Maybank Securities (Thailand) noted in an analysis that TISCO Financial Group Public Company Limited (SET: TISCO) concluded the fourth quarter of 2025 with net profits of THB 1.64 billion, marking a 4% year-on-year decline amid heightened credit costs.
Quarter-on-quarter, profits fell 5%, primarily due to a reduction in non-interest income (non-NII). For the full year 2025, TISCO’s earnings registered at THB 6.66 billion, falling 4% from the previous year.
Loan growth in the fourth quarter was positive, rising 2% sequentially and driven largely by corporate and SME lending. However, net interest margin (NIM) slipped by 4 basis points from the previous quarter, partly a result of a high base effect following a significant one-off prepayment by a corporate borrower in 3Q25.
On the non-NII front, TISCO saw a 7% year-on-year increase, thanks to higher bancassurance fee income. Comparatively, non-NII dropped by 19% quarter-on-quarter, with the main drag being a lower gain on fair value through profit or loss (FVTPL).
In terms of operating expenses (Opex), costs decreased by 2% year-on-year due to efficient cost controls, contributing to a lower cost-to-income ratio, which improved by 2.1 percentage points YoY to 46.8%.
The non-performing loan (NPL) ratio dipped 3 basis points from the previous quarter to 2.28%. However, NPL formation rose to 0.84% in 4Q25 compared to 0.57% for the first nine months of 2025.
TISCO ramped up provisions in the fourth quarter, setting aside THB 565 million, which equates to a credit cost of 97 basis points, a significant increase from 58 basis points in 4Q24.
Looking ahead, Maybank maintains an optimistic outlook for TISCO’s 2026 financial performance. The securities house expects earnings growth on the back of an improving net interest margin.
