Most major Thai banks reported weaker-than-expected quarterly earnings on Thursday as they booked higher provisions for bad debt, with loans weak amid a tepid recovery in the country's economy.
Growth in Southeast Asia's second-largest economy has lagged its regional peers despite the military government's efforts to ramp up spending and investment.
Bangkok Bank, the top lender by assets, reported a first-quarter net profit of 8.3 billion baht, down 0.15% from a year earlier.
That was below the average forecast of 8.6 billion baht by four analysts polled by Reuters.
The bank's set aside 5.8 billion baht in the March quarter, a 59% jump in provisions, as non-performing loans (NPLs) rose to 3.5% of lending from 3.2% at the end of 2016.
The bank's lending contracted 0.9% in the first quarter from the previous three months, it said. It blamed weak domestic activity and highlighted risks, saying "the economy, despite having a better outlook, still faces a considerable degree of uncertainty".
Third-ranked Siam Commercial Bank's net profit rose 1% rise in the first quarter to 11.9 billion, but that missed market expectations. It set aside 5 billion baht in the March quarter, when NPLs rose to 2.7% of lending.
The fourth-biggest lender, Kasikornbank, reported a smaller-than-expected 5.4% rise in first-quarter net profit.
Krung Thai Bank, the second-largest lender, reported a 13% rise in first-quarter net profit as provisioning expenses fell 13.5 percent.
But its non-performing loans rose to 4.36% of lending from 3.97% at end-2016, raising concern its provisioning will rise later this year.
Fitch Ratings said in January Thai banks' profits were likely to remain under pressure from asset-quality issues and slow fee-income growth.