TMBThanachart Bank (TTB) Q3 2025 earnings summary

Executive summary

• Net profit for 3Q25 reached THB 5,299 million (+6% QoQ, +1% YoY), with nine-month profit at THB 15,399 million (-4% YoY), 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 conservative growth strategies 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%.

• Interim financial statements for the three- and nine-month periods ended 30 September 2025 were reviewed with no material misstatements found by the independent auditor.

Financial highlights

• NII declined 2.6% quarter-on-quarter to THB 12.4 billion, mainly from narrowing NIM due to four consecutive quarters of rate cuts; NIM for 3Q25 at 2.97%, down from 3.07% in 2Q25.

• Net profit for the nine-month period was THB 15,399 million, down from THB 16,039 million year-over-year.

• Fee and non-NII income grew robustly, especially from bancassurance, mutual funds, credit cards, and digital initiatives.

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

• Cost-to-income ratio at 44.3% for 9M25, with CI ratio remaining a challenge due to income pressure.

Outlook and guidance

• Focus remains on leveraging digital capabilities and ecosystem initiatives for quality growth, with loan and deposit growth expected to remain modest.

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

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

• The acquisition of Thanachart Securities is expected to enhance the group's investment product offerings and support future growth.

• No significant impact is expected from the adoption of TFRS 17 in 2025.