Krung Thai Bank Public Company Limited (SET: KTB) has released its consolidated financial results for the second quarter ended 30 June 2025, revealing a mixed performance amid heightened economic uncertainty. The bank demonstrated its commitment to prudent management and continued support for its diverse customer segments.
For Q2 2025, consolidated net profit was Baht 11,122 million, marking a 5.7% decrease compared to the same period last year. Despite this, total operating income remained relatively stable, registering a marginal 0.3% year-on-year increase to Baht 40,171 million.
The decline in net profit was largely influenced by changes in the interest rate environment. Net interest income fell by 10.5% year-on-year to Baht 26,897 million, primarily due to a declining rate environment and the bank’s interest rate modifications aimed at supporting customers. On a positive note, total loans expanded by 4.4% year-on-year, driven predominantly by growth in strategic retail loans and government loans.
Non-interest income streams showed resilience. Net fee and service income rose by 5.5% year-on-year to Baht 5,569 million, attributed to the bank’s focus on wealth management services, resulting in higher bancassurance fee income and an increase in credit card fee income in line with rising transaction volumes. Additionally, total other operating income surged 63.3% year-on-year to Baht 7,705 million, supported by strong gains from financial instruments measured at fair value and net investment gains.
Operating expenses saw a slight increase, with total other operating expenses rising by 3.3% year-on-year to Baht 16,974 million. This reflects continued investments in IT and digital capabilities to support new products and services, as well as a focus on enhancing operational efficiency. The cost-to-income ratio for the quarter stood at 42.3%.
In terms of asset quality, Krung Thai Bank maintained a prudent approach, setting aside expected credit losses (ECL) of Baht 8,239 million—an increase of 2.9% year-on-year. This strategic provisioning aims to cushion against ongoing economic uncertainties, including risks stemming from U.S. trade policies and global market volatility. The bank reported a well-managed Non-Performing Loan (NPL) ratio of 2.94%, improving from 2.99% at the end of 2024, backed by a high coverage ratio of 194.1%.
The broader Thai economy continues to face significant headwinds in 2025, including uncertainty from U.S. trade policy, weakening global economic momentum, and persistent structural challenges such as high household debt and a large informal sector. The bank anticipates economic growth to slow to below 1% in the second half of 2025, with exports projected to contract by more than 10% year-on-year. Despite these challenges, Krung Thai Bank remains committed to supporting customers and fostering sustainable growth.
