CGS International Securities (Thailand) (CGSI) wrote in a note this morning that in the first quarter of 2025, Kasikornbank Public Company Limited (SET: KBANK) showcased a net profit of THB13.8 billion, reflecting a 1.1% increase from the previous year and a substantial 28% rise from the previous quarter. This result outperformed CGSI’s initial forecast by 22% and surpassed the Bloomberg consensus by 15%.
Key to these impressive figures were the unexpectedly low credit costs and significant gains on financial instruments. Although Pre-Provision Operating Profit (PPOP) for 1Q25 declined by 3.1% year-over-year, there was a 10% increase from the prior quarter.
During 1Q25, loan growth was down by 2.0% from the previous quarter, yet the Non-Performing Loan (NPL) ratio remained steady at 3.19%. The Net Interest Margin (NIM) saw a slight reduction of 7 basis points, settling at 3.41% for the quarter.
Non-interest income grew by 15.4% year-over-year and 7.6% quarter-over-quarter. Meanwhile, net fee income experienced a modest 1.1% year-on-year increase but a 0.9% decline from the previous quarter. The cost-to-income ratio improved, dropping to 40.8% compared to 45.8% in the fourth quarter of 2025.
When evaluating against peers like Bangkok Bank (BBL) and Krung Thai Bank (KTB), KBANK’s performance in 1Q25 stood out due to its smaller contraction in NIM, efficient asset quality management, and notable reduction in non-interest expenses.
CGSI stated that it continues to rate the stock as “Add,” maintaining the 2025 target price at THB187.
