Kasikornbank Public Company (KBANK) Q1 2025 earnings summary

Executive summary

• Clear pathway to achieve double-digit ROE by 2026, focusing on credit performance, capital-lite fee income, and digital-first sales and service models.

• Net profit for Q1 2025 was THB 15,256 million, up from THB 14,766 million year-over-year, with total comprehensive income of THB 15,275 million.

• Prudent loan growth strategy prioritizing secured loans and asset quality, with proactive risk management and NPL outflow management.

• Capital adequacy remains strong, supporting business growth and regulatory requirements.

• Commitment to sustainable development, ESG leadership, and net zero operations by 2030.

Financial highlights

• 1Q25 net profit grew 1.08% YoY, driven by non-interest income and cost management.

• Net interest income for Q1 2025 was THB 35,425 million, down from THB 38,186 million year-over-year.

• Non-interest income was THB 13,678 million, with insurance service result contributing THB 3,117 million.

• NIM decreased to 3.41% due to interest rate trends and asset quality focus.

• Loans declined 2.03% YTD, reflecting economic slowdown and strategic focus on quality.

• Net fee income rose 1.12% YoY, mainly from payment services; non-interest income up 15.39% YoY.

• Cost to income ratio increased to 40.84% as net interest income declined.

• NPL ratio stable at 3.19% with coverage ratio at 159.49%; credit cost at 160bps.

• CAR at 20.52%, Tier 1 at 18.55%.

• Earnings per share for Q1 2025 was THB 5.67, up from THB 5.60 in Q1 2024.

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 140–160bps, NPL ratio <3.25%.

• Dividend payout policy of not less than 25% of consolidated net profit.

• In April and May 2025, dividends totaling THB 12 per share (THB 28,432 million) were approved and paid for 2024 results.

• Focus on quality loan expansion, digital transformation, and sustainable value creation.