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Sub-sector: Banks
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Fundamental View
AS OF 25 Feb 2026UOB has solid stand-alone credit profile and benefits from the high likelihood of support from the government of Singapore, where it is one of the three major local banks.
The bank is more focused on Singapore and Southeast Asia than on Greater China; its traditional strengths are the SME and retail sectors, although its large corporate book is now over 60% of loans.
UOB has been conservatively managed with a sound risk profile, a strong focus on liquidity and a long track record of relatively good performance. However, its FY25 results showed some softness with substantial provisions set aside for HK and US CRE.
Business Description
AS OF 25 Feb 2026- UOB was established in 1935 as a Chinese family-owned bank catering to the Hokkien (Fujian) community, Singapore's largest Chinese ethnic sub-group. The Wee family owns about 18% of the shares. A further 5.2% is held by the Lien family which previously controlled Overseas Union Bank, which UOB merged within 2001. The Wee family has significant real estate and hospitality interests in Singapore and regionally.
- UOB's main markets are Singapore and Malaysia where its presence dates back to before Singapore's independence. It expanded through acquisitions in Thailand (Bank Radanasin and Bank of Asia) and Indonesia (Bank Buana), and more recently bought over Citi's consumer franchise in Malaysia, Thailand, Indonesia and Vietnam.
- Franchise strengths are in SME and consumer lending. Building & construction accounts for 26% of loans, followed by housing at 24%, financial institutions at 11% and general commerce at 11% at 4Q25.
- Loans by geography comprise Singapore at 50% of loans, Greater China at 13%, Malaysia at 10%, Thailand at 8%, and Indonesia at 3% at 4Q25.
Risk & Catalysts
AS OF 25 Feb 2026UOB has a greater focus on Southeast Asia than its Singapore bank peers, which leaves it open to more asset quality risk in a downturn / high interest rate environment. It has 8% of its loan book in Thailand and 3% in Indonesia, where we are cautious about macroeconomic conditions.
The bank has benefited more from the final Basel III rules implementation than its peers – its CET 1 ratio was previously the lowest among the three but now aligns with peers.
It posted a large profit decline in FY25 which was a negative surprise. Although the improved coverage ratios following the preemptive provision recognition are welcome, its NPL coverage ratio remains 30-50 ppt behind peers. Topline performance also lagged peers.
Key Metric
AS OF 25 Feb 2026| SGD mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.23% | 1.31% | 1.52% | 1.50% | 1.38% |
| ROA | 0.92% | 0.99% | 1.19% | 1.16% | 0.86% |
| ROE | 10.2% | 11.9% | 14.2% | 13.3% | 9.6% |
| Equity to Assets | 9.3% | 8.6% | 8.8% | 9.2% | 9.0% |
| CET1 Ratio (fully-loaded) | 13.5% | 13.3% | 13.4% | 15.4% | 14.9% |
| NPL Ratio | 1.62% | 1.58% | 1.52% | 1.53% | 1.53% |
| Provisions / Loans | 0.20% | 0.20% | 0.25% | 0.27% | 0.55% |
| Liquidity Coverage Ratio | 133% | 147% | 158% | 148% | 143% |
| Net Stable Funding Ratio | 116% | 116% | 120% | 116% | 116% |
CreditSight View Comment
AS OF 24 Feb 2026UOB is conservatively run with a large family ownership and a sound balance sheet. The bank is more focused on SG and Southeast Asia than on Greater China. Outside SG, its main operations in ASEAN are in Thailand, Malaysia and Indonesia which collectively make up ~20% of its loan book. It acquired Citi’s consumer operations in Thailand, Malaysia, Indonesia and Vietnam, which has been good for the franchise. The bank has benefitted more from the final Basel III rules implementation than its peers but it has lost this advantage again since 3Q25. The substantial preemptive provisions taken in 3Q25 to strengthen coverage ratios heavily hit the bank’s 2H25 results, but UOB’s NPL coverage ratio remained 40-60 ppt behind the two peers. New NPAs have risen due to its CRE exposure in HK and the US.
Recommendation Reviewed: February 24, 2026
Recommendation Changed: July 04, 2017
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Fundamental View
AS OF 25 Feb 2026ICICI Bank is one of the leading private banks in India and has a good diversified business model, with well regarded life and general insurance subsidiaries.
Under its previous CEO, the bank suffered setbacks from sizeable bad debt problems in FY17/18, but the situation has since stabilised following a leadership change and the bank has done well ever since.
Business Description
AS OF 25 Feb 2026- The original Industrial Credit and Investment Corporation of India (ICICI) was established in 1955 by the World Bank, the Government of India and representatives of Indian industry as a financial institution to provide Indian businesses with medium and long-term project financing.
- In 1994, ICICI established a commercial banking subsidiary, ICICI Bank as India's financial sector opened up, and in 2002 ICICI merged with ICICI Bank, keeping the latter's name.
