TMBThanachart’s NIM to rise to 2.92% in Q2 as loans shrink

The bank is focusing on higher-yielding loan segments.

TMBThanachart Bank (TTB) is expected to see its net interest margin (NIM) rise in Q2, but loans will contract, according to estimates by UOB Kay Hian (UOBKH).

The Thailand-based bank’s NIM is expected to edge up to 2.92% in the Q2 2026 period, expanding from 2.89% the previous quarter.

However, loans will contract by 1.5% year-on-year (YoY), although it will still be 0.7% higher than in Q1, UOBKH said.

“The yoy decline is expected to be driven by weaker corporate lending activity, with loan repayments continuing to outpace new loan growth,” said UOBKH analyst Thanawat Thangchadakorn and assistant analyst Panjarat Thaweesriprasert.

For 2026, TTB’s loan growth is expected to be 1.6%.

TTB continues to focus on higher-yielding loan segments, the analyst said.

“We also expect funding costs to continue easing, driven by lower term deposit costs, although the benefit should be limited as the policy rate-cut cycle has largely come to an end,” Thangchadakorn and Thaweesriprasert said.

Provisioning is expected to remain elevated, as TTB said that it is cautious over the secondary impact of the Middle East situation despite tensions easing recently, UOBKH said.