Krung Thai Bank Posts 12.1 Billion Baht Profit in Q2

Krung Thai Bank achieved sustainable growth in the second quarter of 2025, recording a net profit of 12.125 billion baht, a 9 percent increase from the same period last year, reflecting quality growth amid careful asset quality management amid challenges in the Thai and global economies. Total lending grew 5.1 percent year-on-year, driven primarily by retail credit, large business lending, and government sector loans. Net interest income declined 13.5 percent in line with downward interest rate trends and the bank's proactive interest rate reductions to support borrowers, combined with efficient financial cost management, resulting in a net interest margin of 2.45 percent. The bank continues to increase the proportion of non-interest income to strengthen revenue sustainability, with net fees and service income rising 10.3 percent from growth in the wealth business through three main drivers: digital, product innovation, and distribution, as well as expansion of other income from money market and capital market businesses. The bank maintained efficient cost management, bringing the cost-to-income ratio down to 38.9 percent from 42.3 percent due to improved operational efficiency and reduced asset management expenses. Simultaneously, the bank continues investing in technology and digital capabilities to enhance competitive strength and support long-term growth. Asset quality remains strong, with an NPL ratio of 2.92 percent, appropriate credit costs at 0.95 percent, and a consistently high coverage ratio of 205 percent to adequately cushion economic uncertainty. For the first half of 2025 compared to the same period last year, the bank and subsidiaries posted a net profit of 24.562 billion baht, an increase from the prior year period.