Piti Tantakasem, CEO of TMBThanachart Bank Public Company Limited (SET: TTB), disclosed that the bank’s share buyback plan, totaling THB 21 billion over a three-year period (2025-2027), is underway.
For 2025, the bank has allocated THB 7 billion for the initiative. According to current regulations, once a buyback program is announced, it must be completed within six months. During the initial six months (February 3, 2025 – August 1, 2025) of the current program, the bank has already used approximately THB 5.1 billion to repurchase 2,688,184,700 shares.
The CEO stated that the timing and size of subsequent buyback tranches will depend on prevailing factors such as market conditions—especially in times of weakness—as well as on newly adjusted buyback policies. These revised guidelines, currently under review and in line with the policy direction of Deputy Prime Minister and Finance Minister Pichai Chunhavajira, aim to offer greater flexibility.
Under previous rules, after completing a buyback, the bank would have to wait six months before commencing another tranche. But under the new rules being considered, the waiting period is removed, allowing TTB to act more nimbly and intervene to support share prices at more opportune times, Piti said.
Regarding interim dividends, Piti stated that TTB’s board will evaluate the dividend payment for the first half of 2025, with the announcement to be made no later than October 2025.
Piti further commented on the business outlook for the banking sector, noting that economic uncertainty is prompting banks to exercise caution in lending to ensure stable earnings.
Ordinarily, bank profits would be recycled to support loan portfolio expansion. However, given the challenging environment, TTB is adjusting its approach—returning part of its profits to shareholders via dividends and allocating another part toward share buybacks.
Equally important, the bank continues to prioritize provisions for bad debt, aligning with prevailing economic risks, in a similar manner to many other commercial banks.
Thai commercial banks remain financially strong and stable despite facing external volatility, Piti stressed.
Krungsri Securities (KSS) forecasts that TTB will pay a first-half 2025 dividend of THB 0.065 per share, implying a 3.4% yield based on yesterday’s closing price of THB 1.91. The full-year dividend yield is expected to average 7.1%.
Kasikorn Securities (KS) maintains a “BUY” rating on TTB with a target price of THB 2.16, citing a robust return on equity (ROE) of up to 10% in 2026-2027. The broker highlights TTB’s strong asset quality, high provisioning levels, still-low non-performing loan (NPL) formation, and promising opportunities for cross-selling additional products to its retail customer base.
The bank is projected to deliver an ROE of 9-10% in 2025-2026, underpinned by a dividend yield of 7.1% and a recurring buyback program of THB 7 billion annually, the brokerage concluded.
