LH Financial Group Public Company Limited (SET: LHFG) has reported a strong financial performance for the second quarter of 2026, with net profit reaching Baht 696.1 million, representing a 26.3% increase compared to the Baht 551.0 million recorded in the same period last year. The double-digit bottom-line growth was primarily driven by higher gains on financial instruments and a significant jump in fee-based income.
The group’s operating income rose by 18.2% year-on-year (YoY) to Baht 2,557.7 million. A key contributor was net interest income, which grew 15.1% YoY to Baht 1,918.2 million. This improvement occurred despite a 1.6% dip in gross interest income, as the bank successfully reduced interest expenses by 17.9% compared to Q2 2025. Furthermore, net fees and service income surged by 79.2% YoY, reaching Baht 344.6 million, bolstered by strong performance in wealth management and trade finance.
In terms of lending, LHFG’s total loan portfolio expanded by 9.1% year-to-date (YTD) compared to the end of 2025, reaching Baht 363,966.5 million. This growth was spearheaded by a deliberate shift toward retail segments; personal loans skyrocketed by 41.3% YTD, while the retail loan segment overall grew by 10.3%.
However, the aggressive expansion and fragile economic environment led to a slight uptick in non-performing loans (NPLs). The group’s gross NPLs rose by 14.4% YTD, resulting in an NPL ratio of 2.56%, up from 2.44% at year-end 2025. To mitigate this risk, the group increased its expected credit losses (ECL) to Baht 365.3 million for the quarter, a 10.3% increase over Q2 2025.
Operating costs also trended upward, with other operating expenses rising 16.3% YoY to Baht 1,344.8 million. This was attributed to higher amortization of intangible assets and personnel costs as the group continues to invest in digital platforms, such as its new “Genie AI” assistant.
Despite rising provisions and expenses, LHFG maintains a solid capital position with a BIS ratio of 15.624%, comfortably exceeding regulatory requirements.
