Kasikornbank Public Company (KBANK) Investor Update summary

Financial targets and macro outlook

• Committed to achieving double-digit ROE by 2026, focusing on balanced growth and productivity amid economic headwinds.

• Thai economy expected to grow at 2.4% in 2025, with private consumption and exports as main drivers.

• Anticipates two 25bps rate cuts, bringing rates to 1.75%, reflecting both local and Fed policy expectations.

• NIM projected at 3.3%-3.5% in 2025, declining from last year, with NIM minus credit costs expected to improve.

• Loan growth to remain flat, with retail loans (5%-7%) as the main contributor; commercial lending to be flat or negative.

Strategic priorities and operational focus

• Continuing 3+1 strategic priorities: credit, capital-light fee income, distribution channel, and new revenue creation.

• Emphasis on quality over quantity in lending, with enhanced credit capabilities and selective high-income retail loans.

• Re-establishing SME support and leveraging data-driven lending, predictive analytics, and proactive risk monitoring.

• Scaling capital-light fee income through wealth management and payment solutions, with a focus on customer engagement.

• Strengthening digital banking leadership, aiming for 63% digital onboarding and maintaining top brand NPS.

Productivity, innovation, and shareholder returns

• Embedding productivity as a core agenda, targeting 20% workforce productivity improvement.

• Optimizing fixed assets, branch coverage, and e-machine profitability; implementing budget centralization.

• Maintaining long-term CET1 at 13%-15% and improving dividend payout, with interim dividend up 1.5% in 2024.

• New revenue initiatives (KIV, regional business, innovation) expected to contribute 5% of net profit in 3-5 years.

• Focused on sustainable value creation and financial resilience for stakeholders.