Krungthai Bank's profit in the first half of 69 exceeded 2.4 billion baht, growing by 7.6%.

Krungthai Bank announced its first-half 2026 financial results, reporting a profit exceeding 2.4 billion baht, a 7.6% increase, demonstrating quality and sustainable growth. Net profit for the second quarter of 2026 reached 12,125 million baht, a 9% increase driven by loan growth, Wealth Management services, and the money and capital markets. The bank maintained a consistent Return on Equity (ROE) of 10.5% and a high Coverage Ratio of 205%, achieved through balanced asset quality management coupled with efficient expense management. The bank remains committed to supporting and assisting customers, creating business opportunities, and driving sustainable economic growth in Thailand.

July 21, 2569. Mr. Payong Srivanich, President and CEO, Krungthai Bank. It was revealed that the Thai economy in the first half of 2569 experienced uneven K-shaped growth, with most households still having low purchasing power due to the impact of rising living costs driven by energy prices and a weak labor market. Meanwhile, strong export and foreign direct investment (FDI) growth did not translate into real economic growth and employment as effectively as in the past.

As the majority of SMEs remain in the lower leg of the K-shaped curve, they will continue to face pressure from declining revenue and persistently high operating costs in the second half of the year. Therefore, the bank is operating cautiously, continuing to assist customers through proactive debt restructuring measures targeted at specific groups and restoring their financial capabilities in a balanced manner.

This is a continuation of the Bank of Thailand's policy interest rate reduction earlier this year, along with support for access to funding through the SME Credit Boost program to enhance liquidity and mitigate the impact on entrepreneurs. This is coupled with support for investment and restructuring the Thai economy to enhance the potential of targeted industries, aligning with the national direction agreed upon by the government, private sector, and the World Bank as a new S-Curve, accelerating the growth of entrepreneurs in line with the upward K-shaped trend.

In the second quarter of 2026, compared to the second quarter of 2025, the bank's net profit attributable to the bank was 12,125 million baht, an increase of 9 percent. This reflects quality growth under prudent asset management amidst the challenges of the Thai and global economies. Total loans expanded by 5.1 percent year-on-year, primarily driven by retail loans, large corporate loans, and government loans.

Net interest income decreased by 13.5% due to the downward trend in interest rates and proactive interest rate reductions to assist borrowers, coupled with efficient financial cost management. This resulted in a net interest margin (NIM) of 2.45%. Meanwhile, the bank continues to focus on increasing its non-interest income to enhance income sustainability. Net fee and service income increased by 10.3% driven by the growth of the Wealth Management business, fueled by three main pillars: Digital, Product Innovation, and Distribution, as well as the expansion of other income from the money and capital markets in line with market conditions.

The bank continues to manage expenses efficiently, resulting in a decrease in the Cost to Income Ratio to 38.9% from 42.3%. This is a result of improved operational efficiency and reduced expenses for managing foreclosed assets. At the same time, the bank continues to invest in technology and digitalization to enhance its competitiveness and support long-term growth. Asset quality remains strong, with an NPL Ratio of 2.92% and an appropriate Credit Cost of 0.95%. The bank also maintains a high Coverage Ratio of 205%, adequately addressing economic uncertainties.

For the first half of 2569, compared to the same period of the previous year, the bank and its subsidiaries reported a net profit attributable to the bank of 24,562 million baht, an increase of 7.6 percent. This occurred despite a 14.7 percent decrease in net interest income due to the downward trend in interest rates and interest rate reductions to assist borrowers, coupled with efficient financial cost management. Meanwhile, non-interest income continued to grow.

Driven by the Wealth Management business, the expansion of the money and capital markets business, partial revenue recognition from fair value adjustments for investments in the Transportation sector, and income from recovered bad debts from the Recovery Engine, the bank managed its overall expenses efficiently. This resulted in a cost-to-income ratio of 38.9%, down from 41.3%, while provisions for expected credit losses remained at an appropriate level, consistent with improved asset quality, with a credit cost of 1.05%.

As of June 30, 2569, the financial group had a Tier 1 capital ratio (%CET1) of 18.7% and a capital adequacy ratio (%CAR) of 20.7%, which are at a high level. The bank prioritizes disciplined, flexible, and efficient capital management, allocating funds in line with strategic opportunities to continuously and sustainably increase shareholder value. It maintains sufficient liquidity, consistently exceeding the Bank of Thailand's (BOT) Liquidity Coverage Ratio (LCR) requirement.

The bank is moving forward with its business operations based on five key strategies, aiming to enhance organizational capabilities by leveraging AI technology to create value (Value-Led) across all dimensions. This includes improving operational efficiency, developing financial products and solutions that are more accessible and understandable to customers, and accelerating the transformation of its operating model.

This aligns with the accelerated reshaping of portfolios to grow in targeted industries, while also leveraging client shifts towards energy and low-carbon transitions to capitalize on loan growth opportunities. Furthermore, the company remains a leader in providing clients with innovative wealth management products in a 24/7 service, expanding investment opportunities and accessibility for Thais, both domestically and internationally.

It was also granted permission to launch a Virtual Bank business in collaboration with partners, becoming the first in the country to do so, in order to enhance access to digital financial services, create a new financial experience, and increase opportunities for underserved groups. The bank is committed to creating shared value with customers, businesses, and partners across all sectors under the concept of "60 Years of Krungthai: Every Step For a Million Futures."