TMB Bank
TMB Bank Company Update
Underperform (17TP Bt2.40) Close Bt2.24
Banking
Earnings upgrade/Earnings downgrade/Overview unchanged
January 18, 2017
Pressure on provisioning and asset quality remains Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.208
0.246
KT ZMICO vs. consensus Share data
‐3.8%
‐2.4%
Reuters / Bloomberg
TMB.BK/TMB TB
Paid‐up Shares (m)
43,807.37
Par (Bt)
0.95
Market cap (Bt bn / US$ m) Foreign limit / actual (%) 52 week High / Low (Bt) Avg. daily T/O (shares 000)
98.00/2,780.00 50.36/34.45 2.68/1.83 162,428.00
NVDR (%)
10.51
Estimated free float (%)
43.92
Beta
1.05
URL
www.tmbbank.com
CGR
Underperform rating maintained We maintain our Underperform rating for TMB, given that we still see a high provisioning level from the ongoing asset quality risk and the potential impact of the new accounting standard (IFRS 9). 2017 guidance implies modestly improving operating environment TMB provided the bank’s key business targets for 2017 (based on its 2017 GDP growth forecast of 3.2‐3.5%), which imply a modest improvement in the overall operating environment; see Figure 1. The main targets are: 1) improving loan growth at 8‐10%; 2) stable NIM; 3) still quite aggressive net fee income growth of 10‐20% (a challenging target in our view); and 4) a continued high provision at 140‐150 bps vs. 146bps in 2016, partly to serve as a cushion for any headwinds. The bank views that the NPL cycle may be prolonged until year‐end 2017 vs. mid‐ 2017 estimated previously. Meanwhile, the bank’s strategic intents for 2017 will still focus on 1) enhancing its transactional deposit base, which should help strengthen its non‐interest income base; 2) boosting fee income and cross‐selling transactions; and 3) continuing cost control. 4Q16 net profit stood at Bt2.1bn (‐18% YoY, +16% QoQ) TMB’s 4Q16 net profit was 12‐14% ahead of our forecast of Bt1.92bn and the street estimate of Bt1.87bn. The better‐than‐expected earnings were due mainly to the much stronger‐than‐expected NIM and its better‐than‐ expected cost control. Meanwhile, the bank’s 2016 net profit stood at Bt8.2bn, down 12% YoY, mainly from higher provision expenses to 146bps in 2016 from 94 bps in 2015 following the bank’s effort in cutting NPLs, especially through bad debt write‐offs (Bt12bn), which resulted in a lower NPL ratio for 2016 to 2.53% from 2.99%. Moreover, loan growth remained weak at 2% and net fee income missed its target. Fine‐tune earnings estimates with 2017E guidance We fine‐tune our earnings forecasts to reflect the latest operating results and the bank’s 2017 business guidance by raising our net profit forecasts by 4% for 2017E and 6% for 2018E. The main revisions are the potential for stronger‐than‐expected NIM and its better operating cost control. We also raised credit cost slightly to reflect the bank’s view on its NPL cycle mentioned earlier. Following our NP revision, we raised our 17E target price slightly from Bt2.30/share to Bt2.40/share for a target P/BV of 1.2x. Financials and Valuation FY Ended 31 Dec PPOP (Btm)
Anti‐corruption
Level 4 (Certified)
Net profit (Btmn)
Analyst, no 17836 [email protected]
2016
2017E
2018E
