Bangkok Bank likely to miss 2025 net interest margin target

Its Q2 2025 earnings growth was flat year-on-year.

Bangkok Bank is expected to miss its target net interest margin (NIM) in 2025 on the back of upcoming rate cuts, reports UOB Kay Hian.

The Thailand-based bank expects two rate cuts in the last six months of 2025: a 25 basis point (bp) cut in October and another in December. The bank forecasts that the December rate cut will not pressure its NIM below 2.8%.

However, UOBKH projects that the bank will miss its target, and report a NIM of 2.7% for 2025.

The NIM is the net interest income that a lender earns from credit products minus the interest it pays to holders of savings accounts and certificates of deposits, according to an Investopedia definition.

Bangkok Bank logged a Q2 2025 earnings of THB11.8b, flat year-on-year (YoY) and lower by 6% quarter-on-quarter (QoQ), beating UOBKH’s estimates.

Loan growth was flat in Q2, with corporate loans the only type of loans expanding during the quarter.

Non-interest income rose 22% YoY to THB12.7b, although it was 8% QoQ lower.

Credit costs and nonperforming loan (NPL) ratio also rose in the second quarter, with Bangkok Bank setting aside THB10.7b in provision expenses.

“This NPL increasing pattern throughout 2025 is expected to mirror last year’s trend. Additionally, BBL maintains its credit cost target at 1% in 2025 but acknowledges that it might exceed this level and end the year roughly in line with last year. We expect [a] credit cost of 137bp in 2025,” said UOBKH analyst Thanawat Thangchadakorn in a report on 18 July 2025.