Today, the share price of Kiatnakin Phatra Bank Public Company Limited (SET: KKP) closed the morning session at THB 69.75 per share, up by 2.95% or THB 2.00, with a trading value of THB 600.88 million, following the release of its earnings report showing a 22% increase in fourth-quarter profit.
KKP reported a total 4Q25 net profit of Baht 1,772 million, an increase of 22.1% from 4Q24. The higher net profit was mainly due to a reduction in losses from the sale of repossessed vehicles and lower expected credit losses, reflecting improved asset quality, as well as a solid increase in non-interest income. Its increase was supported by stronger contributions, particularly from the wealth management and Dime! Businesses.
For net interest income, the company reported a total of Baht 4,266 million, representing a decline of 8.3% YoY. The decrease was primarily driven by the contraction in loans, in line with the Bank’s asset quality management measures that emphasize high-quality loan origination.
As for the full-year performance, KKP reported a net profit of Baht 5,913 million, representing a 17.5% increase from 2024. This growth was achieved despite a challenging economic backdrop where the Thai economy expanded at a subdued pace of approximately 2.0%.
The bank’s total operating income declined by 5.0% YoY to Baht 25,473 million. This was primarily driven by a 13.1% contraction in net interest income, which fell to Baht 17,257 million. The decline reflects the bank’s “asset-quality-focused” strategy, which involved moderating loan growth in high-risk segments, alongside the impact of multiple policy interest rate cuts throughout the year. Offsetting this, non-interest income surged 18.2% to Baht 8,217 million, bolstered by strong performance in wealth management, the Dime! business, and higher bancassurance fees.
In line with its prudent lending stance, total loans contracted by 6.7% compared to the end of 2024. Retail lending saw a 7.4% decline, with hire purchase loans specifically contracting by 9.3%. Despite this contraction, the bank’s non-performing loan (NPL) ratio remained well-controlled at 4.3%, a slight increase from 4.2% in the previous year due to the smaller loan base.
A pivotal factor in the bank’s profitability was the 50.3% reduction in losses from the sale of repossessed vehicles, which dropped to Baht 2,401 million. Additionally, expected credit losses (ECL) decreased by 7.1% to Baht 3,693 million. While provisions fell, KKP maintained a disciplined framework by including a management overlay to shield against potential risks from economic uncertainty and flood-related impacts in Southern Thailand.
The bank concluded 2025 with a strong capital position, reporting a total capital adequacy ratio of 16.43%, significantly exceeding regulatory requirements. Total assets stood at Baht 488,095 million, a 2.1% decrease from 2024, reflecting the ongoing strategic focus on quality over volume.