2019E
16,706
17,905
19,630
21,613
9,333
8,226
8,879
10,480
12,287
EPS (Bt)
0.21
0.19
0.20
0.24
0.28
EPS growth (%)
‐2%
‐12%
8%
18%
17%
BV (Bt)
Prapharas Nonthapiboon
2015 14,665
1.75
1.91
2.06
2.24
2.45
Dividend (Bt)
0.060
0.060
0.061
0.072
0.079
FY Ended 31 Dec
2015
2016
2017E
2018E
2019E
PER (x)
10.50
11.93
11.05
9.36
7.99
PBV (x)
1.28
1.17
1.09
1.00
0.91
2.68 12.8%
2.68 10.3%
2.71 10.2%
3.20 11.1%
3.51 12.0%
Dividend yield (%) ROE (%)
66 (0) 2695‐5872
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 7
Figure 1: TMB’s financial guidance for 2017 vs. our forecasts 2015
2016**
2016
2017+
2017
Performance Targets
Actual
Actual
9.5% 12.8% 3.00% 36.4%
2.2% ‐7.1% 3.17% 2.2%
TMB's Guidance 8‐10%* 8‐10% 3.2‐3.3% 10‐20%
KTZ's forecasts
Loa n growth Depos i t growth Net Interes t Ma rgi n (NIM) Net fee i ncome growth
TMB's Guidance 6‐8%* 0‐2% 3.0‐3.2% (from ~3%) 5‐10%
Cos t to Income Ra ti o
50.3%
46‐49%
48.2%
45‐47%
47%
ROE
12.8%
10‐12%
10.3%
10‐12%
10.2%
3.0%
2.53%
1.45%
NPL ra ti o Provi s i on (% of l oa ns )
0.94%
Approx. 3.0% 1.4‐1.5% (from 1.2‐1.3%)
1.46%
2.3‐2.5% 1.4‐1.5%
Loa n Los s Covera ge
142%
140‐145%
143%
140‐150%
Source: KT ZMICO Research * Performing loan growth ** Revised on Sept‐16 + Based on TMB’s 2017 GDP growth forecast of 3.2‐3.5%
Figure 2: Key changes in our earnings revision Key assumption changes
2017E
2018E
Net profit (Btmn) % Change in net profit from previous forecast % Change in net profit YoY
New 8,879 4% 8%
Previous 8,557
New 10,480 6% 18%
Previous 9,920
Net interest margin (NIM)
3.26%
3.09%
3.33%
3.16%
10%
9%
11%
10%
Fee income growth (%) Provision for loan loss (Btmn)
9,207
8,961
9,344
9,069
Provision for loan loss (% to loans)
1.45%
1.40%
1.35%
1.30%
Provision for loan loss (% to average loans)
1.50%
1.45%
1.41%
1.36%
Cost to income ratio (%)
47.1%
48.4%
45.8%
47.4%
Source: KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 7
7% 5% 3.26% 10%
2.5% 148%
4Q16 net profit stood at Bt2.1bn (‐18% YoY, +16% QoQ) TMB’s 4Q16 net profit was 12‐14% ahead of our forecast of Bt1.92bn and the street estimate of Bt1.87bn. The better‐than‐expected earnings were due mainly to the much stronger‐than‐ expected net interest margin (NIM) and its better‐than‐expected operating cost control. Meanwhile, the bank’s 2016 net profit stood at Bt8.2bn, down 12% YoY, mainly from the higher provision expenses to 146bps in 2016 from 94 bps in 2015 following the bank’s effort in reducing NPLs, especially through bad debt write‐offs. Moreover, loan growth remained weak at 2% and net fee income also missed its target, mainly from weakening loan‐related fees following the bank’s policy to slow down its lending in SMEs in 2016. However, net fee income from bancassurance still grew well. NPLs declined mainly on bank’s aggressive NPL write‐offs TMB’s NPLs and NPL ratio at end‐2016 declined to 2.53% of loans from 2.99% in 2015. This followed the bank’s greater effort in reducing its NPL level, especially by means of aggressive bad loan write‐offs (Bt12bn in 2016 vs. ~Bt4.8bn in 2015) and NPL sales of Bt1.2bn in 2016. If including such NPL write‐offs and sales, its NPL ratio would stand at ~4.5%, instead of 