Kasikornbank Public Company (KBANK) Q2 2025 earnings summary

Executive summary

• Delivered resilient performance in 1H25 amid economic and geopolitical uncertainty, focusing on disciplined execution, digital leadership, and cost control to maintain stability and resilience.

• Net profit for 1H25 was Baht 29,520 million, with strong capital and asset quality, though net interest income declined due to subdued loan growth.

• Maintained double-digit ROE target, with timing dependent on macroeconomic recovery.

Financial highlights

• Net profit for the six months ended 30 June 2025 was Baht 29,520 million, up from Baht 29,046 million YoY; NIM was 3.31%–3.36%, reflecting lower interest rates and focus on quality loan growth.

• Net fee income grew, driven by payments and wealth management, with payment fees rising to 39% of net fee income.

• Cost-to-income ratio was 41.82% in 1H25, maintained within target despite income growth softening.

• NPL ratio was 3.18% in 1H25, with coverage ratio at 162.77%.

Outlook and guidance

• 2025 targets: NIM 3.3–3.5%, flat loan growth, net fee income growth mid to high single digit, cost-to-income ratio low to mid-40s, credit cost 140–160 bps, NPL ratio <3.25%.

• Dividend payout policy set at ≥50%, aiming for 50–60% in the medium term, with potential for special dividends or buybacks.

• GDP growth for Thailand revised to 1.5% for 2025, with risks from tourism slowdown, high household debt, and possible policy rate cuts.