Message From Board of Directors

On behalf of the Board of Directors of Thanachart Capital Public Company Limited, we are pleased to present the operating results of the Company and its subsidiaries for the year 2025. This report also reflects our outlook on the economic conditions, future business trends, and the Company’s sustainability initiatives. Our objective is to ensure that shareholders and all stakeholders receive comprehensive and transparent information.

Economic Conditions in 2025 The Thai economy expanded by 2.4 percent, a slowdown from the 2.9 percent growth recorded in the previous year. This reflected an uneven recovery facing several structural constraints. Economic growth was primarily driven by the export sector, which saw accelerated shipments during the first half of the year ahead of the implementation of U.S. import tax measures. While private investment improved, it continued to face structural challenges affecting competitiveness. Private consumption grew at a decelerating pace, weighed down by elevated household debt levels and fragile consumer confidence. Additionally, while the tourism sector remained a key pillar for the Thai economy, the recovery was lower than expected due to a decline in Chinese tourist numbers, preventing the service sector from recovering to its full potential. With regard to economic stability, the headline inflation rate in 2025 was -0.1 percent, aligned with the gradual domestic recovery. This prompted the Monetary Policy Committee to gradually reduce the policy rate throughout the year to ease financial conditions and bolster the recovery of both the business sector and households. Against this backdrop, the financial business sector had to continuously adapt to manage risks while seeking new business opportunities within a stringent regulatory framework and meeting the increasing expectations of stakeholders.

Thanachart Group’s Performance in 2025 The Company and its subsidiaries were able to maintain stable business operations amid a challenging economic environment. Specifically, the Company and its subsidiaries registered consolidated net profit of 8,264 million baht, with net profit attributable to the Company of 7,750 million baht. This represented an increase of 1,095 million baht, or a growth of 16.45 percent, from the previous year, demonstrating efficiency in investment management and appropriate risk management within Thanachart Group. These operating results were largely underpinned by the robust performance of key subsidiaries and associated companies, as follows:

• Ratchthani Leasing Public Company Limited registered net profit based on consolidated financial statements of 1,148 million baht, reflecting a growth of 43.50 percent from the previous year. Although the loan portfolio experienced a strategic contraction in line with a cautious lending policy, the operating results were underpinned by efficient financial cost management and enhanced asset quality.
• Thanachart Insurance Public Company Limited registered net profit of 1,077 million baht, reflecting a growth of 83.48 percent from the previous year. This growth was driven primarily by higher insurance premium income, stringent underwriting quality control, risk management through reinsurance, and investment income, notwithstanding the impact of the severe year-end flooding in Hat Yai District.
• The share of profits from investments in associated companies, accounted for under the equity method, amounted to 5,707 million baht. This reflected an increase driven by the improved operating performance of the associated companies.

Furthermore, the Board of Directors prioritizes good corporate governance, including enhancing stability and sustainability through information technology. Emphasis is placed on developing work systems, harnessing emerging technologies to enhance operational efficiency and achieve information security on par with international standards. The Board also emphasizes sustainable development across Environment, Social, and Governance (ESG) dimensions, in compliance with the guidelines of the Stock Exchange of Thailand and other relevant organizations promoting sustainability. The initiatives include fostering ESG knowledge among employees, alongside the implementation of tangible resource efficiency initiatives as well as the social and environmental care appropriate for Thanachart Group’s business operations. In 2025, the Company received a “SET ESG Rating” of “AA” from the Stock Exchange of Thailand and was selected for the sustainable stock list for the third consecutive year, reflecting significant strides in strengthening sustainable business operations. Additionally, Thanachart Group continues to prioritize transparent business practices by sustaining its participation in the Thai Private Sector Collective Action Coalition Against Corruption (CAC) for over 10 years. This demonstrates the Group’s unwavering commitment to good governance and genuine responsibility toward all stakeholders.

In light of the growth in operating results and the Company’s commitment to providing consistent returns to shareholders while maintaining financial resilience to support the implementation of future business plans, the Board of Directors has resolved to propose that the shareholders' meeting consider and approve a dividend payment from the 2025 operating results at a rate of 3.50 baht per share, up from the previous year’s dividend of 3.30 baht per share. The consideration for this dividend payment is based on operating results, capital position, liquidity, and strategic alignment to ensure a sustainable balance between shareholder returns and the Group’s long-term growth.

With regard to the 2026 outlook and operational direction, the Office of the National Economic and Social Development Council (NESDC) expects the Thai economy to expand by 1.5 - 2.5 percent, with a median rate of 2.0 percent. This growth is driven by public investment, a gradual recovery in private consumption, and private investment in high-value-added industries. However, the Thai economy continues to face uncertainties as a result of the global economic situation, geopolitical conflicts, climate change, as well as household debt, and the fragility of certain business sectors. Against this backdrop, Thanachart Group will approach its 2026 business operations with focus on prudence. The emphasis will be placed on optimizing the investment portfolio in alignment with economic directions and business cycles, maintaining asset quality, and ensuring the financial strength of the subsidiaries under Thanachart Group. This will be coupled with seeking investment opportunities in the financial sector and related businesses that have the potential to generate sustainable returns in the long term. Additionally, Thanachart Group will place emphasis on enhancing operational efficiency through the strategic utilization of technology and digital solutions, alongside effective risk management to address economic volatility and strike a balance between growth and long-term stability. This approach is intended to deliver sustainable value for shareholders as well as all stakeholder groups.

On this occasion, the Board of Directors would like to thank all shareholders, customers, business partners, and employees for their support and collaboration in driving Thanachart Group forward throughout the past year. Every member of the Board, management, and staff will continue to perform their duties with integrity, prudence, and to the best of their knowledge and abilities to steer the organization toward resilient and sustainable growth, while safeguarding the best interests of the Company, shareholders, and all stakeholders moving forward.