TIDLOR announced a net profit of THB 1.53 billion for the second quarter of 2026, marking a year-on-year increase of 18.3% and a 5.0% decline from the previous quarter. The results surpassed Finansia Syrus Securities’ expectations by about 3%.
The beat was driven by stronger-than-anticipated net interest income (NII), an improved loan spread, and lower credit costs. Pre-provision operating profit (PPOP) held steady quarter-on-quarter at THB 2.49 billion, rising 7.3% year-on-year. Despite a decrease in fee income from the insurance brokerage segment, net profit for the first half of 2026 totaled THB 3.15 billion, up 26.2% from a year earlier and achieving 56% of the full-year earnings forecast.
The company saw a recovery in its core operations, with NII rising 3.1% quarter-on-quarter and 9.6% year-on-year to THB 4.51 billion. This growth was supported by a 2.3% quarter-on-quarter and 6.1% year-on-year increase in loans, in line with the company’s 2026 guidance of 5–10% annual growth and the analyst’s estimate of 5.8%. Loans for motorcycles and cars remained the main drivers, while financing for used trucks grew just 0.5% quarter-on-quarter and declined 2.9% year-on-year due to cautious lending policies.
The loan spread expanded by 31 basis points quarter-on-quarter to 15.53%, mainly due to a recovery in loan yields to 18.66% and cost of funds declining to 3.13%. Fee income decreased 6.3% quarter-on-quarter but improved 2.2% year-on-year, reflecting trends in non-life insurance premiums. Operating expenses rose 2.8% quarter-on-quarter and 9.9% year-on-year, pushed by branch expansion, bringing the cost-to-income ratio to 55.1%.
Asset quality softened slightly but remained manageable. Gross non-performing loans (NPLs) increased 7.3% quarter-on-quarter, though they were down 8.5% year-on-year. The NPL ratio rose to 1.56%, slightly above estimates but within the company’s guidance of 1.50–1.80% for 2026. Stage 2 loans showed positive progress, declining to 16.26%. Credit costs increased to 2.09% but stayed below forecasts and company guidance, while coverage ratio remained robust at 321.5%.
Finansia Syrus Securities maintains its 2026–2028 earnings forecasts, expecting a CAGR of 9.8% backed by average loan growth of 5.8–6.3% annually and improving loan spreads. The second half of 2026 is expected to benefit from the refinancing of higher-cost bonds with new lower-cost bonds, aiding margin expansion. The firm continues to rate TIDLOR as a top pick in the sector, alongside KTC, with a target price of THB 23.00 for 2026.
