Thai banks post solid Q1 profits — Kasikornbank leads sector with top earnings

Thailand’s commercial banking sector delivered a resilient performance in the first quarter of 2026, with all 11 major lenders reporting combined net profits of 68.68 billion baht, a modest 0.62% increase from the same period last year and a sharp 20.13% rise from the previous quarter.

The results cover key institutions including Kasikornbank (KBANK), Krungthai Bank (KTB), SCB X (SCB), TMBThanachart Bank (TTB), Bank of Ayudhya (BAY), Kiatnakin Phatra Bank (KKP), Tisco Financial Group (TISCO), CIMB Thai Bank (CIMBT), Land and Houses Financial Group (LHFG), Thai Credit Bank (CREDIT) and Bangkok Bank (BBL).

Among them, Kasikornbank stood out as the sector’s top performer, posting strong profit growth of 6.35% year-on-year and 42.70% quarter-on-quarter. Bank of Ayudhya also reported solid gains, with profits rising 14.40% from a year earlier and 20.92% from the previous quarter.

Kiatnakin Phatra Bank delivered one of the most striking performances, with net profit surging 84.09% year-on-year and 10.33% quarter-on-quarter, supported by lower losses from repossessed vehicles and improved fee income.

In contrast, SCB X reported a notable decline in profitability, with net profit falling 18.45% year-on-year, although it edged up slightly by 0.05% from the previous quarter.

Across the sector, loan-loss provisions totalled 54.49 billion baht in the quarter, down 0.39% from a year earlier but marginally up from the previous quarter. Most banks reduced provisions compared with last year, with SCB X cutting its reserves by 4.41% year-on-year and 16.56% from the fourth quarter.

Asset quality remained broadly stable, with total non-performing loans (NPLs) easing slightly to 436.76 billion baht, down 0.85% from the end of last year. However, NPL levels were still significantly higher, up 27% compared with the same period a year earlier.

Thanadej Rungsithanont, assistant managing director of research at Pi Securities, said the sector’s overall performance in the first quarter exceeded market expectations, driven largely by bank-specific factors such as special income and manageable asset quality.

Tisco Financial Group reported improved earnings due to debt recovery income, while Kiatnakin Phatra benefited from reduced losses on repossessed vehicles and stronger fee-based income. Kasikornbank’s performance was supported by one-off gains and improved investment valuations.

However, weaker results were seen in SCB X, where profit declined significantly.

Excluding Bank of Ayudhya, Land and Houses Financial Group and CIMB Thai Bank, the sector’s combined profit is estimated at around 57 billion baht, up 12% from the fourth quarter but down 7% year-on-year.

Despite the broadly stable outlook in the first quarter, analysts warn that risks are building. The second quarter is expected to face downward pressure from the ongoing conflict in the Middle East, which could weigh on loan portfolios and borrowers’ repayment capacity, particularly as rising oil prices push up living and business costs.

“We expect the sector’s profit in the second quarter could fall below 60 billion baht compared with the same period last year,” Thanadej said. “The war and surging oil prices will inevitably affect loan portfolios.”

Kasikornbank chief executive Kattiya Indaravijaya said the bank posted a net profit of 14.67 billion baht in the first quarter, up 876 million baht or 6.35% year-on-year. However, excluding a one-off investment compensation gain of 1.46 billion baht, net profit attributable to the bank would have declined by 2.99% to 13.38 billion baht.

She noted that the results did not yet reflect the impact of escalating tensions in the Middle East toward the end of the quarter, warning that prolonged uncertainty could pose risks to future performance.

Meanwhile, Arthid Nanthawithaya, chief executive of SCB X, said the group reported net profit of 10.20 billion baht in the first quarter, down 18.5% year-on-year due to lower net interest income following policy rate cuts and weaker investment gains.

“The first quarter of 2026 saw Thailand’s economy facing pressure from a volatile macroeconomic environment,” he said. “The prolonged conflict in the Middle East has inevitably increased costs for households and businesses. In this uncertain environment, SCB X is prioritising support for customers and entrepreneurs to help them continue operating.”

Krungthai Bank president Payong Srivanich said the bank reported net profit of 12.44 billion baht, up 6.2% year-on-year, reflecting operational efficiency and quality growth, alongside prudent asset management amid domestic and global economic challenges.