Kasikornbank Public Company (KBANK) Investor Update summary

Macroeconomic and Operating Environment

• Thailand's GDP growth is forecast at 2.4% in 2025, with private consumption and exports as key drivers, though momentum is slowing due to global uncertainties and domestic challenges.

• Two 25bps BOT rate cuts are anticipated in 2025, bringing rates to 1.75%, with the THB/USD exchange rate projected at 35.50 by year-end.

• Tourism is set to rebound, with 37.5 million foreign arrivals expected in 2025, supporting economic activity.

• Household debt to GDP is projected to decrease to 85.0-87.5% in 2025, but retail loan growth will remain subdued.

• Fiscal policy remains expansionary with a Bt3.75trn budget for FY2025 and a deficit of Bt865bn; public debt to GDP at 64.41%.

Financial Performance and Targets

• 2024 net profit rose 14.6% YoY to Bt48.6bn, driven by higher fee income and cost control, despite slow revenue growth.

• NIM slightly decreased to 3.64% in 2024, with a 2025 target range of 3.3%-3.5% as interest rates decline.

• Loan growth was marginal at 0.57% YoY, mainly from corporate and home loans; 2025 loan growth is expected to remain flat overall, with retail loans (5%-7%) as the main contributor.

• Net fee income grew 6.73% YoY, led by wealth management and commercial fees; 2025 target is mid to high single digit growth.

• Dividend payout for 2024 was Bt9.50 per share, or 47.02% of consolidated net profit, with interim dividend up 1.5% in 2024.

Strategic Priorities and Execution

• Clear pathway to double-digit ROE by 2026, focusing on balanced growth, productivity, and three strategic priorities: reinvigorate credit performance, scale capital-light fee income, and strengthen sales and service models.

• Emphasis on quality over quantity in lending, with enhanced credit capabilities, selective high-income retail loans, and proactive asset quality management.

• Scaling capital-light fee income through wealth management and payment solutions, with a focus on customer engagement.

• Digital banking leadership maintained with 23.1mn K PLUS users (+6% YoY), 91% digital transaction share, and 63% digital onboarding.

• New revenue initiatives, including regional expansion and innovation, contributed 3.3% of net total income and are expected to reach 5% of net profit in 3-5 years.