th
CGR
Anti‐corruption
Level 4 (Certified)
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. Prapharas Nonthapiboon
Sound dividend yield of 4‐5% the near‐term price catalyst We view that KTB’s inexpensive valuation and its sound dividend yield of 4‐5% should remain its main share price catalysts. However, the asset quality issue still needs to be kept in check. 4Q16 net profit quite in line with both our estimate and the street KTB’s 4Q16 net profit (NP) of Bt7.4bn (+10% YoY, ‐14% QoQ) came in quite in line with our estimate and the street’s at Bt7.1bn. Loans continued to contract by ‐0.1%QoQ and ‐6.1%YoY, due largely to the repayment of government loans and the bank’s more stringent credit criteria for SME lending. NIM was the main bright spot, which improved +12bps QoQ and 25bps YoY despite the rate cut impact. 2016 net profit stood at Bt32.3bn (+13% YoY) The main reason behind the higher NP YoY was 1) its well‐managed NIM that widened by 28bps YoY along with its efficient operating cost control, with the cost‐to‐income ratio for 2016 falling YoY to 41% from 44%. Meanwhile, credit cost was still higher YoY to 176bps vs. 151bps in 2015 following the bank’s policy to build up its reserve positions after being affected by the SSI case. Meanwhile, net fee income for 2016 grew 3%, below its target of
