Kasikornbank (KBANK) has reported a net profit of Baht 49,565 million in its 2025 full-year results. This performance remained virtually unchanged from the restated Baht 49,604 million recorded in 2024, representing a marginal decline of just 0.08%. The bank achieved this stability despite a domestic landscape defined by contracting industrial production, high household debt, and a sluggish recovery in the tourism sector.
The bank’s total operating income saw a slight contraction of 1.74%, falling to Baht 194,800 million. A major factor was the 7.33% decline in Net Interest Income (NII), which settled at Baht 137,152 million. This drop was driven by a lower interest rate environment and the bank’s strategic decision to reduce lending rates to support customer liquidity and alleviate financial burdens. Consequently, the Net Interest Margin (NIM) compressed to 3.23%, down from 3.60% in 2024.
However, this pressure on interest income was largely mitigated by a robust 14.75% surge in non-interest income, reaching Baht 57,648 million. This growth was spearheaded by a 17.59% increase in insurance service results and strong performance in wealth management fees, which benefited from investment-conducive market conditions.
For Asset Quality and Provisioning on the balance sheet, loans to customers experienced a slight dip of 0.28% year-on-year, totaling Baht 2,476,647 million. Despite the economic deceleration, KBANK maintained a stable gross NPL ratio of 3.20%, unchanged from the previous year. Asset quality remains a priority, with the bank’s coverage ratio increasing to 162.75%.
A critical contributor to the bottom line was the significant reduction in Expected Credit Loss (ECL). KBANK set aside Baht 40,312 million for ECL in 2025, a 14.69% decrease compared to 2024. This reflects a prudent approach to maintaining appropriate reserves while navigating a volatile environment. Efficiency and Outlook Efficiency remained stable, with the cost-to-income ratio at 43.56%.
Looking ahead to 2026, the bank anticipates further domestic deceleration due to intensified external headwinds and trade disputes. Nevertheless, KBANK enters the new year with a strong Capital Adequacy Ratio (CAR) of 20.35%, well-positioned to maintain its “K-Strategy 3+1” and deliver sustainable returns.
