Thai Credit Bank Public Company Limited (SET: CREDIT) has kicked off the first quarter of 2026 with impressive financial results, reporting a net profit of THB 1,164.7 million. This represents a 29.0% increase compared to the THB 903.0 million earned in the same period last year. The bank’s bottom-line performance was significantly bolstered by a sharp reduction in expected credit losses and a surge in non-interest income.
The bank’s total operating income rose 5.6% year-on-year (YoY) to THB 3,793.8 million. While net interest income grew by a modest 1.2% to THB 3,643.5 million, the growth rate was tempered by the Bank of Thailand’s (BoT) continuous policy interest rate reductions throughout early 2026, which pressured interest margins. Conversely, non-interest income skyrocketed to THB 150.3 million from just THB 6.1 million in 1Q25, primarily due to accrued income from FIDF compensation.
Lending activity remained a major growth engine, with gross loans expanding by 13.8% YoY to reach THB 188,751.8 million. This expansion was driven by core products, including Micro SME, Home Equity, and Personal loans. Despite the rapid portfolio growth, the bank maintained a stable gross NPL ratio of 4.2%, identical to the level seen in December 2025. This asset quality stability is credited to proactive assistance measures that helped borrowers avoid defaulting into Stage 3 status.
Efficiency and risk management metrics remained solid. Expected credit losses (ECL) dropped by 29.7% YoY to THB 664.2 million, reflecting the bank’s prudent lending management. However, Thai Credit maintained a cautious stance with a high NPL coverage ratio of 154.6%. While operating expenses increased by 9.8% YoY to support workforce growth and IT upgrades, the bank’s Return on Equity (ROE) improved to 17.33%, up from 15.38% in 1Q25, outperforming industry averages.
