Kasikornbank Public Company (KBANK) Q2 2025 earnings summary

Executive summary

• Delivered resilient 1H25 performance amid macroeconomic and geopolitical headwinds, maintaining strong capital and asset quality while focusing on disciplined execution of strategic priorities and digital leadership.

• Net profit for the six months ended 30 June 2025 was Baht 29,520 million, with strong capital ratios and stable NPL ratio, despite lower net interest income and subdued loan growth.

• Maintained double-digit ROE target, with 1H25 ROE at 9.33% and CET1 ratio at 18.68%, well above regulatory requirements.

• Interim consolidated and bank-only financial statements for 1H25 were audited and present fairly in accordance with Thai Financial Reporting Standards and Bank of Thailand regulations.

• Emphasizing proactive asset quality management, productivity improvements, and capital discipline to reinforce market leadership and deliver sustainable shareholder returns.

Financial highlights

• Net profit for the six months ended 30 June 2025 was Baht 29,520 million, up from Baht 29,046 million year-over-year.

• Net interest margin (NIM) declined to 3.31%-3.36% in Q2/1H25, reflecting lower interest rates and a focus on asset quality.

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

• Cost-to-income ratio was maintained within target, with overall operating expenses reduced year-over-year, though it increased slightly to 41.82% in 1H25.

• Total assets as of 30 June 2025 were Baht 4,374,808 million, up from Baht 4,340,954 million at 31 December 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 140-160 bps, and NPL ratio below 3.25%.

• Double-digit ROE target maintained, but timing depends on macroeconomic recovery.

• Dividend payout policy remains at least 50%, aiming for 50-60% in the medium term, with potential for additional capital distribution depending on market and capital levels.

• The Board approved an interim dividend of Baht 2.00 per share, totaling Baht 4,739 million, to be paid on 26 September 2025.

• The bank continues to monitor economic uncertainties and adjust credit risk management and provisioning accordingly.