Thai finance firms seen missing loan targets on quality focus

Finance companies are adopting a cautious tone on their lending policies, said UOBKH.

Thailand’s finance companies are expected to miss loan growth targets in 2026 as they prioritise loan quality, according to a report by UOB Kay Hian.

Loan portfolios collectively rose 5% YoY, with finance companies adopting a “caution tone” regarding lending policies, said UOBKH analyst Thanawat Thanchadakorn.

Muangthai Capital notedly cut its loan growth target from 10% to 15%, to between 8% to 10%, with its CEO saying they need to be prudent on lending as they see some risks ahead, Thanchadakorn noted.

“In our view, there is a higher chance that finance companies will miss this year's loan growth target due to them prioritising loan quality,” Thangchadakorn wrote in a sector report published on 1 September.

Thangchadakorn and UOBKH said that finance companies will likely control their asset quality well by maintaining a prudent lending policy.

Thailand’s finance companies collectively saw their net profit rise 16% year-on-year (YoY) to $214.46m (THB7.06b) in Q2 2026, with credit costs falling “significantly” during the quarter, according to UOB Kay Hian.

Credit costs declined 46 basis points (bp) in Q2 compared to the same quarter a year earlier, although it was higher by 5bp in the Q1 period.

Thangchadakorn noted that Muangthai Capital’s CEO flagged the economic conditions and that it experienced difficulties in repayment from borrowers due to higher oil prices.

“The CEO elaborated that they are concerned about both weak loan demand and the need to be more cautious on lending to maintain steady asset quality,” Thangchadakorn wrote.

Srisawad Corporation’s (SAWAD) CEO had a more positive tone, maintaining their loan target at 10% to 15% for 2026. The company is expected to maintain focus on loan expansion in its core portfolio of care title loans and land title loans.

Thangchadakorn and UOBKH said they remain cautious about Tidlor Holdings’ (TIDLOR) outlook, saying that management was not confident in maintaining a good asset quality outlook during the meeting.

“Management expects loan growth to accelerate in H2 2026, potentially driven by improving economic and business activity, with motorcycle and car loans remaining the key growth segments,” Thangchadakorn said.

Krungthai Card’s management had a positive tone, with the CEO expecting to see a continuous increase in net profit going forward, the report said.

(US$1 = THB32.92, as of 7 September 2026)