Kasikornbank Q3 Profit Drops 4% to 12.7 Billion Baht

Kasikornbank reported its Q3 2026 results with net profit exceeding 40 billion baht, driven by net interest income. CEO Kattiya Indaravijaya disclosed that the Thai economy in Q3 2026 received support from government stimulus measures, but the recovery remains uneven (K-shaped recovery). Economic activities linked to the AI cycle continue to be a major driver, particularly electronic exports and investment in the digital and electronics sectors. Meanwhile, tourism has not fully recovered, and households still face constraints from high living costs and elevated debt levels.

For the outlook in the final quarter of 2026, continued government consumption stimulus may partially support economic activity. However, the positive impact on the overall Thai economy for the full year 2026 remains limited as the government faces tighter budget constraints, limiting additional stimulus measures compared to previous periods. Household purchasing power remains fragile and faces added pressure from flood impacts, while uncertainty from the Middle East situation continues to keep global energy prices and production costs elevated.

Kasikornbank remains focused on driving its 3+1 strategy and productivity alongside a "customer-centric" approach, emphasizing its role as a bank that inspires confidence and trust, standing ready to help customers navigate challenges amid high economic uncertainty. The bank continues to closely monitor and assess the situation while fully supporting government policies to foster balanced growth, committed to delivering sustainable value to all stakeholders and stable long-term returns to shareholders.

For Q3 2026 compared to Q2 2026, the bank and its subsidiaries posted a net profit attributable to the bank of 12,720 million baht, down 527 million baht or 3.98%. This was partly due to lower non-interest income related to financial instruments from volatile market conditions, and net fee and service income of 9,841 million baht, down 550 million baht or 5.29% due to market conditions and changes in fee standards.

Net interest income stood at 31,602 million baht, nearly flat from the previous quarter. Meanwhile, other operating expenses totaled 19,892 million baht, down 858 million baht or 4.14%, reflecting ongoing productivity-driven operational efficiency efforts. The cost-to-income ratio stood at 41.75%.

Additionally, the bank and subsidiaries set aside expected credit loss provisions of 10,329 million baht under conservative principles, up 310 million baht or 3.09% from the prior quarter. This brought the coverage ratio of expected credit loss provisions to non-performing loans to 177.90%, up from 173.90% in the previous quarter, to cushion against economic uncertainty and future challenges from both domestic and international volatility, with risks requiring close monitoring.