Mr. Payong Srivanich, Chief Executive Officer of Krungthai Bank (SET: KTB), revealed that the bank’s Annual General Meeting (AGM) previously approved the share buyback program in principle, positioning it as a capital management tool. However, he noted that the timing of any action would depend on market conditions and suitability.
“KTB is not rushing into a share buyback; every financial institution has its unique context and strategy,” Mr. Payong emphasized. “We will consider what is most appropriate and beneficial for shareholders, taking into account our readiness and alignment with market circumstances before making any decision.”
Regarding the recent announcement of an interim dividend payment—THB 0.43 per share, with the ex-dividend date set for November 11—Mr. Payong stressed that this policy underscores the bank’s priority to manage capital prudently. KTB’s common equity tier 1 (CET1) ratio is currently robust, and investor feedback has highlighted the importance of strong capital management to support long-term growth, a recommendation the bank has adopted to ensure a resilient capital structure in line with business direction.
In terms of establishing a joint venture asset management company (JV AMC), Mr. Payong said that KTB has already studied the mechanism but is awaiting guidelines from the Bank of Thailand (BOT) regarding JV AMC regulations and possible forms of support. He acknowledged that setting up a JV AMC would be a valuable tool for debt management and facilitating business adaptation during periods of transition.
“KTB has consulted several asset management companies to explore JV AMC feasibility and operational modalities. It’s one of the mechanisms to improve debt management efficiency within the system,” Mr. Payong added.
Recently, Krungthai Bank’s management held an analyst meeting with representatives from various securities firms, sharing insights into the bank’s strategic direction and key financial metrics.
CGS International Securities (Thailand) (CGSI) stated that KTB aims for a double-digit return on equity (ROE) within the next three years. The bank’s latest interim dividend payout from the first half of 2025 reflects its commitment to regular shareholder returns and its ongoing interim payout policy. Management remains confident that the company can maintain a 50% dividend payout ratio through 2026.
Additionally, Krungthai Bank is considering a share buyback program to enhance shareholder returns and better manage its capital adequacy ratio, which stood at 21.8% at the end of 3Q25.
The analyst expects KTB’s non-interest income to soften in 4Q25 on both a sequential and annual basis, given last year’s high base. Still, management expects operating expenses to remain stable, targeting a cost-to-income ratio of 40-42% in 2025-2026. The bank plans to grow fee income from wealth management services to sustain healthy fee-based income growth through 2026-2027.
CGSI maintains a target price of THB 30.50 per share for KTB, representing a price-to-book value (P/BV) of 0.86x for 2026, and continues to recommend ‘Buy.’ The strong dividend yield of 6.4-6.6% for 2025-2027 (compared to the ASEAN banking sector average of 5.8%) and an attractive P/BV of 0.77x in 2026 (versus the ASEAN average of 1.3x) are seen as key positives.
The brokerage firm also assumes KTB will maintain a 49% dividend payout of net profit for 2025-2027, supported by its high capital adequacy ratio, which should cushion potential asset quality deterioration.
KGI Securities (Thailand) noted KTB surprised the market with an interim dividend of THB 0.43 per share, equating to a 26% payout ratio for 1H25. The bank aims to pay dividends twice a year as part of its long-term policy, which also reflects a strategic capital management approach to sustain higher long-term ROE. Alongside dividend policy changes, KTB is exploring further methods to boost ROE, including potential mergers and acquisitions (M&A) and share buybacks.
KGI estimates an optimal Tier 1 capital ratio at 15-16%, while KTB’s current CET1 of 18.9% presents room for higher dividends compared to 2024. The analyst subsequently raised its 2025 net profit forecast by 8% to THB 47.84 billion and lifted the target price from THB 28.50 to THB 31.50 per share.
Maybank Securities (Thailand) also recommended a ‘Buy’ rating for KTB, with a revised price target of THB 30 per share, based on a 2026 P/BV of 0.86x and an ROE of 9.4%, up from THB 26.50. The broker highlights KTB’s strong position to sustain high returns for both dividends and ROE in a falling interest rate environment.
The bank’s substantial NPL coverage ratio of 202% and low-risk loan portfolio should allow it to reduce credit costs, compensating for narrowing net interest margins (NIM) in 2026. KTB will begin paying dividends twice annually from 2025 and is expected to announce a share buyback in 2026. KTB offers a dividend yield of approximately 6%, based on a payout ratio of 50% of net profit.
Phillip Securities (Thailand) also noted that KTB’s buyback program remains under board review and will be implemented when market conditions are favorable, though it is unlikely to roll out this year. The analyst forecasts KTB’s 2025 net profit at THB 48 billion, up 9.3% year-on-year, and maintains a ‘Buy’ rating.
Following recent meetings with analysts, 17 brokerages now cover KTB, assigning a consensus target price of THB 29.75 per share, with individual targets ranging from THB 26.00 to THB 33.00.
