Krungsri Securities reports that Thailand’s commercial banking sector saw moderate loan growth of 0.5% month-on-month (m-m) in February 2026, primarily buoyed by an uptick in corporate and government loans. In contrast, loans to SMEs and the retail sector registered declines.
Every major bank posted loan growth for the month. Kiatnakin Phatra Bank (KKP) led with a 1.9% m-m increase, supported by corporate lending. Krung Thai Bank (KTB) followed with a 1.1% gain, driven by government loans. Other notable performers included TISCO (up 0.8% m-m reflecting corporate and SME loan expansion), SCB (up 0.4%), BBL (up 0.3%), KBANK (up 0.2%), and TMBThanachart Bank (TTB) (up 0.1%), all primarily due to corporate loan growth.
Year-to-date (YTD), however, the sector has seen a -0.2% contraction versus end-2025. KKP remains the standout performer with a 2% YTD increase, followed by KTB (up 1.6%) and TISCO (up 0.2%). In contrast, BBL, SCB, KBANK, and TTB reported YTD contraction ranging from -0.1% to -2.2%.
On the liquidity front, sector deposits slipped -0.1% m-m but rose 0.2% YTD. The sector’s loan-to-deposit ratio (L/D ratio) climbed to 82.3% in February, up from 81.6% in January.
Krungsri Securities holds a slightly positive view of February’s figures, citing continued bank caution in lending amid economic uncertainties and lingering asset quality risks. The brokerage maintains a NEUTRAL outlook on the sector, anticipating sustained high dividend yields (5-8% annually) through 2026. Cost management, including funding costs, operational expenses, and credit costs, is expected to be a decisive factor for banks’ profitability in the near term, with asset quality seen as manageable for now.
Krungsri retains KBANK (target price THB 230) and KTB (target price THB 38) as its top sector picks.
