Bangkok: Kasikornbank has announced a net profit of over 12,488 million baht for the second quarter of 2025, reflecting a decrease of 9.45% compared to the previous quarter. The bank's net profit for the first half of 2025 stood at 26,280 million baht, down by 0.98% from the same period last year.
According to Thai News Agency, Kasikornbank's CEO, Ms. Kattiya Indaravijaya, highlighted the ongoing challenges faced by the Thai economy, which experienced a slowdown in the second quarter of 2025. Factors contributing to this decline include reduced private sector spending, a drop in industrial production, and lower income from foreign tourists. These issues are consistent with declining confidence indices in both consumer and business sectors. Government spending also saw a contraction due to comparisons with the previous year's high base, following the implementation of the 2024 budget bill.
The outlook for the Thai economy in the second half of 2025 remains uncertain, with prospects of low growth continuing into 2026. Exports are expected to contract after significant expansion in the first half of the year. Additionally, increased US tariffs on Thai products could negatively impact the investment climate, while the tourism sector's contribution is predicted to slow down. The government's economic stimulus measures provide limited relief amid these challenges.
In response to these economic conditions, Kasikornbank and its subsidiaries are maintaining a cautious business approach. The bank is committed to creating sustainable value for stakeholders, including depositors and investors. It continues to offer support through responsible lending practices and active participation in government measures such as the "You Fight, We Help" project. The bank's efforts aim to alleviate financial burdens, enhance customer business potential, and ensure stable returns to shareholders, all while navigating an uncertain economic environment.
The bank's financial performance in Q2 2025 compared to Q1 2025 showed a decrease in net profit attributable to the bank by 1,303 million baht, mainly due to reduced net interest income. The net interest margin (NIM) dropped to 3.31%, although non-interest income rose by 1.95%, driven by insurance services and investment income. Operating expenses increased slightly, primarily due to IT and marketing expenditures, while provisions for expected credit losses were set aside in anticipation of ongoing economic challenges.
For the first six months of 2025, Kasikornbank reported an operating profit before expected credit losses and income tax of 56,847 million baht, a decrease of 4.16% compared to the previous year. This was largely due to a decline in net interest income, despite a rise in non-interest income. The bank continues to focus on operational efficiency and prudent financial practices to manage the economic downturn.
As of June 30, 2025, Kasikornbank and its subsidiaries reported total assets of 4,374,808 million baht, a slight increase from the end of 2024. While net loans decreased in line with the economic slowdown, the bank remains committed to expanding quality loans and managing asset quality amidst the ongoing uncertainty.