Kiatnakin Phatra Bank's Q3 profit jumps 43% to $71.1m

Wealth management helped lift fee income as earnings exceeded expectations.

Kiatnakin Phatra Bank reported a 43% year-on-year increase in net profit to $71.1m (฿2.4b) in the third quarter of 2026, beating market expectations as higher fee income and gains from financial instruments supported earnings, according to UOB Kay Hian.

The bank's profit rose 13% from the previous quarter, exceeding UOB Kay Hian's forecast by 24% and market consensus by 15%.

Following the results, UOB Kay Hian raised its net profit forecasts for the bank by 8% for 2026, 10.4% for 2027, and 13.6% for 2028.

The brokerage now expects Kiatnakin Phatra Bank to post a net profit of $258.1m (฿8.71b) in 2026, compared with $175.2m (฿5.91b) in 2025.

Non-interest income increased 28% year-on-year and 25% quarter-on-quarter to $94.8m (฿3.2b), driven mainly by the bank's wealth management business.

Fee and service income rose 43% year-on-year to $80.0m (฿2.7b), whilst net fee and service income increased 47% to $67.3m (฿2.27b).

The bank also recorded $16.7m (฿562m) in gains from financial instruments measured at fair value through profit or loss, up 98% from the previous quarter.

Net interest income increased 7% year-on-year and 4% quarter-on-quarter to $133.4m (฿4.5b). The bank's loan spread widened to 4.7% from 4.6% in the preceding quarter as loan yields increased and funding costs declined.

Total outstanding loans reached approximately $10.8b (฿364b), up 3% year-on-year and 1% quarter-on-quarter. Loan growth for the first nine months stood at 3.7%, above the bank's full-year target of 3%.

Asset quality also improved, with the non-performing loan ratio falling to 3.4% from 3.5% in the previous quarter.

The bank set aside $27.5m (฿928m) in loan loss provisions, down 4% quarter-on-quarter but up 2% year-on-year. The provisions included additional reserves for economic uncertainty and potential risks from flooding in Bangkok and nearby areas.

Losses from sales of repossessed vehicles fell to $10.0m (฿337m) from $16.9m (฿569m) a year earlier, although they increased from $8.4m (฿283m) in the second quarter.

For the first nine months, these losses declined 50% year-on-year to $28.2m (฿952m) as the number of repossessed vehicles decreased.