KASIKORNBANK announced the first half of 2026 net profit of Baht 27,915 million

The Thai economy is expected to improve in the second half of 2026 compared with the second quarter, supported by additional government measures that should help bolster domestic spending. Nevertheless, this support may not be sufficient to alter the overall outlook for the year, and Thailand's economic growth is still expected to slow from 2025. Key uncertainties include developments in the Middle East, which could keep global energy prices volatile and elevated, as well as the impact of US tariff measures, the evolution of El Ni?o conditions, and constraints on the disbursement and effectiveness of government spending. These factors are expected to remain key challenges to Thailand's economic recovery over the remainder of the year.
KASIKORNBANK continues to operate the business with prudence through the execution of K-Strategy 3+1 and Productivity, while strengthening its "Customer Strategy" by deepening the holistic understanding of customer needs and continuously developing products and services to address customer needs across all dimensions, in order to deliver sustainable value to all stakeholders while generating stable returns for shareholders. Amid heightened economic uncertainty, the Bank closely monitors and assesses developments to manage risks, adjust its strategies and business plans in a timely manner, and support customers in navigating ongoing uncertainty, while fully supporting relevant government policies.

Operating performance for the second quarter of 2026 compared with the first quarter of 2026: the Bank and its subsidiaries reported net profit attributable to equity holders of the Bank of Baht 13,247 million, a decrease of Baht 1,420 million or 9.68%. However, compared with net profit attributable to equity holders of the Bank in the previous quarter excluding one-off compensation income from investment of Baht 1,455 million, net profit attributable to equity holders of the Bank for the second quarter of 2026 would decrease from the first quarter of 2026 by Baht 131 million or 0.98%. Net interest income amounted to Baht 31,432 million, a decrease of Baht 525 million or 1.64%. Meanwhile, non-interest income amounted to Baht 18,291 million, an increase of Baht 727 million or 4.14%. This was mainly attributable to an increase in gain on financial instruments measured at fair value through profit or loss under heightened market volatility and favorable market conditions, as well as growth in fund management service income driven by the ability to meet customers' needs. Other operating expenses amounted to Baht 20,750 million, an increase of Baht 1,471 million or 7.63%, mainly due to an increase in marketing expenses, in line with revenue growth, as well as IT-related expenses to enhance the Bank's capabilities in customer service and operations. However, compared with the same quarter of the previous year, other operating expenses decreased by 0.26%, reflecting the continued implementation of the Bank and its subsidiaries' Productivity Strategy to enhance operational efficiency. In addition, the Bank and its subsidiaries continued to prudently set aside expected credit loss (ECL) of Baht 10,019 million to support ongoing economic uncertainties amid a continued economic slowdown and future challenges arising from heightened volatility both domestically and internationally, which require close monitoring.

Operating performance for the six-month period of 2026 compared with the six-month period of 2025: the Bank and its subsidiaries reported net profit attributable to equity holders of the Bank of Baht 27,915 million, an increase of Baht 1,635 million or 6.22%. Excluding one-off compensation income from investment of Baht 1,455 million, net profit attributable to equity holders of the Bank would have been Baht 26,609 million, an increase of Baht 329 million or 1.25% from the same period of the previous year. Net interest income amounted to Baht 63,390 million, a decrease of Baht 6,690 million or 9.55%, mainly due to the downward trend in interest rates. The decrease was also partly attributable to the Bank's interest rate reductions to help enhance customers' liquidity and lower their financial burden. As a result, the net interest margin (NIM) stood at 2.91%, compared with 3.36% in the same period of the previous year. However, non-interest income increased, driven by: 1) income from wealth management services through strengthening the "Customer Strategy" and offering comprehensive financial products from the Bank and its subsidiaries, as well as partners, in line with market conditions that were conducive to investing; 2) improved performance in insurance service results; and 3) investment income. Other operating expenses amounted to Baht 40,030 million, a decrease of Baht 825 million or 2.02%. As a result, the cost-to-income ratio stood at 40.33%. The Bank continued to enhance operational efficiency through its Productivity initiatives across multiple dimensions, including human resource management, process improvement, and the application of technology, including artificial intelligence (AI), to support operations and strengthen the Bank's long-term capabilities. In addition, the Bank and its subsidiaries continued to set aside expected credit loss (ECL) based on a prudent approach to maintain an appropriate level of reserves, in order to accommodate uncertainties in economic conditions and future challenges arising from both domestic and external factors, which remain highly volatile and require close monitoring. Expected credit loss amounted to Baht 19,842 million, close to the level recorded in the same period of the previous year. The credit cost ratio stood at 1.58%, in line with the Bank's 2026 financial target for credit cost ratio of 1.40% to 1.60%, as disclosed to the Stock Exchange of Thailand.

As of 30 June 2026, the Bank and its subsidiaries' total assets were Baht 4,570,971 million, a slight increase of Baht 12,353 million or 0.27% compared with total assets as of 31 December 2025. The increase was mainly attributable to net investments, based on expectations regarding market conditions and interest rate trends, and an increase in net loans, driven by growth in corporate business loans, reflecting the Bank's strategic focus on quality loans growth through prudent credit assessment and appropriate risk-adjusted returns. However, net interbank and money market items decreased as a result of KBank's liquidity management. NPL gross to total loans stood at 3.18%, requiring close monitoring of asset quality amid persistent economic uncertainties and increasing risks. Coverage ratio increased to 173.90%. As of 30 June 2026, KASIKORNBANK FINANCIAL CONGLOMERATE's capital adequacy ratio (CAR) according to the Basel III Accord remained strong at 19.24%.

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