Major bank stocks have gradually reported their Q1 2026 financial results, reflecting an overall financial sector facing pressure from declining policy interest rates. Additionally, several research centers forecast that this year may be the third consecutive year of negative loan growth in Thailand's banking system. These factors could slow down some banks' net interest income.
Amid these negative factors, why do the net profits of these major banks still grow? Let's analyze the income sources of each large Thai bank.
Kasikornbank Public Company Limited (KBANK). According to the Stock Exchange of Thailand, KBANK's Q1 2026 net profit attributable to the bank was 14,667 million baht, increasing 6.35% year-on-year (YoY).
Although the core engine, net interest income, stood at 31,957 million baht, down 9.79% YoY due to lower interest rates and a 1.10% decline in outstanding loans since last year-end, the profit growth was driven by non-interest income, which rose 28.42% YoY to 17,564 million baht, stemming from:
However, overall net profit in Q1 2026 does not yet reflect the impact of the Middle East tensions that arose late in the quarter. As the situation prolongs, economic uncertainty may increase, posing risks to future performance.
Bank of Ayudhya Public Company Limited (BAY). BAY reported a net profit of 8,618 million baht in Q1 2026, up 14.4% YoY, mainly driven by strong growth in net interest income and continuous expansion of non-interest income.
Net interest income reached 28,831 million baht, increasing 14.3% YoY, partly due to restructuring financial costs, reduced interest expenses, and the positive effect of consolidating high-yield loan portfolios from TIDLOR, which mitigated the impact of rate cuts and a 1.2% decline in the bank’s loan portfolio compared to year-end.
Non-interest income was 14,024 million baht, up 18.4% YoY, mainly from robust growth in fee income and net service income from normal business operations and the consolidation of TIDLOR's financials.
SCB X Public Company Limited (SCB). The parent company of Siam Commercial Bank announced a Q1 2026 net profit of 10,195 million baht, down 18.5% YoY, primarily due to net interest income of 26,781 million baht, a 13.7% YoY decrease.
The main cause was a decline in net interest margin (NIM) following four policy rate cuts in 2025 and another cut in February 2026. Meanwhile, loans grew 3.4% from year-end, driven by large corporate and mortgage loans.
Fee and other income totaled 11,962 million baht, up 17.7% YoY, supported by growth in wealth management fees, credit-related fees, and steadily growing financial transaction fees, as well as increased fees from investment banking and capital markets activities.
However, investment and trading income fell 66.5% YoY to 568 million baht, due to decreased profits from the bank’s and SCB TenX Company's investment portfolios.
Krung Thai Bank Public Company Limited (KTB). KTB reported a net profit attributable to the bank of 12,437 million baht, up 6.2% YoY, reflecting operational efficiency and quality growth while managing asset quality carefully amid domestic and international economic challenges.
Total loans expanded 2.4% compared to end-2025, driven by government, large corporate, and retail mortgage loans. The bank managed its loan portfolio prudently to balance risk and return, with a net interest margin (NIM) of 2.48% despite downward pressure from falling interest rates and ongoing rate reductions as part of borrower relief measures.
Simultaneously, KTB focused on increasing the share of non-interest income to enhance revenue sustainability. Fee income grew 13.9%, mainly supported by wealth management and expanding money and capital market businesses aligned with market conditions.
This includes recognition of fair value adjustments on investments, dividend income, increased equity-method investment profits, and recoveries from non-performing loans and assets held for sale, which are important recovery engines for the bank.
Bangkok Bank Public Company Limited (BBL). BBL and its subsidiaries reported a Q1 2026 net profit of 10,994 million baht, down 12.9% YoY due to lower operating income. Net interest income fell 12.3% YoY to 27,976 million baht following the bank's interest rate reductions, resulting in a net interest margin (NIM) of 2.49%.
Non-interest income was 12,832 million baht, down 6.6% YoY, mainly from declines in net investment gains and loan-related fees, though dividend income and securities-related fees increased.
Additionally, BBL set aside 9,003 million baht in expected credit losses in Q1 2026 as a precaution amid rising economic challenges. Total loans stood at 2,661,368 million baht, up 2.0% from year-end, primarily from large corporate clients.
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