Thai finance operators tone down loan growth targets amidst asset quality concerns

They foresee a weaker-than-expected economic outlook in 2025

Thai finance operators reported flat profit growth in Q4 2024 compared to the previous quarter.

Combined net profit is THB5.7b, flat quarter-on-quarter but up 8% year-on-year, according to an analysis by UOB Kay Hian.

All finance operators saw softer year-on-year loan growth in 2024, said UOBKH analyst Thanawat Thangchadakorn.

“As a result, we saw many finance operators guide a toned-down loan growth target in 2025, compared with 2024’s target,” Thangchadakorn wrote.

Notably, Muangthai Capital, Srisawad Corporation, and Krungthai Card softened their loan growth targets for 2025.

Ngern Tid Llor has not yet shared a 2025 target, which may be due to its company structuring to be a holding company in H1 2025.

All finance operators expressed concerns about good asset quality in 2025, and foresaw weaker-than-expected economic outlook in 2025, Thangchadakorn said.