KBANK, strong business, low share price, order!

company value

Kasikorn Bank Public Company Limited or KBANK and its subsidiaries reported operating results in the 3rd quarter of 2022 with a net profit of 10,574 million baht, a decrease from the 2nd quarter of 2022 or 2.04%, while net profit increased by 22.51% from the 3rd quarter of 2021 at 8,631 million baht by Net interest revenue rose by 3.36% , mainly from interest income on loans. This makes the yield on net income earning assets (NIM) at 3.33%, an increase from the second quarter of 2022 at 3.21%, while non-interest income has decreased by 8.97%, mainly due to net income from receiving insurance, which a decrease of 1,177 million baht, while the fair value adjustment (mark to market) increased financial assets in line with market conditions.

Other operating expenses were only 1% higher than the previous quarter, mainly due to higher marketing costs in line with higher revenues as business volumes increased. and staff expenses As a result, the ratio of other operating expenses to net operating income (Cost to Income Ratio) in the third quarter was 43.73%, a slight increase from the previous quarter at 43.53% Expected Credit Loss (ECL) was amounting to 9,948 million baht. , close to the previous quarter. With a slight increase of only 0.98%, resulting in a ratio of expected credit losses to average loans or Credit Cost in the third quarter of 2022 at 1.61%, a slight increase of 1.59% in the second quarter of 2022.

For the 9-month period from 2022, KBANK has set aside a provision for expected credit losses (ECL) decreased by 29,135 million baht or 5.26% from the 9-month period from 2021, which is still a reserve high and takes into account factors. coverage ratio at the end of the third quarter of 2022 was 148.74%, which is an appropriate level.

Non-performing loans or Gross NPL at the end of the third quarter of 2022 amounted to 87,682 million baht, a decrease of 20.27% compared to the end of the second quarter of 2022 at 109,972 million baht and a decrease of 15.72% compared to the 104,036 million baht at the end of 2021. The ratio of non-performing loans to total loans or NPL Ratio at the end of the third quarter of 2022 was 3.07%, a decrease of 3.80% compared to the end of the second quarter of 2022, and at the end of 2021 at a level of 3.76% NPLs or NPLs The continued reduction of KBANK came after the sale of non-performing loans (NPL) of about 25,775 million baht in the third quarter of 2022 to JK Asset Management Co., Ltd., a joint venture subsidiary of KBANK, resulting in a stronger balance sheet

Maybank Securities (Thailand) expects NIM or KBANK’s insurance business and net interest income margin to gradually improve following higher interest rates. It should help support revenue growth and offset higher credit costs from growing credit problems in the fourth quarter of 2022, with KBANK likely to expand unsecured loans. which generates high yields to increase revenue and accelerate NPL solutions to clear the balance sheet The main risk is weaker than expected asset quality.

for valuation (Valuation) KBANK shares at the current price (closing price on November 21, 2022 at 142.5 baht) trade at a P/E of 7.95 times, lower than the average P/E of the banking group at 8.55 times, while the P/ The BV of KBANK shares is at 0.67 times, lower than the industry average of 0.69 times.

…

List of major shareholders

1. Thai NVDR Company Limited 458,609,855 shares 19.36%
2. STATE STREET EUROPE LIMITED 245,377,976 shares 10.36%
3. SOUTH EAST ASIA BLACK (TYPE C) NOMINEE LIMITED 110,197,711 shares 4.65%
4. THE BANK OF NEW YORK MELLON 79,486,411 STOCKS 3.35%
5. Social Security Office 55,893,800 shares 2.36%

list of directors

1. Mrs. Kobkarn Wattanavrangkun Chairman, Independent Chairman
2. Ms. Kattiya Indaravichai CEO, Director
3. Ms. Sujitpan Lasam, Vice Chairman
4. Mr. Phiphit Aneknithi Managing Director, Director
5. Mr. Patchara Samalapa Managing Director, Director
6. Mr. Krit Jitjang Managing Director, Director
7. Mr. Pipatpong Poshyanon Managing Director, Director
8. Mr. Sara Lambam Director
9. Ms Chanchanam Soonthornsaratul Director
10. Mr. Surat Lambam Director
11. Lt. Nalinee Paiboon, Independent Director
12. Mr. Sarawut Yoovidhya Independent Director
13. Mr. Kalin Sarasin Independent Director
14. Mr. Wiboon Khusakul Independent Director
15. Mrs. Suphajee Suthumpun Independent Director, Audit Committee
16. Miss Jennisa Chakrabhand Na Ayudhya Independent Director, Audit Committee Member
17. Mr. Chanin Donavanik Independent Director, Audit Committee
18. Mrs Khaisri Nuengsikkhapian Chair of the Audit Committee