Thai banks’ net profits rose 5% in Q1

For 2025, the banks are expected to report lower NIMs and a 1% loan contraction.

Banks in Thailand reported a combined net profit rise of 5% year-on-year (YoY) and 12% quarter-on-quarter (QoQ) for the first quarter of 2025, according to UOB Kay Hian.

All banks indicated a preference for good asset quality rather than loan growth, likely due to the potential impact of US tariffs and the worsening economic outlook, said UOBKH analyst Thanawat Thangchadakorn.

“We saw QoQ loan contractions in many banks in Q1 2025. Banks continue to prioritise maintaining good asset quality rather than loan growth, in view of 
the potential impact of US tariffs and the worsening economic outlook,” Thangchadakorn said.

UOBKH forecasts that a 1% YoY loan contraction in Thailand’s banking sector in 
2025.

Net interest income (NII) dropped 6% YoY and 4% QoQ on the back of lower lending yields.

Non-interest income (Non-II) jumped 18% YoY and 14% QoQ thanks to “a more favourable capital market condition,” Thangchadakorn said.

For 2025, UOBKH expects all banks to report a lower NIM than their 2025 targets due to the impact of the policy rate cut to 1.50% by the end of the year.