Analysts predict 15% profit growth for Kasikornbank by next year

Will it not be affected by sluggish economic growth?

According to Maybank Kim Eng, they expect the 3Q13F earnings to continue expanding, but then drop significantly in 4Q13F due to seasonality and KT expenses.

Next year, they forecast another 15% net profit growth. The slowing economic growth should not impact KBANK earnings performance significantly.

Here's more from Maybank Kim Eng:

The bank has kept all financial targets unchanged. However, we still have to watch asset quality issues closely, which have shown some danger signs.  

KBANK announced new quarterly record earnings of THB11.0b, up 9% QoQ and 17% YoY, inline with the  consensus of THB10.7-10.8b. 

There was no extra provisioning this quarter as KBANK had set it in 1Q13 previously. Loans grew well by 2.5% QoQ, with a slightly improved NIM to 3.52%.

The net interest income grew 4% QoQ and 16% YoY. Fee income and Non-NII income continued expanding impressively, especially the bancassurance and FX
gains. Opex increased on two extra items, first, a THB1.1b reversal of a TAMC reserve (+) and second, a THB1.6b impairment on the KTransformation investment (-). NPLs rose slightly due to two big clients, but overall asset quality remained sound.

The NPL ratio was maintained low at 2% with a healthy coverage ratio of 138%.

The 1H13 earnings make 51% of our yearly projection of THB41b (+16% YoY), so we are maintaining our current projection.