- Retail now accounts for 51% of its loan book, corporates are at 20%, while rural and business banking & SMEs are at 6% and 21% respectively, and overseas (which is being de-emphasised) consists of just 2% at F3Q26.
- The bank has well regarded life insurance (ICICI Prudential) and general insurance (ICICI Lombard) businesses.
Risk & Catalysts
AS OF 25 Feb 2026RBI repo rate cuts will initially impact the NIM before the lagged effect of deposit repricing catches up over FY26-27.
System loan growth has picked up and should stay robust in coming quarters, supported by GST rate cuts lifting consumption, and improving corporate borrowing momentum amid India’s trade deals with the US and EU and robust public-sector infrastructure capex.
We are cautious about pockets of stress in Indian retail, particularly unsecured retail and microfinance. However, ICICI’s prudence towards the segment than peers, and the banks not playing in the small ticket segment in general, are keeping asset quality well controlled.
Leadership and governance issues under the previous CEO Ms. Chanda Kochhar have been dealt with well, since her replacement in Oct-18.
Key Metric
AS OF 25 Feb 2026| INR bn | FY22 | FY23 | FY24 | FY25 | 9M26 |
|---|---|---|---|---|---|
| NIM | 3.96% | 4.48% | 4.53% | 4.32% | 4.31% |
| ROAA | 1.77% | 2.13% | 2.37% | 2.37% | 2.26% |
| ROAE | 14.7% | 17.2% | 18.7% | 17.9% | 15.9% |
| Equity/Assets | 12.1% | 12.6% | 12.7% | 13.7% | 14.6% |
| CET1 Ratio | 17.3% | 16.9% | 15.4% | 15.8% | 14.6% |
| Gross NPA Ratio | 3.60% | 2.81% | 2.16% | 1.67% | 1.53% |
| Provisions/Loans | 0.97% | 0.65% | 0.30% | 0.34% | 0.47% |
| PPP ROA | 2.97% | 3.28% | 3.36% | 3.37% | 3.30% |
CreditSight View Comment
AS OF 25 Feb 2026ICICI Bank is a preferred name among the Indian FIs we cover. We like the bank’s robust capital and loan loss buffers, strong asset quality, as well as peer leading margins, profitability and liquidity position. Under its previous CEO, the bank suffered setbacks from sizable bad debt problems in FY17/18 but the situation has since stabilised following a leadership change. The bank has emerged stronger from a capital, asset quality and earnings perspective, as it de-risked its book, and took pro-active actions to protect its capital by raising equity and selling small stakes in its well-regarded insurance subsidiaries to raise funds and set aside more general provisions. ICICI last issued a $ bond in 2017; we have ICICI on M/P given likely low trading liquidity.
Recommendation Reviewed: February 25, 2026
Recommendation Changed: December 07, 2020
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Fundamental View
AS OF 24 Feb 2026Standard Chartered has been making good progress in the past few years, improving its asset quality and profitability and dealing with legacy litigation issues. Capital, funding and liquidity look solid.
However, tensions between China and the West, including reciprocal trade tariffs between the US and China, and global economic headwinds continue to cloud the near term outlook.
Its unusual business mix – headquartered and regulated in the UK but operating primarily in Asia, Africa and the Middle East – means it is well diversified but sensitive to geopolitical developments and emerging market volatility.
Business Description
AS OF 24 Feb 2026- Standard Chartered PLC is the holding company and listed entity of the group, in which Standard Chartered Bank is the main operating company.
- Although Standard Chartered is headquartered in London and therefore subject to UK banking regulation, its operations are mainly in Asia (Hong Kong is its biggest single market, Africa and the Middle East. It is present in over 60 markets.
- It has the usual variety of businesses across these regions, including corporate and institutional banking, retail banking, commercial banking and private banking. It specialises in trade finance and cross-border cash management.
- It is classified as a G-SIB, with a regulatory capital buffer of 1%.
Risk & Catalysts
AS OF 24 Feb 2026Political tensions in Hong Kong, a slowing economy in China and a weak commercial real estate sector, and a US/China trade war have threatened the growth and stability of some of Standard Chartered’s key markets.
A number of Standard Chartered’s markets have underperformed in the past but are now turnaround stories, including India, Korea, Indonesia and the UAE.
The group has had to improve its AML and sanctions controls. In April 2019, it paid a $947 mn fine to US authorities over breaches of US sanctions and a £102 mn fine to the UK FCA for AML weaknesses.
