At the end of the morning session on Wednesday, the share price of Srisawad Corporation Public Company Limited (SET: SAWAD) slumped by 9.34% or THB 1.70 to THB 16.50, with a trading value of THB 612.63 million.
Muangthai Capital Public Company Limited (SET: MTC) plummeted by 5.63% or THB 2.25 to THB 37.75, with a trading value of THB 160.97 million.
Bangkok Commercial Asset Management Public Company Limited (SET: BAM) dropped by 1.47% or THB 0.10 to THB 6.70, with a trading value of THB 70.40 million.
Tidlor Holdings Public Company Limited (SET: TIDLOR) declined by 3.70% or THB 0.60 to THB 15.60, with a trading value of THB 65.85 million.
Chayo Group Public Company Limited (SET: CHAYO) decreased by 1.82% or THB 0.03 to THB 1.62, with a trading value of THB 2.75 million.
According to a report from a local media outlet, Mr. Somkiat Jaturabundit, President of the Pico Finance Thailand Association, revealed that the pico finance is currently facing a serious issue with non-performing loans (NPLs). As of the end of March 2025, there were 5.08 million cumulative approved loan accounts, with a total credit line exceeding 50 billion baht.
Most of the NPLs originate from unsecured factory workers who are burdened with multiple debts, including loans from financial institutions. These borrowers often default on their pico finance loans first, as their credit history is not checked through the credit bureau. On the other hand, borrowers who have collateral such as land deeds may make late payments, but their assets are deemed sufficient as loan security.
Elevated NPL levels have forced numerous operators to cease their business operations. So far, 104 operators out of 1,438 nationwide have relinquished their licenses across 75 provinces, with the highest numbers reported in Bangkok, Nakhon Ratchasima, Khon Kaen, and Roi Et. Bangkok, in particular, tops the list for license returns.
As for Kasikorn Securities (KS), the brokerage firm noted that the decline in finance stocks likely stems from concerns over asset quality, particularly the potential rise in NPLs.
There is a risk of additional provisions being set aside in the second quarter of 2025, as the overall Thai economy is slowing, domestic consumption has yet to recover, and the tourism sector remains subdued.
Moreover, U.S. tariff policies are adding further pressure to the economic outlook, and there are still no visible economic stimulus measures from the government.
