KASIKORNBANK (KBank) and its subsidiaries announced a net profit of THB 49,565 million for 2025, a performance consistent with the previous year despite significant domestic and global economic headwinds. The bank continues to execute its “K-Strategy 3+1” to maintain stability and deliver sustainable value to stakeholders.
KBank reported an operating profit before expected credit loss (ECL) and income tax of THB 109,951 million, a 3.55% decrease year-on-year. Key drivers include:
- Net Interest Income: Totaled THB 137,152 million, a 7.33% decline. This was influenced by the interest rate environment, reduced lending rates to support customer liquidity, and slowed loan growth. Consequently, the Net Interest Margin (NIM) stood at 3.23%.
- Non-Interest Income: Rose significantly by 14.75% to THB 57,648 million. Growth was propelled by insurance services, wealth management fees from comprehensive product offerings, and gains from investment diversification strategies.
- Operating Expenses: Recorded at THB 84,849 million, a marginal increase of 0.71%. The bank maintained its focus on productivity, with a cost-to-income ratio of 43.56%.
Asset Quality and Capital Management
In response to economic volatility, KBank maintained a prudent approach to risk management:
- Provisions (ECL): THB 40,312 million was set aside for the year, a 14.69% decrease from 2024, yet maintained at a level appropriate for the challenging environment.
- NPL Ratio: Gross Non-Performing Loans (NPL) stood at 3.20%. The bank remains focused on quality loan expansion and rigorous asset monitoring.
- Coverage and Capital: The coverage ratio increased to 162.75%, and the Capital Adequacy Ratio (CAR) remained robust at 20.35% under Basel III standards.
Kattiya Indaravijaya, CEO of KASIKORNBANK, noted that the Thai economy in 2025 struggled with structural challenges, high household debt, and sluggish tourism recovery. Looking toward 2026, a further deceleration is expected due to intensifying external pressures, including US import tariffs, global trade disputes, and slowing global growth.
KBank intends to continue its prudent operational strategy, prioritizing productivity improvements and supporting government initiatives to assist customers through the anticipated economic slowdown.
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