Krung Thai Bank Public Company Limited (SET: KTB) delivered a solid performance for the first quarter of 2026, reporting a consolidated net profit of Baht 12,437 million. This represents a 6.2% year-on-year (YoY) increase from 1Q2025, reflecting enhanced operational efficiency and sustainable growth strategies despite a challenging economic environment.
The bank’s total operating income saw a slight contraction of 2.0% YoY, landing at Baht 39,472 million. This was primarily due to a sharp 15.8% decline in net interest income, which fell to Baht 23,437 million. The decrease was driven by a downward trend in policy rates and pre-emptive measures implemented to support customers, resulting in a Net Interest Margin (NIM) of 2.48%, down from 3.08% a year earlier.
However, Krung Thai successfully offset these pressures through a significant boost in non-interest income. Net fee and service income rose by 13.9% YoY to Baht 6,198 million, largely supported by the bank’s wealth management growth engine. Other operating income also surged by 40.5% to Baht 9,837 million, bolstered by global market businesses, investment gains in the transportation sector, and higher dividend income.
On the expense side, the bank demonstrated disciplined cost management, with total other operating expenses falling by 5.8% YoY to Baht 15,352 million. This improved the bank’s cost-to-income ratio to 38.9%, compared to 40.4% in 1Q2025.
Regarding asset quality, loans to customers grew by 2.4% from the end of 2025, led by government, corporate, and retail housing sectors. The non-performing loan (NPL) ratio stood at 2.93%, a slight increase from 2.90% at the end of last year. KTB maintained a prudent stance on risk, setting aside Baht 7,805 million in expected credit losses (ECL)—a 5.1% decrease from the previous year but still providing a robust coverage ratio of 204.7% to cushion against future geopolitical and economic uncertainties.
