, Thailand

KBANK's 1Q16 profit likely to have dropped 28%

NPLs could rise 3.3 this month. Maybank Kim Eng analysts attended the 1Q16 results preview meeting held for analysts last Friday. Based on what they learnt from the meeting, they project 1Q16 net profit about THB8.9b, which is down 28% YoY but up 63% QoQ (4Q15 reported results were depressed by heavy expensing). "Regardless, 1Q16 profit is likely to be viewed as weak compared to the historical standard. One should not be surprised to see a rise in NPLs (+23bps to 3.30%) and high credit cost (2.20%), as previously guided in 4Q15. The company will report its full results on 20th April."

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