Kasikornbank Public Company Limited (SET: KBANK) posted a net profit of THB12.5 billion for the second quarter of 2025, marking a 1.3% decline year-on-year and a 9.4% decrease from the previous quarter, according to a report from CGS International Securities (Thailand) (CGSI). The latest quarterly net profit exceeded CGSI’s forecast by 15.7%, though it was generally in line with Bloomberg consensus expectations.
For the first half of 2025, KBANK recorded total net profits of THB26.3 billion, down 1% compared to the same period last year and accounting for 61% of CGSI’s full-year net profit forecast. The upside surprise in the quarter was attributed to a lower-than-anticipated cost-to-income ratio and effective management of credit costs.
Pre-provision operating profit (PPOP) fell by 2.6% year-on-year and 4.3% quarter-on-quarter, while loan growth remained subdued, declining 2.2% year-on-year and broadly unchanged from the previous quarter. Loans measured 2% lower compared to the end of 2024.
The bank’s net interest margin slipped by 10 basis points to 3.38% in the second quarter, reflecting a 13-basis-point decrease in earnings asset yields. However, funding costs saw a slight improvement, dropping by 4 basis points quarter-on-quarter.
Non-interest income posted robust growth of 7.6% year-on-year and 2.0% quarter-on-quarter, driven largely by earned premiums and investment gains. Net fee income ticked up 1.7% year-on-year but declined 2.6% from the previous quarter.
KBANK reported a cost-to-income ratio of 42.8% for the second quarter, higher than the previous quarter’s 40.8% but still comfortably below CGSI’s estimate of 45%. The bank’s non-performing loan (NPL) ratio remained steady at 3.7%, while credit cost edged up to 165 basis points from 160 basis points in the prior quarter.
KBANK is scheduled to hold an analyst briefing today at 10:30 AM Bangkok time. CGSI continues to rate KBANK as “Add” with a 2025 target price of THB184 per share.
