Update: Krung Thai Bank

KTB's loan market share increased as the bank loan book grew 4.7% in 2024, backed by credit demand from the government and state-owned entities (SOEs). This is in contrast with loans by the broader banking sector, which contracted 0.7% because ongoing deleveraging by corporates and households is constraining demand, while lenders are being cautious toward some segments. KTB has closed its profitability gap with peers. The bank markedly improved its net interest margin (NIM) to 3.29% in 2024 from 2.6% in 2022. This was supported by higher rates, low funding costs, given a higher proportion of low-cost current and savings accounts (CASA), and provisioning costs trending down. The reported NIM was higher than the sector average of 3%. We believe

...Krung Thai Bank Public Co. Ltd.'s (KTB) business position has strengthened, supported by its dominant franchise in Thailand, improved profitability, and prudent management. The bank is one of the largest in Thailand, with a market share of about 18% for loans and 16% for deposits. KTB's loan market share increased as the bank loan book grew 4.7% in 2024, backed by credit demand from the government and state-owned entities (SOEs). This is in contrast with loans by the broader banking sector, which contracted 0.7% because ongoing deleveraging by corporates and households is constraining demand, while lenders are being cautious toward some segments. KTB has closed its profitability gap with peers. The bank markedly improved its net interest margin (NIM) to 3.29% in 2024 from 2.6% in 2022. This was supported by higher rates, low funding costs, given a higher proportion of low-cost current and savings accounts (CASA), and provisioning costs trending down. The reported NIM was higher than the...

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