Key Metric
AS OF 24 Feb 2026| $ mn | 4Q25 | Y25 | Y24 | Y23 | Y22 |
|---|---|---|---|---|---|
| Return on Equity | 3.5% | 9.7% | 8.0% | 7.0% | 5.7% |
| Total Revenues Margin | 2.4% | 2.4% | 2.3% | 2.2% | 2.0% |
| Cost/Income | 79.4% | 63.5% | 64.0% | 64.1% | 66.9% |
| CET1 Ratio (Transitional) | 14.1% | 14.1% | 14.2% | 14.1% | 14.0% |
| CET1 Ratio (Fully-Loaded) | 14.1% | 14.1% | 14.2% | 14.1% | 13.9% |
| Leverage Ratio (Fully-Loaded) | 4.7% | 4.7% | 4.8% | 4.7% | 4.8% |
| Loan Impairment Charge | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% |
| Impaired Loans (Gross)/Total Loans | 2.1% | 2.1% | 2.2% | 2.5% | 2.5% |
CreditSight View Comment
AS OF 24 Feb 2026We revised our recommendation on Standard Chartered HoldCo senior from Underperform to Market perform on 26 April 2023, but we changed our recommendations on Tier 2 and AT1 from Fair to Rich on 10 January 2024. The changes reflect StanChart’s recent resilient performance, while taking into account the potential impact from US tariffs policies and exposure to China. Capital and liquidity ratios are robust, and profitability has improved significantly, but the bank continues to face geopolitical tensions inherent in its extensive operations in Hong Kong, China and the rest of Asia.
Recommendation Reviewed: February 24, 2026
Recommendation Changed: April 26, 2023
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Search topics about wealth insights and investments.Bangkok Bank
- Sector: Financial Services
- Sub Sector: Banks
- Region: Thailand
- Bond: BBLTB 4.507 30
- Indicative Yield-to-Maturity (YTM): 4.39%
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Fundamental View
AS OF 24 Feb 2026Bangkok Bank is a family run conservative financial institution, with high capital and liquidity levels.
It acquired Indonesia’s Permata Bank in 2020 which resulted in a meaningful decline in its CET1 ratio to 14%. It has been built back to 17%. Management aims to keep the CET1 ratio above ~16% in preparation for Basel III final reforms.
Profitability (ROA and ROE) has historically been below the industry average, due in part to higher exposure to the lower-yielding corporates segment that has resulted in a lower NIM. However, the returns gap has narrowed as this has supported its relatively better asset quality than most peers in a prolonged sluggish macroeconomic environment.
Business Description
AS OF 24 Feb 2026- Bangkok Bank was set up in 1944 and was listed on the Stock Exchange of Thailand in 1975. It is a family-run bank and the current President of the bank, Chartsiri Sophonpanich, is the grandson of the founder of the bank.
- It is the largest bank by assets in Thailand. It was briefly surpassed by Kasikornbank in 2018, but the Bank Permata acquisition has taken BBL back to No.1.
- The bank is corporate-loan focused, and the loan book was split 49% corporate, 16% SME, 12% retail, and 23% international as at December 2025. It is by far the most international amongst the Thai banks, with branches in 14 economies.
- BBL's overseas presence has been enhanced by the acquisition of Bank Permata, the 12th largest bank in Indonesia. Bank Permata's asset size is ~10% of that of BBL.
Risk & Catalysts
AS OF 24 Feb 2026Thai economic growth is expected to slowdown this year from US tariffs. Ripple effects are in the form of lower bank NIMs as more BOT rate cuts come through to support growth, and credit costs remaining relatively elevated. Moody’s and Fitch have downgraded their rating outlook on the Thailand sovereign (and consequently the Thai banks including BBL at Moody’s, which it currently rates in line with the sovereign) to negative in April and September 2025 respectively on increased risks to Thailand’s economic and fiscal strength.
We see still middling loan growth across the Thai banks due to a focus on quality amid the current backdrop. Trading/investment income is also set to moderate from a high base given a smaller rates tailwind this year. However, we take comfort in BBL’s prudent provisioning, high loan loss buffers and safer large corporate book.
The acquisition of Bank Permata of Indonesia in May 2020 provides BBL with exposure to the high growth opportunities of the Indonesian market, but this also presents higher risks.
Key Metric
AS OF 24 Feb 2026| THB mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.65% | 1.60% | 1.92% | 2.02% | 2.01% |
| ROA | 0.65% | 0.67% | 0.93% | 1.00% | 1.00% |
| ROE | 5.6% | 5.9% | 8.1% | 8.3% | 8.2% |
| Equity / Assets | 11.4% | 11.5% | 11.8% | 12.2% | 12.5% |
| CET1 Ratio | 15.2% | 14.9% | 15.4% | 16.2% | 17.2% |
| Calculated NPL ratio | 3.20% | 3.10% | 2.70% | 2.70% | 3.00% |
| Provisions / Loans | 1.38% | 1.24% | 1.26% | 1.30% | 1.36% |
| Gross LDR | 82% | 84% | 84% | 85% | 82% |
| Liquidity Coverage Ratio | 270% | 271% | 277% | 265% | n/m |
CreditSights View
AS OF 22 Jan 2026Bangkok Bank’s strength has been its large corporate book and strong capital. It completed the acquisition of Indonesia’s Bank Permata (~12% of loans) in 2Q20 which reduced its CET1 ratio to 14%, but it has since rebuilt it to ~17-18%. Returns though have been lower due to thinner corporate margins, and we see greater NIM pressure on BBL than most peers from the turn in base rates. Disclosure from BBL is less than peers and credit costs rose again in FY25. However, we take comfort in BBL’s strong loss buffers and large corporate book. We also see a meaningful impact to the Thai economy from US tariffs, with ripple effects in the form of lower bank NIMs and continued high credit costs. We have it on Market perform as its recent longer dated issues trade at fair levels.
