Over the past three months, banking stocks have continued to rise. Kasikornbank PCL (SET: KBANK) experienced a 24.33% increase in its share price; Bangkok Bank PCL (SET: BBL) gained 23.78%; Krung Thai Bank PCL (SET: KTB) saw its price surge 32%.
SCB X PCL (SET: SCB) advanced by 21.53%; TMBThanachart Bank PCL (SET: TTB) added 21.42%; TISCO Financial Group PCL (SET: TISCO) grew by 15.98%; and Kiatnakin Phatra Bank PCL (SET: KKP) posted a 34.81% gain.
Foreign investors have continuously purchased Thai stocks from the beginning of 2026 up to July 16, 2026, with net purchases totaling THB 64.18 billion. Notably, net buying was concentrated during July 1-16, 2026, at around THB 37 billion.
Examining non-voting depository receipts (NVDRs), which represent investment interests in Thai-listed securities, data shows that from the start of 2026 until July 16, 2026, there were significant purchases: KBANK at THB 21.4 billion baht, KTB at THB 5.99 billion, BBL at THB 4.78 billion, KKP at THB 4.02 billion, and TTB at THB 2.93 billion.
Payong Srivanich, President of KTB, stated that the banking sector—particularly large commercial banks—serves as a “proxy for the country’s economy” as it reflects all sectors within the economic system and represents Thailand’s image in the view of international investors. Thus, robust economic strength and growth opportunities further boost the appeal of banking stocks.
The three major factors underpinning foreign investor confidence in Thailand are: political stability and clear administrative authority conducive to long-term policy implementation; integration of public and private sector policies through key programs like Reinvent Thailand, the World Bank’s reports, and Board of Investment (BOI) initiatives; and finally, raising national standards through principles of good governance, transparency, rule of law, and efforts to join the OECD, supported by credit rating agency upgrades.
KTB emphasizes strengthening its fundamentals to create fair value for the business. The market capitalization, recently at THB 576,512.53 million as of July 15, 2026, reflects investor confidence and the bank’s growth prospects, rather than being set by management.
Therefore, the key role of the bank is to maintain strong business fundamentals and continually build trust and confidence, ensuring KTB remains a top choice for investors.
Regarding the possibility of a “special dividend” payout in upcoming anniversary years, Payong stressed that such dividends are solely at the discretion of the board of directors. Management does not influence this decision. He also reiterated that KTB is not just a financial institution but an important mechanism reflecting Thailand’s strength and potential to global investors.
For the second half of 2026, he identifies the main challenges as implementing effective government policies through collaboration between the public and private sectors, as well as legal and regulatory reform to enhance the competitiveness of Thai industries. Thailand’s unique strengths—being the ASEAN hub, maintaining neutrality, and possessing strong energy and food security—support long-term investment inflows.
Koraphat Vorachet, Assistant Director and Division Head of Research at Krungsri Securities (KSS), stated that commercial banks remain a key target for foreign capital. Although foreign shareholding in the main board (Foreign Room) is limited—sometimes preventing some banks from being included in MSCI indices—foreign investors have increasingly turned to NVDRs, which offer high liquidity.
He added that the banking sector has an extended runway for growth, supported by continued improvement in performance. The business models of Thai banks are evolving, mirroring those in Singapore, which successfully transformed revenue structures towards wealth management and private banking, leading to book value growth of twofold. Currently, wealth management contributes 25 – 35% of income for Thai commercial banks, compensating for losses in traditional transaction fees.
Moreover, investment in technology and data analytics, as well as adoption of artificial intelligence (AI), will further enhance operational efficiency and support net margins in the medium to long term. Thailand is well-equipped with electricity, water, land, and undersea cable infrastructure linking to Australia, and the banking sector is set to be a key industry leveraging these technologies for higher efficiency.