2.53%. Its reserve ratios remained quite solid with its reserve‐to‐NPL ratio standing at 143% and the reserve‐to‐BoT’s required reserve at 155% at end‐2016 vs. the sector averages in 3Q16 at 128% and 165%, respectively. Figure 3: 4Q16 earnings results Statement of Comprehensive Income (Btmn) Fiscal Year‐Ended December Net Interest Income Non Interest Income Operating Income Operating Expenses Operating Profit before tax Provision for loan loss (Reversal) Taxes Net Profit PPOP‐after tax EPS (Bt) Key Statistics & Ratios Gross NPLs (Btmn) Gross NPLs/Loans
4Q15 5,878 2,673 8,551 4,572 3,950 923 570 2,621 3,380 0.06
3Q16 6,268 2,696 8,965 4,124 4,726 2,541 451 1,845 4,275 0.04
4Q16 6,391 2,944 9,335 4,515 4,844 2,234 441 2,138 4,403 0.05
% YoY % QoQ 2015 9% 2% 23,220 10% 9% 10,230 9% 4% 33,450 ‐1% 9% 16,467 23% 3% 16,275 142% ‐12% 5,479 ‐23% ‐2% 2,153 ‐18% 16% 9,333 30% 3% 14,665 ‐19% 16% 0.21
2016 24,761 10,462 35,223 16,589 17,860 8,649 1,740 8,226 16,706 0.19
4Q15
3Q16
4Q16
2015
2016
20,473
17,466
17,605
20,473
17,605
2.99%
2.50%
2.53%
Loan Loss Reserve/NPLs
141.8%
142.3%
142.5%
141.8% 142.5%
2.99%
Loan Loss Reserve/Required Reserve
168.0% 155.4%
2.53%
168.0%
160.8%
155.4%
Tier I/Risk Assets
11.3%
12.9%
12.8%
11.3%
12.8%
Capital Adequacy Ratio Loan to Deposit Ratio
16.7%
18.4%
18.1%
16.7%
18.1%
90.1%
97.5%
99.1%
90.1%
99.1%
Loan to Deposit & ST borrowing
86.1%
91.5%
92.9%
86.1%
92.9%
Cost to Income
54.8%
47.5%
49.2%
49.2%
47.1%
Non Interest Income/Total Income
31.3%
30.1%
31.5%
30.6%
29.7%
Net Interest Margin
3.01%
3.24%
3.33%
3.00%
3.17%
Tax rate
18.7%
19.6%
17.1%
18.7%
17.4%
Provision/Loans
0.64%
1.72%
1.51%
0.94%
1.46%
Provision/Average loans Loan growth YoY
0.66% 9.5%
1.75% 5.9%
1.52% 2.2%
0.99% 9.5%
1.47% 2.2%
2.4%
0.0%
0.3%
Loan growth QoQ
% YoY 7% 2% 5% 1% 10% 58% ‐19% ‐12% 14% ‐12%
Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 7
Figure 4: TMB's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X)
2016E
2.5
PBV (x)
+2 S.D. 2.0 1.5 1.0
+1.5 S.D. +1 S.D. +0.5 S.D. Avg. -0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
Source: Bloomberg, KT ZMICO Research
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
0.0
Jan-09
0.5
Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
2.1
4.40
96
+1.5SD
2.0
4.01
79
+1.0SD
1.8
3.63
62
+0.5SD
1.6
3.24
45
Average
1.4
2.86
28
-0.5SD
1.2
2.47
10
-1.0SD
1.0
2.09
-7
-1.5SD
0.8
1.70
-24
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 7
Statement of Comprehensive Income (Btmn) Year‐end 31 Dec Interest Income
2015 36,430
2016 35,631
2017E 36,786
2018E 40,539
2019E 46,105
Interest Expenses
13,210
10,870
11,036
12,691
15,919
Net Interest Income
23,220
24,761
25,750
27,848
30,185
Non‐Interest Income
10,230
10,462
11,424
12,579
13,826
Operating Income
33,450
35,223
37,174
40,427
44,012
Operating Expenses
16,467
16,589
17,107
18,102
19,274
Operating Profit
16,818
18,445
19,859
22,097
24,505
Provision (Reversal) for loan loss
5,479
8,649
9,207
9,344
9,517
Taxes
2,892
2,153
1,740
1,955
2,466
Extraordinary Item
0
0
0
0
0
Minority Interests Net Profit
(18)
(18)
(26)
(34)
(42)
9,333
8,226
8,879
10,480
12,287
Pre Provisioning Operating Profit (PPOP)
14,665
16,706
