The Nation

business

Smaller
Larger

Kasikornbank

FY14 loan growth guidance cut in line with our expectation

Kasikornbank Plc (KBANK)

NIM will be close to last year

Management maintains its NIM target in the 3.4-3.6% range (we expect an FY14 NIM of 3.35%). Easing competition for deposit mobilization could possibly enable lower funding costs than last year. KBANK also guides that its cost/income ratio target is unchanged at 45% (close to our number). The NPLs/loans ratio should not exceed 2.2% at YE14. The bank will set FY14 loan loss provisions pegged to a credit cost of 85 bps.

Anticipate moderate YoY earnings growth in 1Q14

We estimate a 1Q14 profit of 11.5bn, up by 14% YoY and 21% QoQ. The assumed earnings expansion was driven by loan growth of 7.6% YoY during the quarter, a stable NIM of 3.4% and fee income growth of 11% YoY. We expect a cost/income ratio of 41%, flattish YoY. Our 1Q14 pre-provision operating profit (PPOP) expectation is Bt18.9bn, up by 12% YoY and 19% QoQ.


Comments conditions

Users are solely responsible for their comments.We reserve the right to remove any comment and revoke posting rights for any reason withou prior notice.