Kasikornbank

Kasikornbank Plc (KBANK)

KBANK surprised us and the market with good cost control and further improvement in its operating performance. We revise up our CY12-13 numbers on the back of lower corporate taxes, which more than offset higher wages and provisions. The 9M11 net profit forms 82% of our full-year number. Although we revise up our earnings forecasts, we lower our target price (basis of 1.8x CY12 P/BV vs. 2.5x CY11 previously) due to a less robust economic outlook. Maintain OUTPERFORM.