17,905
19,630
21,613
Pre Provisioning Profit (PPP) EPS (Bt)
14,812
16,876
18,086
19,824
21,804
0.21
0.19
0.20
0.24
0.28
2015 17,290
2016 16,531
2017E 16,696
2018E 16,863
2019E 17,032
Interbank & Money Market Net Investment
115,758
113,858
108,165
102,757
97,619
98,260
62,116
65,222
69,787
74,672
Loans
580,776
593,441
634,983
692,126
761,338
1,068
915
979
1,067
1,173
Loan Loss Reserves Net Loans
(29,025)
(25,088)
(27,057)
(30,171)
(32,836)
552,819
569,268
608,906
663,021
729,676
Total Assets
838,937
821,000
858,007
911,194
977,573
Deposits
644,694
598,948
631,890
679,282
738,380
36,217
45,417
46,326
47,252
48,197
30,184
39,874
37,881
35,987
34,187
762,339
737,152
767,794
813,048
870,165
Statement of Financial Position (Btmn) Year‐end 31 Dec Cash
Accrued Interest Receivable
Interbank & Money Market Borrowing Total Liabilities Paid‐up Capital
41,562
41,617
41,617
41,617
41,617
Retained Earning
29,023
34,382
40,173
47,529
56,212
76,491
83,723
90,079
98,003
107,255
Total Equity
Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 7
Valuation and Ratio Analysis Year‐end 31 Dec
2015
2016
2017E
2018E
2019E
EPS
0.21
0.19
0.20
0.24
0.28
DPS
0.060
0.060
0.061
0.072
0.079
BV
1.75
1.91
2.06
2.24
2.45
P/E
10.50
11.93
11.05
9.36
7.99
P/BV
1.28
1.17
1.09
1.00
0.91
Dividend yield (%)
2.68
2.68
2.71
3.20
3.51
Per/Share Data (Bt)
Multiplier (X)
Percentage Growth (%) Net Profit
‐2.2%
‐11.9%
7.9%
18.0%
17.2%
EPS
‐2.3%
‐12.0%
7.9%
18.0%
17.2% 8.4%
Net Interest Income
7.5%
6.6%
4.0%
8.1%
Non Interest Income
22.4%
2.3%
9.2%
10.1%
9.9%
Operating Income
11.7%
5.3%
5.5%
8.8%
8.9%
Operating Expense
4.4%
0.7%
3.1%
5.8%
6.5%
Operating Profit after tax Loans
19.8%
9.7%
7.7%
11.3%
10.9%
9.5%
2.2%
7.0%
9.0%
10.0%
Deposits
12.8%
‐7.1%
5.5%
7.5%
8.7%
Gross NPLs
13.2%
‐14.0%
3.6%
4.4%
2.2%
Asset Quality Ratio Gross NPLs (Btmn)
20,473
Gross NPL/Loans
17,605
18,240
19,046
19,472
3.0%
2.5%
2.5%
2.4%
2.3% 168.6%
Loan Loss Reserve/NPLs
141.8%
142.5%
148.3%
158.4%
Accrued Interest/Loans
0.2%
0.2%
0.2%
0.2%
0.2%
Loan Loss Reserve/Loans
5.0%
4.2%
4.3%
4.4%
4.3%
Annual provision/Total loans
0.9%
1.5%
1.5%
1.4%
1.3%
11.0%
Capital & Liquidity Ratio Equity/Asset
9.1%
10.2%
10.5%
10.8%
Tier I to Risk Assets
11.3%
12.8%
13.3%
13.6%
14.1%
Total Capital Adequacy Ratio
16.7%
18.1%
18.3%
18.1%
18.2%
Loan to Deposit Ratio (LDR)
90.1%
99.1%
100.5%
101.9%
103.1%
Loan to Deposit and ST Borrowings
86.1%
92.9%
94.8%
96.8%
98.5%
Profitability Ratio ROA
1.1%
1.0%
1.1%
1.2%
1.3%
ROE
12.8%
10.3%
10.2%
11.1%
12.0%
Cost to Income
50.3%
48.2%
47.1%
45.8%
44.8%
Non Interest Income/Total Income
30.6%
29.7%
30.7%
31.1%
31.4%
Net Interest Margin
3.00%
3.17%
3.26%
3.33%
3.36%
Key Assumptions
2015
2016
2017E
2018E
2019E
Loan Growth ‐ Net
9.5%
2.2%
7.0%
9.0%
10.0%
Cost to Income
50.3%
48.2%
47.1%
45.8%
44.8%
Net Interest Margin
3.00%
3.17%
3.26%
3.33%
3.36%
Provision expenses (Btmn) Provision/Loans Provision/Average loans Source: KTZMICO Research
5,479
8,649
9,207
9,344
9,517
0.94%
1.46%
1.45%
1.35%
1.25%
0.99%
1.47%
1.50%
1.41%
1.31%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 7
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. KT ZMICO is a co underwriter of RPH.
