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President Tawatchai Sudtikitpisan yesterday said the bank expected to report 2009 earn¬ings the same as this year's, at an estimated Bt2 billion.

"We hope our earnings growth next year will be in a wide range vary¬ing from zero up to 10 per cent from this year," he said.

However, Tawatchai said the bank's net profit for this year was also likely to miss its target.

The bank posted Bt674.17 mil¬lion as thirdquarter net profit, up 22 per cent year on year and 105 per cent quarter on quarter. Net profit for the first nine months was Bt1.53 billion, up 3 per cent on the year.

Meanwhile, local brokerage houses estimated the bank would report a descending net profit this year and next.

Asia Plus Securities reiterated a 'sell' rating for Kiatnakin Bank stock, as there promises to be a slowdown in lending growth next year from the credit crunch.

The broker's research unit expects Kiatnakin's net loan growth next year will grow at 8 per cent, com¬pared with estimated growth this year of 25 per cent.

Asia Plus forecasts the bank will also report lower net profit in the last quarter of this year in accordance with the industry's downward trend. Meanwhile, the bank's net interest margin is expected to decline as a result of the higher cost of deposit interest payouts.

Though having revised up its earnings target for the bank this year by 16.5 per cent to Bt1.69 billion, Asia Plus has lowered its earnings growth target in the long term to zero from 2 per cent, reflecting the slowdown in consumer spending.

The broker expects the bank to report Bt1.29 billion in net profit next year.

UOB Kay Hian securities (Thailand) reiterated in its report that Kiatnakin Bank's revenue growth in the first nine months was mainly derived from both noninter¬est and interest income. The bank's ninemonths lending grew 21 per cent, but slowed down from the pre¬vious quarter.

The broker forecasts the bank's net profit will be Bt1.72 billion this year and Bt1.21 billion next year, as a result of steady lending growth and the vitality of the stock market, which has been putting downward pressure on the bank's noninterest income from securities business.

Phillip Securities advises 'hold' for the bank's stock. The broker has revised downward its net profit tar¬get to Bt1.83 billion in 2008 as a result of the bank's lowerthanexpected ninemonth earnings, which account for 69 per cent of its fullyear earnings forecast. In 2009, the broker expects Kiatnakin to report a net profit of Bt1.59 billion.

To smooth the bank's earnings next year, Tawatchai said it would buy a further Bt5 billion of loans from others to manage. The bank's outstanding loans for management are now Bt5 billion.

In addition, he said the bank would open seven branches next year to complete its target of 44 branch¬es.

He expects the bank's outstand¬ing loans will be Bt8.5 billion to Bt9 billion in 2009. At the same time, the bank will lower its risk by increasing its downpayment ratio for car loans to 1520 per cent of the vehicle price.

Tawatchai said the bank would take care that its customers were not greatly affected by the world eco¬nomic slowdown, as well as keeping its ratio of nonperforming loans to assets at not more than 6 per cent - in line with the industry average of 5 to 6 per cent.

Currently, Kiatnakin Bank has an NPL ratio of 8.56 per cent and is expected to see that figure lowered to 8 per cent by the end of this year.