Kasikornbank Public Company (KBANK) Q1 2026 earnings summary

Executive summary

• Delivered resilient 1Q26 performance amid economic headwinds, maintaining strong capital and asset quality buffers.

• Net profit attributable to equity holders rose to Baht 14,667 million in Q1 2026, up 42.71% from Q4 2025 and 6.35% year-over-year, driven by higher non-interest income and effective cost control.

• Excluding a one-time compensation income of Baht 1,455 million, net profit would have declined 2.99% year-over-year, reflecting underlying pressure from lower net interest income.

• Continued disciplined execution of strategic priorities, focusing on quality credit growth, fee income, and digital leadership.

• Maintained double-digit ROE target, with timing dependent on macroeconomic conditions.

Financial highlights

• Total assets Bt4,540bn, loans Bt2,449bn, deposits Bt2,899bn as of 1Q26.

• Net interest income fell 2.90% sequentially and 9.79% year-over-year to Baht 31,957 million, mainly due to lower loan yields and reduced interest rates.

• Non-interest income up 28.42% year-over-year to Baht 17,564 million, driven by wealth management, brokerage fees, and a one-time compensation income.

• Cost to income ratio improved to 38.93% in 1Q26, supported by productivity gains and one-off income.

• ROE at 10.05%, ROA at 1.29% for 1Q26.

Outlook and guidance

• 2026 loan growth targeted at 0-2%, with selective expansion in corporate and retail segments.

• NIM guidance for 2026 at 2.75-2.95%; cost to income ratio expected to remain below 43%.

• Dividend payout policy maintained at ≥50%, with potential for special dividends or buybacks depending on conditions.

• The bank maintains a prudent approach, focusing on asset quality, risk-adjusted loan growth, and strong capital buffers to navigate ongoing volatility.

• The Thai economy is projected to grow 0.8%–1.2% in 2026, but faces high uncertainty due to geopolitical risks, rising costs, and declining tourism.