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 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 7 of 7
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
Underperform (17TP Bt2.40) Close Bt2.24
Banking
Earnings upgrade/Earnings downgrade/Overview unchanged
January 18, 2017
Pressure on provisioning and asset quality remains Price Performance (%)
Source: SET Smart
FY17
FY18
Consensus EPS (Bt)
0.208
0.246
KT ZMICO vs. consensus Share data
‐3.8%
‐2.4%
Reuters / Bloomberg
TMB.BK/TMB TB
Paid‐up Shares (m)
43,807.37
Par (Bt)
0.95
Market cap (Bt bn / US$ m) Foreign limit / actual (%) 52 week High / Low (Bt) Avg. daily T/O (shares 000)
98.00/2,780.00 50.36/34.45 2.68/1.83 162,428.00
NVDR (%)
10.51
Estimated free float (%)
43.92
Beta
1.05
URL
www.tmbbank.com
CGR
Underperform rating maintained We maintain our Underperform rating for TMB, given that we still see a high provisioning level from the ongoing asset quality risk and the potential impact of the new accounting standard (IFRS 9). 2017 guidance implies modestly improving operating environment TMB provided the bank’s key business targets for 2017 (based on its 2017 GDP growth forecast of 3.2‐3.5%), which imply a modest improvement in the overall operating environment; see Figure 1. The main targets are: 1) improving loan growth at 8‐10%; 2) stable NIM; 3) still quite aggressive net fee income growth of 10‐20% (a challenging target in our view); and 4) a continued high provision at 140‐150 bps vs. 146bps in 2016, partly to serve as a cushion for any headwinds. The bank views that the NPL cycle may be prolonged until year‐end 2017 vs. mid‐ 2017 estimated previously. Meanwhile, the bank’s strategic intents for 2017 will still focus on 1) enhancing its transactional deposit base, which should help strengthen its non‐interest income base; 2) boosting fee income and cross‐selling transactions; and 3) continuing cost control. 4Q16 net profit stood at Bt2.1bn (‐18% YoY, +16% QoQ) TMB’s 4Q16 net profit was 12‐14% ahead of our forecast of Bt1.92bn and the street estimate of Bt1.87bn. The better‐than‐expected earnings were due mainly to the much stronger‐than‐expected NIM and its better‐than‐ expected cost control. Meanwhile, the bank’s 2016 net profit stood at Bt8.2bn, down 12% YoY, mainly from higher provision expenses to 146bps in 2016 from 94 bps in 2015 following the bank’s effort in cutting NPLs, especially through bad debt write‐offs (Bt12bn), which resulted in a lower NPL ratio for 2016 to 2.53% from 2.99%. Moreover, loan growth remained weak at 2% and net fee income missed its target. Fine‐tune earnings estimates with 2017E guidance We fine‐tune our earnings forecasts to reflect the latest operating results and the bank’s 2017 business guidance by raising our net profit forecasts by 4% for 2017E and 6% for 2018E. The main revisions are the potential for stronger‐than‐expected NIM and its better operating cost control. We also raised credit cost slightly to reflect the bank’s view on its NPL cycle mentioned earlier. Following our NP revision, we raised our 17E target price slightly from Bt2.30/share to Bt2.40/share for a target P/BV of 1.2x. Financials and Valuation FY Ended 31 Dec PPOP (Btm)
Anti‐corruption
Level 4 (Certified)
Net profit (Btmn)
