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Six Thai banks' Q3 NPL ratios span 2.88% to 3.4% as lenders flag stretched households

Published Data as of ThailandCreditUnsecured
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Key points

Implications for lenders

Bank NPL ratios of 2.88% to 3.4% come with slower SME and retail lending, so borrowers turned away by banks may approach non-bank lenders, which can call for tighter affordability checks. KTC's personal-loan NPL ratio of 2.65% against 1.21% for cards suggests unsecured cash loans need closer early-arrears monitoring and collections capacity, especially for borrowers leaving flood relief.

Implications

ExecutivesLarge Thai banks are keeping credit costs high and slowing SME and retail lending, which may leave riskier household and small-business borrowers to state lenders and non-banks.
InvestorsReported NPL ratios are stable, but Kasikornbank's credit cost at the top of its target range and extra flood overlays suggest banks are preparing for pressure to continue into the fourth quarter.
OperatorsPersonal-loan books show higher NPL ratios than card books at the same issuer, so collections capacity and early-arrears monitoring matter most in unsecured cash loans.

Facts

Asset quality at end-September 2026, as reported in third-quarter results: Kasikornbank's gross NPL ratio was 3.18% 1 and its coverage 177.9% 2, up from 173.9% at end-June 2026. Bangkok Bank reported an NPL ratio of 3.2% 3 and coverage of 322.1% 4, the highest of the six listed banks compared by The Nation. Krungsri reported 3.19% 5 with coverage of 143.1% 6, the lowest of the six listed banks compared by The Nation. At SCB X, the bank-level ratio was 2.95% 7, improving for a sixth straight quarter, while the group ratio was 3.21% 8. ttb reported 2.88% 9 with coverage of 159% 10, up from 152% at end-2025, and KKP 3.4% 11, down from 4.3% at end-2025. Sources: Kasikornbank via Kaohoon International; the other banks via The Nation.

Credit cost and lending: Kasikornbank's credit cost for the first nine months was 1.60% 12, within its 2026 target range of 1.40–1.60%, at the upper end; the bank said households continued to face a high cost of living and elevated debt, with added pressure from flooding. Krungsri said SME and domestic retail lending declined, and ttb's loans changed by -1.5% 13 year to date. According to The Nation, several banks set aside extra management-overlay provisions for flood damage and economic uncertainty, and the six listed banks it compared earned a combined total of about THB 150.8bn 14 in the first nine months.

Consumer credit: Krungthai Card (KTC) reported third-quarter net profit of THB 2.13bn 15, up 8.9% from THB 1.95bn in Q3 2025, helped by lower costs. Its NPL ratio was 1.92% 16, up from 1.85% in Q3 2025. By product, the NPL ratio was 1.21% 17 for credit cards and 2.65% 18 for personal loans. The Nation describes consumer purchasing power as weak, with high household debt and cautious spending.

Analysis

Time comparison: the Bank of Thailand's gross NPL ratio for the banking system has moved in a narrow band over the six quarters shown in the chart, ending at 2.82% 19 at end-June 2026. The bank-level ratios for end-September sit around that level, which suggests no broad jump in bad loans in the third quarter; the system figure for September is due in the Bank of Thailand's quarterly brief, and bank-level and group definitions differ from the system series. Within the banks, the direction differs: KKP's ratio is down from 4.3% at end-2025 and SCB's bank-level ratio kept improving, while KTC's ratio went up from 1.85% in Q3 2025. Unsecured personal loans at KTC carry a higher NPL ratio than cards (2.65% against 1.21%).

Cross-country comparison: in Cambodia, the central bank's NPL ratio for banks and financial institutions was 9.6% 20 at end-June 2026, and in Vietnam the NPL ratio of listed banks was 2.01% 21. Definitions and coverage differ, but Thailand's large banks are managing stretched households with high reserves and slower lending rather than through a rise in reported bad loans. The wide gap in coverage, from 143.1% to 322.1%, shows how much room each bank has to absorb losses if flood-related or household arrears rise after relief programmes end.

Gross NPL ratio, banking system (%)
01232.92025Q12.912025Q22.942025Q32.842025Q42.852026Q12.822026Q2
Gross NPL ratio, banking system (%)
2025Q12.9
2025Q22.91
2025Q32.94
2025Q42.84
2026Q12.85
2026Q22.82

Gross NPL (Stage 3) ratio of the Thai banking system (licensed banks and their subsidiaries), end of quarter, from the Bank of Thailand Banking Sector Quarterly Brief · Source: Bank of Thailand, Banking Sector Quarterly Brief (Q1 2025 - Q2 2026) (2025Q1, 2025Q2, 2025Q3, 2025Q4, 2026Q1, 2026Q2) Each value as first published in that quarter's brief; later revisions are not reflected.

Counterpoints and uncertainties

Reported ratios follow each bank's own definition and group scope, and several figures come from newspaper summaries of the results; the Bank of Thailand's system data for September will give a like-for-like reading. Flood payment holidays and debt-relief programmes can delay the recognition of arrears, so the end-September ratios may understate stress that appears after relief ends. On the other hand, KKP's lower ratio and SCB's sixth quarter of improvement show that some books are improving.

