KBANK credit costs’ set to exceed target on trade pressures

In the worst-case scenario, credit cost could rise to 170bp.

Kasikornbank (KBANK) said that its credit cost is likely to exceed its 2025 target as management cushions for future uncertainties.

Thailand’s fourth largest commercial bank guided that actual credit costs may be around 160-165 basis points (bp), versus its target of 140-160bp, said UOB Kay Hian, based on an analyst meeting with KBANK on 21 July 2025.

For the worst-case scenario, KBANK expects the US tariff to pressure and cause the credit cost to rise to 170bp at most.

KBANK had announced a net profit of $387.81m (THB12.5b) for Q2 2025, down 1% year-on-year (YoY) and 9% quarter-on-quarter (QoQ). The results beat UOBKH’s forecast by 9% but fell in line with market expectations.

KBANK's pre-provision operating profit fell 3% YoY and 4% quarter-on-quarter (QoQ).

(US$1 = THB32.23. As of 24 July 2025, Google, from Morningstar)