Kasikornbank Public Company (KBANK) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 was THB 15,256 million, up from THB 14,766 million year-over-year, driven by non-interest income and cost management, despite subdued net interest income and a 2.03% YTD decline in loans reflecting economic slowdown.

• Total assets reached THB 4,355,212 million as of 31 March 2025, up from THB 4,340,954 million at year-end 2024.

• NIM decreased to 3.41% due to interest rate trends and asset quality focus; cost to income ratio rose to 40.84% as net interest income declined while operating expenses remained stable.

• Asset quality remained robust with NPL ratio at 3.19% and coverage ratio at 159.49%; credit cost was at the high end of the target range (160bps) to prudently build buffers amid rising uncertainties.

• Capital adequacy remains strong with CAR at 20.52% and Tier 1 at 18.55%, supporting business growth and financial stability.

Financial highlights

• Net interest income for Q1 2025 was THB 35,425 million, down from THB 38,186 million year-over-year.

• Non-interest income was THB 13,678 million, with insurance service result contributing THB 3,117 million; net fee income up 1.12% YoY, mainly from payment services.

• 1Q25 net profit: Bt15,256m (+1.08% YoY); NIM: 3.41%; ROE: 9.58%; ROA: 1.27%.

• Loans decreased 2.03% YTD; deposits grew 0.1% YTD to Bt2.72trn; loans to deposits ratio at 89.4%.

• Cost to income ratio at 40.84% (up YoY); operating expenses stable YoY.

Outlook and guidance

• 2025 targets: NIM 3.3–3.5%, flat loan growth, mid-to-high single-digit net fee income growth, cost to income ratio in low-to-mid 40s, credit cost 140–160bps, NPL ratio <3.25%.

• Focus on quality loan expansion, prudent risk management, and productivity improvements.

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

• In April and May 2025, dividends totaling THB 12 per share (THB 28,432 million) were approved and paid for 2024 results.