Thailand’s banking sector demonstrated remarkable resilience in Q3 FY-2024, navigating economic shifts, digital transformation, and evolving customer demands. With a collective revenue growth of 37.7% YoY and rising NPLs, banks must balance profitability with risk management. This analysis focuses on the financial performance of the top Thai banks, assessing revenue trends, profitability, fee-based income, and efficiency while identifying strategic growth opportunities.

Revenue analysis

Thailand's banking sector showcased impressive resilience and growth in Q3 FY-2024, with leading banks collectively achieving a 37.71% YoY increase in net revenues, climbing from USD 4.1 billion to USD 5.6 billion.  

Exhibit 1: Net revenue of top Thailand’s banks  

Bangkok Bank

Bangkok Bank demonstrated strong growth, with net revenue rising by 8.78% YoY to USD 1.3 billion in Q3 FY-2024, up from USD 1.2 billion in the same quarter of the previous year. Key growth drivers included a 5.13% increase in interest income—from USD 1.4 billion to USD 1.5 billion—and an 8.78% rise in operating income, growing from USD 1.2 billion to USD 1.3 billion. This performance was fueled by a significant 45.4% surge in investment banking income rising from USD 143 million to USD 208 million.

TMB Thanachart Bank

In contrast, TMB Thanachart Bank reported a 3.3% decline in revenue, dropping from USD 513 million in Q3 FY-2023 to USD 496.1 million in Q3 FY-2024. The primary factor behind this decline was an 18.91% increase in interest expenses and a 10.17% increase in directors’ remuneration.

Profitability analysis

Key highlights

• Siam Commercial Bank X (SCBX) led the way with a 14.42% YoY increase in net profit, fueled by a 10.43% reduction in operating expenses.

Thailand's leading banks collectively recorded an 11.17% YoY increase in net profits, rising from USD 1.35 billion in Q3 FY-2023 to USD 1.5 billion in Q3 FY-2024.

Exhibit 2: Net profit of top Thailand’s banks  

Siam Commercial Bank X

Siam Commercial Bank X (SCBX) delivered an exceptional performance in Q3 FY-2024, reporting a 14.42% YoY increase in net profit, which climbed from USD 275.3 million in Q3 FY-2023 to USD 315.1 million. This impressive growth was primarily driven by a 10.43% YoY reduction in operating expenses.

Fee-based income analysis

‍Key highlights

• SCBX outperformed with a 9.2% YoY growth in fee income, while TMB Thanachart Bank experienced a 9.56% YoY decline.

Fee income across Thailand’s leading banks saw an increase of 0.52% YoY, from USD 951.4 million in Q3 FY-2023 to USD 956.4 million in Q3 FY-2024.

Exhibit 3: Fee incomes of the top banks in Thailand

Siam Commercial Bank X

Siam Commercial Bank X (SCBX) delivered an exceptional performance in Q3 FY-2024, reporting a 9.2% YoY increase in fee income, which climbed from USD 223.2 million in Q3 FY-2023 to USD 242.8 million. This growth was primarily fueled by a 34.35% YoY surge in wealth management revenue—from USD 50 million in Q3-23 to USD 67 million in Q3-24—supported by robust fund management, securities, and related services. Additionally, transactional banking income increased by 13.82%, rising from USD 80 million to USD 90.1 million, driven by higher fees, trade finance activities, and FX income.

TMB Thanachart Bank TMB

Thanachart Bank reported a 9.56% YoY decline in fee income for Q3 FY-2024, decreasing from USD 71.3 million in Q3 FY-2023 to USD 64.5 million. This decline was primarily driven by a 6.65% drop in loan-related fees, which fell from USD 3 million to USD 2.8 million, and an 8% decrease in bancassurance fees, declining from USD 29 million to USD 26.7 million.

Non-performing loans (NPL)

‍Key highlights

• The average NPL ratio among top banks increased by 4.22% YoY, moving from 3.04% to 3.16%.

• Bangkok Bank recorded a notable rise from 3% to 3.4% YoY, driven by higher overdrafts and an increase in hire purchase receivables.

The average NPL ratio across Thailand’s leading banks rose by 4.22% YoY, from 3.04% in Q3 FY-2023 to 3.16% in Q3 FY-2024.

Exhibit 4: Average NPL of the top banks in Thailand

Bangkok Bank

Bangkok Bank recorded a significant increase of 13.33% in its NPL, rising from 3% in Q3 FY-2023 to 3.4% in Q3 FY-2024. This growth was driven by a 6% increase in overdrafts, rising from USD 3.1 billion to USD 3.4 billion, and an 8.34% rise in hire purchase receivables, which grew from USD 121 million to USD 136 million.

Cost Efficiency (CE)

‍Key highlights

• Bangkok Bank’s cost efficiency declined by 5.76% YoY due to rising premises and equipment expenses, whereas SCBX improved by 3.26% YoY, dropping from 43% to 41.6%.

Average cost efficiency across Thailand’s leading banks saw a minor increase of 0.79% YoY, from 43.23% in Q3 FY-2023 to 43.57% in Q3 FY-2024.

Exhibit 5: Average CE of the top banks in Thailand

Bangkok Bank

Bangkok Bank reported a 5.76% YoY increase, rising from 45.1% in Q3 FY-2023 to 47.7% in Q3 FY-2024. This increase was driven by a 9.75% rise in premises and equipment expenses.

Siam Commercial Bank X

Siam Commercial Bank X reported a 3.26% YoY decrease in its cost-to-income ratio, falling from 43% in Q3 FY-2023 to 41.6% in Q3 FY-2024. This decline was primarily driven by a 4.6% increase in interest income.

Growth opportunities  

1. Cost management through technology adoption: The Artificial Intelligence (AI) market is projected to grow at a CAGR of 27.72% from 2025 to 2030, presenting significant opportunities for Thai banks to enhance cost efficiency by deploying advanced analytics and AI to pinpoint specific cost drivers, enabling precise optimization of non-personnel expenditures such as vendor contracts, branch operations, and IT maintenance. Cloud adoption further reduces infrastructure costs by shifting from high fixed capital expenditures to a scalable, pay-as-you-go model, lowering data center overhead while enhancing system resilience. By integrating these technologies, banks can streamline operations, improve resource allocation, and strengthen financial sustainability in an increasingly competitive market.

2. Fee-based income optimization: SCBX’s 9.2% YoY growth in fee income underscores the revenue potential of fee-based services, particularly in wealth management and transactional banking. To accelerate growth, Thai banks should prioritize high-margin segments such as premium wealth advisory and cross-border payments, catering to the increasing demand for seamless international transactions. Expanding wealth management offerings can capture a growing affluent client base, while enhancing cross-border payment infrastructure—through partnerships with regional fintechs and real-time settlement solutions—can strengthen transaction flows. Additionally, investments in real-time payment innovations, such as request-to-pay and embedded finance solutions, can unlock new revenue streams and reinforce fee-based income growth.

3. Capitalizing on untapped sectors: Thailand’s banks can unlock new revenue streams by targeting high-growth sectors. The aviation and tourism rebound drives demand for fleet financing and supply chain credit, while the surge in sustainable investments opens opportunities in green finance and sustainability-linked loans. Digital lending can bridge the SME credit gap using alternative data for risk assessment, and the expanding healthcare sector presents potential in hospital financing and medical equipment leasing. By strategically entering these sectors, banks can diversify portfolios, manage risk, and position themselves as key players in Thailand’s economic growth.