Kasikornbank Public Company (KBANK) Q3 2024 earnings summary

Executive summary

• Net profit for 9M24 rose to THB 40,320 million, up 15.41% YoY, driven by higher net operating income and effective cost management, despite a decline in loan growth due to prudent risk management and balance sheet cleanup.

• NIM increased to 3.66% YoY, but declined sequentially due to temporary high liquidity; net fee income grew 4.98% YoY, mainly from wealth management.

• Cost-to-income ratio was 42.95%, slightly up YoY, with continued focus on productivity and investment for future growth.

• NPL ratio remained stable at 3.20% with a coverage ratio of 150.72%; credit cost was 190bps, aligned with targets.

• The interim financial statements received an unqualified review conclusion from the independent auditor.

Financial highlights

• 9M24 net profit: THB 40,320 million (+15.41% YoY); NIM: 3.66%; ROE: 9.47%; ROA: 1.17%.

• Interest income for nine months rose to THB 143,281 million; net interest income reached THB 113,032 million.

• Net fee income: Bt24.81bn (+4.98% YoY); non-interest income: Bt36.23bn (+12.64% YoY).

• Cost-to-income ratio: 42.95%; other operating expenses up 6.02% YoY due to employee and IT-related costs.

• Expected credit loss for nine months was THB 35,009 million, down from THB 38,269 million YoY.

Outlook and guidance

• 2024 targets: Maintain NIM, loan growth 3-5%, net fee income growth mid to high single digit, cost-to-income ratio low to mid-40s, credit cost 175-195bps, NPL ratio <3.25%.

• The Group is evaluating the impact of new global minimum tax rules in Vietnam and the upcoming TFRS 17 Insurance Contracts standard effective 2025.

• Double-digit ROE targeted by 2026 through strategic priorities: credit performance, capital-lite fee income, and sales/service model innovation.