Kasikornbank Public Company Limited (SET: KBANK) is enlarging its shareholder rewards, lifting its minimum dividend payout ratio on consolidated net profit from the previous 25% to at least 50%, with a medium-term target in the 50-60% range, executives said during a recent mid-year investor update.
For fiscal 2024, the total payout ratio—helped by a special interim dividend of THB 2.5 per share—rose to 58.5%. Excluding the special payout, the distribution stands at 46.3%.
The bank’s board expects to decide on an interim dividend based on performance in the first half of 2025 by the end of August. Kasikornbank is also keeping the door open for further capital returns through additional special dividends or a share buyback, depending on broader economic conditions.
The move to boost the payout comes as KBANK continues to navigate a complex economic environment, with CEO Kattiya Indaravijaya reiterating a double-digit return on equity (ROE) target. However, achievement is likely to be contingent on the pace of Thailand’s GDP growth and recovery in inbound tourism.
KBANK’s conservative stance is also reflected in its capital buffer, maintaining a Common Equity Tier 1 (CET1) ratio above 15% over the medium term—standing at 17.7% as of June 2025—well-positioned ahead of Basel III reforms due in 2028.
Disciplined Cost Management and Digital Growth
First-half 2025 results show disciplined cost control, with non-interest expenses falling 1% year-on-year, driven by reduced marketing and other expenses. Key revenue drivers remain in fee-based segments, including digital payment services, credit cards, bancassurance, mutual funds, and trade finance.
The bank achieved notable market leadership: number one for digital payments (about 30% share), brand strength, credit card spending, and top slot in wealth management and mutual funds. KBANK marked its ninth consecutive year in the DJSI indices and continued recognition for sustainability and governance.
Headwinds Remain: Economic Growth and Asset Quality
As per the company, Thailand’s economy is forecast to expand 1.5% in 2025, with exports gradually improving but still facing uncertainties from global volatility, U.S. tariffs, and domestic structural issues. High household debt, slower consumer spending, and tepid manufacturing activity remain persistent challenges. KBANK forecasts its own credit cost to normalize in the 140–160 basis points range for 2025, with actual 1H25 credit cost coming in at 162 bps—slightly higher than targeted.
Retail loan growth is expected to stay subdued as household debt-to-GDP gradually falls below 88% due to loan deleveraging.
Short-term government initiatives, such as the Easy E-Receipts program, are anticipated to provide a lift to the economy, while funds previously intended for digital wallet and cash handout schemes are now being redirected toward investment projects. Looking further ahead, the government is also prioritizing structural reforms through measures like debt relief, entertainment complex development, and tax overhaul to support sustainable economic growth.
As of 1H25, KBANK reported total assets of THB 4.38 trillion, loans totaling THB 2.43 trillion, and deposits at THB 2.72 trillion, each capturing over 16% market share nationwide. Its capital adequacy ratio was strong at 20.66% and the cost-to-income ratio stood at a healthy 41.8%. The bank’s gross NPL ratio was 3.18%, with coverage at 163%.
Shares of KBANK closed at THB 153.50 on June 30, 2025, with a market capitalization of THB 363.7 billion. Analysts at CGS International Securities (Thailand) maintained an ‘Add’ rating with a 2025 target price of THB 184 per share, citing the improved dividend policy, robust capital levels, and ongoing leadership in digital financial services.
