Big Bank Received Profit
KASIKORNBANK net profit of Baht 49,565 million.Krungsri announces its 2025 net profit of 31.74 billion baht, underscoring selective, quality-growth strategy.
Ms. Kattiya Indaravijaya, Chief Executive Officer of KASIKORNBANK, said Thailand’s economy in 2025 faced pressure from both structural challenges and negative factors throughout the year. Industrial production continued to contract, while the tourism sector recovered more slowly than expected. Additionally, domestic spending showed signs of weakening, as household consumption was constrained by elevated household debt and an uneven recovery in incomes, while uncertainty surrounding US import tariff measures and domestic political developments weighed on private-sector investment decisions. Although exports recorded strong growth owing to front-loaded shipments ahead of the implementation of US import tariffs, and domestic interest-rate reductions provided some relief to borrowers’ financial burdens, these supportive factors were insufficient to counterbalance the broader economic deceleration.
In 2026, the Thai economy is expected to decelerate further as external headwinds intensify, including US import tariffs, trade disputes between the US and its trading partners, and a slowdown in the global economy, all of which are likely to exert downward pressure on Thailand’s export sector. Meanwhile, private spending, both consumption and investment, remains constrained by domestic economic and political uncertainty. While government spending will continue to play a role in supporting the economy, its ability to provide additional stimulus is likely to be limited.
Amidst the rising challenges to business operation driven by both domestic and international economic factors, KASIKORNBANK and its subsidiaries have continued to operate prudently, through the execution of K-Strategy 3+1 and continuous focus on productivity improvement. These efforts aim to deliver sustainable value to all stakeholders including depositors, investors, individual and business customers and to deliver sustainable returns to shareholders, while fully supporting government initiatives to assist customers in a highly uncertain economic environment.
For the year 2025, KBank and its subsidiaries reported net profit attributable to equity holders of the Bank of Baht 49,565 million, consistent with the previous year. Operating profit before expected credit loss and income tax expense was Baht 109,951 million, a decrease of Baht 4,043 million or 3.55% from the previous year. This was mainly due to net interest income of Baht 137,152 million, a decrease of Baht 10,852 million or 7.33% in line with the interest rate environment, as well as the reductions in lending rates during the year to support liquidity, alleviate customers’ financial burdens and the slowdown in loans growth. This resulted in a decrease in net interest margin (NIM) to 3.23%. However, non - interest income of Baht 57,648 million, an increase of Baht 7,408 million or 14.75%, mainly due to: 1) the growth in insurance service result; 2) the growth in net fees and service income, primarily from customer’s wealth management service through the offering of comprehensive financial products from the Bank and its subsidiaries, as well as partners, in line with market conditions that were conducive to investment; 3) gains on financial instruments and investment income driven by investment diversification strategy and the pursuit of appropriate returns in alignment with prevailing market conditions.
Other operating expenses of Baht 84,849 million, a slight increase of Baht 599 million or 0.71%, including additional special project expenses to support employees. The Bank and its subsidiaries continued to place emphasis on productivity improvements. Cost to income ratio stood at 43.56%. Additionally, the Bank and its subsidiaries set aside expected credit loss (ECL) of Baht 40,312 million, a decrease of Baht 6,939 million or 14.69%. Consistent with established practice, ECL is prudently set aside to maintain an appropriate level aligned with the volatile and challenging economic environment.
In the fourth quarter of 2025 compared with the previous quarter, the Bank and its subsidiaries reported operating profit before expected credit loss and income tax expense of Baht 24,825 million, a decrease of Baht 3,455 million or 12.22%, due to a decrease in net interest income. Furthermore, other operating expenses of Baht 23,027 million, an increase of Baht 2,061 million or 9.84%, which was seasonal spending. The Bank and its subsidiaries prudently set aside ECL of Baht 10,265 million, consistent with the previous quarter, to maintain an appropriate ECL to support the continued uncertainties of the economic slowdown and the future outlook which remains challenged by high volatility both domestically and internationally. Consequently, net profit attributable to equity holders of the Bank in the fourth quarter of 2025 was Baht 10,278 million, a decrease of Baht 2,729 million or 20.98% from the previous quarter.
