Kasikornbank Public Company (KBANK) Q3 2025 earnings summary

Executive summary

• Maintained resilient performance amid macroeconomic headwinds, focusing on disciplined execution of strategic priorities and prudent risk management.

• Net profit for Q3 2025 was ฿13,007 million, up 4.16% from Q2 2025; nine-month net profit was ฿39,287 million, up 1.16% year-over-year.

• Continued leadership in digital banking, wealth management, and customer satisfaction, with recognition in sustainability indices.

• Operating profit before expected credit loss and tax for Q3 2025 rose 1.74% sequentially; for nine months, it declined 2.80% year-over-year.

• Non-interest income grew 8.20% quarter-over-quarter and 13.80% year-over-year, driven by higher fees and investment gains.

Financial highlights

• 9M25 net interest margin (NIM) at 3.31%, down YoY due to interest rate trends and asset quality focus.

• Net fee income grew 4% YoY, driven by mutual fund fees and payment services; non-interest income up 14% YoY.

• Cost-to-income ratio at 42.07% for 9M25, reflecting disciplined cost management despite lower total income.

• NPL ratio stable at 3.19% with coverage ratio of 166%; credit cost slightly above target to build buffer.

• Net interest income for Q3 2025 was ฿34,158 million, down 1.43% from Q2 2025; nine-month net interest income fell 6.94% year-over-year.

Outlook and guidance

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

• Dividend payout policy maintained at ≥50%, aiming for 50–60% in the medium term, with potential for additional capital distribution.

• CET1 ratio target raised to ≥15% in the medium term to strengthen capital buffers amid delayed Basel III reforms.

• The Thai economy is expected to grow at a slower rate for the rest of 2025 due to export declines, weak tourism, and limited government stimulus.

• The bank continues to focus on prudent operations, productivity, and supporting customers amid economic uncertainty.