Foreign brokerages Citi and DBS have recently updated their perspectives on Thailand’s banking sector following the release of first quarter 2026 earnings.
Citi met with domestic investors in Bangkok, highlighting increased favor towards Krungthai Bank (KTB) and Kasikornbank (KBANK). Investors maintain expectations that Siam Commercial Bank (SCB) will rebound after a disappointing 1Q26, though there is limited visibility on Bangkok Bank’s (BBL) earnings and dividend payouts. TMBThanachart Bank (TTB) remains underappreciated, but Citi notes growing optimism around its dividend prospects.
Regionally, Citi points out that Thai banks have de-risked and accumulated provisions over the past three years. Their dividend yield spreads over government bonds are especially compelling. Additionally, if trends in rising wealth management fees hold, backed by a low interest rate environment and robust current account and savings account (CASA) ratios, Thai banks could see higher payout ratios and price-to-book reappraisals.
Citi reiterates its “Buy” ratings for KBANK, KTB, and TTB, while maintaining “Neutral” ratings on SCB and BBL.
Meanwhile, DBS has upgraded KTB from “Hold” to “Buy” and increased its target price to THB 38.50. DBS highlights potential for net interest margin (NIM) improvements and strong prospects for non-interest income (non-NII) growth. Expected credit losses (ECL) were front-loaded in 1Q26, signaling lower credit costs ahead. DBS also raised its FY26 earnings forecast for KTB by 6%, primarily on higher non-NII projections.
