Thai Credit Surges 10% on Strong ROE, Low Risk, and Robust Growth

The share price of Thai Credit Bank Public Company Limited (SET: CREDIT) surged 10% to trade at THB 25.00 in the morning session on Thursday, marking the highest level since May 2024. In its Daily Pick research, Kasikorn Securities noted that CREDIT stands out in Micro-SME lending, achieving double-digit loan growth, which contrasts with the industry trend. At the same time, it maintains strong asset quality, as evidenced by stable NPLs (Non-performing Loans) and a Credit Cost of only around 1.5%. The Small Industry Credit Guarantee Corporation (TCGC) is a key growth driver, with over 55% of the loan portfolio guaranteed by TCGC. This reduces credit risk and supports long-term loan growth. Meanwhile, ROE (Return on Equity) is expected at 15-16%, significantly higher than the banking sector average, while trading at just 0.9 times PBV (Price to Book Value). As such, the brokerage firm initiates a “BUY” recommendation with a target price of 36 Baht. Kasikorn added that it views CREDIT as a bank stock that remains in a high-growth phase, setting it apart from large-cap banks that have entered a period of slower growth.