Analyst, no 17836 [email protected]
2016
2017E
2018E
2019E
16,706
17,905
19,630
21,613
9,333
8,226
8,879
10,480
12,287
EPS (Bt)
0.21
0.19
0.20
0.24
0.28
EPS growth (%)
‐2%
‐12%
8%
18%
17%
BV (Bt)
Prapharas Nonthapiboon
2015 14,665
1.75
1.91
2.06
2.24
2.45
Dividend (Bt)
0.060
0.060
0.061
0.072
0.079
FY Ended 31 Dec
2015
2016
2017E
2018E
2019E
PER (x)
10.50
11.93
11.05
9.36
7.99
PBV (x)
1.28
1.17
1.09
1.00
0.91
2.68 12.8%
2.68 10.3%
2.71 10.2%
3.20 11.1%
3.51 12.0%
Dividend yield (%) ROE (%)
66 (0) 2695‐5872
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 1 of 7
Figure 1: TMB’s financial guidance for 2017 vs. our forecasts 2015
2016**
2016
2017+
2017
Performance Targets
Actual
Actual
9.5% 12.8% 3.00% 36.4%
2.2% ‐7.1% 3.17% 2.2%
TMB's Guidance 8‐10%* 8‐10% 3.2‐3.3% 10‐20%
KTZ's forecasts
Loa n growth Depos i t growth Net Interes t Ma rgi n (NIM) Net fee i ncome growth
TMB's Guidance 6‐8%* 0‐2% 3.0‐3.2% (from ~3%) 5‐10%
Cos t to Income Ra ti o
50.3%
46‐49%
48.2%
45‐47%
47%
ROE
12.8%
10‐12%
10.3%
10‐12%
10.2%
3.0%
2.53%
1.45%
NPL ra ti o Provi s i on (% of l oa ns )
0.94%
Approx. 3.0% 1.4‐1.5% (from 1.2‐1.3%)
1.46%
2.3‐2.5% 1.4‐1.5%
Loa n Los s Covera ge
142%
140‐145%
143%
140‐150%
Source: KT ZMICO Research * Performing loan growth ** Revised on Sept‐16 + Based on TMB’s 2017 GDP growth forecast of 3.2‐3.5%
Figure 2: Key changes in our earnings revision Key assumption changes
2017E
2018E
Net profit (Btmn) % Change in net profit from previous forecast % Change in net profit YoY
New 8,879 4% 8%
Previous 8,557
New 10,480 6% 18%
Previous 9,920
Net interest margin (NIM)
3.26%
3.09%
3.33%
3.16%
10%
9%
11%
10%
Fee income growth (%) Provision for loan loss (Btmn)
9,207
8,961
9,344
9,069
Provision for loan loss (% to loans)
1.45%
1.40%
1.35%
1.30%
Provision for loan loss (% to average loans)
1.50%
1.45%
1.41%
1.36%
Cost to income ratio (%)
47.1%
48.4%
45.8%
47.4%
Source: KT ZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 2 of 7
7% 5% 3.26% 10%
2.5% 148%
4Q16 net profit stood at Bt2.1bn (‐18% YoY, +16% QoQ) TMB’s 4Q16 net profit was 12‐14% ahead of our forecast of Bt1.92bn and the street estimate of Bt1.87bn. The better‐than‐expected earnings were due mainly to the much stronger‐than‐ expected net interest margin (NIM) and its better‐than‐expected operating cost control. Meanwhile, the bank’s 2016 net profit stood at Bt8.2bn, down 12% YoY, mainly from the higher provision expenses to 146bps in 2016 from 94 bps in 2015 following the bank’s effort in reducing NPLs, especially through bad debt write‐offs. Moreover, loan growth remained weak at 2% and net fee income also missed its target, mainly from weakening loan‐related fees following the bank’s policy to slow down its lending in SMEs in 2016. However, net fee income from bancassurance still grew well. NPLs declined mainly on bank’s aggressive NPL write‐offs TMB’s NPLs and NPL ratio at end‐2016 declined to 2.53% of loans from 2.99% in 2015. This followed the bank’s greater effort in reducing its NPL level, especially by means of aggressive bad loan write‐offs (Bt12bn in 2016 vs. ~Bt4.8bn in 2015) and NPL sales of Bt1.2bn in 2016. If including such NPL write‐offs and sales, its NPL ratio would stand at ~4.5%, instead of 2.53%. Its reserve ratios remained quite solid with