Tisco Financial Group Public Company Limited (SET: TISCO) reported a net profit of 1,643.52 million baht, declined by 109.50 million baht or 6.2% compared to the second quarter of 2024, mainly due to a slowdown in total income.
The share price of TISCO was up slightly in the afternoon session by 0.76%, compared to other banking stocks that faced downturn.
TISCO reported a net profit of THB 1,644 million for 2Q25, down 6.2% year-on-year but flat on a quarter-on-quarter basis. The results came in better than both Yuanta Securities’ estimate and the market’s forecast by 6.3% and 5%, respectively.
The quarter’s key positive driver was an 8.4% quarter-on-quarter increase in non-interest income, supported by the insurance brokerage segment and additional contributions from the “You Fight, We Help” program. The company also recorded gains from mark-to-market investment valuations in its profit and loss statements, while taking steps to reduce operating expenses. These factors helped offset a notable increase in provisions, as TISCO proactively raised credit cost in preparation for future growth.
Stage 2 and Stage 3 loan portfolios remained stable quarter-on-quarter, with no major negative trends in asset quality. Interest income outperformed expectations, remaining flat QoQ after NIM edged down slightly to 4.7% from 4.8% in 1Q25—less than the anticipated decline of 0.15-0.2 percentage points.
Looking forward, Yuanta expects TISCO’s net profit in the second half of 2025 to decline both YoY and HoH, reflecting further NIM pressure and a sustained rise in provisions. The 2025 full-year net profit is maintained at THB 6,387 million, representing a 7.5% YoY decrease.
Yuanta believes TISCO’s operating outlook for the remainder of the year will be subdued, as lower policy rates act as a headwind. However, the anticipated high dividend payout should help limit downside risk for the share price. The trading recommendation is maintained with a target price of THB 100 per share. An interim dividend of THB 1.8 per share is expected, translating into a dividend yield of 1.8%, while the full-year dividend is projected at THB 6.8 per share (dividend yield 6.9%), making TISCO suitable for investors seeking high-dividend, long-term holdings.
Additionally, CGS International Securities (Thailand) (CGSI) stated that the result was inline with its estimate, but topped market estimations by 5%. The firm noted that an analyst briefing will be held this afternoon. Meanwhile, CGSI retained a Hold recommendation with a 25F target price of THB99.00 per share.
