Ms. Kattiya Indaravijaya, Chief Executive Officer of Kasikorn Bank Public Company Limited (KBANK), disclosed that Thailand's economy in Q2 2026 slowed from the first quarter amid increasingly apparent external pressures, particularly the conflict in the Middle East, which kept energy costs elevated and added pressure on domestic inflation and the cost of living. Meanwhile, support from government measures continued to feed into the economy only partially. The tourism sector faced recovery constraints, with the number of foreign tourists declining compared with the same period of the previous year. Although exports continued to expand well in the electronics and artificial intelligence (AI)-related goods segments, other export categories began to slow in line with the economic conditions of trading partners.
For the second half of 2026, Thailand's economy is expected to expand better than in Q2 2026, with domestic spending anticipated to receive additional support from government economic stimulus measures. Nevertheless, such momentum may still be insufficient to change the overall picture for the full year 2026, leaving Thailand's economy expected to slow compared with the previous year. This is because uncertainties remain from the situation in the Middle East, which could keep global energy prices volatile and at elevated levels. In addition, the impact of US tariff measures, developments in the El Niño situation, as well as constraints on budget disbursement and the effectiveness of government spending, remain significant challenges to Thailand's economic recovery for the remainder of the year.
Results for Q2 2026 compared with Q1 2026: The Bank and its subsidiaries recorded net profit attributable to the Bank of 13,247 million baht, a decrease of 1,420 million baht, or 9.68%. However, when compared with the previous quarter's net profit attributable to the Bank excluding a one-time investment value compensation income of 1,455 million baht, the net profit attributable to the Bank in Q2 2026 declined by 131 million baht, or 0.98%, from the previous quarter. Net interest income stood at 31,432 million baht, a decrease of 525 million baht, or 1.64%, while non-interest income amounted to 18,291 million baht, an increase of 727 million baht, or 4.14%, resulting from a rise in net gains on financial instruments measured at fair value through profit or loss in line with market conditions that were volatile yet conducive to profit-taking, as well as growth in fund management service income that was able to meet customer needs.
Other operating expenses amounted to 20,750 million baht, an increase of 1,471 million baht, or 7.63%, largely driven by higher marketing expenses in line with revenue growth, along with technology expenditure to enhance service capabilities for customers and operations. However, when compared with the same quarter of the previous year, other operating expenses declined by 0.26%, reflecting the Bank and its subsidiaries' continued pursuit of operational efficiency improvement strategies.
Furthermore, the Bank and its subsidiaries set aside expected credit loss provisions of 10,019 million baht in accordance with consistently applied prudential principles, to cover uncertainty in economic conditions and future situations that remain challenging both domestically and internationally with high volatility, and risks that still require close monitoring.
Regarding results for the six-month period of 2026 compared with the six-month period of 2025: The Bank and its subsidiaries recorded net profit attributable to the Bank of 27,915 million baht, an increase of 1,635 million baht, or 6.22%. Excluding the one-time investment value compensation income of 1,455 million baht, net profit attributable to the Bank would stand at 26,609 million baht, an increase of 329 million baht, or 1.25%, from the same period of the previous year. Net interest income amounted to 63,390 million baht, a decrease of 6,690 million baht, or 9.55%, in line with a downward trend in interest rates, partly due to interest rate reductions to support customers' liquidity and ease their financial cost burden, resulting in a Net Interest Margin (NIM) of 2.91%, down from 3.36% in the same period of the previous year.
The Cost to Income Ratio stood at 40.33%, with the Bank continuing to manage and improve operational efficiency across multiple dimensions. Given the challenging and highly volatile outlook ahead, provisions were set at 19,842 million baht, close to the same period of the previous year, and the expected credit loss to average loans ratio stood at 1.58%, in line with the Bank's 2026 financial target for the expected credit loss to average loans ratio of 1.40%–1.60% as disclosed to the Stock Exchange of Thailand.
The non-performing loan ratio (% NPL gross) stood at 3.18%, with asset quality still requiring careful and close monitoring in an economic environment that remains uncertain and shows a tendency for rising risks. The coverage ratio of expected credit loss provisions to non-performing loans increased to 173.90%.
