Krungsri Securities (KSS) maintains its BUY recommendation on Kasikornbank Public Company Limited (SET: KBANK), reiterating its 2026F target price of THB 230 per share. KBANK remains a Top Pick in the Thai banking sector, alongside Krung Thai Bank Public Company Limited (SET: KTB), for which KSS also recommends BUY with a target price of THB 38.
The brokerage house’s positive view on KBANK is underpinned by several key factors. Firstly, the bank is expected to sustain its annual dividend, offering an attractive dividend yield of around 7%. For the second half of 2025, KBANK’s pay out dividend of THB 12 per share, translates to a 6% yield. The ex-dividend (XD) date is set for April 21, 2026. Secondly, the estimated total dividend payout ratio for the fiscal year 2026, including potential special dividends and share buybacks, is forecasted at 85%, a notable increase from the 73% reported for FY2025. This higher payout reflects management’s confidence in the bank’s robust capital position. Third, in addition to its strong returns to shareholders, KBANK’s asset quality management continues to be sound, providing further stability in a volatile economic environment.
Looking at short-term performance, for the first quarter of 2026, KSS’ net profit forecast for KBANK stands at THB 11.4 billion. This represents a 17% year-on-year decline, primarily due to net interest margin (NIM) compression. Nonetheless, on a quarter-on-quarter basis, net profit is expected to rise by 11% on the back of lower operating expenses (OPEX) and decreased provisioning for expected credit losses (ECL).
