TISCO’s 2Q26 Profit Climbs 7% as Margin Expansion and EV Lending Offset Macro Headwinds

TISCO Financial Group Public Company Limited (SET: TISCO) delivered a resilient second-quarter performance, reporting a consolidated net profit of 1,763 million baht, representing a 7.3% increase over the same period last year. Total operating income reached 5,081 million baht, up 6.0% year-over-year, as the lender successfully navigated a challenging economic landscape marked by energy price volatility and shifting consumer preferences. Key Financial Highlights Net Profit: 1,763 million baht (+7.3% YoY). Net Interest Margin (NIM): Expanded to 4.98% from 4.75% YoY. Earnings Per Share (EPS): 2.20 baht, up from 2.05 baht in 2Q25. Non-Performing Loan (NPL) Ratio: Stable at 2.12%. Capital Adequacy (BIS Ratio): Robust at 19.3%. The banking division remained the primary engine of growth, with Net Interest Income rising 5.9% YoY to 3,523.53 million baht. Retail lending was bolstered by a 14.1% surge in domestic car sales, particularly in the electric vehicle (EV) segment, where TISCO’s market penetration improved to 6.7%. Conversely, the corporate lending portfolio saw a 1.8% contraction due to repayments in the real estate and utility sectors. Capital market businesses showed signs of recovery, with brokerage fees jumping 28.5% YoY, tracking higher market trading volumes. The quality of TISCO’s earnings is underpinned by a significant reduction in funding costs, which dropped from 2.22% to 1.58% YoY. This repricing allowed for margin expansion even as lending rates faced downward pressure. Furthermore, a 28.9% sequential decline in Expected Credit Losses (ECL) suggests a disciplined approach to asset quality despite regional geopolitical tensions. TISCO’s balance sheet remains high-liquid, sporting a Liquidity Coverage Ratio of 147.4%. The group maintained a strong return on average equity (ROAE) of 16.1%. Corporate Outlook Management is maintaining a “cautious and prudent” stance, specifically citing high household debt and global geopolitical risks as primary monitoring factors. Strategic initiatives are increasingly focused on sustainability; the group recently joined the Stock Exchange of Thailand’s JUMP+ program to drive long-term value and is expanding its solar rooftop program across its branch network.