TMBThanachart Bank (TTB) Q3 2025 earnings summary

Executive summary

• Net profit for Q3 2025 reached THB 5,299 million, up 6% QoQ and 1% YoY, with 9M25 at THB 15,399 million, reflecting resilience amid global and domestic headwinds.

• Stable net income achieved despite a significant drop in net interest income (NII) due to rate cuts, with fee income growth and cost control offsetting the decline.

• Digital transformation, prudent asset management, and capital optimization contributed to operational resilience and profitability.

• Maintained prudent risk buffers, stable NPLs at THB 39 billion (NPL ratio 2.81%), and a coverage ratio of 151%.

• Continued commitment to shareholder returns via a 3-year share repurchase program and high dividend payout (interim DPS at 60%).

Financial highlights

• Q3 2025 net interest income was THB 12,405 million, down 2.6% QoQ and from THB 14,062 million YoY, mainly from narrowing NIM due to rate cuts.

• Net fees and service income for Q3 2025 rose to THB 2,608 million from THB 2,242 million YoY, with robust growth in bancassurance, mutual funds, and credit cards.

• Net profit increased significantly from the previous quarter, supported by lower risk costs and flat or reduced OpEx.

• Cost-to-income ratio at 44.3% for 9M25, with CI ratio pressure due to income, not cost increases.

• Total loans declined 0.7% QoQ and 3.5% YTD; retail loans now 63% of portfolio.

Outlook and guidance

• Investment product sentiment expected to weaken in Q4 as mutual fund NAVs may decline with rising bond yields and less favorable equity markets.

• Loan and deposit growth expected to remain modest, with continued emphasis on high-yield retail products.

• Capital management and dividend optimization prioritized over aggressive asset growth.

• Share buyback program to resume early next year after a six-month pause, with ongoing 3-year repurchase plan (THB 21 billion).

• Prudent business direction and robust capital position to support future growth and shareholder returns.