Krungsri reports first-quarter 2025 earnings of 7.53 billion baht, selectively securing business growth momentum, maximizing efficiency and cost optimization

Surrounded by increasing economic tensions and headwinds, corporate loans increased robustly at 4.7%, while SME and retail segments contracted in the context of increasing uncertainties and risks. Given the aforementioned conditions, Krungsri continues to be vigilant to ensure the Bank's asset quality, while supporting impacted customer groups through comprehensive assistance measures, particularly the "You Fight, We Help" program.

Highlights of Krungsri's consolidated first-quarter 2025 performance:

• Net profit: Recorded at 7,533 million baht for 1Q/25, representing an increase of 20.0% or 1,257 million baht from 4Q/24, attributed to Krungsri's 2025 deliberate growth strategic execution, as well as our focus on both funding cost management and operational efficiency, together with moderating credit costs. On a year-on-year basis, the net profit remained relatively unchanged.
• Loans: Relatively unchanged from the end of December 2024. Underlying our targeted and selective growth maneuver notwithstanding increasing economic frictions and risks, corporate loans increased robustly by 4.7% or 30,904 million baht from the end of December 2024, while SME and retail segments contracted by 2.4% and 2.5%, respectively.
• Deposits: Increased by 0.9%, or 16,753 million baht from the end of December 2024, mainly driven by an increased proportion in lower cost deposits comprising term deposits with tenor of less than six months and savings deposits, offset by a decrease in higher-cost deposits of longer tenor deposits, reflecting our proactive liquidity and funding cost management and discipline.
• Net interest margin (NIM): Recorded at 4.1%, increasing by 7 basis points (bps) from the prior quarter, mainly driven by lower cost of deposits resulting from our active management and adjustments in both deposit composition and tenors.
• Non-interest income: Increased by 5.4%, or 607 million baht from 1Q/24, primarily driven by higher bad debt recoveries, gains on the sale of properties for sale, and dividend income.
• Cost to income ratio: Improved to 45.7%, compared with 46.5% in the prior quarter, resonating the Bank's effective cost control as part of this year's strategic execution.
• Non-performing loan (NPL) ratio: Remained manageable at 3.29%. Credit cost in 1Q/25 improved to 211 basis points (bps) compared with 234 bps in the prior quarter, while the coverage ratio was recorded at 124.5%.
• Capital adequacy ratio (Bank only): Recorded at 19.14%, compared with 19.38% at the end of December 2024.

Krungsri President and Chief Executive Officer Mr. Kenichi Yamato, said "Underlying our targeted and selective growth maneuver notwithstanding increasing economic frictions and risks, corporate loans grew robustly, driven by both working capital requirements and capital expenditure investment underscoring the expansion in industries benefiting from the upper echelon of a K-shaped economy."

"The outlook for the Thai economy in the coming months is characterized by heightening uncertainties and risks stemming from trade tensions particularly from US reciprocal tariffs, which could significantly dampen exports and GDP growth. In addition, the recent earthquake, high household debt, structural impediments in manufacturing production, and the flooding of Chinese products could pose downside risks to the growth outlook for the remaining of the year."

As of 31 March 2025, Krungsri, Thailand's fifth largest bank in terms of assets, loans and deposits, and one of Thailand's Domestic Systemically Important Banks (D-SIBs), reported 1.90 trillion baht in loans, 1.84 trillion baht in deposits, and 2.63 trillion baht in total assets. Krungsri's capital (Bank only) was strong at 317.50 billion baht, equivalent to 19.14% of risk-weighted assets, with 14.91% in common equity tier 1 capital.

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