Recommendation Reviewed: January 22, 2026
Recommendation Changed: December 03, 2025
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Search topics about wealth insights and investments.Kasikornbank
- Sector: Financial Services
- Sub Sector: Banks
- Region: Thailand
- Bond: KBANK 5.458 28
- Indicative Yield-to-Maturity (YTM): 4.77%
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Fundamental View
AS OF 24 Feb 2026Kasikornbank (KBANK) is a historically sound and profitable bank.
Capitalisation is strong and the bank has among the highest CASA ratios in the banking sector. Asset quality took a surprise turn for the worse in 4Q22 due to its larger SME exposure and the bank has since focused on de-risking its portfolio. Credit costs are improving but remain elevated.
Margins are high compared to most other Thai banks we cover as a result of its strong SME franchise, but the shift in growth focus to the safer but lower yielding segments has diminished its margin lead.
Business Description
AS OF 24 Feb 2026- KBank is currently the second largest bank in Thailand. It briefly was the largest from 2018 until mid-2020, upon which Bangkok Bank completed its acquisition of Indonesia's Bank Permata and took its place.
- KBank's history can be traced back to 1945 when it was first established as Thai Farmers Bank. It was listed on the Stock Exchange of Thailand in 1976 and changed its name to Kasikornbank in 2003.
- As of December 2025, the bank's loan mix by segment consists of 41% corporate, 24% SME, 31% retail and 4% others.
- KBank is known for its strong SME franchise. It also partially owns a life insurance company, Muang Thai Life.
Risk & Catalysts
AS OF 24 Feb 2026Thai economic growth is expected to slowdown this year from US tariffs. Ripple effects are in the form of lower bank NIMs as more BOT rate cuts come through to support growth, and credit costs remaining relatively elevated. Moody’s and Fitch have downgraded their rating outlook on the Thailand sovereign (and consequently the Thai banks including KBANK at Moody’s, which it currently rates in line with the sovereign) to negative in April and September 2025 respectively on increased risks to Thailand’s economic and fiscal strength.
We see still middling loan growth across the Thai banks due to a focus on quality amid the current backdrop. Trading/investment income is also set to moderate from a high base given a smaller rates tailwind this year, while KBANK’s switch to focus on safer segments will continue to weigh on the NIM.
KBANK has a higher retail/SME loan mix and sizable restructured loans portfolio (~8.8% of total loans). FY26 guidance for credit costs have as such remained in an elevated range of 140-160 bp as we had expected, but KBANK’s higher NIM and low-40%s cost-income ratio provide comfortable room for that to be absorbed.
Key Metric
AS OF 24 Feb 2026| THB mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 2.38% | 2.36% | 2.52% | 2.64% | 2.47% |
| ROA | 0.98% | 0.86% | 0.99% | 1.15% | 1.11% |
| ROAE | 8.3% | 7.3% | 8.2% | 9.0% | 8.6% |
| Equity / Assets | 13.1% | 13.4% | 13.9% | 14.9% | 14.8% |
| CET1 Ratio | 15.5% | 15.9% | 16.5% | 17.4% | 18.0% |
| Gross NPL ratio | 3.76% | 3.19% | 3.19% | 3.20% | 3.20% |
| Provisions / Loans | 1.73% | 2.11% | 2.08% | 1.90% | 1.63% |
| Gross LDR | 93% | 91% | 92% | 91% | 87% |
| Liquidity Coverage Ratio | 174% | 164% | 195% | 184% | n/m |
CreditSight View Comment
AS OF 22 Jan 2026Kasikornbank is the 2nd largest bank in Thailand. We are cautious about its one quarter loan book exposure to SMEs given the macro backdrop; credit costs spiked in 4Q22 mainly from the SME book and high yield small ticket lending, and the restructured loan book remains sizable. The bank however has switched to focus on safer segments, which is weighing on the historically high NIM but helped to stabilize credit costs. Credit costs remain fairly elevated but comfortably absorbed thus far. Capital is high with CET1 at ~18%. The NIM though is on a decline from lower rates, safer new loans, higher parking of funds in liquidity. We see a meaningful US tariff impact, with ripple effects in the form of lower bank NIMs and credit costs staying fairly elevated. We have an Underperform rec.
Recommendation Reviewed: January 22, 2026
Recommendation Changed: April 22, 2025
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Fundamental View
AS OF 24 Feb 2026Krung Thai Bank is the 3rd largest bank by assets in Thailand, with a 55.07% state ownership through the Financial Institutions Development Fund. We see strong government support underpinning KTB’s underlying credit profile.
