TMBThanachart Bank (TTB) Q1 2026 earnings summary

Executive summary

• 1Q26 performance remained resilient despite challenging macroeconomic conditions and escalating geopolitical tensions in the Middle East, with net profit at THB 5,170 million, down 1.3% QoQ but up 1.4% YoY.

• NIM held at 3.02% due to a shift toward high-yield retail lending and effective funding cost management.

• Strategic fee income showed positive YoY growth, offsetting seasonal QoQ decline.

• OPEX declined 1.5% QoQ, with C/I ratio at 45%, reflecting ongoing cost discipline and digital transformation.

• Interim financial statements for the three months ended 31 March 2026 were reviewed by an independent auditor, who found no material misstatements and confirmed compliance with Thai Accounting Standard 34 and Bank of Thailand regulations.

Financial highlights

• Net profit for 1Q26 was THB 5,170 million, up 1.4% YoY and down 1.3% QoQ.

• NIM at 3.02%, slightly down from 3.04% in FY2025.

• Loan growth contracted by 2.2% YTD, mainly due to declines in commercial and SME segments, while targeted high-yield retail loans grew.

• Deposit growth declined 1.1% YTD, driven by runoff of high-cost term deposits.

• Non-NII grew 16.2% YoY, with fee income from retail and wealth management as key drivers.

• C/I ratio at 45%, in line with target.

• Total operating income was THB 16,713 million, slightly up YoY.

• Net interest income was THB 12,150 million, down YoY.

Outlook and guidance

• Full-year NIM target remains challenging amid continued rate cuts; focus will remain on high-yield lending and funding cost optimization.

• Loan growth expected to be subdued, with selective expansion in high-yield retail segments.

• Continued emphasis on digital transformation and ecosystem play to drive efficiency and customer engagement.

• CET1 at 17.7% provides flexibility for capital management and supports a high dividend payout ratio and share repurchase program.

• Ongoing share repurchase programs and dividend payments are planned, with further capital management initiatives approved post-period.