Key figures

  1. Kasikornbank gross NPL ratio: 3.18%. Gross NPL ratio as reported by the bank in its third-quarter results. Kasikornbank. Basis date: 30 Sep 2026. Source: Kaohoon International: Kasikornbank announces THB40,635 million net profit in 9M26 (2026-10-21)
  2. Kasikornbank NPL coverage: 177.9% (up from 173.9% at end-June 2026). Loan-loss reserves / non-performing loans, as reported by the bank. Kasikornbank. Basis date: 30 Sep 2026. Source: Kaohoon International: Kasikornbank announces THB40,635 million net profit in 9M26 (2026-10-21)
  3. Bangkok Bank NPL ratio: 3.2%. NPL ratio as reported by the bank in its third-quarter results. Bangkok Bank. Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  4. Bangkok Bank NPL coverage: 322.1% (highest of the six listed banks compared by The Nation). Loan-loss reserves / non-performing loans, as reported by the bank. Bangkok Bank. Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  5. Krungsri NPL ratio: 3.19%. NPL ratio as reported by the bank in its third-quarter results. Bank of Ayudhya (Krungsri). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  6. Krungsri NPL coverage: 143.1% (lowest of the six listed banks compared by The Nation). Loan-loss reserves / non-performing loans, as reported by the bank. Bank of Ayudhya (Krungsri). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  7. SCB (bank) NPL ratio: 2.95% (improving for a sixth straight quarter). NPL ratio of Siam Commercial Bank (bank level), as reported by SCB X. Siam Commercial Bank. Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  8. SCB X group NPL ratio: 3.21%
    The group says the ratio reflects a planned portfolio adjustment at its AutoX subsidiary.
    . NPL ratio of the SCB X group, as reported in its third-quarter results. SCB X group. Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  9. ttb NPL ratio: 2.88%. NPL ratio as reported by the bank in its third-quarter results. TMBThanachart Bank (ttb). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  10. ttb NPL coverage: 159% (up from 152% at end-2025). Loan-loss reserves / non-performing loans, as reported by the bank. TMBThanachart Bank (ttb). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  11. KKP NPL ratio: 3.4% (down from 4.3% at end-2025). NPL ratio as reported by the bank in its third-quarter results. Kiatnakin Phatra Bank (KKP). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  12. Kasikornbank credit cost, nine months: 1.60% (within its 2026 target range of 1.40–1.60%, at the upper end). Credit cost ratio for January–September 2026, as reported by the bank. Kasikornbank. Basis date: 30 Sep 2026. Source: Kaohoon International: Kasikornbank announces THB40,635 million net profit in 9M26 (2026-10-21)
  13. ttb loan growth, year to date: -1.5%. Change in loans from end-2025 to end-September 2026, as reported by the bank. TMBThanachart Bank (ttb). Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  14. Combined nine-month net profit, six listed banks: about THB 150.8bn
    Newspaper tally; reporting bases differ between banks.
    . Sum of January–September 2026 net profit of six listed Thai banks, as tallied by The Nation. Bangkok Bank, Kasikornbank, SCB X, Krungsri, ttb, KKP. Basis date: 30 Sep 2026. Source: Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  15. KTC net profit, Q3: THB 2.13bn (up 8.9% from THB 1.95bn in Q3 2025). Net profit attributable to owners of the parent, July–September 2026. Krungthai Card (KTC), credit card and personal loan issuer. Basis date: 30 Sep 2026. Source: Kaohoon International: KTC achieves THB2.1 billion of net profit in 3Q26 (2026-10-20)
  16. KTC NPL ratio: 1.92% (up from 1.85% in Q3 2025). Group NPL ratio of Krungthai Card, as reported in its third-quarter results. Krungthai Card (KTC). Basis date: 30 Sep 2026. Source: Kaohoon International: KTC achieves THB2.1 billion of net profit in 3Q26 (2026-10-20)
  17. KTC credit-card NPL ratio: 1.21%. NPL ratio of KTC's credit-card receivables at end-September 2026. Krungthai Card (KTC), credit cards. Basis date: 30 Sep 2026. Source: Nation Thailand: KTC third-quarter profit climbs 8.9% to THB2.13bn despite weak demand (2026-10-21)
  18. KTC personal-loan NPL ratio: 2.65%. NPL ratio of KTC's personal-loan receivables at end-September 2026. Krungthai Card (KTC), personal loans. Basis date: 30 Sep 2026. Source: Nation Thailand: KTC third-quarter profit climbs 8.9% to THB2.13bn despite weak demand (2026-10-21)
  19. Commercial bank NPL ratio: 2.82% (vs 2.85% in Q1 2026). Gross non-performing loans / total loans, Thai commercial banks (BOT). Commercial banking system. Basis date: 30 Jun 2026. Source: Bank of Thailand: Banking Sector Quarterly Brief (Q2 2026) (2026-08-18)
  20. NBC NPL ratio (semi-annual, latest): 9.6% (up from 8.4% at end-June 2025)
    NBC primary document not located on nbc.gov.kh; figure as reported by Xinhua from the NBC semi-annual report released 28 July 2026.
    . Non-performing loans as a share of total loans, banking system. Banks and financial institutions supervised by NBC. Basis date: 30 Jun 2026. Source: NBC semi-annual report H1 2026 (via Xinhua, 2026-07-28)
  21. NPL ratio, listed banks: 2.01%
    Excludes unlisted banks and finance companies.
    . Groups 3–5 (non-performing) loans / total loans, 27 listed banks. 27 listed commercial banks (Vietstock compilation). Basis date: 30 Jun 2026. Source: vietnam.vn (republished from Báo Công Thương): Bad debts 'don't tell the whole story' about bank assets (2026-09-21)

Sources

  1. Kaohoon International: Kasikornbank announces THB40,635 million net profit in 9M26 (2026-10-21)
  2. Nation Thailand: Thai banks' Q3 profits diverge amid margin squeeze as fee income offsets (2026-10-21)
  3. Kaohoon International: KTC achieves THB2.1 billion of net profit in 3Q26 (2026-10-20)
  4. Nation Thailand: KTC third-quarter profit climbs 8.9% to THB2.13bn despite weak demand (2026-10-21)
  5. Bank of Thailand: Banking Sector Quarterly Brief Q2 2026 (2026-08-18)primary
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