Kiatnakin Phatra Bank Q3 Profit Climbs 43% on Fee Income

Strong Q3 Earnings Outperform Forecasts

Kiatnakin Phatra Bank, based in Thailand, announced a 43% year-on-year rise in net profit for the third quarter of 2026, reaching $71.1 million (฿2.4 billion). This performance exceeded both broader market consensus and UOB Kay Hian's specific projections by 15% and 24% respectively.

The bank's earnings were primarily supported by an increase in fee income and realised gains from financial instruments. Profit also grew by 13% compared to the previous quarter.

Wealth Management Drives Non-Interest Income

Non-interest income at Kiatnakin Phatra Bank increased by 28% year-on-year and 25% quarter-on-quarter, totalling $94.8 million (฿3.2 billion). This growth was largely attributed to the bank's wealth management operations.

Fee and service income saw a 43% year-on-year rise to $80.0 million (฿2.7 billion), whilst net fee and service income increased 47% to $67.3 million (฿2.27 billion). Additionally, the bank recorded $16.7 million (฿562 million) in gains from financial instruments measured at fair value through profit or loss, marking a 98% increase quarter-on-quarter.

Net interest income also saw a 7% year-on-year increase and 4% quarter-on-quarter growth, reaching $133.4 million (฿4.5 billion).

Loan Growth and Improved Asset Quality

Kiatnakin Phatra Bank's total outstanding loans reached approximately $10.8 billion (฿364 billion), increasing by 3% year-on-year and 1% quarter-on-quarter. The bank's loan spread widened to 4.7% from 4.6% in the previous quarter, a result of rising loan yields and falling funding costs.

For the first nine months of 2026, loan growth stood at 3.7%, surpassing the bank's full-year target of 3%. Asset quality improved, with the non-performing loan (NPL) ratio declining to 3.4% from 3.5% in the prior quarter.

Loan loss provisions were set at $27.5 million (฿928 million), a 4% quarter-on-quarter decrease but a 2% year-on-year increase, reflecting additional reserves for economic uncertainty and potential risks from flooding.

UOB Kay Hian Raises Future Profit Forecasts

Following the strong Q3 results, UOB Kay Hian revised its net profit forecasts for Kiatnakin Phatra Bank upwards. The brokerage now anticipates an 8% increase for 2026, a 10.4% rise for 2027, and a 13.6% increase for 2028.

UOB Kay Hian projects Kiatnakin Phatra Bank to achieve a net profit of $258.1 million (฿8.71 billion) for the full year 2026, a notable increase from $175.2 million (฿5.91 billion) recorded in 2025. This positive outlook suggests continued momentum in the bank's core business segments.