BANGKOK, Thailand – TISCO Financial Group has revised its forecast for Thailand’s 2025 economic growth downward, predicting GDP expansion of just 1.5–2%, citing mounting challenges including global trade tensions, the aftermath of a recent earthquake, and looming tariff negotiations with the United States. The cautious outlook reflects deepening concerns over the country’s economic resilience.
TISCO CEO Sakchai Peechapat said that Thailand’s economy in the first quarter of 2025 faced significant pressure from both domestic and international factors. “Prolonged trade disputes and a recent earthquake have rattled investor sentiment, weakening already fragile economic conditions,” he said. Additional pressure stems from new counter-tariff measures by the US that took effect in April, posing risks to regional trade and Thailand’s export sector.
Reflecting this uncertain landscape, TISCO reported a Q1/2025 net profit of 1.643 billion baht, a 5.2% decrease from the same period last year. The drop was mainly due to lower interest income following a reduction in the Bank of Thailand’s policy rate, along with TISCO’s support for vulnerable borrowers through its “You Fight, We Help” debt restructuring program, aimed at reducing interest burdens.
The sluggish domestic automotive market also contributed to the decline. New car sales fell by nearly 10% in Q1, dampening auto loan growth despite TISCO’s efforts to expand partnerships and increase loan penetration. Insurance-related fee income also remained soft. In response, TISCO raised its loan loss provisions to 0.7% of average loans, preparing for expansion into high-yield loans amid ongoing economic uncertainty.
Despite the headwinds, the company’s asset management and securities businesses showed resilience. Strong demand for new mutual fund products and TISCO’s leadership in provident fund services helped sustain performance. The group also managed to grow its market share in securities trading, despite reduced market volumes.
Looking forward, TISCO remains committed to cautious growth, emphasizing risk management, cost efficiency, and tech-driven service enhancements. The company will also continue to closely support financially vulnerable customers through government-backed programs and its own pre-emptive debt restructuring measures.
In a vote of confidence, TRIS Rating recently upgraded TISCO Financial Group’s corporate credit rating to “A” from “A-” and TISCO Bank’s rating to “A+” from “A”, both with a “Stable” outlook. The ratings reflect the group’s solid profitability, flexible lending approach, and robust capital adequacy.
As of March 31, 2025, TISCO’s total loans stood at 231.19 billion baht, down 0.4% from year-end 2024, primarily due to declines in new car and SME loans. The group’s NPL ratio stood at 2.4%, while its NPL coverage ratio was a healthy 153.8%, underscoring its focus on prudent credit expansion and effective risk controls. (TNA)
