On Wednesday at 11:01 AM (Bangkok time), the share price of Krung Thai Bank Public Company Limited (SET: KTB) surged by 1.43% or THB 0.50 to THB 35.50, with a trading value of THB 1.41 billion.
Krungsri Securities (KSS) maintains its ‘Buy’ recommendation on KTB, keeping the 2026 target price at THB 38 per share and noting that KTB remains the top pick stock in the banking sector, alongside Kasikornbank (KBANK), for which the brokerage gives a ‘Buy’ recommendation and a target price of THB 230 per share.
Krungsri points out that KTB has significant support from its ability to maintain an annual dividend yield of around 6%. For the second half of 2025, the dividend payment is expected to total THB 2.24 per share, which represents a dividend yield of 6.4%, with the XD (Ex-Dividend) date set for April 10, 2026.
In addition, KTB is assessed as able to sustain its return on equity (ROE) at around 10%. The bank is also considered to have relatively low asset quality risk, due to the majority of its loan portfolio being in low-risk categories.
For the first quarter of 2026, Krungsri projects KTB will record a net profit of THB 11.5 billion, representing a decrease of 2% year-on-year, attributed to a slowdown in net interest margin (NIM) and a decline in gains on investments measured at fair value through profit or loss (FVTPL). However, net profit is expected to increase by 7% quarter-on-quarter, supported by a reduction in expected credit loss (ECL) provisions.
Total loan growth for 1Q26 is projected to expand by 2.0% from the previous quarter, with government lending as the main growth driver. The non-performing loan (NPL) ratio is expected to remain stable at 2.90%, the same as in the fourth quarter of 2025, reflecting manageable overall asset quality.
