Dao Securities estimates the third-quarter 2569 net profit of TISCO Financial Group Public Company Limited, or TISCO, at 1,766 million baht, up 2% year on year but flat quarter on quarter. The year-on-year increase comes from a return to provisioning within the target framework, with credit cost at 102bps, close to the guided range of 100-110bps, and NIM at 5.02%, up from 4.88% in the third quarter of 2568, benefiting from falling interest rates. Cost of funds is expected to bottom out in the third quarter of 2569. Profit was flat quarter on quarter because almost all line items were unchanged. Total loans rose 2.8% year on year and 0.5% quarter on quarter, or 0.4% year-to-date, driven by large corporate loans. SME loans were flat, while retail loans declined. NPLs are expected at 2.08%, down from 2.12% in the previous quarter, on improved borrower quality following a reduction in high-yield lending, as well as a larger loan base. The research team maintains its 2569 net profit forecast at 6.9 billion baht, up 4% year on year, on higher NIM from the benefit of falling interest rates. It keeps its hold rating on TISCO and a target price of 125.00 baht, based on 2569E PBV of 2.25x, which is 2.25 standard deviations above the 10-year average, with a dividend yield of about 6%.
TISCO Financial Group Public Company LimitedDao estimates TISCO's Q3/2569 net profit at 1,766 million baht, up 2% YoY, and maintains its 2569 profit forecast and hold rating with a 125.00 baht target price.