As of 31 December 2025, the Bank and its subsidiaries’ total assets were Baht 4,558,618 million, an increase of Baht 217,664 million or 5.01% compared with the restated total assets as of 31 December 2024. Most of the increase came from net investments, which reflected investment based on expectations of market conditions and interest rate trend. However, net loans slightly decreased in line with economic conditions. The Bank remains focused on quality loans expansion with risk-adjusted returns and continuing to place strong emphasis on maintaining asset quality. NPL gross to total loans stood at 3.20%, requiring careful monitoring of asset quality amid economic uncertainties and coverage ratio increased to 162.75%. As of 31 December 2025, KASIKORNBANK FINANCIAL CONGLOMERATE’s capital adequacy ratio (CAR) according to the Basel III Accord remained strong at 20.35%.
Krungsri President and Chief Executive Officer Mr. Kenichi Yamato, said “Against the backdrop of multi-faceted challenges, Krungsri remained steadfast in executing our strategic priorities for the year, with a continued emphasis on asset-liability management efficacy, enhancing operational efficiency, and maintaining a prudent approach to risk management, while pro-actively assisting vulnerable groups of customers impacted by the subpar growth environment.”
Commenting on the economic outlook, Mr. Yamato cited that “Thailand’s economy in 2026 is projected to grow at 1.8%, expanding below potential and down from 2.1% in 2025, reflecting cyclical and structural challenges. Consumption will slow as income growth remains weak, while exports face pressure from U.S. tariffs and baht appreciation. Foreign visitors and renewed capital investment will provide a partial support, with 35.5 million arrivals expected and foreign direct investment adding momentum. However, overall growth remains subdued due to external trade pressures and restrained domestic spending.”
Krungsri (Bank of Ayudhya PCL and its business units) posts its net profit of 31.74 billion baht for 2025, increasing 6.9% from 2024, primarily driven by a one-time gain associated with Tidlor Holdings PCL (TIDLOR) investment remeasurement, non-interest income growth, and an increase in net interest income, supported by effective liquidity and funding cost management.
Resonating the multi-faceted challenges underscoring the operating environment, combined with the Bank’s selective, quality-growth strategy to preserve credit quality, total loans in 2025 increased by 1.7% from 2024, largely driven by 2.7% growth in corporate loans. Furthermore, loan growth was also supported by the consolidation of TIDLOR portfolio, while weak domestic demand and weighted down business sentiments resulted in the loan contractions for both retail and SME segments.
Highlights of Krungsri’s consolidated 2025 performance:
Net profit: Recorded at 31,739 million baht for 2025, representing an increase of 6.9%, or 2,039 million baht from 2024, mainly driven by a one-time gain associated with TIDLOR investment remeasurement, non-interest income growth, and an increase in net interest income, supported by effective liquidity and funding cost management and from consolidation of TIDLOR’s portfolio in the second half of the year.
Loans: Increased by 1.7%, or 32,779 million baht, from the end of December 2024, mainly driven by retail loans from the consolidation of TIDLOR’s loans, together with an expansion in corporate loans, while being partially offset by a contraction in SME loans.
Deposits: Decreased by 4.8%, or 86,901 million baht, from the end of December 2024, primarily due to a decrease in time deposits, underlining our proactive effort to manage liquidity and funding cost amid tepid credit conditionsNet interest margin (NIM), notwithstanding the overall subdued loan demand, increased to 4.35% from 4.28% in the prior year, mainly due to our proactive funding cost management together with higher yield contribution from TIDLOR in the second half of 2025.
Non-interest income: Increased by 14.1%, or 6,402 million baht, from 2024, largely due to higher net fees and service income, one-time gain associated with TIDLOR investment remeasurement, gains on financial instruments measured at fair value through profit or loss (FVTPL) and bad debt recoveries.
Cost to income ratio: Recorded at 47.0%Non-performing loan (NPL) ratio: Registered 3.26%, compared with 3.23% at the end of December 2024. Meanwhile, adhering to our continued prudential risk management, the credit cost amounted to 227 basis points. The coverage ratio was recorded at 126.9%.Capital adequacy ratio (Bank only): Recorded at 20.69%, compared with 19.38% at the end of December 2024.
As of 31 December 2025, Krungsri, Thailand’s fifth largest bank in terms of assets, loans and deposits, and one of Thailand’s Domestic Systemically Important Banks (D-SIBs), reported 1.93 trillion baht in loans, 1.74 trillion baht in deposits, and 2.65 trillion baht in total assets. Krungsri’s capital (Bank only) was strong at 336.60 billion baht, equivalent to 20.69% of risk-weighted assets, with 16.41% in common equity tier 1 capital.
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