Kasikornbank Public Company (KBANK) Investor Update summary

Strategic priorities and operating environment

• Facing significant economic and geopolitical headwinds, with medium-term challenges to targets.

• Committed to double-digit ROE, but timing depends on macroeconomic conditions.

• Strengthening capital buffer with a medium-term CET1 target of at least 15%.

• Dividend payout raised to at least 50%, aiming for 50-60% in the medium term.

• Thai GDP growth revised down to 1.5% for the year, with tourism and household debt as main risks.

Economic outlook and implications

• Policy rate expected to be cut to 1.5% in the second half, with potential for further decreases.

• GDP growth forecasts have been revised down significantly since late 2023.

• Lower rates and GDP have negative implications for exports, investment, consumption, and tourism.

• Asset quality remains stable with strong cost control despite macro headwinds.

Capital management and shareholder returns

• CET1 target raised to at least 15% in the medium term, with a 13-15% range when conditions improve.

• Dividend payout set at a minimum of 50%, with potential for special dividends and buybacks.

• Focus on sustainable total shareholder returns and disciplined execution of K-ASEAN strategy.