File photo for reference only

 

The net interest income (NII) of listed banks in Thailand is anticipated to decline considerably in the third quarter of 2025 due to successive interest rate cuts by the Bank of Thailand totaling one percentage point over the past year. According to KGI Securities, the combined NII of seven SET-listed banks is projected to fall by 3% quarter-on-quarter (q-o-q) and 10% year-on-year (y-o-y). This decline is largely due to a reduction in the net interest margin (NIM), aligning with the central bank’s monetary easing.

 

Banks experienced a 10 basis point (bps) decrease in NIM q-o-q and 40 bps y-o-y for the third quarter. The Monetary Policy Committee (MPC) has implemented four policy rate cuts since October 2024, including three consecutive 25 bps reductions in 2025, maintaining the rate at 1.5%. Consequently, KGI forecasts a 9% q-o-q and 6% y-o-y drop in the banking sector's combined net profit for the third quarter.

 

Pi Securities also anticipates a slowdown in NIM and NII, attributing it to the delayed effect of rate changes. It predicts continued economic fragility will hinder loan growth and profitability in the banking sector. The firm estimates the sector’s combined net profit for the third quarter to be 59.6 billion baht, showing a slight increase of 0.5% q-o-q and 3.5% y-o-y.

 

Fitch Ratings Thailand suggests that reduced interest rates could support borrower repayment amid economic challenges. However, ongoing economic sluggishness may negatively affect asset quality, potentially raising the impaired loan ratio from 3.4% in 2024 to 3.7% in 2025. Notably, small and medium-sized enterprises have seen impaired loans rise from 7.2% last year to 7.9% in the first half of 2025.

 

Fitch projects Thai GDP growth of 2.2% in 2025, slightly decreasing to 1.9% in 2026, down from 2.5% in 2024. Despite economic pressures, low unemployment and reduced interest rates are expected to aid borrowers in meeting repayment obligations.

 

Key Takeaways

• Thai banks are facing significant declines in earnings due to interest rate cuts.
• Experts forecast increased impaired loans amidst continued economic challenges.
• Thai GDP growth is expected to slightly slow down over the next two years.

 

Related Stories:

Bank of Thailand to Maintain Interest Rates Amid Economic Review

Loan Shark Arrested Over Shocking 3,400% Interest Scheme

 

  Adapted by ASEAN Now from Bangkok Post 2025-10-17

 

 

Boo-hoo, these fascist exploiters that farm the Thai people for so much might make slightly less than usual... it's disgusting the exploitation on show. If the Thai government wants to make a fairer society, as they say they want to, then they should stop the oppression of the poor and middle class and tax the rich properly.

Don't worry , their profit on bad exchange rates is still there.

Just look at the difference between what SuperRich and others give compared to the criminal banks.

Uh oh.

 

Sounds like the banks need want to close more ATMs and bank branches.

And how does this affect the average consumer? More importantly, how does affect the average expat consumer? Doesn't look like this has much effect. I'm hoping it affects the exchange rate and the baht weakens- a lot. By the way, has anyone noticed that the bank tellers have become less attractive over the past 5 years? 

15 hours ago, Lee65 said:

Uh oh.

 

Sounds like the banks need want to close more ATMs and bank branches.

Wouldn’t it be that banks would want to close more physical branches and OPEN more ATMs?  After all, due to their “pooling” agreements, bank X can still have reach to their customers without the need to have an actual company owned ATM on premises and instead service their customer via bank Ys unit. 

 Bank Interest rates are down world wide.

18 hours ago, snoop1130 said:

The net interest income (NII) of listed banks in Thailand is anticipated to decline considerably in the third quarter of 2025 due to successive interest rate cuts by the Bank of Thailand totaling one percentage point over the past year.

 

Not only the interest income, but also the outgoing interests they pay on deposit accounts, so where is the big issue?

Well i tell you where. The issue is that people withdraw their deposits, and put it in higher paying investments.

I withdraw already a lot since the beginning of this year, and will continue for every time deposit that matures, and put it in gold.

Without bragging or talking amounts, what I have withdrawn and put in gold would have paid me about 150.000 baht in interests to date.

From the profits, if I would sell those gold bars today, I can buy a nice new house.

They will just charge more to their own for 'Customer Services', surely the poorest on The Planet, and jack up all the ATM Fees yet again !

The Thai government are now very busy targeting foreigners everywhere apprehending people who runs small business 

who, God help us, operating without the proper documentations, not that I condone foreigners working without

the proper permits and such, but the resources they spend on chasing those guys make it look like they're arch

criminals at least.

 

They MUST be making a good profit , as they are hardly giving any interest,

the next step would be charging us to keep money in the bank.

 

regards worgeordie

Earnings impacted...only for the hi-so.

I have been living in Thailand 10 years and the Thai bank interest has been so low over the last decade it must be at or near zero,nothing now.Most Thai people find it difficult to live on such a low wage and don't know or care what a pension sscheme is.

On 10/17/2025 at 2:10 PM, FlorC said:

their profit on bad exchange rates is still there.

 

But they wan't it all, greedy bastards.

10 hours ago, NedR69 said:

Earnings impacted...only for the hi-so.

 

Good!