On Tuesday at 11:01 AM (Bangkok time), the share price of Krung Thai Bank Public Company Limited (SET: KTB) rose by 4.03% or THB 1.25 to THB 32.25, with a trading value of THB 1.21 billion.
Phillip Securities (Thailand) noted that KTB is currently proposing options to its board regarding the management of capital funds. At the end of 2025, KTB’s capital adequacy ratio stood at 22.13%, with a Common Equity Tier 1 (CET1) ratio of 19.25%.
The brokerage indicated that there is potential for KTB to raise its dividend payout ratio to a level similar to that of Krungthai Card (KTC), which recently increased its ratio to 58.9%. This figure is higher than both historical payouts and previous expectations of 46%.
Phillip projects that KTB may set its 2025 payout ratio at 49%, likely resulting in a total dividend of 1.70 baht per share, which equates to an estimated dividend yield of 5.5%. The bank has already paid an interim dividend of 0.43 baht per share, leaving a remaining 1.27 baht per share for the second half, amounting to a 4.1% yield. Should KTB further increase the payout ratio, both the total dividend and yield could rise.
KTB is also targeting to keep its non-performing loan (NPL) ratio below 3.1% in 2025, down from 2.9% at the end of the year. The bank’s coverage ratio stands at 203.6%, which KTB considers excessive; the management believes an appropriate level would be around 170%. As a result, credit cost may likely be reduced to 75-115 basis points in 2026, from 114 basis points last year.
In addition, KTB has stated its readiness for virtual banking operations and may become the first among the three licensees to launch such services. The bank views the virtual banking segment as a way to attract customers underserved by traditional banks, which face regulatory and data limitations. KTB also identifies virtual banking, along with wealth management, as key drivers for future revenue growth.
