Thai Banks Face Profit Pressure as Growth Slows and ROE Declines

Thailand banking profitability outlook is weakening as lenders face slower growth, high household debt and deleveraging trends.

TMBThanachart Bank expects loan growth of just 0%-2% in 2026 and targets return on equity of around 10%, down from higher historical levels.

Banks are unlikely to achieve previous ROE levels of 17%-18% and must rely more on fee-based income and advisory services.

The Thailand banking profitability outlook reflects structural shifts in the sector.