Krungthai Bank Reports 9-Month Profit of 37.145 Billion Baht Despite 13% Drop in Interest Income

Krungthai Bank faced the impact of declining interest rates, reporting a Q3/2026 net profit of 12.582 billion baht, down 13.9% year-on-year (YoY). For the first nine months of 2026, net profit was 37.145 billion baht, a slight decrease of 0.8% YoY, following proactive reductions in loan interest rates and customer support, alongside ongoing business restructuring according to plan.

Payong Srivanich, President and CEO of Krungthai Bank (KTB), said that the Thai economy has continued to expand unevenly in a K-shaped pattern with several risks, including ongoing Middle East conflicts keeping oil prices high, as well as major flooding. These factors have increased costs for businesses and living expenses for the public and SMEs.

Therefore, the bank focuses on cautious business operations and proactively assists customers through targeted debt restructuring. This resulted in KTB's loan portfolio expanding 10% YoY in Q3 2026, but net profit attributable to the bank was 12.582 billion baht, down 13.9% YoY due to a 9.5% YoY decline in net interest income. The net interest margin (NIM) stood at 2.44%.

For the first nine months of 2026, net profit attributable to the bank was 37.145 billion baht, a 0.8% YoY decrease, driven by a 13.0% drop in net interest income. The bank continues to focus on growing non-interest income across wealth management, capital markets, and other businesses.

Additionally, the bank has been continuously restructuring its business by establishing Krungthai Allianz Holding Co., Ltd. and Krungthai Capital Holding Co., Ltd. to clarify business management by type, including Shared Services, Digital Technology and Innovation, and Wealth Creation. It also acquired shares in Win Performance Co., Ltd., a debt collection firm, to enhance debt management and recovery efficiency (Recovery Engine).

Summary of operating results for the first nine months of 2026 compared to the same period last year highlights the following:

• Net profit attributable to the bank was 37.145 billion baht, down 0.8% YoY.
• Net interest income was 70.116 billion baht, down 13.0% YoY.
• Net fee and service income was 18.527 billion baht, up 10.0% YoY.
• Other operating income was 25.438 billion baht, down 0.4%.
• Other operating expenses were 44.209 billion baht, down 10.3% YoY.
• The cost-to-income ratio stood at 38.8%.
• Total loans with credit impairment or non-performing loans (NPLs) as of 30 Sep 2026 were 94.921 billion baht, up 1.3% from the previous quarter.
• The ratio of NPLs to total loans was 2.93%.
• The capital adequacy ratio stood at 20.70%.

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