Thai banks post flat Q2 as NIM seen bottoming out

Net profit dipped 1% whilst interest and non-interest income were flat.

It’s an overall flat quarter for Thailand-based banks, with incomes remaining similar to Q1 levels, according to UOB Kay Hian (UOBKH).

Thai banks’ combined net profit fell 1% year-on-year (YoY) and 3% quarter-on-quarter (QoQ) to $1.9b (THB63.7b) in Q2 2026, with fee and service income boosting their bottomlines.

Net interest income (NII) as a whole dropped 7% YoY and is flat compared to Q1. Net interest margin (NIM) is 3.42% in Q2. Non-interest income rose 13% YoY but is also flat Q1.

Many big banks with high exposure to corporate loans reported a reduction in NII in Q2 compared to Q1, whilst small banks saw NIIs rise, UOBKH analysts Thanawat Thangchadakorn and assistant analyst Panjarat Thaweesriprasert wrote.

Some banks have guided for an improvement in NIM going forward, and that NIM is likely to have bottomed in Q2, they added.

Loan portfolios are cleaner for the banking sector, UOBKH analysts Thangchadakorn and Thaweesriprasert said, with the sector reporting a 13-basis point YoY reduction in credit cost.

Banks are expected to maintain their dividend payout ratio in 2026, the two analysts said.

(US$1 = THB33.48, as of 29 July 2026)