TMBThanachart Bank Public Company Limited (TTB) reported a net profit of 5.17 billion baht in Q1/2026, marking a 1.4% increase from the same period last year despite facing pressures from faster-than-expected policy rate cuts and a slowdown in lending.
However, the bank was able to sustain its performance through efficient cost management and growth in non-interest income, particularly from fee income, which continued to expand well.
TMBThanachart Bank Public Company Limited (TTB) reported to the Stock Exchange of Thailand a net profit of 5.17 billion baht in Q1/2026, up 1.4% year-on-year, despite main revenue growth being pressured by faster-than-expected interest rate cuts in February 2026 and a slowdown in loans.
Improved non-interest income combined with effective expense and risk cost management helped maintain overall performance compared to the same period last year.
Meanwhile, the bank restructured its financial costs appropriately, mitigating negative impacts on the net interest margin (NIM), which remained stable at 3.02%. Improved financial costs resulted from efficient deposit and loan structure management, interest rate cuts on deposits aligned with policy rate reductions, and shifting loan portfolio composition towards higher-yielding retail loans, helping sustain NIM levels.
Non-interest income grew strongly, partly supported by non-core fee income such as gains from financial instruments measured at fair value through profit or loss and other income from FIDF support under the “You Fight, We Help” program.
Core fee income showed good growth across all product groups, especially fees from bancassurance, mutual funds, credit cards, as well as export and foreign exchange fees.
At the same time, the bank maintained operating expenses (OPEX) at appropriate levels. The increase in OPEX compared to last year partly resulted from consolidating personnel expenses from ttb wealth securities.
Excluding these items, core operating expenses remained well controlled and tended to stabilize, reflected by a 1.5% decrease from the previous quarter. Additionally, shifting services towards digital platforms under the “digital-first, digital-only” framework is expected to further improve cost efficiency in the future.
Asset quality remained manageable, supported by strengthened risk protection through strict risk management, proactive reduction of credit portfolio risks, and customer assistance programs. This resulted in good asset quality, reflected by a 12.8% decrease in expected credit loss (ECL) from last year and stable non-performing loans levels.
Furthermore, the bank maintained additional reserves through a Management Overlay to cover risks from the Middle East conflict and trends in the secondhand housing market, leading to an increase in the loan loss reserve (LLR) coverage ratio to 154%.
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