Kasikornbank Public Company (KBANK) Q4 2024 earnings summary

Executive summary

• Net profit for 2024 rose to THB 51,020 million, up 14.6% year-over-year, driven by higher fee income, efficient cost management, and improved productivity despite slow revenue growth.

• Strategy centers on quality over quantity in loan growth, productivity, and innovation, with a focus on digital leadership and customer-centric services.

• Loan growth was marginal at 0.57% YoY, mainly from corporate and home loans, while SME and personal loans declined.

• Non-interest income increased 10% YoY, with net fee income up 6.73% YoY, led by wealth management and commercial fees.

• Cost to income ratio was 44.09%, reflecting effective cost control and productivity improvements.

Financial highlights

• NIM for 2025 projected at 3.3%-3.5%, down from 3.64% in 2024, with NIM minus credit costs expected to improve.

• Total assets reached THB 4,325,287 million, with loans at THB 2,521,893 million and deposits at THB 2,720,000 million at year-end 2024.

• Net fee income growth expected in mid to high single digits, driven by wealth management and payment solutions.

• Cost-to-income ratio targeted at low to mid-40s due to ongoing cost management.

• Dividend per share was THB 9.50, with a payout ratio of 47.02% on a consolidated basis.

Outlook and guidance

• 2025 targets: NIM of 3.3–3.5%, loan growth in mid- to high-single digits, net fee income growth in mid- to high-single digits, and cost to income ratio in the low to mid-40s.

• Credit cost expected to normalize in 2025; NPL ratio to remain below 3.25%.

• Double-digit ROE targeted by 2026, with a focus on quality loan growth, fee income expansion, and productivity.

• The Bank is preparing for the adoption of TFRS 17 Insurance Contracts in 2025, which will impact insurance contract liabilities and disclosures.