Fitch: Thai Large Banks Face Economic Pressure in 2026

MGR Online•Economy•1d ago

Reader Briefing

Fitch Ratings predicts that a weak economic environment will pressure the performance and asset quality of large Thai banks in 2026.

•Fitch Ratings analyzes the large bank group of Thailand.
•Asset quality of large Thai banks is expected to weaken in 2026.
•Large Thai banks saw profitability improvements from 2023 to 2025.
•Net interest margins and slow economic growth are expected to impact profitability in 2026.

•Fitch Ratings released an analysis report on the large bank group of Thailand.
•Fitch Ratings views that the weak economic environment of Thailand will create pressure on the performance and asset quality of large Thai banks during 2026.
•The financial strength (Viability Rating) of large Thai banks is supported by some buffers, though these buffers have continuously weakened, particularly in asset quality.
•Asset quality is likely to weaken as financially vulnerable debtors, such as Small and Medium Enterprises (SMEs) and certain retail loan groups, increase.
•Fitch Ratings expects the ratio of non-performing loans to total loans to increase in 2026.
•Profitability of large Thai banks is expected to be affected by decreasing net interest margins and reduced business opportunities due to slow economic growth.
•Large Thai banks showed continuous profitability improvement from 2023-2025, with the operating profit to risk-weighted assets ratio between 1.8% and 3.0% in 2025.
•Fitch Ratings expects key financial ratios regarding performance and profit to remain adequate despite some decreases in 2026.

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Fitch Ratings(ฟิทช์ เรทติ้งส์)ℹ️

The organization that released the analysis report on large Thai banks.