The state influence opens the bank up to potentially government-directed lending; it has secured an increasingly meaningful portion of banking business from government agencies and State Owned Enterprises, which underscored its one-notch upgrade by Fitch in Dec-21.
KTB was faced with asset quality challenges in the past and had the highest NPL ratio and restructured loans among the major Thai banks. It has since de-risked its loan book, and asset quality has proven to be more resilient than its peers with lower COVID-19 restructured loans.
Business Description
AS OF 24 Feb 2026- KTB is the 3rd largest bank by assets in Thailand. The Thai Financial Institutions Development Fund owns 55.07% of the bank, and has a free float of 44.93%.
- Being the largest state-owned bank, it secures a meaningful portion of banking business from government agencies and State Owned Enterprises (SOEs) and per the bank, is the preferred bank for the government and SOE employees.
- Though state owned, the bank runs on a commercial basis and is not considered as a policy bank.
- KTB's loan profile comprised 46% retail, 23% private corporates, 10% SME, and 21% Government & SOEs at December 2025.
Risk & Catalysts
AS OF 24 Feb 2026Thai economic growth is expected to slowdown this year from US tariffs. Ripple effects are in the form of lower bank NIMs as more BOT rate cuts come through to support growth, and credit costs remaining relatively elevated. Moody’s and Fitch have downgraded their rating outlook on the Thailand sovereign (and consequently the Thai banks including KTB at Moody’s, which it currently rates in line with the sovereign) to negative in April and September 2025 respectively on increased risks to Thailand’s economic and fiscal strength.
We see still middling loan growth across the Thai banks due to a focus on quality amid the current backdrop. Trading/investment income is also set to moderate from a high base given a smaller rates tailwind this year. However, we take comfort in KTB’s conservative focus on the government agencies/SOEs segment.
Key Metric
AS OF 24 Feb 2026| THB mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 1.83% | 1.98% | 2.40% | 2.50% | 2.50% |
| ROA | 0.63% | 0.94% | 1.01% | 1.24% | 1.26% |
| ROE | 6.1% | 9.2% | 9.4% | 11.0% | 10.7% |
| Equity/Assets | 10.5% | 10.9% | 11.4% | 12.3% | 12.4% |
| CET1 Ratio | 15.6% | 15.6% | 16.5% | 17.9% | 18.4% |
| Calculated NPL ratio | 3.50% | 3.26% | 3.08% | 2.99% | 2.90% |
| Provisions/Loans | 1.31% | 0.93% | 1.43% | 1.18% | 1.14% |
| Gross LDR | 99% | 98% | 104% | 100% | 97% |
| Liquidity Coverage Ratio | 196% | 201% | 202% | 207% | n/m |
CreditSight View Comment
AS OF 22 Jan 2026KTB is the 3rd largest bank in Thailand by assets and the largest state-owned bank. It is 55% indirectly owned by the Thai government and thus secures meaningful business from government agencies and SOEs (~20% of total loans), which has undergirded its stable asset quality during and post-COVID; it was faced with asset quality challenges in the past, but fundamentals have improved as it de-risked its loan book. We see greater NIM pressure on KTB than most peers from the turn in base rates. We also see a meaningful impact to the Thai economy from US tariffs, with ripple effects in the form of lower bank NIMs and continued high credit costs. The CET1 ratio though is solid at ~18% and the loan mix is safer than peers. We have it on M/P as the $ AT1 has <1 year to call date.
Recommendation Reviewed: January 22, 2026
Recommendation Changed: April 22, 2025
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Search topics about wealth insights and investments.Siam Commercial Bank
- Sector: Financial Services
- Sub Sector: Banks
- Country: Thailand
- Region: Thailand
- Bond: SCBTB 3.9 24
- Indicative Yield-to-Maturity (YTM): 5.573% (Indicative as of March 2)
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Fundamental View
AS OF 24 Feb 2026Siam Commercial Bank (SCBTB) has been a sound and profitable bank. It has a focus on the retail segment and targets to increase margins by growing its non-traditional banking businesses. It announced a major business overhaul in September 2021 to establish a new parent company called SCB X to segregate the group’s core banking services (Gen 1) from its new fintech and digital businesses and to enable greater flexibility and independence.
Recent credit costs have been elevated due to the riskier exposure that these entail. However, profitability remains healthy and the capital buffer is strong at both the Holdco (SCB X) and Bank (SCB) level.
Business Description
AS OF 24 Feb 2026- Siam Commercial Bank was founded as the "Book Club" in 1904. In 1907, it started operating as a commercial bank and was renamed as "The Siam Commercial Bank". It completed its IPO on the Stock Exchange of Thailand in 1976.
- The bank is 23.58% owned by the King of Thailand, and a further 23.32% is owned by the Vayupak Fund 1, which is controlled by the government.
- SCB is the fourth largest Thai bank by assets and is known for its robust retail franchise.
