The banking sector is expected to post a tremendous growth of profit in the fourth quarter of 2019 at 49.7 billion baht with TMB to have the strongest growth at 64.8% while SCB would increase the most among the big four banks at 44.1%.
The analysts have forecasted the profit of all eight banks in 4Q as follows:
1) The Siam Commercial Bank Public Company Limited (SCB) to report 10,209 million baht of profit, increased 44.1%.
2) Bangkok Bank Public Company Limited (BBL) to report 10,032 million baht of profit, increased 23.8%.
3) Kasikornbank Public Company Limited (KBANK) to report 9,667 million baht of profit, increased 37.5%.
4) Krung Thai Bank Public Company Limited (KTB) to report 7,227 million baht of profit, increased 17.5%.
5) Bank of Ayudhya Public Company Limited (BAY) to report 6,296 million baht of profit, increased 3%.
6) TMB Bank Public Company Limited (TMB) to report 2,803 million baht of profit, increased 64.8%.
7) Tisco Financial Group Public Company Limited (TISCO) to report 1,900 million baht of profit, increased 16%.
8) Kiatnakin Bank Public Company Limited (KKP) to report 1,650 million baht of profit, increased 15.7%.
The accumulation of the forecasted profit from eight banks will rise 26.99% in 4Q19 when compared to the same period of last year due to extraordinary items booked in the quarter.
However, the income of the banking sector excluding interest income would remain weak following the slowdown in loan while some banks turned to sell their assets to buoy the overall revenue in the quarter, such as the sale of BTS’ shares from BBL to book 2 billion baht of profit last month.
Tisco Securities has given “BUY” recommendations on SCB and TMB with a fair value at ฿140.00/share and ฿2.00/share, respectively, stating that SCB will start to recognize income from FWD (295 million baht per quarter) while TMB will start to recognize net profit from TBANK after the completion on Dec. 3 as well as the sale of TFUND.