TMBThanachart Bank Public Company Limited (SET: TTB) has released its financial statements for the second quarter and first half of 2025, reflecting its performance amid a challenging economic environment characterized by a slowdown in domestic activity and ongoing uncertainties stemming from U.S. trade policies. The Bank’s strategic focus during the period remained on safeguarding portfolio quality, advancing internal transformation, and enhancing shareholder returns.
In Q2 2025, TTB reported a net profit of THB 5,004 million, representing a 7.2% year-on-year (YoY) decline from THB 5,394 million in Q2 2024. This translated into a return on equity (ROE) of 8.3% for the quarter, down from 9.3% in the same period last year. Despite softer top-line growth, the Bank’s performance was supported by effective funding cost management, disciplined cost control, and robust risk management practices.
Net Interest Income (NII) for Q2 2025 stood at THB 12,742 million, marking a 10.2% YoY decrease from THB 14,185 million in Q2 2024. This decline was mainly driven by the policy rate cut cycle and reduced loan yields stemming from customer support programs such as the “You Fight, We Help” initiative. However, improvements in funding costs partially mitigated the impact.
In contrast, Non-Interest Income (Non-NII) grew significantly, rising 14.2% YoY to THB 3,639 million, compared to THB 3,187 million in Q2 2024. This increase was driven by gains on financial instruments measured at fair value through profit or loss, along with improved net fees and other income streams. Key contributors included trade finance, FX-related fees, and structured note fees. As a result, total operating income declined by 5.7% YoY to THB 16,381 million, from THB 17,372 million in the same quarter last year.
TMBThanachart Bank’s total loans to customers (excluding accrued interest receivables and allowance for expected credit loss) amounted to THB1,206 billion as of 30 June 2025, marking a 0.4% decline quarter-on-quarter (QoQ) and a 2.8% decrease year-to-date (YTD).
TTB maintained a prudent stance on credit risk. Expected Credit Loss (ECL) for Q2 2025 was THB 4,294 million, down 18.7% YoY from THB 5,281 million in Q2 2024. This decrease reflects the Bank’s conservative risk framework, strict underwriting standards, and the continuing positive effects of its assistance programs. The Bank also allocated additional management overlay (MO) reserves to hedge against emerging risks, particularly those related to U.S. tariff enforcement.
The consolidated Non-Performing Loan (NPL) ratio remained stable at 2.73% in Q2 2025, compared to 2.64% in Q2 2024. NPL outstanding decreased from THB 40,105 million to THB 39,164 million year-on-year. TTB maintained a strong loan loss reserve (LLR) coverage ratio of 149% as of June 2025, underscoring its commitment to prudent provisioning.
The Bank stated that it continues to advance its digital-first transformation, aimed at driving recurring cost reductions and improving operational efficiency.
At the end of June 2025, the Bank has the remaining tax benefit of THB8.2 billion to be subsequently recognized within 2028. The recognition will not be on a straight-line basis but will be subject to the estimation of future net profit stream.
CGS International Securities (Thailand) noted that the results were largely in line with its estimate and Bloomberg consensus. The firm maintains TTB with a Hold rating and 2025F target price of THB1.86 per share while waiting for an analyst meeting later today.