- Its loan profile was 36% corporate, 16% SME, and 48% retail as of December 2025.
Risk & Catalysts
AS OF 24 Feb 2026Thai economic growth is expected to slowdown this year from US tariffs. Ripple effects are in the form of lower bank NIMs as more BOT rate cuts come through to support growth, and credit costs remaining relatively elevated. Moody’s and Fitch have downgraded their rating outlook on the Thailand sovereign (and consequently the Thai banks including SCBX at Moody’s, which it currently rates in line with the sovereign) to negative in April and September 2025 respectively on increased risks to Thailand’s economic and fiscal strength.
We see still middling loan growth across the Thai banks due to a focus on quality amid the current backdrop. Trading/investment income is also set to moderate from a high base given a smaller rates tailwind this year.
The group’s business overhaul and strategic focus on retail comes with higher credit costs, particularly from the riskier target segments at the Gen 2/3 businesses. However, SCB X’s higher NIM and low-40%s cost-income ratio provide comfortable room for that to be absorbed. We also take comfort in the ringfencing of the bank unit (SCB) from the Group’s riskier business units, and management’s minimum CET1 ratio of 16% at SCB.
Key Metric
AS OF 24 Feb 2026| THB mn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| PPP ROA | 2.63% | 2.50% | 2.88% | 2.87% | 2.86% |
| ROA | 1.1% | 1.1% | 1.3% | 1.3% | 1.3% |
| ROE | 8.4% | 8.3% | 9.3% | 9.1% | 9.7% |
| Equity/Assets | 13.4% | 13.5% | 14.1% | 14.2% | 13.7% |
| CET1 Ratio | 17.6% | 17.7% | 17.6% | 17.7% | 17.7% |
| Reported NPL ratio | 3.79% | 3.34% | 3.44% | 3.37% | 3.29% |
| Provisions/Loans | 1.84% | 1.45% | 1.82% | 1.76% | 1.74% |
| Gross LDR | 93% | 93% | 99% | 97% | 92% |
| Liquidity Coverage Ratio | 202% | 216% | 217% | 212% | n/m |
CreditSight View Comment
AS OF 22 Jan 2026SCB is the 4th largest bank in Thailand and has a leading retail franchise. Asset quality during COVID was poor. It created a new HoldCo structure (SCBX) in 2022 to shift digital units and unsecured retail loans outside the bank, and pledged a >16% CET1 ratio at SCB. The BOT has also ringfenced SCB which further reduces the risk for the SCBTB bonds. The NIM has been strong vs. peers as expected. We expect there to still be a sizable restructured book at SCB, and higher retail exposure amid elevated household debt has resulted in credit costs staying high, but these have been comfortably absorbed. We also see a meaningful impact to the Thai economy from US tariffs, with ripple effects in the form of lower bank NIMs and credit costs staying fairly elevated. We have an Underperform rec.
Recommendation Reviewed: January 22, 2026
Recommendation Changed: April 22, 2025
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Search topics about wealth insights and investments.State Bank of India
- Sector: Financial Services
- Sub Sector: Banks
- Country: India
- Bond: SBIIN 5.125 29
- Indicative Yield-to-Maturity (YTM): 4.22%
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Fundamental View
AS OF 24 Feb 2026State Bank of India (SBI) is the largest state-owned bank in India and is in some respects the country’s flagship bank. Given the bank’s ~55% government ownership and systemic importance, government support for SBI is very strong.
The bank’s capital buffers are relatively low, but we take comfort in the strong government support.
Business Description
AS OF 24 Feb 2026- State Bank of India is the largest commercial bank in India. Its predecessor banks date back to the 19th century. In the early 20th century, they merged to form the Imperial Bank of India, which became the State Bank of India after India gained independence in 1947.
- The Government of India remains the largest shareholder with a 55.03% stake. Per the SBI Act, the government's shareholding cannot fall below 55%.
- SBI's merged with its 5 associate banks and Bharatiya Mahila Bank in 2018. The merger catapulted SBI into one of the world's 50 largest banks.
- The bank has 85% of its loans in the domestic market, and has steadily increased its international business too over the past few years with offices across all international business centres. The domestic book is split 42% retail, 33% corporates, 15% SMEs and 10% to the agri segment as of December 2025.
- It has diversified its operations with well regarded subsidiaries in the areas of fund management, credit cards, insurance, and capital markets.
Risk & Catalysts
AS OF 24 Feb 2026SBI does not have a strong buffer vs. the regulatory minimum of 8%, but its size, systemic importance and majority government shareholding confer particularly strong government support. But consequentially, any deterioration in the sovereign ratings will also affect the bank’s credit.
RBI repo rate cuts will initially impact the NIM before the lagged effect of deposit repricing catches up over FY26-27, but management remained confident in a 3.0% through-the-cycle NIM. Loan growth has recently re-accelerated and should remain strong in coming quarters, supported by GST rate cuts lifting consumption, and improving corporate borrowing momentum amid India’s trade deals with the US and EU and robust public-sector infrastructure capex.
