Two major Thai banks signaled a cautious outlook for 2026 after reporting weaker first-quarter earnings, highlighting risks from Middle East tensions and global energy shocks (21/04).

The results reflect how geopolitical developments are quickly affecting Thailand’s economic environment and financial sector performance.

SCB X Reports 18% Drop in Net Income

SCB X, Thailand’s largest lender by market value, posted a decline of more than 18% in first-quarter net income to 10.2 billion baht.

The figure fell short of analyst expectations, indicating mounting pressure on earnings.

Kasikornbank Profit Falls Amid Ongoing Uncertainty

Kasikornbank, the country’s second-largest bank, recorded a 3% drop in profit after excluding a one-off investment-related compensation gain.

Chief executive Kattiya Indaravijaya said Middle East tensions are likely to persist, increasing uncertainty and affecting future operating performance.

Energy Imports Increase Economic Vulnerability

Thailand imports more than half of its crude oil from the Middle East, making it highly exposed to supply disruptions and rising oil prices.

Higher energy and logistics costs are contributing to inflationary pressure, placing additional strain on businesses and households.

Banking Sector Faces Market Decline and Growth Pressure

Thai banking stocks have fallen more than 5% from their 2026 peak reached in February.

SCB X CEO Arthid Nanthawithaya noted broader impacts, including higher import costs and challenges for export and tourism sectors, affecting both companies and consumers.

Analysts from Bloomberg Intelligence said Kasikornbank’s profit may remain under pressure due to elevated provisioning, weak loan growth, and tighter margins.

Both banks stated they will continue supporting customers as they navigate ongoing uncertainty.

PHOTO: UNSPLASH

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