Muangthai Capital Public Company Limited (SET: MTC) reported a consolidated net profit of THB 1,823 million for the first quarter of 2026. This represents a significant 16.04% increase compared to the THB 1,571 million recorded in the same period of 2025. The company recorded a strong net profit margin of 22.97%, an increase of 16.04% compared to the same period of the previous year.
Top-line growth remained healthy as total revenue reached THB 7,937 million, a 9.58% year-on-year rise from THB 7,243 million. The primary driver was interest and fee income from loans and hire purchase receivables, which climbed 9.89% to THB 7,756 million.
The company’s commitment to its physical footprint continued throughout the quarter. As of March 31, 2026, MTC operated a total of 8,754 branches, expanding from 8,673 branches in 2025. This expansion contributed to a 9.54% rise in service and administrative expenses, which totaled THB 3,099 million. Management attributed these higher costs specifically to increased employee remuneration and depreciation expenses associated with the new branch openings. Additionally, finance costs rose 9.44% to THB 1,588 million due to higher outstanding borrowings.
On the lending side, total loans receivable reached THB 183,986 million, a slight increase of 0.42% over the previous year. Despite a fragile economic environment characterized by high living costs, MTC maintained stable asset quality. Non-performing loans (NPLs) were reported at THB 4,731 million, representing 2.57% of the total loan portfolio. Expected credit losses (ECL) saw a moderate year-on-year increase of 3.86% to THB 781 million.
Looking ahead, MTC faces a complex macro landscape. While the Bank of Thailand’s 1.00% policy interest rate has helped maintain low funding costs, global tensions—specifically the United States–Iran conflict—threaten to dampen Thai economic growth and increase inflationary pressures. Management has indicated they will continue to prioritize loan quality and disciplined credit underwriting to navigate these external volatilities.