We are cautious about pockets of stress in Indian retail, particularly unsecured retail and microfinance. Asset quality however is trending well as SBI’s personal unsecured loans book is ~95% to salaried employees of top tier corporates and the government.
Key Metric
AS OF 24 Feb 2026| INR mn | FY22 | FY23 | FY24 | FY25 | 9M26 |
|---|---|---|---|---|---|
| NIM | 3.12% | 3.37% | 3.28% | 3.09% | 2.95% |
| ROAA | 0.67% | 0.96% | 1.04% | 1.10% | 1.16% |
| ROAE | 11.9% | 16.5% | 17.3% | 17.3% | 16.4% |
| Equity to Assets | 5.6% | 5.9% | 6.1% | 6.6% | 7.5% |
| CET1 Ratio | 10.3% | 10.6% | 10.6% | 11.1% | 11.2% |
| Gross NPA Ratio | 3.97% | 2.78% | 2.24% | 1.82% | 1.57% |
| Provisions/Loans | 0.91% | 0.54% | 0.14% | 0.38% | 0.44% |
| PPP ROA | 1.58% | 1.59% | 1.60% | 1.72% | 1.75% |
CreditSights View
AS OF 10 Feb 2026SBI is India’s largest bank and a well-run franchise. Government support (55% shareholding, can’t drop below 51%) underpins SBI’s relative positioning, while fundamentally, it has good operating metrics and business plans, a comfortable LDR, sufficient CET1 ratio (recently boosted by an equity raise in Jul-25), and the best management among the public sector banks. India’s macro backdrop remains relatively robust and SBI’s lower risk personal unsecured loans clientele is supporting asset quality well. Lower rates should keep asset quality well-supported. Rate cuts will feed through to the NIM in FY26, but treasury gains have provided some offset, and deposit repricing has started to catch up. Loan growth has picked up strongly. We like the name, but have it on M/P as it trades fair.
Recommendation Reviewed: February 10, 2026
Recommendation Changed: April 25, 2025
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Fundamental View
AS OF 19 Feb 2026UBS agreed to acquire Credit Suisse in March 2023 after the latter collapsed following a severe liquidity crisis.
CS was a large and complex organisation, so the integration, and the inevitable associated losses and costs, will dominate UBS’s strategic outlook and financial performance for several years.
However, UBS was able to negotiate substantial downside protection which should shield it from losses at CS.
Away from CS, UBS has reshaped its business model, with a greater emphasis on wealth management and less focus on investment banking, particularly fixed income.
Its earnings remain somewhat dependent on capital market conditions, but its capital, asset quality and profitability ratios have been among the strongest for European banks.
Business Description
AS OF 19 Feb 2026- Headquartered in Zurich, Switzerland, UBS has private, corporate and institutional clients worldwide and retail clients in Switzerland. It is one of the world's largest wealth managers.
- It completed the acquisition of CS on 12 June 2023. It has merged CS’s domestic Swiss bank (Credit Suisse Schweiz AG) with its own domestic bank (UBS Switzerland AG) in 2024, keeping the CS brand “for the time being”.
- CS’s holding company (Credit Suisse Group AG) has been merged into UBS Group AG, so that the group has a single holding company, and the operating subsidiaries, including UBS AG and Credit Suisse AG, were merged on 31 May 2024.
- UBS operates through its Corporate Center and four business divisions: Global Wealth Management, Personal & Corporate Banking, Asset Management, and the Investment Bank, plus a new Non-core and Legacy division following the acquisition of CS.
- The Investment Bank has been restructured in recent years to scale back fixed income trading and focus on equities trading and origination & advisory business.
Risk & Catalysts
AS OF 19 Feb 2026The proposed amendments to the Swiss ‘Too Big To Fail’ capital and TLAC framework by the Swiss authorities could result in substantially higher capital requirements for UBS.
The decision of the Swiss Federal Administrative Court in October 2025 that the write-down of Credit Suisse AT1s by FINMA in March 2023 was unlawful creates uncertainty about any possible liability for UBS.
A French court imposed fines and civil damages of €4.5 bn ($5.1 bn) in February 2019, which UBS appealed. The French Supreme Court overturned the penalties and damages in November 2023, and the case has been remanded to the Court of Appeal for a retrial.
