Kasikornbank Public Company Limited (SET: KBANK) reported a net profit of Baht 12,488 million for the second quarter ended 30 June 2025, marking a 3.16% decrease compared to Baht 12,896 million in Q2 2024. This performance reflects a challenging economic environment in Thailand, characterized by slowing private spending, industrial production, and tourism revenue, alongside contractions in public spending.
The Bank’s total operating income (net) for Q2 2025 stood at Baht 48,599 million, down 3.74% from Baht 50,488 million in Q2 2024. This decline was primarily driven by a fall in net interest income.
Net interest income decreased by 6.70% to Baht 34,655 million in Q2 2025, compared to Baht 37,128 million in Q2 2024. This reduction was largely due to a decrease in average return rates on loans, in line with market conditions and the Bank’s support efforts to reduce loan interest rates for customers to enhance financial flexibility. Conversely, non-interest income saw a positive increase of 4.37% to Baht 13,944 million in Q2 2025, up from Baht 13,360 million in Q2 2024. This growth was mainly attributed to higher insurance service results and investment income.
In terms of asset quality, the Bank reported Expected Credit Loss (ECL) of Baht 10,050 million for Q2 2025, a significant 13.90% decrease from Baht 11,672 million in Q2 2024. Despite the decrease, KBANK maintained its prudent approach in setting aside ECL to address ongoing economic uncertainties.
Total loans to customers as of 30 June 2025 were Baht 2,433,982 million, a slight decrease of 1.34% compared to Baht 2,467,074 million as of 30 June 2024. This reduction in net loans aligns with the economic slowdown, with the Bank emphasizing quality loan expansion and optimizing risk-adjusted returns.
The Non-Performing Loans (NPL) gross-to-total loans ratio improved slightly to 3.18% as of 30 June 2025, down from 3.20% as of 30 June 2024. Furthermore, the total allowance for expected credit loss to NPL gross (coverage ratio) strengthened to 162.77% in Q2 2025, an increase from 151.06% in Q2 2024, indicating robust financial health and provision against potential credit risks.
