Thai Banks Maintain Profitability through Strategic Pivot
Thai banks have shown resilience despite economic headwinds, driven by surging non-interest income and rigorous cost control, which has mitigated pressure from rate cuts.
Caution for 2026
Elevated provisioning signals deep caution for 2026, with banking CEOs projecting low economic growth due to continued global volatility, trade policy impacts, and subdued domestic consumer confidence.
Strategic Response
Their strategic response centers on three imperatives, including debt management, with banks running large-scale debt relief programs to proactively manage portfolio quality.
"We will maintain the prudent business direction... setting goals to generate quality growth and enhance stakeholders' returns,"
said Piti Tantakasem, CEO of TMBThanachart, emphasizing the bank's focus on "responsible lending and sustainable solutions to address household debt issues.
Author's summary: Thai banks adapt strategy.