Mitihoon – Bangkok, 18 July 2025 — TMBThanachart Bank Public Company Limited, or TMBThanachart (ttb), announced its financial performance for the 2nd quarter and the 6-month period of 2025 (2Q25 and 1H25). The Bank and its subsidiaries reported a net profit of THB 5,004 million for 2Q25 and THB 10,100 million for 1H25 with a focus on cost efficiency to mitigate impact from revenue pressure and maintain profitability. NPL ratio was at a low level of 2.73% with coverage ratio staying stable a high level of 149%, reflecting stable asset quality situation and in line with target.
Mr. Piti Tantakasem, CEO of TMBThanachart, mentioned “The economic climate in the second quarter remained challenging from both internal and external factors. Nevertheless, the Bank’s financial position remains resilient as ttb has always emphasized on prudent business direction. The Bank’s business operation stayed on track with priorities to provide financial support to customers, enhance shareholder value through capital management plan, and preserve portfolio quality amid rising risks in the economic system.
In 2Q25, the net profit of THB 5,004 million represented a decline of 2% from the previous quarter and 7% from 2Q24. The decrease was primarily due to a decrease in net interest income, reflecting impact of policy rate cuts and interest rate reductions under various customer assistance initiatives including the “You Fight, We Help” Program. At the end of second quarter, over 54,000 customers in retail and SME segments have participated in the program, accounting for approximately THB 31,000 million of loan outstanding.
In addition, the Bank has offered other debt restructuring programs aimed at extending assistance to all customer groups. One of the debt relief initiatives the Bank has actively promoted is the “Debt Consolidation” program. Currently, more than 53,650 customers have participated, up from approximately 37,470 in 2024 and 17,000 in 2023. This program has helped reduce customers’ interest burdens of over THB 2,510 million. Recently, the Bank has launched the “Pay Well, Get More” program to support disciplined customers across mortgage loans, hire purchase and personal loans.
In terms of the progress of capital management plan, the Bank completed the acquisition of Thanachart Securities by the end of second quarter and set to enhance collaboration and strengthen Wealth Ecosystem through a comprehensive suite of financial service and solutions. Regarding the Share Repurchase Program, the Bank has repurchased shares worth THB 3,876 million to date, out of the total budget of THB 7,000 million allocated for 2025.
Lastly, asset quality remains a key focus for the Bank. The performance on asset quality management has aligned with both short- and long-term targets. Over the last 12 months, TTB has maintained a stable NPL ratio at 2.6%-2.7%, positioning the Bank among those with the lowest NPL ratios in the industry. Over a longer timeframe since the Covid-19 crisis, the Bank could reduce NPLs by around 12% from approximately THB 44 billion to THB 39 billion level as of 2Q25. This reflected the effectiveness of our proactive management and effective strategic adjustment throughout economic cycles and emerging risks, including active NPL resolution and customer financial assistance program. As a result, customer default rate and overall loan portfolio quality has improved.
For the remainder of the year, we will maintain our conservative approach to safeguard financial stability and resiliency while continuing to improve cost efficiency to maintain profitability. Given our strong capital base, we remain committed to deliver high dividend returns, even amid the slower-than-expected economic recovery. Additionally, the 3-year share repurchase program valued at THB 21 billion will also cushion shareholder value against volatility in the capital markets.
Importantly, the Bank will continue to support the “You Fight, We Help” program phase 2, along with other debt-relief programs. This underscores our commitment to promoting sustainable deleveraging and responsible lending, reflecting our aspiration to improve customer’s financial well-being.”
Details of 2Q25 and 1H25 key operating performance are as follows:
As of 2Q25, loan outstanding was at THB 1,206 billion, relatively stable QoQ but declining by 2.8% from the end of 2024 (YTD). This was driven by a prudent loan growth strategy and loan repayment. Meanwhile, the Bank continued to shift loan mix toward retail segment to enhance yields by offering financial solution with targeted Ecosystem customers including home owners, car owners, salaryman and wealth customers. As a result, loans in targeted areas could maintain growth momentum such as cash-your-home (+2% QoQ), cash-your-book (+15% QoQ) and credit card (+1% QoQ).
Deposits stood at THB 1,289 billion, reflecting a decline by 0.7% QoQ and 3.0% YTD. This trend was in line with loan growth pace and liquidity management plan. The decrease was due mainly to high-cost deposits. Meanwhile, foreign currency deposits and ttb no-fixed product showed decent growth, serving as strategic products to expand wealth customer base. The loan-to-deposit ratio was at 94%, reflecting high liquidity position which gives the Bank a flexibility to manage funding cost going forward.
On the revenue side, 2Q25 Non-Interest Income (Non-NII) increased 9.1% QoQ, supported by a recovery in bancassurance fee following the launch of new product, along with contribution from other Non-NII such as dividend income. However, Net Intertest Income (NII) decreased 3.6% QoQ, impacted by lower yields due to policy rate cuts and interest rate reduction for customers under financial assistance program. As a result, operating income was at THB 16,381 million in 2Q25 or declined by 1.0% QoQ. For the 6-month period, operating income was at THB 32,934 million, down 6.0% YoY.
2Q25 Operating expenses amounted to THB 7,271 million, an increase of 2.4% QoQ. This was partly a result of a one-time IT system write-off. However, 1H25 operating expenses totaled THB 14,369 million which declined 2.1% YoY. Consequently, 1H25 cost-to-income ratio stood at 43.7%, in line with cost efficiency targets.
Provision expense amounted to THB 4,294 million in 2Q25 which dropped 6.2% QoQ and totaled THB 8,874 million in 1H25 which decreased 14.6% YoY, reflecting an improving sign of loan portfolio quality. NPL outstanding decreased 0.9% QoQ to THB 39,164 million with NPL ratio decreasing to 2.73%. Despite the lower provision, coverage ratio stayed relatively stable at a high level of 149%.
After provision and tax, the Bank reported a net profit of THB 5,004 million for 2Q25, a 1.8% decline QoQ and a total of THB 10,100 million for 1H25, a 6.2% drop YoY.
Lastly, the capital position remained robust and steady. As of 2Q25, Capital Adequacy Ratio (CAR) and Tier 1 Ratio stood at 20.0% and 17.8%, respectively. The figures remain one of the top tiers in the banking industry and well above the Bank of Thailand’s minimum requirement for D-SIBs, which is 12.0% for CAR and 9.5% for Tier 1.
ติดตามช่องทางมิติหุ้นเพื่อรับข่าวสารตลาดทุนได้ตามลิงค์ด้านล่าง
Web : https://www.mitihoon.com/
Facebook : https://www.facebook.com/mitihoon
Youtube : https://www.youtube.com/@mitihoonofficial7770
Tiktok : www.tiktok.com/@mitihoon
