Asset quality remained sound with a steady NPL trend and a strong coverage ratio of 151%. Reaffirming its commitment, the Bank continues to drive shareholder value and support customers to resolve debt burdens through sustainable solutions.
TMBThanachart Bank Public Company Limited, or TMBThanachart (ttb), announced its financial performance for the 3rd quarter and the 9-month period of 2025 (3Q25 and 9M25). The Bank and its subsidiaries reported a net profit of THB 5,299 million for 3Q25, relatively stable from the same quarter last year. For 9M25, net profit totaled THB 15,399 million, reflecting a 4.0% decline. Key strategic focus remained on cost efficiency to sustain profitability. Asset quality was resilient. NPL ratio at 2.81% remained within target. Coverage ratio stayed at high level of 151%, reinforcing the Bank's commitment to safeguarding shareholder value from future downside risks. Customer supports continue through various debt relief programs offered to both vulnerable and creditworthy customers.
Mr. Piti Tantakasem, CEO of TMBThanachart, mentioned "Overall, operating performance and bottom-line momentum remained in line with target but still reflected revenue pressure from economic slowdown, policy rate cuts and lending rate reductions for customers' debt relief support. In response, the Bank prioritized cost control, efficiently managing funding cost, operating cost, and credit cost or provision expenses to sustain operating performance while maintaining strong risk buffer.
Driven by selective loan growth strategy, proactive de-risking activities and customer debt relief supports including the "You Fight, We Help" Program, the Bank's loan portfolio quality improved, reflected in better debt-servicing ability among vulnerable customers and lower NPL formation. As a result, NPLs remained stable at around THB 39,000 million over the past 4 quarters, while the NPL ratio was well-contained, consistently tracking below the Bank's target guidance of 2.9%.
With sound asset quality fundamentals, normal provisions continued to decline. However, given the uncertain economic outlook, ttb has set aside extra provisions through Management Overlay. As a result, total provisions remained elevated when compared to normal business cycle. For 9M25, credit cost was at 142 basis points, higher than the pre-Covid19 level of 125 basis points in 2019. This prudent provisioning approach has strengthened the Coverage ratio to 151%.
Such a direction underscores ttb's prudent operational approaches and commitment to safeguard shareholder value against future downside risks. The capital management initiatives to enhance both short and long-term value for shareholders are also on track, including a high dividend payout, the 3-year share repurchase program (2025-2027) and the progress in a plan to purchase shares in TLeasing to strengthen Car and Salaryman Ecosystems as part of inorganic growth initiatives.
As for the customer mission, we continue to support customers in sustainably resolving debt burdens through various programs to both vulnerable and creditworthy customers. As of 3Q25, over 71,000 customers in hire purchase, personal loan and SME segments have participated in the "You Fight, We Help" program, representing approximately THB 40,000 million of loan outstanding.
The "Debt Consolidation" program, one of the Bank's actively promoted debt relief initiatives, has seen participation grow to 62,450 customers, up from approximately 37,470 in 2024. This program has helped reduce customers' interest burdens by more than THB 2,700 million. Additionally, the Bank has introduced the "Pay Well, Get More" program as a support for disciplined customers across mortgage, hire purchase and personal loan segment.
Given uncertain economic outlook, ttb will maintain a prudent business direction. The Bank remains focus on transforming the organization towards Humanized Digital Banking, together with enhancing new revenue streams and optimizing cost structure. Importantly, we reaffirm our commitment to supporting customers through debt relief initiatives and promoting responsible lending to improve customers' financial Well-being."
Details of 3Q25 and 9M25 key operating performance are as follows:
As of 3Q25, loan outstanding was at THB 1,198 billion, a slowdown by 0.7% QoQ and 3.5% from the end of 2024 (YTD). This underscored a prudent loan growth strategy to ensure loan portfolio quality. Loan growths in target areas continued decent momentum, led by cash-your-home, cash-your-book and credit card, supported by the acquisition of Ecosystem customers including home owners, car owners, salaryman and wealth customers.
Deposits totaled THB 1,270 billion, down by 1.5% QoQ and 4.4% YTD. This trend was in line with loan growth pace and liquidity management plan. The decline was due mainly to matured time deposits while foreign currency deposits and ttb no fixed product continued to grow, in line with strategy to expand wealth customer base. The loan-to-deposit ratio stood at 94%, reflecting high liquidity position and the Bank's flexibility to manage funding cost going forward.
On the revenue side, 3Q25 Non-Interest Income (Non-NII) rose by 7.4% QoQ, driven mainly by higher fees from bancassurance and mutual fund businesses, coupled with the consolidation of Thanachart Securities' performance as a subsidiary. However, Net Intertest Income (NII) decreased by 2.6% QoQ. Consequently, 3Q25 total operating income was at THB 16,313 million, down by 0.4% QoQ. For the 9-month period, total operating income amounted to THB 49,248 million or dropped 5.8% YoY.
Operating expenses amounted to THB 7,403 million in 3Q25, an increase of 1.8% QoQ and THB 21,771 million for 9M25 which declined 0.8% YoY. 9M25 cost-to-income ratio stood at 44%, in line with cost efficiency targets and reflecting disciplined cost management and ongoing operational improvements.
Provision expenses totaled THB 3,980 million in 3Q25 which dropped 7.3% QoQ. Although 9M25 provision expenses decreased 15.2% YoY to THB 12,854 million, the level remained elevated compared to normal business cycle. After provision and tax, the Bank reported 3Q25 net profit of THB 5,299 million, relatively stable YoY and a total of THB 15,399 million for 9M25, a 4.0% drop YoY.
Lastly, the capital position remained robust and steady. Capital Adequacy Ratio (CAR) and Tier 1 Ratio, as of 3Q25, stood at 19.9% and 17.9%, respectively. The figures remain one of the top tiers in the banking industry and well above the Bank of Thailand's minimum requirement for D-SIBs, which is 12.0% for CAR and 9.5% for Tier 1.