Kiatnakin Phatra Bank Public Company Limited (SET: KKP) reported a stellar financial performance for the second quarter of 2026, reporting a consolidated net profit of Baht 2,122 million. This represents a significant 50.6% increase compared to the Baht 1,409 million recorded in 2Q25. The robust bottom-line growth was primarily fueled by a diversified revenue base and enhanced operational efficiency.
Total operating income for the quarter rose 11.3% year-on-year (YoY) to Baht 6,887 million. While net interest income (NII) saw a modest increase of 0.4% YoY to Baht 4,329 million, it was supported by a 30.0% reduction in interest expenses as the Bank optimized its funding costs in a declining interest rate environment.
The real catalyst, however, was non-interest income, which surged 36.3% YoY to Baht 2,558 million. This growth was driven by strong fees from wealth management, digital services via the Dime! platform, and asset management, alongside higher gains on financial instruments.
On the lending front, the Bank maintained a disciplined approach, with total loans expanding 3.1% from the end of 2025. Asset quality improved markedly, as the non-performing loan (NPL) ratio fell to 3.5%, compared to 4.3% in 2Q25. This improvement was partially due to a proactive strategy involving the write-off of certain long-standing retail SME loans.
The Bank’s risk management also bore fruit, as Expected Credit Losses (ECL) slightly declined by 0.3% YoY to Baht 970 million. Furthermore, losses on repossessed vehicle sales plunged 55.2% YoY to Baht 283 million, reflecting better inventory management. These factors contributed to an improved cost-to-income ratio of 42.9%. With a coverage ratio of 150.7% and a strong Common Equity Tier 1 capital ratio of 13.60%, KKP appears well-positioned to navigate future economic uncertainties.
