KASIKORNBANK (KBank) and its subsidiaries announced a consolidated net profit of Baht 39,287 million for the first nine months of 2025, marking a slight increase of 1.16% year-on-year. The bank sustained profitability despite a challenging economic environment characterized by external trade pressures and weak domestic consumption.
Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, stated that the Bank’s prudent operations, guided by the K-Strategy 3+1 and continuous productivity improvement, were key to the stable result. The focus remains on delivering sustainable value to all stakeholders and maintaining stable returns for shareholders amidst high economic uncertainty.
Economic Headwinds Weigh on Thai Growth
Kattiya noted that Thailand’s economic growth slowed in Q3 2025, primarily due to a decline in exports following US import tariff measures and weaker trading partner economies. Domestically, private consumption remained sluggish due to high household debt and diminished consumer confidence.
Looking ahead, the Thai economy is expected to grow at a slower pace for the remainder of 2025 and into 2026. Key challenges include the significant impact of US tariff increases on the export sector, stagnant private investment, and continued difficulties in the tourism sector, which is facing intense competition and confidence issues that hinder a full recovery.
Financial Performance Highlights
While Net Interest Income (NII) for the nine-month period decreased by 6.94% to Baht 104,239 million—due to a prudent reduction in loan volume and interest rate cuts aimed at aiding customer financial flexibility—the Bank successfully counterbalanced this with growth in non-interest income:
- Non-Interest Income: Grew by a substantial 13.80% to Baht 42,709 million. This surge was primarily driven by strong growth in net fees and service income (reflecting effective customer-centric services) and favorable investment income supported by improved market conditions.
- Operating Efficiency: Other operating expenses saw a minor decrease of 0.22%, resulting in an improved Cost to Income Ratio of 42.07%, reflecting effective cost management efforts.
Asset Quality and Capital Strength Maintained
KBank maintained a cautious approach to asset quality, despite the economic slowdown:
- Expected Credit Loss (ECL): The Bank set aside Baht 30,047 million for ECL, a decrease of 14.17%, but emphasized that provisions were set prudently to align with the volatile economic environment.
- Non-Performing Loan (NPL): The NPL gross to total loans ratio stood at 3.19%, with the NPL Coverage Ratio strengthening to 166.43%.
- Capital Adequacy: The KASIKORNBANK Financial Conglomerate’s Capital Adequacy Ratio (CAR) remained robust at 21.60% under Basel III guidelines.
For Q3 2025 alone, the Bank reported a net profit of Baht 13,007 million, up 4.16% from the previous quarter, largely fueled by fee income from fund management and increasing investment income.
SCBX reports strong Q3 2025 net profit of Baht 12,056 million
MR. D.I.Y. raises up to THB 5.6 Billion in Thailand’s largest IPO by market cap
