Thailand’s finance sector expected to log 5% net profit rise in Q1

However, most finance companies will likely miss loan targets

Thailand’s finance sector is expected to log a 5% year-on-year (YoY) net profit increase in Q1 despite many finance operators having guided for a toned-down loan growth for the whole of 2025.

The Q1 combined profits are expected to come at THB5.85b, which is also 3% quarter-on-quarter (QoQ) higher than Q4 2024.

Growth in earnings will primarily be thanks to a 6% YoY loan expansion, UOB Kay Hian said.

“Overall, we believe that finance companies will continue to prioritise good asset quality by implementing a cautious lending policy due to the weakened economic outlook and future uncertainties caused by the US’ reciprocal tariffs,” said UOBKH analyst Thanawat Thangchadakorn.

Despite the rise in earnings on a yearly and quarterly basis, loan growth is overall expected to soften in 2025.

“We are quite conservative in forecasting 2025 loan growth,” said Thangchadakorn.

Muangthai Capital is expected to report a 9% YoY loan growth for the whole year, lower than its 15% growth target.

Similarly, Srisawad Corporation is expected to post a 6% YoY loan growth versus its target of a 10% to 15% growth this year.

Krungthai Card is expected to report a 5% loan growth, in line with its 4% to 5% target.

Ngern Tid Llord (TIDLOR) has not provided a target.