Thai finance sector profits rise 9% in Q2 ahead of H2 loan expansion

The firms benefited from the cash handout scheme and mild ME conflict impact.

Thailand’s finance sector is expected to see net profit rise 9% year-on-year (YoY) for the Q2 2026 period, but lower by 4% compared to the previous quarter, according to estimates by UOB Kay Hian (UOBKH).

Finance companies reviewed—Muangthai Capital, Krungthai Card, SAWAD, and TIDLOR–are expected to report $199.19m (THB6.65b) in net profit for the quarter.

The companies are expected to only see mild impact from the Middle East conflicts that happened during the period, whilst the cash handout scheme should help boost domestic spending, said UOBKH analyst Thanawat Thangchadakorn and assistant analyst Panjarat Thaweesriprasert.

“Consequently, we project that finance companies will ease their strict lending policies, resulting in a loan expansion of 6% YoY and 3% [quarter-on-quarter (QoQ)] in Q2 2026,” Thangchadakorn and Thaweesriprasert said.

Credit costs are expected to have normalised despite the mild impact from the Middle East conflict, they added.

“As a result, we expect that the sector’s credit costs will increase by 42 basis points (bp) QoQ to 321 bp in Q2 2026,” Thangchadakorn and Thaweesriprasert said.

The finance companies are expected to build up provisions as they prepare to resume expanding their loan portfolios in H2 2026.

“Notably, auto-title loan operators are targeting double-digit growth in 2026 which is a milestone we believe they are well-positioned to achieve,” the analysts said. 

(US$ 1 = THB 33.39, as of 13 July 2026)