Key Metric
AS OF 19 Feb 2026| $ mn | 4Q25 | Y25 | Y24 | Y23 | Y22 |
|---|---|---|---|---|---|
| Return On Equity | 5.3% | 8.9% | 6.0% | 38.4% | 13.0% |
| Total Revenues Margin | 3.0% | 3.1% | 3.0% | 2.9% | 3.1% |
| Cost/Income | 84.7% | 81.1% | 84.8% | 95.0% | 72.1% |
| CET1 Ratio (Transitional) | 14.4% | 14.4% | 14.3% | 14.3% | 14.2% |
| CET1 Ratio (Fully-Loaded) | 14.4% | 14.4% | 14.3% | 14.4% | 14.2% |
| Leverage Ratio (Fully-Loaded) | 5.6% | 5.6% | 5.8% | 5.4% | 5.7% |
| Liquidity Coverage Ratio | 183% | 183% | 188% | 216% | 164% |
| Impaired Loans (Gross)/Total Loans | n/m | 0.0% | 0.8% | 0.4% | 0.4% |
CreditSight View Comment
AS OF 18 Feb 2026We have Market perform recommendations on UBS AG (operating bank) and UBS Group (holding company) having revised the HoldCo recommendation from Underperform in August 2024. We revised our recommendation on its AT1s from Fair to Rich in January 2026. Its rescue and takeover of Credit Suisse in March 2023 was a seminal event that has had major consequences for UBS’s strategy and financial performance, as well as carrying substantial execution risk. However, the integration is on track, and UBS’s performance has been steadily improving. Capital, asset quality and liquidity all look strong, although Swiss regulatory capital requirements are set to increase significantly in coming years and have created uncertainty over UBS’s capital position..
Recommendation Reviewed: February 18, 2026
Recommendation Changed: August 14, 2024
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Fundamental View
AS OF 11 Feb 2026Shinhan FG was the best-managed of the large Korean financial groups over many years. During the Asian Financial Crisis, it took advantage of the opportunity to acquire competitors and other businesses, increasing its scale and expanding its business lines.
Its performance has been more variable in the past few years. After a bumpy 2020, it had a better FY21 and FY22, thanks to rising interest rates. However, operating performance turned weak again in FY23, and its FY24 profit growth was softer than peers, impacted by non-bank performance. FY25 witnessed some improvement.
In addition to owning a Big 4 bank in Korea, Shinhan FG also has a diversified non-banking business portfolio, including a leading credit card company and a top 10 securities firm.
Business Description
AS OF 11 Feb 2026- Shinhan Financial Group (Shinhan FG) is one of Korea's most diversified financial groups and the holding company of the second largest Korean bank - Shinhan Bank. It also has credit cards, securities, asset management and insurance subsidiaries.
- Shinhan Bank was set up in 1982 with seed capital from Korean residents in Japan. It was more professionally managed than the heavily politicised older banks and came through the 1997 Asian Financial Crisis in relatively good shape, taking the opportunity to acquire the larger and much longer-established Chohung Bank in 2003.
- In 2007, it made another timely acquisition, buying LG Card from its creditors after it failed during the 2003 Korean consumer lending crisis. Shinhan Card is the largest card issuer in Korea.
- Shinhan is also looking for overseas opportunities where growth is strong and Korean businesses have a presence, with a focus on Vietnam (where Shinhan Card also bought a consumer finance business in 2019) and Indonesia.
Risk & Catalysts
AS OF 11 Feb 2026As one of Korea’s “Big Four” financial groups, we believe Shinhan FG would likely receive governmental support if needed.
Asset quality pressure has been rising from domestic real estate project financing at non-bank subsidiaries, with credit costs rising from very low levels.
Loan growth is expected to be more challenging given tighter regulation on mortgage lending like its peers.
Profit growth may encounter challenges if there is volatility in the KRW, which could lead to significant FX losses.
Key Metric
AS OF 11 Feb 2026| KRW bn | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Pre-Provision Profit ROA | 1.11% | 1.10% | 1.23% | 1.20% | 1.18% |
| ROA | 0.66% | 0.72% | 0.66% | 0.63% | 0.67% |
| ROE | 9.2% | 10.0% | 8.6% | 8.4% | 9.1% |
| Provisions/Average Loans | 0.28% | 0.34% | 0.57% | 0.51% | 0.46% |
| NPL Ratio | 0.39% | 0.41% | 0.56% | 0.71% | 0.72% |
| CET1 Ratio | 13.10% | 12.79% | 13.17% | 13.02% | 13.33% |
| Equity/Assets | 7.3% | 7.6% | 7.8% | 7.6% | 7.4% |
| Net Interest Margin | 1.81% | 1.96% | 1.97% | 1.93% | 1.90% |
CreditSight View Comment
AS OF 09 Feb 2026Shinhan FG is one of the four nation-wide commercial banking groups in Korea, with a leading credit card arm. As a systemically important bank, government support is assured. It had over many years the best operating track record, but lost its way and KB and Hana caught up; its performance was inconsistent for a few years but has improved recently. Its FY25 returns remained high and just behind KBFG. Its CET 1 ratio was also behind KBFG and close to Hana. The bank LCR and NSFR are low at 105/109% (3Q25). It NPL coverage ratio has declined but still decent at 126%, and it plans to lower the CET 1 ratio to slightly above 13%. We have an Underperform recommendation on it on tight valuations.
Recommendation Reviewed: February 09, 2026
Recommendation Changed: October 31, 2025
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