LH Financial Group Public Company Limited (SET: LHFG) has reported its consolidated financial performance for the second quarter ended 30 June 2025, demonstrating resilience despite a challenging economic landscape.
LHFG posted a net profit of Baht 551.0 million for the quarter. This represents a significant increase of 12.1% compared to the net profit of Baht 491.5 million recorded in the second quarter of 2024.
The improvement in profitability was primarily driven by an increase in gains on investments and other operating incomes. Total operating income, often referred to as revenue, for 2Q25 reached Baht 2,163.4 million, an increase of 6.4% compared to Baht 2,033.5 million in 2Q24. This growth was substantially boosted by net non-interest income, which surged by 53.1% to Baht 497.2 million in 2Q25, mainly due to higher gains on investments and other operating incomes.
Conversely, net interest income experienced a slight decrease of 2.5%, amounting to Baht 1,666.2 million in 2Q25 compared to Baht 1,708.7 million in 2Q24. This was influenced by a substantial 11.1% increase in interest expenses, even as interest income rose by 3.9%.
On the expenditure front, other operating expenses grew by 9.2% to Baht 1,156.5 million in 2Q25, primarily due to increased advertising and promotional expenses. However, the group saw a positive movement in its credit provisions, with expected credit losses decreasing by 7.4% to Baht 331.3 million in 2Q25 compared to Baht 357.6 million in 2Q24.
For its core commercial banking business, Land and Houses Bank Public Company Limited reported loans to customers (net) of Baht 250,077.6 million as of 30 June 2025, marking a 3.4% increase year-to-date. Despite this loan growth, the bank’s non-performing loans (NPLs) (gross) increased by 14.9% to Baht 7,771.1 million as of 30 June 2025 compared to the end of 2024, leading to an NPL ratio of 2.59% of total loans, up from 2.34% at the end of 2024. The bank maintained a strong coverage ratio of 173.09% in 2Q25.
