TMBThanachart Bank (SET: TTB) reported a net profit of THB 5.0 billion for the second quarter of 2025, marking a 7% year-on-year and 2% quarter-on-quarter decline. Consensus across major brokers highlights a steady, if unspectacular quarter for the Thai bank, as capital management and shareholder returns take center stage.
JPMorgan maintained an “Overweight” rating with a target price of THB 2.15, noting that while TTB’s headline profit was 3% below JPMorgan estimates, core profit after tax credits came in at THB 3.9 billion, essentially stable quarter-on-quarter. Operating performance was generally resilient: the bank offset weakness in net interest margins (NIM) and fee income with robust treasury returns and other non-interest incomes. Loans held flat after six consecutive quarters of contraction, and asset quality showed slight improvement. However, the bank remains short of its full-year share buyback target of THB 7 billion, having completed just THB 3.9 billion so far. Unless an extension is approved, the buyback will halt in August, placing TTB’s capital management efforts under closer scrutiny. JPMorgan projects a solid total shareholder yield this year—around 9–10% (7% dividend yield + ~2-3% buyback yield)—with rising payout potential in coming years.
Citigroup kept a “Neutral” stance and a THB 1.83 target, remarking that TTB’s quarterly result was broadly in line, comprising 49% of consensus forecasts for the full year. Citi highlighted resilience in trading income and signs of stabilization in the used car segment, which helped absorb softness in net interest income and higher costs. The bank’s NIM stood at 3.07%, dipping modestly but remaining within full-year guidance. Citi also focused on the use of tax credits—THB 1.2 billion used in Q2, with THB 8.2 billion remaining through 2028. Asset quality stayed stable, with credit costs excluding overlays improving by 20 basis points as auto prices rebounded.
DBS echoed the “Buy” sentiment with a target of THB 2.22, pointing to sturdy shareholder returns despite a gently shrinking loan portfolio. Profit figures were in line with the market, and while asset quality remains manageable, DBS advised investors to prepare for a slower second half in 2025.
CLSA, meanwhile, is more cautious, retaining a “Hold” rating and a THB 1.90 target price. The broker attributes the earnings dip primarily to muted top-line growth as TTB focused on safeguarding its balance sheet rather than chasing loan market share. While returns for shareholders via buybacks and dividends are on track, the absence of loan growth tempers broader optimism.