its reserve‐to‐NPL ratio standing at 143% and the reserve‐to‐BoT’s required reserve at 155% at end‐2016 vs. the sector averages in 3Q16 at 128% and 165%, respectively. Figure 3: 4Q16 earnings results Statement of Comprehensive Income (Btmn) Fiscal Year‐Ended December Net Interest Income Non Interest Income Operating Income Operating Expenses Operating Profit before tax Provision for loan loss (Reversal) Taxes Net Profit PPOP‐after tax EPS (Bt) Key Statistics & Ratios Gross NPLs (Btmn) Gross NPLs/Loans
4Q15 5,878 2,673 8,551 4,572 3,950 923 570 2,621 3,380 0.06
3Q16 6,268 2,696 8,965 4,124 4,726 2,541 451 1,845 4,275 0.04
4Q16 6,391 2,944 9,335 4,515 4,844 2,234 441 2,138 4,403 0.05
% YoY % QoQ 2015 9% 2% 23,220 10% 9% 10,230 9% 4% 33,450 ‐1% 9% 16,467 23% 3% 16,275 142% ‐12% 5,479 ‐23% ‐2% 2,153 ‐18% 16% 9,333 30% 3% 14,665 ‐19% 16% 0.21
2016 24,761 10,462 35,223 16,589 17,860 8,649 1,740 8,226 16,706 0.19
4Q15
3Q16
4Q16
2015
2016
20,473
17,466
17,605
20,473
17,605
2.99%
2.50%
2.53%
Loan Loss Reserve/NPLs
141.8%
142.3%
142.5%
141.8% 142.5%
2.99%
Loan Loss Reserve/Required Reserve
168.0% 155.4%
2.53%
168.0%
160.8%
155.4%
Tier I/Risk Assets
11.3%
12.9%
12.8%
11.3%
12.8%
Capital Adequacy Ratio Loan to Deposit Ratio
16.7%
18.4%
18.1%
16.7%
18.1%
90.1%
97.5%
99.1%
90.1%
99.1%
Loan to Deposit & ST borrowing
86.1%
91.5%
92.9%
86.1%
92.9%
Cost to Income
54.8%
47.5%
49.2%
49.2%
47.1%
Non Interest Income/Total Income
31.3%
30.1%
31.5%
30.6%
29.7%
Net Interest Margin
3.01%
3.24%
3.33%
3.00%
3.17%
Tax rate
18.7%
19.6%
17.1%
18.7%
17.4%
Provision/Loans
0.64%
1.72%
1.51%
0.94%
1.46%
Provision/Average loans Loan growth YoY
0.66% 9.5%
1.75% 5.9%
1.52% 2.2%
0.99% 9.5%
1.47% 2.2%
2.4%
0.0%
0.3%
Loan growth QoQ
% YoY 7% 2% 5% 1% 10% 58% ‐19% ‐12% 14% ‐12%
Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 3 of 7
Figure 4: TMB's P/BV band and sensitivity of market prices based on P/BV at different standard deviation levels (X)
2016E
2.5
PBV (x)
+2 S.D. 2.0 1.5 1.0
+1.5 S.D. +1 S.D. +0.5 S.D. Avg. -0.5 S.D. -1 S.D. -1.5 S.D. -2 S.D.
Source: Bloomberg, KT ZMICO Research
Jan-17
Jan-16
Jan-15
Jan-14
Jan-13
Jan-12
Jan-11
Jan-10
0.0
Jan-09
0.5
Implied market
Upside/ Downside
price (Bt)
to current price (%)
+2.0SD
2.1
4.40
96
+1.5SD
2.0
4.01
79
+1.0SD
1.8
3.63
62
+0.5SD
1.6
3.24
45
Average
1.4
2.86
28
-0.5SD
1.2
2.47
10
-1.0SD
1.0
2.09
-7
-1.5SD
0.8
1.70
-24
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 4 of 7
Statement of Comprehensive Income (Btmn) Year‐end 31 Dec Interest Income
2015 36,430
2016 35,631
2017E 36,786
2018E 40,539
2019E 46,105
Interest Expenses
13,210
10,870
11,036
12,691
15,919
Net Interest Income
23,220
24,761
25,750
27,848
30,185
Non‐Interest Income
10,230
10,462
11,424
12,579
13,826
Operating Income
33,450
35,223
37,174
40,427
44,012
Operating Expenses
16,467
16,589
17,107
18,102
19,274
Operating Profit
16,818
18,445
19,859
22,097
24,505
Provision (Reversal) for loan loss
5,479
8,649
9,207
9,344
9,517
Taxes
2,892
2,153
1,740
1,955
2,466
Extraordinary Item
0
0
0
0
0
Minority Interests Net Profit
(18)
(18)
(26)
(34)
(42)
9,333
8,226
8,879
10,480
12,287
Pre Provisioning Operating Profit (PPOP)
14,665
16,706
17,905
19,630
21,613
Pre Provisioning Profit (PPP) EPS (Bt)
14,812
16,876
18,086
19,824
21,804
0.21
0.19
