TISCO Bank cautious on 2026 as it scales back high yield lending

It expects net profits to decline in 2025-26, but is confident it can maintain its payout ratio.

TISCO Bank expressed caution for 2026 on expected sluggish economic growth and “fragile” household debt conditions.

The Thailand-based bank is said to have recently toned down its business strategy of growing high-yield lending products and tightened credit standards, according to CGS International (CGSI).

TISCO is also cautious of its auto title loan business and controls non-performing loans (NPLs) in this lending product, leading to loans for this product to decline 0.6% in 9M 2025 compared from end-2024.

On the other hand, TISCO said that the asset quality of its new car loans and motorcycle hire purchase loans are healthy, following its move to reduce commission fees for dealers, cut its loan-to-value ratio, and shorten loan tenures.

The flooding in nine provinces in Thailand is expected to have a limited impact on the bank, CGSI said. TISCO management disclosed that the contribution of loans from the south of Thailand was 3-4% of the total in Q3 2025, and loans in the flooded area are lower than this percentage.

“In addition, according to the bank, most TISCO customers, who have auto loans and motorcycle hire purchase loans, have first-class insurance, which have high coverage. Thus, the financial impact for the bank is manageable,” CGSI wrote.

Meanwhile, given declining interest rates, TISCO believes its 2026 loan spread and net interest margin (NIM) will be higher compared to 2025. Its reasoning is that its fundings will be repriced at cheaper costs.