KBANK sees limited flood impact as interest income pressure looms

Policy rate cuts will lead to net interest income pressures in 2026.

Kasikornbank (KBANK) expects limited impact from flooding in Thailand and is bracing for interest income pressure in 2026.

The Thai-headquartered bank did not disclose its loan exposure in the flooded area of nine provinces in Thailand, only stating that the affected area contributed to 2.6% of the country’s GDP in 2024, KBANK reportedly said in a regional financial conference held by CGS International in early December 2025.

KBANK expressed a more cautious view on its banking business following economic conditions and the current environment, CGSI reported.

It said that it will continue to focus on existing and quality customers by offering secured loans, which include housing loans and business loans with collateral.

Net interest income (NII) is expected to come under pressure in Q4 2025 to 2026, with KBANK representatives expecting a 25 basis point (bp) rate cut in December 2025 and further policy rate cuts in 2026.

KBANK aims to maintain its dividend payout ratio at 50%-60% of its net profit over the next 3-5 years, compared with its actual payout ratio of 59% in 2024, the representatives told CGSI.