Kiatnakin Bank's net profit seen to slip 5% to THB1.18b

NIM predicted to drop 21bps.

According to Maybank Kim Eng, it expects Kiatnakin Bank's 3Q13F earnings to remain satisfactory, a bit down QoQ, but going up YoY. Maybank said "we forecast the 3Q13F net profit at THB1.18b, down 5% QoQ, but up a nice 27% YoY with loans expected to expand 3% QoQ.

Here's more:

Despite a dull car market, we believe the market has already bottomed and a full recovery will be seen by year end. The current valuation has priced in negative issues and we thus reiterate our BUY call with a THB70.00 target price.

Expect 3Q13F earnings to remain good. Despite lower new auto HP loans, real estate loans (RE) still expanded well. The NIM is likely to drop 21bps QoQ as extra interest income from RE loans was booked last quarter.

Fee income will slump in the absence of any BTSGIF IPO fees (THB200m). Gains from portfolio investments will improve and NPLs will still rise, but at a lower pace than 2Q13 (NPL ratio to be flat at 3.4%).

In our view, Credit costs will decline and the overall 3Q13F will remain sound.

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