Kasikornbank Public Company Limited (SET: KBANK) and Bangkok Bank Public Company Limited (SET: BBL), two of Thailand’s largest commercial banks, have announced their dividend distribution plans for FY2025, drawing attention from investors and analysts alike.
KBANK has declared a final dividend of THB12 per share, consisting of a normal dividend per share (DPS) of THB10 and a special DPS of THB2. This total exceeds CGSI’s previous estimate of a THB10 dividend. Including the interim DPS of THB2 paid earlier, the bank’s total FY25 DPS amounts to THB14. This represents a payout ratio of 67% based on its FY25 net profit.
CGSI notes that the special dividend of THB2 per share is likely to be sustained for the FY26 forecast performance, which will further enhance shareholder returns. The agency maintains a ‘Hold’ rating on KBANK, with a 2026 fair value target price (TP) of THB190.
Meanwhile, Bangkok Bank has announced a final DPS of THB10, in addition to an interim DPS of THB2 paid in the third quarter of 2025. As a result, BBL’s total FY25 DPS will amount to THB12, a significant increase from the FY24 DPS of THB8.50. This brings its FY25 payout ratio up to 50%. However, this level remains below that of Thailand’s other major banks, whose payout ratios range between 67% and 80%.
CGSI points out that while BBL appears to be making efforts to improve its payout ratio, the bank has not communicated any mid-term return on equity (ROE) targets or specific plans for actively enhancing shareholder returns. CGSI believes that a 50% payout ratio is likely the maximum achievable for BBL in the near term. Consequently, it retains a ‘Reduce’ rating on BBL with a 2026 fair value target price of THB152.
