BANKING Sector Report: 2Q25 Profit Growth Forecased to Outpace 1Q25

Posted:  Jun 20, 2025

  • Profit of listed banks in our coverage in 2Q25 is expected to perform better than in 1Q25, driven by favorable credit growth and stable NIM.
  • Credit growth continues to be supported mainly by corporate loans, thanks to sustained low-interest-rate environment, but this may limit NIM increase QoQ.
  • Asset quality has not yet shown a clear improvement trend, with NPL and Group 2 loan ratio of banking sector rising as of end-1Q25. Provisioning expenses in 2Q25 are expected to increase by approximately 10% YoY.
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