Kasikornbank Profit Climbs 6% Despite Economic Slowdown

Kasikornbank reported first-half 2025 profit of 27.915 billion baht, up 6.22 percent, despite a slowdown in second-quarter economic activity. The bank expects a recovery in the second half driven by government stimulus measures, but faces ongoing risks from Middle Eastern conflict, energy prices, U.S. tariffs, and El Niño effects.

Kattiya Intravijai, president and chief executive of Kasikornbank, said Thai economic growth slowed in the second quarter amid mounting external pressures, particularly Middle East tensions, which have kept energy costs elevated and increased inflation and living-cost pressures domestically. Government stimulus measures have only partially flowed into the real economy, while tourism faces recovery constraints with foreign arrivals declining year-on-year. Electronics and AI-related exports performed strongly, but other export categories are weakening as trading partners' economies slow.

In the second half of 2025, Thai economic growth is expected to improve compared to the second quarter, with domestic spending supported by additional government economic stimulus measures. However, these efforts may prove insufficient to reverse the full-year slowdown, as the economy faces ongoing uncertainty from Middle East developments, which could keep global energy prices volatile and elevated. U.S. tariff policies, El Niño developments, and constraints on government spending disbursement and effectiveness remain significant challenges for Thai economic recovery in the remainder of the year.

Given the high-uncertainty economic environment, the bank is closely monitoring and assessing the situation to manage risks, adjust strategy, and implement operations flexibly while supporting customers through the uncertain period and backing government policy fully.

In the second quarter of 2025 compared to the first quarter, the bank and subsidiaries posted net profit attributable to the bank of 13.247 billion baht, down 9.68 percent. Quarter-on-quarter net profit attributable to the bank declined 0.98 percent when adjusted for a one-time investment valuation gain of 1.455 billion baht in the prior quarter. Net interest income totaled 31.432 billion baht, down 1.64 percent, while non-interest income rose 4.14 percent to 18.291 billion baht. Operating expenses came to 20.750 billion baht, up 7.63 percent, primarily from increased marketing costs tied to revenue growth and technology spending to enhance customer service capabilities. Year-on-year, however, operating expenses fell 0.26 percent, reflecting the bank's ongoing efficiency management strategy. The bank also set aside 10.019 billion baht in expected credit loss provisions to cover economic uncertainty and future challenges, both domestic and international, which carry high volatility and require close monitoring.