TMBThanachart reported a net profit of THB 5,096 million for the 1st quarter of 2025, driven by efficient cost management. Asset quality remained under control with relatively low NPL ratio at 2.75% as the Bank focused on growing quality loans, proactively managing NPLs as well as closely monitoring and supporting customers to sustainably reduce debt burden through “You Fight, We Help” program.

Bangkok, 18 April 2025 - TMBThanachart Bank Public Company Limited, or TMBThanachart (ttb), announced its financial performance for the 1st quarter of 2025 (1Q25). The Bank and its subsidiaries reported a net profit of THB 5,096 million for the first quarter. Key driver was efficient cost management in 3 key areas, including funding cost, operating cost, and provision expense. Asset quality remained in check. NPL ratio was at 2.75%, in line with guidance while coverage ratio was stable and at a high level of 150%.

Mr. Piti Tantakasem, CEO of TMBThanachart, mentioned “The overall operating results in 1Q25 is on track. The Bank remains prudent with a focus on 3 key directions. First is to maintain 2025 performance amidst economic uncertainties. Next is to support customers to sustainably reduce debt burden and lastly to execute the capital management initiatives to enhance shareholder value.

In order to maintain performance momentum in 2025, the Bank emphasizes cost management to ensure efficiency in funding cost, operating cost and risk cost or provision expense. Moreover, the Bank continues to enhance digital capabilities and data analytics to deepen relationships with customers and offer new products and services through ecosystem play. This would help boost non-loan related fees and mitigate impact on revenue generation from downward interest rate trend and economic situations affecting loan expansion. As a result, the Bank could maintain profitability momentum from THB 4,992 million in 4Q24 to THB 5,096 million in 1Q25, driven mainly by 7% and 2% QoQ decreases in operating cost and provision expenses, respectively.

In terms of customer supports, the Bank continues to assist and encourage customers to deleverage through various programs. As one of examples, the Bank continue to promote debt consolidation, leading to an increase in customer participation from around 17,000 persons in 2023 to 37,470 persons in 2024 and to approximately 47,000 persons at the present. This could translate into a reduction in customers’ interest burdens of more than THB 2,300 million. For the latest program “You Fight, We Help”, currently more than 35,000 customers in retail and SME segments have participated in the program.

Next is the execution of capital management initiatives, aiming to enhance shareholder value in both short and long term. In January 2025, the Bank announced a 3-year share repurchase program with the total budget of THB 21 billion, as part of optimized excess capital utilization to drive ROE to 10% target. This program could also help preserve shareholder value from fluctuations in capital market. In terms of the acquisition of shares in Thanachart Securities, the progress is on track.

For the rest of the year, the intensifying global trade conflict is expected to pose more risks to Thailand’s export and economic recovery. Therefore, we will maintain our prudent business direction to ensure steady financial performance and high dividend payout. Moreover, to achieve a long-term plan, the Bank will continue to transform the organization towards Humanized Digital Banking. Importantly, we will continue to support customers and promote responsible lending as well as sustainable deleveraging to improve customers’ financial well-being.”

Details of 1Q25 key operating performance are as follows:
Loan outstanding as of 1Q25 was at THB 1,211 billion, a decline by 2.4% from the end of 2024 (YTD) as a result of prudent loan growth strategy, outflows from loan repayment especially from large corporate customers and the slowdown in hire purchase following a slowdown in domestic car sales. Strategy-wise, the Bank continued to shift loan mix towards retail segment to enhance yields by offering financial solution through 4 ecosystems for home owners, car owners, salaryman and wealth customers. As a result, loans in targeted areas could maintain growth momentum such as cash-your-home (+2% YTD) and cash-your-book (+11% YTD).

Deposits were at THB 1,298 billion, a decline by 2.3% from the end of 2024, in line with liquidity management plan and new loan growth pace. The decrease was mainly from high-cost deposits such as long-term term deposit while retail transactional deposit continued to grow including all free deposit (+4%). In terms of loan-to-deposit ratio, the figure was at 93%, stable from the previous quarter. Such an LDR level reflected high liquidity position which gives the Bank a flexibility to manage funding cost going forward.

On the revenue side, the Bank recorded a total operating income of THB 16,553 million in 1Q25, a decrease of 3.3% from 4Q24 (QoQ). Key factors were a decline in net interest income due to impacts from policy rate cuts and a contraction in loans, and a challenging fee income. Meanwhile, operating expenses were at THB 7,097 million, a decrease of 7.7% QoQ. This was a result of effective cost management as well as a seasonal drop from a high season in the fourth quarter. Cost-to-income, therefore, reduced to 43.1% from 44.3% in the previous quarter.

Provision expense amounted to THB 4,580 million in 1Q25 which dropped 2.4% QoQ as overall asset quality situation remained under control and customers’ default rate was lower. NPL ratio was at 2.75%, still within target guidance of 2.9%. Meanwhile, coverage ratio was stable and at a high level of 150%.

After provision and tax, the Bank reported a net profit of THB 5,096 million for 1Q25, improving from THB 4,992 million in 4Q24. This reflected the Bank’s ability to maintain momentum of operating performance and asset quality.

Lastly, the capital position remained robust and steady. As of 1Q25, Capital Adequacy Ratio (CAR) and Tier 1 Ratio improved to 20.5% and 18.2%, respectively. The figures remain one of the top tiers in the banking industry and well above the Bank of Thailand's minimum requirement for D-SIBs, which is 12.0% for CAR and 9.5% for Tier 1.