Kasikorn Securities Sees Banks Shining in Q4, Picks KKP and KTB as Top Picks

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Kasikorn Securities remains positive on the banking sector in the fourth quarter of 2026, expecting net interest margins to begin stabilising after pressure from falling interest rates eases. Loan growth is likely to improve on corporate lending and late-year seasonal factors. Credit cost is expected to decline gradually compared with the first half of 2026 as the need for management overlays diminishes, while fee income should accelerate on mutual fund and bancassurance sales during the tax-deduction season. Key risks to watch in the fourth quarter of 2026 are the high season for operating expenses and IT investment, which could pressure the cost-to-income ratio and short-term profits, while retail and SME lending is expected to recover only modestly, leaving asset-quality risk concentrated in SME and retail loans. On valuation, the brokerage maintains a positive view on the banking sector, selecting KKP and KTB as its top picks and BBL as an interesting laggard, with target prices of 206.00 baht for BBL, 153.00 baht for KKP and 48.00 baht for KTB.

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BBL
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Kasikorn Securities maintains a positive banking-sector view and names BBL an interesting laggard with a 206.00 baht target price.