LH Financial Group Public Company Limited (SET: LHFG) has delivered a standout performance for the first quarter of 2026, recording a net profit of Baht 842.5 million. This represents a significant 47.9% increase compared to the Baht 569.7 million reported in the first quarter of 2025. The surge was primarily driven by a substantial rise in gains on financial instruments, investment gains and dividend income.
The group’s total operating income rose by 21.4% year-on-year (YoY) to Baht 2,455.7 million. A key component of this was net interest income, which grew 5.9% YoY to Baht 1,770.8 million. While interest income saw a slight decline of 2.3%, the group effectively lowered interest expenses by 10.2% compared to 1Q25, supporting overall margins. However, the net interest margin (NIM) for the bank subsidiary stood at 1.85%, a decrease from the 2.00% recorded for the full year 2025.
Net non-interest income proved to be a major growth engine, jumping 95.5% YoY to Baht 684.9 million. This was bolstered by increased gains on financial instruments measured at fair value and a 72.3% rise in dividend income.
Regarding credit expansion, the group reported steady loan growth, with net loans to customers reaching Baht 282,211.6 million, up 2.8% from the end of 2025. Specifically within the banking segment, conglomerate and corporate loans surged 6.7% year-to-date. Asset quality also showed improvement, as the Non-Performing Loan (NPL) ratio fell to 2.30%, down from 2.44% at year-end 2025.
Prudent risk management remained a priority, with expected credit losses (ECL) totaling Baht 189.0 million, a slight 1.7% decrease from 1Q25. The group maintained a healthy coverage ratio of 160.21%.
Operating expenses increased by 10.8% YoY to Baht 1,239.8 million, largely due to higher amortization of intangible assets and employee-related costs. Despite a slowing Thai economy, LHFG’s diversified subsidiaries in securities and fund management also contributed positively, with the securities business swinging from a 1Q25 loss to a Baht 34.1 million profit in 1Q26.
