Kasikornbank Public Company (KBANK) Q4 2024 earnings summary

Executive summary

• Committed to delivering sustainable value and achieving double-digit ROE by 2026 through balanced growth, productivity improvement, and digital leadership, despite economic headwinds.

• Net profit for 2024 rose to THB 51,020 million, up 14.6% YoY, driven by higher fee income and efficient cost management.

• Loan growth was marginal at 0.57% YoY, mainly supported by corporate and home loans, while SME and personal loans declined.

• The auditor issued an unqualified opinion, confirming fair presentation in accordance with Thai Financial Reporting Standards.

Financial highlights

• NIM for 2025 projected at 3.3%-3.5%, down from 3.64% in 2024, but NIM minus credit costs expected to improve.

• Net profit: THB 51,020 million in 2024 (+14.6% YoY); net fee income up 6.73% YoY, driven by wealth management and payment solutions.

• Loan growth flat overall, with retail loans growing 5%-7% and commercial lending flat or negative.

• Cost-to-income ratio targeted at low to mid-40s; 2024 actual was 44.09%.

• Credit costs to normalize at 140-160 bps, with NPL ratio stable below 3.25%.

Outlook and guidance

• 2025 NIM expected at 3.3–3.5%, with flat loan growth and focus on quality and secured lending.

• Net fee income to grow mid- to high-single digit, driven by wealth management.

• Cost to income ratio to remain in low to mid-40s.

• Dividend payout policy remains at not less than 25% of consolidated net profit, with a proposed total dividend of THB 9.50 per share for 2024.

• Preparing for TFRS 17 Insurance Contracts adoption in 2025, impacting insurance contract liabilities and disclosures.