Thai banks face margin pressure but flood risk manageable

Flood impact should be manageable, said Maybank IBG analyst Jesada Techahusdin.

Thailand’s banking sector’s earnings are likely to face pressure from lower net interest margins, according to Maybank’s Investment Banking Group (IBG).

Expectations for long-term growth in wealth management remains high despite fee income being sensitive to unpredictable capital markets, said Jesada Techahusdin, analyst at Maybank IBG.

Flood impact should be manageable, Techahusdin said in a sector note on 1 October 2026.

The banking sector offers around 6% dividend yield, although Maybank IBG prefers mid-to-small banks for their stronger growth in earnings per share.

Thai banks are expected to report lower net profits in Q3 2026, based on earlier estimates by UOB Kay Hian, on the back of flat loan portfolio growth.

“Overall, we expect banks to remain cautious in lending and focus on corporate loans,” said Thanawat Thangchadakorn, analyst at UOBKH, in a sector report published on 22 September.