Kasikornbank Public Company (KBANK) Q2 2024 earnings summary

Executive summary

• Achieved 1H24 net profit of Bt27,997 million, up 20.26% YoY, driven by higher net operating income, effective cost management, and supported by audited financial statements in accordance with Thai Financial Reporting Standards.

• NIM rose to 3.73% in 1H24, up YoY, but declined QoQ due to quality-focused lending and interest reductions for vulnerable customers.

• Loan portfolio slightly decreased YTD, with growth in corporate and home loans offset by declines in SME, credit card, and personal loans.

• Non-interest income and net fee income grew YoY, supported by fund management and commercial fees.

• Maintained strong capital adequacy and prudent asset quality management.

Financial highlights

• Net profit for 1H24: Bt27,997 million (+20.26% YoY).

• NIM: 3.73% in 1H24 (up YoY, down QoQ).

• Cost to income ratio: 42.35% in 1H24, improved YoY.

• Net fee income: +3.47% YoY in 1H24.

• Non-interest income: +6.58% YoY in 1H24.

Outlook and guidance

• 2024 targets: Maintain NIM, loan growth 3-5%, mid to high single-digit net fee income growth, cost to income in low to mid-40s, credit cost 175-195bps, NPL ratio <3.25%.

• Focus on quality loan growth, asset quality, and prudent financial policy.

• Double-digit ROE targeted by 2026 through strategic priorities.

• The Thai economy continues to recover unevenly, with tourism rebounding but other sectors pressured by costs and household debt.

• The bank is closely monitoring credit risk and has increased ECL overlays to address economic uncertainties and potential global slowdown.