Thai Banks Maintain Profitability
Thai banks have managed to maintain their profitability despite economic headwinds, driven by surging non-interest income and rigorous cost control.
This resilience mitigates the pressure from rate cuts, although elevated provisioning signals a deep caution for 2026.
Cautious Outlook for 2026
Banks are projecting low economic growth into 2026 due to continued global volatility, trade policy impacts, and subdued domestic consumer confidence.
Strategic Response
Their strategic response centers on three imperatives, including:
- Debt Management: Banks are running large-scale debt relief programs to manage portfolio quality.
"We will maintain the prudent business direction... setting goals to generate quality growth and enhance stakeholders' returns,"
said Piti Tantakasem, CEO of TMBThanachart, emphasizing the bank's focus on "responsible lending and sustainable solutions to address household debt issues.
Author's summary: Thai banks stay profitable despite economic challenges.