The Thai banking industry recorded virtually no growth in net profit for both the second quarter and the first half of 2026, as geopolitical tensions and a sluggish domestic economy weighed on performance.
The 11 banks listed on the Stock Exchange of Thailand (SET) and their subsidiaries reported combined net profit of 66.3 billion baht in the second quarter, up just 0.02% year-on-year. For the first half of the year, the industry posted total net profit of 135 billion baht, a marginal increase of 0.09%.
The flat earnings growth reflected economic headwinds stemming from Thailand’s weak economic expansion and the ongoing conflict in the Middle East. Two of the country’s largest lenders — Bangkok Bank (BBL) and SCB X, the holding company of Siam Commercial Bank — reported double-digit declines in net profit for both the second quarter and the first half of the year.
BBL, the country’s largest lender by total assets, reported second-quarter net profit of 9.49 billion baht, down 19.8% year-on-year. Net profit for the first six months of the year totalled 20.5 billion baht, a decline of 16.2%.
Meanwhile, SCB X posted second-quarter net profit of 11.1 billion baht, down 13.1% year-on-year, while first-half net profit fell 15.7% to 21.3 billion baht.
According to SCB X’s financial statement filed with the SET, the decline in net profit was driven by softer net interest income following multiple policy rate cuts. The group also reported subdued loan growth at both SCB for its Gen 1 business and its consumer lending business under Gen 2 subsidiaries. In addition, investment income declined due to unfavourable and volatile market conditions.
Arthid Nanthawithaya, chief executive of SCB X, said in the statement Thailand’s economy continued to face pressure in the second quarter from an uncertain environment, with an uneven recovery and persistently high household debt.
“Against this backdrop, SCB X remains committed to quality growth across the group. We believe supporting our customers and business operators through this challenging period is part of helping the country’s economy recover sustainably,” he said.
Krungthai Bank’s (KTB) statement noted the Thai economy was adversely affected by the war in the Middle East during the first half of the year.
Looking ahead, KTB expects Thailand’s economy to expand below its potential in 2026. The outlook is clouded by uncertainty surrounding the Middle East conflict, while damage to oil infrastructure and disruptions to global supply chains are expected to take time to normalise.
The gradual pass-through of higher production costs is likely to result in broader price increases, keeping both the cost of living and production costs elevated.
The bank said the Thai economy continues to face structural challenges, including high debt levels that constrain household consumption and the limited ability of some businesses, particularly small and medium-sized enterprises, to adapt to rising economic volatility.