Krungsri’s profit rises 6.9% in 2025 as retail and SME loans contract

Its CEO warned of slower economic growth and consumption in 2026.

Krungsri (Bank of Ayudhya PCL) posted a net profit of $1.02b (THB31.74b) in 2025, 6.9% year-on-year (YoY) higher, in part due to a one-time gain from its Tidlor Holdings investment remeasurement.

Total loans increased by 1.7% YoY in 2025, largely driven by a 2.7% YoY growth in corporate loans, the Thailand-based bank said in a press statement on 20 January 2026.

Loan growth was further supported by the consolidation of its TIDLOR portfolio, Krungsri said.

In contrast, the bank’s retail and small and medium enterprises (SME) segments saw loan contractions, weighed down by domestic demand and business sentiments, it said.

Deposits contracted by 4.8% YoY to $2.78b (THB86.9b) on a decrease in time deposits.

Net interest margin (NIM) rose to 4.35% in 2025 from 4.28% in 2024 on funding cost management and higher yield contribution from TILOR.

Non-interest income is $205.06m (THB6.4b), 14.1% YoY higher, on higher net fees and service income and the TIDLOR investment remeasurements.

Cost-to-income ratio is 47%.

Thailand’s economy is expected to expand “below potential” in 2026, with growth projected at just 1.8% versus 2.1% in 2025, said Kenichi Yamato, president and CEO, Krungsri.

“Consumption will slow as income growth remains weak, while exports face pressure from U.S. tariffs and baht appreciation,” Yamato said.

Foreign investors and capital investment are expected to provide “partial support”.

“However, overall growth remains subdued due to external trade pressures and restrained domestic spending,” Yamato said.

Krungsri is Thailand’s fifth largest bank in terms of assets, loans, and deposits.

(US$1 = THB31.21; as of 23 January 2026, Morningstar via Google)