BANGKOK, Aug. 19 (Xinhua) -- Thailand's banking sector remained resilient in the second quarter of 2025, supported by high levels of capital, loan loss provisions and liquidity amid ongoing loan growth contractions, the central bank said on Tuesday.
According to the Bank of Thailand (BOT), lending growth across the country's licensed banks and subsidiaries fell for the fourth straight quarter in the April-June period to 0.9 percent year-on-year, slowing from a 1.3 percent decline in the previous three months.
The sector's gross non-performing loans (NPLs) rose slightly to 554.9 billion baht (about 17.07 billion U.S. dollars) at the end of June, equivalent to an NPL ratio of 2.91 percent, up from 2.9 percent in the first quarter, said BOT Assistant Governor Suwannee Jatsadasak.
The increase was mainly attributed to the business loan segment, while NPLs for consumer loans declined across all categories, including mortgages, auto loans, credit card loans, and personal loans, partly due to effective loan quality management, Suwannee told a news conference.
On the profitability front, the Southeast Asian nation's banking sector improved from the previous quarter, largely owing to seasonal dividend income, despite net interest income seeing a decline, pressured by interest rate reductions, lower loan volumes, and the implementation of a debt relief program, she said.
The central bank will continue to monitor the financial conditions, particularly the debt servicing capabilities of vulnerable businesses and households, the impact of international trade policies, and the effectiveness of its ongoing assistance measures, she noted. ■
