Kasikornbank Public Company (KBANK) investor relations material

Executive summary

• Delivered resilient performance in 1H26, maintaining market leadership in digital banking, wealth management, and payments amid macroeconomic headwinds.

• Net profit for Q2 2026 was Baht 13,247 million, down 9.68% from Q1 2026, but up 6.22% year-over-year for the first half to Baht 27,915 million.

• Enhanced strategy execution focused on priority customer segments and quality credit growth, with a disciplined approach to risk and capital management.

• Non-interest income rose, driven by gains on financial instruments and fund management services.

• Maintained commitment to double-digit ROE, sustainable total shareholder return (TSR), and prudent capital buffers.

Financial highlights

• 1H26 net interest margin (NIM) was 2.91%, declining due to interest rate cuts and a shift in loan structure.

• Loan growth reached 3.32% YTD and 5.13% YoY, mainly driven by corporate lending.

• Net fee income grew 22% YoY in 1H26, supported by strong wealth management and mutual fund performance.

• Non-interest income for H1 2026 was Baht 35,855 million, up 29.81% year-over-year.

• Cost to income ratio improved to 40.33% in 1H26, reflecting productivity gains and a large one-off income in 1Q26.

• NPL ratio remained stable at 3.18% in 1H26, with NPL coverage rising to 174%.

• Credit cost was 158 bps, at the high end of the target range, reflecting prudent provisioning.

• ROE stood at 9.65% and ROA at 1.22% for 1H26.

Outlook and guidance

• Double-digit ROE target maintained, with timing dependent on macroeconomic conditions.

• CET1 ratio target set at ≥15% in the medium term, with aspirations for 13-15% post-Basel III reforms.

• Dividend payout policy aims for ≥50%, with potential for additional capital distribution depending on performance and market conditions.

• Loan growth targets for 2026: corporate 3-5%, SME -2% to 0%, retail 5-7%.

• The bank targets a credit cost ratio of 1.40% to 1.60% for 2026.