Company Coverage
Krungthai Card (KTC TB): Current Loan Portfolio Is Healthy; Confident In Asset Quality In 2H26
BUY (Maintained)
Current price:
Target price:
Upside:
Bt37.50
Bt50.00
33.3%
Analyst
Highlights
- Positive tone during the analyst meeting.
- An indirect benefit from the cash handout stimulus.
- Maintain BUY with a target price of Bt50.00.
Analysis
- Positive tone at analyst meeting. We came away from Krungthai Card’s (KTC) analyst meeting with a positive view. Management guided for KTC's 2H26 outlook to be similar to that of 1H26, while loan demand and credit card spending should improve hoh and finally reach KTC’s 2026 financial targets. The CEO expects net profit to continue increasing yoy going forward.
- To remain prudent in lending to preserve asset quality. KTC is maintaining its 2026 loan growth target of 0-2%, compared with a contraction of 3.5% in 1H26. Management admits that the quality of potential clients remains a concern, but the company is also screening borrowers carefully and being prudent in lending to preserve the quality of its loan portfolio. KTC will continue to target clients with a >Bt50,000 monthly salary as they have stronger repayment capabilities. Meanwhile, KTC will also focus more on providing credit cards to first-jobbers and students who have a fixed deposit requirement. KTC believes these clients are likely to spend mainly using their first credit card after getting a paying job.
- Current asset quality is rather healthy. The CEO has no concerns about asset quality despite the ongoing uncertainty in the economic environment, and stated that KTC's loan portfolio is quite healthy at present. The target credit cost of 5.5% might be too conservative for 2026, and management has guided that a credit cost of 5.0–5.3% would be more appropriate. However, management does not expect credit costs to reach 4.5% in the future.
- Maintaining cost-to-income ratio target for 2026. KTC implemented a new core IT system in Jul 26 and has been performing well. The company is confident in the new system's stability and its ability to prevent and control scam/cybersecurity problems effectively. KTC expects cost-to-income to be 36-37% for 2026, in line with its previous guidance. Meanwhile, KTC has successfully improved cost efficiency in recent years and remains committed to further optimisation.
Highlights
- Positive tone during the analyst meeting.
- An indirect benefit from the cash handout stimulus.
- Maintain BUY with a target price of Bt50.00.
Analysis
- Positive tone at analyst meeting. We came away from Krungthai Card’s (KTC) analyst meeting with a positive view. Management guided for KTC's 2H26 outlook to be similar to that of 1H26, while loan demand and credit card spending should improve hoh and finally reach KTC’s 2026 financial targets. The CEO expects net profit to continue increasing yoy going forward.
- To remain prudent in lending to preserve asset quality. KTC is maintaining its 2026 loan growth target of 0-2%, compared with a contraction of 3.5% in 1H26. Management admits that the quality of potential clients remains a concern, but the company is also screening borrowers carefully and being prudent in lending to preserve the quality of its loan portfolio. KTC will continue to target clients with a >Bt50,000 monthly salary as they have stronger repayment capabilities. Meanwhile, KTC will also focus more on providing credit cards to first-jobbers and students who have a fixed deposit requirement. KTC believes these clients are likely to spend mainly using their first credit card after getting a paying job.
- Current asset quality is rather healthy. The CEO has no concerns about asset quality despite the ongoing uncertainty in the economic environment, and stated that KTC's loan portfolio is quite healthy at present. The target credit cost of 5.5% might be too conservative for 2026, and management has guided that a credit cost of 5.0–5.3% would be more appropriate. However, management does not expect credit costs to reach 4.5% in the future.
- Maintaining cost-to-income ratio target for 2026. KTC implemented a new core IT system in Jul 26 and has been performing well. The company is confident in the new system's stability and its ability to prevent and control scam/cybersecurity problems effectively. KTC expects cost-to-income to be 36-37% for 2026, in line with its previous guidance. Meanwhile, KTC has successfully improved cost efficiency in recent years and remains committed to further optimisation.
BUY (Maintained)
Current price:
Target price:
Upside:
Bt37.50
Bt50.00
33.3%
Analyst
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