Kiatnakin Phatra Bank Public Company Limited (SET: KKP) delivered a robust financial performance for the first quarter of 2026, reporting a consolidated net profit of Baht 1,955 million. This represents a staggering 84.2% increase compared to the Baht 1,062 million recorded in 1Q25. The surge was achieved despite a fragile domestic recovery and a declining interest rate environment.
The group’s revenue structure saw a significant shift during the quarter. Net interest income (NII) declined by 5.2% year-on-year to Baht 4,216 million, pressured by policy rate cuts and a deliberate slowdown in loan portfolios to prioritize quality. However, this was more than offset by a 64.7% explosion in non-interest income, which reached Baht 2,483 million. Key drivers included wealth management, the Dime! digital platform, and brokerage commissions, where KKP Securities maintained its #1 market share. Consequently, total operating income grew 12.5% to Baht 6,699 million.
Asset quality showed marked improvement as the bank’s prudent credit strategy took hold. Total loans expanded by 1.5% from the end of 2025, a notable turnaround from the 1.4% contraction seen in 1Q25. The non-performing loan (NPL) ratio fell to 4.1%, down from 4.4% in the previous year. A critical factor in profit growth was the 52.3% reduction in losses from the sale of repossessed vehicles, which dropped to Baht 331 million as used car conditions improved for much of the quarter.
Regarding risk management, expected credit losses (ECL) decreased by 12.9% to Baht 961 million. Despite the decline, KKP maintained a cautious stance by including “management overlay” provisions to cushion against potential risks from Middle East tensions and household debt. This prudence resulted in a higher coverage ratio of 142.3%, compared to 131.0% in 1Q25. Overall, KKP’s 1Q26 results reflect a successful pivot toward diversified fees and disciplined asset management.
