ttb reported a net profit of THB 5,170 million in 1Q26, in line with the previous quarter. Asset quality remained well contained with a stable NPL trend. Key focus is on 3 areas: strengthening risk buffers, optimizing shareholder return and supporting customers through various programs including the BoT’s measures to help customers affected by economic conditions and energy cost.

TMBThanachart Bank Public Company Limited (ttb) and its subsidiaries, reported a net profit of THB 5,170 million in 1Q26, broadly in line with the previous quarter and the same period last year. Asset quality remained well contained while NPL showed a stable trend for 6 consecutive quarters. As a precaution against rising uncertainties stemming from the Middle East conflicts, the Bank increased its provision expenses. Consequently, Coverage strengthened to 154%, underscoring a solid risk buffer.

Mr. Piti Tantakasem, CEO of ttb, stated “Overall, 1Q26 operating performance was in line with target as reflected in 2 key aspects. First, the Bank was able to maintain a resilient bottom line while keeping asset quality well contained. Second, the Bank further enhanced 3 key priorities: strengthening risk buffers to address potential risk from economic headwinds, optimizing shareholder returns and providing support to all groups of customers.

In terms of operating performance, the Bank was able to maintain a resilient bottom-line level. Net profit in 1Q26 amounted to THB 5,170 million, broadly in line with THB 5,240 million in 4Q25 and THB 5,096 million in 1Q25. This performance reflects the Bank’s effective strategic execution to mitigate revenue pressures amid unfavorable economic conditions and a downward interest rate environment. Key strategic initiatives include a shift in loan mix toward higher-yielding retail lending, effective funding cost management, and continued enhancement of fee income through the development of financial solutions and the leveraging of digital capabilities to improve customer experience while driving operational efficiencies for cost control.

In terms of asset quality, the trend remained stable. The Bank’s NPL level was well contained at around THB 39,000 million for 6 consecutive quarters. During this quarter, NPLs declined around 1% QoQ while NPL ratio was at 2.9%, still within full-year guidance of not exceeding 3.2%.

However, the escalation of the Middle East conflict toward the end of 1Q26 heightened uncertainties, posing potential risks to economic recovery and asset quality across the banking sector. Against this backdrop, the Bank strengthened its risk buffer by increasing its Management Overlay. As a result, total provisions rose by 10% QoQ, lifting the coverage ratio to 154%. This reflects a robust risk cushion to mitigate potential downside risks to financial performance and protect shareholder value.

Another shareholder-focused initiative is the enhancement of shareholder return optimization through the expansion of share repurchase program. In the upcoming AGM, the Bank will propose to increase the budget to up to THB 35,000 million and extend the program period to 4 years (2025-2028), compared with the initial program of THB 21,000 million over 3 years. The program is expected to enhance shareholder value, as reflected in key financial metrics such as EPS and ROE. Moreover, it is expected to help cushion share price against stock market volatility in both short and medium term.

Lastly, we continue to elevate customer supports. ttb has become the first Thai bank to implement “Risk based Pricing” model, ensuring that customers with good credit scores are rewarded with more appropriate interest rates. The Bank also continues to provide support through various programs. These include the “Pay Well, Get More” program, which currently covers approximately THB 4,400 million of loan outstanding or approx.11,000 customers. Participation in the For “Debt Consolidation” program increased to 73,600 customers. This program helped reduce customers’ interest expenses by more than THB 2,990 million. In addition, the Bank continues to support approximately 77,500 borrowers under the “You Fight, We Help” program, representing outstanding loans of around THB 39,000 million.

These ongoing customer support initiatives underscore the alignment between ttb’s strategic direction and the government’s plan to address household debt and promote responsible lending, as ttb aspires to enhance customers’ Financial Well-being.

For the remaining quarters of the year, we will continue to emphasize prudent business operations while accelerating quality growth through its 6 ecosystems. We will also focus on driving growth from new businesses, particularly in the wealth customer segment through ttb wealth securities, and salaryman customers by offering motorcycle loans through ttb leasing, which is planned to be launched in mid-year. In addition, the Bank aims to support SMEs’ access to funding through supply chain financing for government-related counterparties and by strengthening collaboration with strategic partners. Importantly, we fully support the BoT’s initiatives to assist customers as well as our employees affected by economic conditions and energy cost.”

Details of 1Q26 key operating performance are as follows:
As of 1Q26, loan stood at THB 1,178 billion, declining by 2.2% from 4Q25 (QoQ) as customer loan repayment outpaced new loan bookings amid ongoing pressure from economic condition and high household debt. However, targeted lending continued to grow in line with target, led by cash-your-home, cash-your-book, personal loans and credit card offered to quality customers under the Bank’s Ecosystems. Deposits totaled THB 1,256 billion, down by 1.1% QoQ, due mainly to maturing time deposit. Meanwhile, retail strategic deposits such as ttb no fixed and ttb all free continued to grow while current accounts also increased during this quarter. Overall, deposit movements were in line with liquidity and funding cost management plan. The Bank has emphasized on maintaining a strong liquidity position as reflected by a loan-to-deposit ratio of 94%.

The Effective loan and deposit strategies helped mitigate the impact of policy rate cuts. As a result, Net interest income (NII) in 1Q26 remained relatively stable or decreased only 1.0% QoQ. Meanwhile, non-interest income increased 10.2% QoQ, thanks to higher investment-related gains and fee income particularly from mutual fund and credit card. Overall, 1Q26 total operating income amounted to THB 16,732 million, representing a 1.8% QoQ growth.

Operating expenses totaled THB 7,642 million, a decrease of 1.5% QoQ due mainly to lower marketing expenses. The Bank continued to prioritize disciplined cost management and ongoing operation efficiency enhancement. As a result, cost-to-income ratio in 1Q26 stood at 45%, in line with target.

During the quarter, the Bank increased its Management Overlay to accommodate potential impacts arising from Middle East conflicts, which affected both business and household sectors. Consequently, total provision expenses rose by 10.0% QoQ to THB 3,994 million. After provision and tax, the Bank reported 1Q26 net profit of THB 5,170 million, representing a 1.3% QoQ decrease, and a 1.4% YoY increase. This reflected ttb’s ability to maintain bottom-line performance.

Lastly, the capital position remained robust and steady. Capital Adequacy Ratio (CAR) and Tier 1 Ratio, at the end of 1Q26 stood at 19.7% and 17.7%, 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.