TMBThanachart Bank may see loans contract by 1.7% in 2025

Its Q1 net profit dropped 5% compared to the same quarter in 2024.

TMBThanachart Bank (TTB) is headed for a loan contraction in 2025 whilst provisions are expected as it braces for tariff uncertainties.

The Thai-based bank posted a net profit of $152.27m (THB5.1b) in Q1, 5% year-on-year (YoY) lower and flat compared to Q4 2024.

It missed UOB Kay Hian’s expectations by 6%, but its share buyback programme will help to limit the downside, said analyst Thanawat Thangchadakorn in a report.

Loans contracted 8% YoY and 2.4% QoQ during the quarter, with TTB’s CEO citing their “highly selective and stringent lending policy.”

UOBKH now expects TTB to miss its loan growth target of 0-2%.

“We anticipate a negative loan growth of 1.7% for the year,” Thangchadakorn said.

Thangchadakorn expects the bank to raise provision expenses given uncertainties surrounding the US tariffs, even as TTB said that it was too soon to estimate its impact.

Similar to Krungthai Bank, UOBKH has cut its 2025-27 earnings forecast for TTB, citing the possibility of a policy rate cut and higher credit cost assumptions.

However, TTB’s share buyback programme is expected to help limit the downside to its share price.

(US$1 = THB33.49; As of 23 April 2025, Google).

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