0.20
0.24
0.28
2015 17,290
2016 16,531
2017E 16,696
2018E 16,863
2019E 17,032
Interbank & Money Market Net Investment
115,758
113,858
108,165
102,757
97,619
98,260
62,116
65,222
69,787
74,672
Loans
580,776
593,441
634,983
692,126
761,338
1,068
915
979
1,067
1,173
Loan Loss Reserves Net Loans
(29,025)
(25,088)
(27,057)
(30,171)
(32,836)
552,819
569,268
608,906
663,021
729,676
Total Assets
838,937
821,000
858,007
911,194
977,573
Deposits
644,694
598,948
631,890
679,282
738,380
36,217
45,417
46,326
47,252
48,197
30,184
39,874
37,881
35,987
34,187
762,339
737,152
767,794
813,048
870,165
Statement of Financial Position (Btmn) Year‐end 31 Dec Cash
Accrued Interest Receivable
Interbank & Money Market Borrowing Total Liabilities Paid‐up Capital
41,562
41,617
41,617
41,617
41,617
Retained Earning
29,023
34,382
40,173
47,529
56,212
76,491
83,723
90,079
98,003
107,255
Total Equity
Source: KTZMICO Research
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 5 of 7
Valuation and Ratio Analysis Year‐end 31 Dec
2015
2016
2017E
2018E
2019E
EPS
0.21
0.19
0.20
0.24
0.28
DPS
0.060
0.060
0.061
0.072
0.079
BV
1.75
1.91
2.06
2.24
2.45
P/E
10.50
11.93
11.05
9.36
7.99
P/BV
1.28
1.17
1.09
1.00
0.91
Dividend yield (%)
2.68
2.68
2.71
3.20
3.51
Per/Share Data (Bt)
Multiplier (X)
Percentage Growth (%) Net Profit
‐2.2%
‐11.9%
7.9%
18.0%
17.2%
EPS
‐2.3%
‐12.0%
7.9%
18.0%
17.2% 8.4%
Net Interest Income
7.5%
6.6%
4.0%
8.1%
Non Interest Income
22.4%
2.3%
9.2%
10.1%
9.9%
Operating Income
11.7%
5.3%
5.5%
8.8%
8.9%
Operating Expense
4.4%
0.7%
3.1%
5.8%
6.5%
Operating Profit after tax Loans
19.8%
9.7%
7.7%
11.3%
10.9%
9.5%
2.2%
7.0%
9.0%
10.0%
Deposits
12.8%
‐7.1%
5.5%
7.5%
8.7%
Gross NPLs
13.2%
‐14.0%
3.6%
4.4%
2.2%
Asset Quality Ratio Gross NPLs (Btmn)
20,473
Gross NPL/Loans
17,605
18,240
19,046
19,472
3.0%
2.5%
2.5%
2.4%
2.3% 168.6%
Loan Loss Reserve/NPLs
141.8%
142.5%
148.3%
158.4%
Accrued Interest/Loans
0.2%
0.2%
0.2%
0.2%
0.2%
Loan Loss Reserve/Loans
5.0%
4.2%
4.3%
4.4%
4.3%
Annual provision/Total loans
0.9%
1.5%
1.5%
1.4%
1.3%
11.0%
Capital & Liquidity Ratio Equity/Asset
9.1%
10.2%
10.5%
10.8%
Tier I to Risk Assets
11.3%
12.8%
13.3%
13.6%
14.1%
Total Capital Adequacy Ratio
16.7%
18.1%
18.3%
18.1%
18.2%
Loan to Deposit Ratio (LDR)
90.1%
99.1%
100.5%
101.9%
103.1%
Loan to Deposit and ST Borrowings
86.1%
92.9%
94.8%
96.8%
98.5%
Profitability Ratio ROA
1.1%
1.0%
1.1%
1.2%
1.3%
ROE
12.8%
10.3%
10.2%
11.1%
12.0%
Cost to Income
50.3%
48.2%
47.1%
45.8%
44.8%
Non Interest Income/Total Income
30.6%
29.7%
30.7%
31.1%
31.4%
Net Interest Margin
3.00%
3.17%
3.26%
3.33%
3.36%
Key Assumptions
2015
2016
2017E
2018E
2019E
Loan Growth ‐ Net
9.5%
2.2%
7.0%
9.0%
10.0%
Cost to Income
50.3%
48.2%
47.1%
45.8%
44.8%
Net Interest Margin
3.00%
3.17%
3.26%
3.33%
3.36%
Provision expenses (Btmn) Provision/Loans Provision/Average loans Source: KTZMICO Research
5,479
8,649
9,207
9,344
9,517
0.94%
1.46%
1.45%
1.35%
1.25%
0.99%
1.47%
1.50%
1.41%
1.31%
REFER TO DISCLOSURE SECTION AT THE END OF THE NOTES page 6 of 7
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. KT ZMICO is a co underwriter of RPH.
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 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 7 of 7
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
