Krung Thai Bank reports flat net profit growth in Q1

Net interest income and non-interest income were higher than a year ago.

Krung Thai Bank’s (KTB) reported a net profit of THB11.7b for Q1 2025, its latest financial results showed.

This is 7% higher quarter-on-quarter (QoQ) although flat compared to the same quarter in 2024.

This beat UOB Kay Hian’s estimates by 13%, said UOBKH analyst Thanawat Thangchadakorn, although it is in line with market expectations.

Loan portfolio dropped 1.3% QoQ to THB2.69t in Q1, although its 2% YoY higher.

Net interest income (NII) weakened 6% QoQ to THB27.8b, although 6% YoY higher.

Non-interest income reported a 34% QoQ and 6% YoY rise to THB12.4b, thanks to a THB1.7b investment gain from debt securities, measured at fair value through other comprehensive income.

Credit cost rose 20 basis points (bp) to 122bp in Q1. KTB’s asset quality was judged “quite stable” in Q1, UOBKH said.

According to forecasts from UOB Economist Thailand, the policy rate will be 1.5% by year-end, Thangchadakorn said.

“Therefore, we cut our 2025-27 earnings estimates to reflect rate cuts and higher credit cost assumptions. However, we reckon KTB has the potential to conduct a share buyback, which will increase ROE and catalyse the share price,” Thangchadakorn said.