STARM shifts to higher-margin hire-purchase and digital lending for profit growth
Hire-purchase pivot lifts profit despite flat revenue STARM is growing its hire-purchase loans (15% of portfolio) with 15-16% margins and faster capital turnover, while car title loans (85%) stay weak. This mix shift should lift 2026 profit above last year's 84 million baht even if revenue is flat.
This is the core profit driver behind STARM's expected earnings growth and explains why profit rises without revenue growth.
AI and digital lending investment targets 10%+ revenue growth STARM is deploying loan origination and management systems in H2 2026, adding AI credit checks and mobile/web lending by 2028. This should speed approvals, cut costs, and support at least 10% revenue growth in 2026 and a new long-term business line.
Technology investment is a major strategic push that supports future revenue and efficiency, directly affecting STARM's growth outlook.
Thailand Post partnership widens loan distribution STARM signed an MOU with Thailand Post to offer hire-purchase, cash loans, and insurance through its nationwide branches and digital platform. This expands customer reach, especially for SMEs and online sellers, supporting loan demand and fee income.
The partnership is a concrete new channel that can increase loan volume and customer access, a clear positive for future revenue.
Asset quality improves, NPLs fall below 4% STARM cut non-performing loans to 3.1% in Q2 2026 from 4.9% at end-2025, with NPLs now around 4%. Lower bad loans reduce credit costs and support profit, while cautious lending and risk-based down payments protect the portfolio.
Falling NPLs directly lower credit costs, a key reason profit is expected to grow even with flat revenue.