Thailand’s financial sector is expected to record a 5% year-on-year (YoY) increase in net profit for the first quarter (Q1) of 2025. However, despite this growth, most finance companies are expected to miss their loan growth targets for the year.
The combined profits of financial institutions in Q1 are projected to reach THB 5.85 billion, marking a 3% quarter-on-quarter (QoQ) increase from Q4 2024. This growth is largely attributed to a 6% YoY expansion in loans, according to UOB Kay Hian.
Analyst Thanawat Thangchadakorn from UOB Kay Hian explained that while profits are rising, finance companies are adopting a cautious lending policy due to a weakened economic outlook and the impact of US tariffs. This cautious approach is expected to moderate loan growth throughout 2025.
Loan growth is projected to be slower for the year. For example, Muangthai Capital is expected to report a 9% YoY loan growth, lower than its 15% growth target. Similarly, Srisawad Corporation anticipates a 6% YoY increase, below its target range of 10% to 15%. Krungthai Card expects a 5% loan growth, which aligns with its original target.
Despite these challenges, the sector’s cautious stance is aimed at maintaining asset quality amid ongoing global uncertainties.
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