Thailand’s finance sector is likely to fall short of its 2026 loan growth targets as lenders pivot toward prioritizing credit quality over volume expansion, according to a report by UOB Kay Hian. Analyst Thanawat Thanchadakorn highlighted that while collective loan portfolios grew 5% year-on-year, institutions are maintaining a conservative lending stance to protect asset stability amidst ongoing economic headwinds. This strategic shift is underscored by key market adjustments, such as Muangthai Capital lowering its annual loan growth guidance from 10%–15% down to 8%–10% to cushion against borrower repayment pressures linked to elevated energy costs and softer demand.
Despite stricter underwriting standards, the sector demonstrated operational resilience in the second quarter of 2026. Collective net profits expanded 16% year-on-year to $214.46 million (THB 7.06 billion), bolstered by a sharp 46-basis-point drop in credit costs compared to Q2 2025. Outlooks across individual market leaders remain mixed:
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Srisawad Corporation (SAWAD): Maintained an optimistic stance, holding its 10%–15% growth target by focusing expansion on core auto- and land-title lending.
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Tidlor Holdings (TIDLOR): Faced a more cautious appraisal due to lingering asset quality uncertainties, though management anticipates an H2 2026 rebound driven by motorcycle and auto loans.
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Krungthai Card (KTC): Expressed strong executive confidence, projecting sustained net profit expansion as broader commercial activity picks up.
