...Intrinsic Profile Drives Ratings: KASIKORNBANK Public Company Limited's (KBank) Viability Rating (VR), which reflects the standalone profile of the bank, drives its Issuer Default Ratings (IDRs). KBank's VR incorporates its strong competitive position in the domestic market, and its sustainable financial strength. KBank has a relatively balanced loan mix by client segment, but has particular expertise in the SME segment. KBank also has a strong transactional banking focus and has the largest digital banking platform among local banks, which supports its cross-selling strategy and contributes to a stable and low-cost funding profile. Softening Profitability: KBank's earnings are weakening compared to global rating peers due to rising credit costs, flat net interest margins, and lower fee income from transaction activities and insurance. These challenges have been partially offset though various cost control and operating efficiency measures. Fitch Ratings thinks KBank's key earnings metrics...
