TMBThanachart Bank Public Company Limited (SET: TTB) demonstrated financial stability in the first quarter of 2026, posting a net profit of THB 5,170 million, representing a 1.4% increase compared to the same period in 2025. While total operating income grew marginally by 1.1% year-on-year (YoY) to THB 16,732 million, the underlying drivers of the bank’s profit and loss experienced significant movement.
Net interest income (NII) declined by 8.1% YoY to THB 12,150 million. This pressure was largely due to six consecutive policy rate cuts since late 2024 and a contraction in the overall loan base. Consequently, the net interest margin (NIM) compressed to 3.02%, down from 3.19% in 1Q25. Offsetting the NII weakness, non-interest income (Non-NII) surged by 37.4% YoY to THB 4,582 million. This growth was fueled by gains on financial instruments and improved fee income from mutual funds, bancassurance, and the newly consolidated securities business.
The bank’s total loan portfolio fell to THB 1.18 trillion, a decline from THB 1.21 trillion in 1Q25. This reflects a deliberate strategic shift toward quality-driven growth and the “de-risking” of weaker SME exposures. While the NPL ratio rose to 2.93% from 2.75% a year ago, the increase was primarily due to the smaller loan denominator; the actual volume of Stage 3 loans decreased to THB 38,813 million.
On the credit front, expected credit loss (ECL) fell 12.8% YoY to THB 3,994 million. Despite the lower normal provision, TTB prudently set aside a THB 1.6 billion management overlay to buffer against geopolitical risks and housing market volatility. This move bolstered the LLR coverage ratio to 154%, compared to 150% in 1Q25. Operating expenses rose 7.7% YoY, mainly from the consolidation of ttb wealth securities. TTB maintained a robust capital position with a Capital Adequacy Ratio (CAR) of 19.7%.
At the end of March 2026, the Bank has the remaining tax benefit of THB4.7 billion, down from THB5.7 billion in 4Q25, 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.
