Krungthai Card beats Q1 profit estimates but credit costs loom

However, its NPL ratio rose to 1.96% due to its non-core leasing business.

Krungthai Card (KTC) reported a net profit higher than expected in Q1 2026 but should see higher credit costs in the coming quarters, said CGS International (CGSI).

The Thailand-based card company saw its net profit rise 17% year-on-year (YoY) to THB2.18b, forming 27% of CGSI’s full year net profit estimate. The higher net profit growth was driven mainly by lower taxes.

“We deem this slightly higher than expected, but we maintain our FY26F net profit estimate because we expect higher credit cost in the coming quarters,” said Weerapat Wonk-Urai, analyst at CGSI.

However, its non-performing loan (NPL) ratio rose to 1.96% in Q1 from 1.81% in Q4 2025. The key driver of higher NPLs in Q1 came from KTC’s non-core leasing business, Wonk-Urai said.

NPL coverage is 408% during the quarter.

Net interest margin (NIM) dropped by 48 basis points (bp) quarter-on-quarter to 13.2%. Net interest income rose 2% year-on-year in Q1 (YoY) but is 3.1% lower than in Q4 2025.