Citi has maintained its “Buy” recommendation on TMBThanachart Bank Public Company Limited (SET: TTB), highlighting the recent decline in share price as a favorable entry point for investors. Citi points to ING’s ongoing reduction of its stake in the bank, which fell from 23.5% to 19.5% in June 2026, with ING recently announcing another planned decrease to 11.6% in August 2026.
The offer price of THB2.64–2.70 per share suggests a dividend yield of 6.8–6.9%, according to Citi’s estimates. If TMBThanachart reallocates its remaining THB14 billion share buyback budget to special dividends (which would add THB0.04 per share from 2026 to 2029), the projected dividend yield would be 6.5% at a share price of THB2.80, based on Citi’s earnings forecasts and a 59% ordinary payout ratio.
Citi believes the larger free float resulting from ING’s reduced holding may boost foreign investor participation and average daily trading volume. This follows a trend observed in a similar case involving an ANZ stake sale in AMMB in 2024. The move also addresses domestic investor concerns about the effect of share buybacks on free float.
Stable risk-adjusted returns, a strong wealth management division, and the potential for increased dividend payouts are seen as core reasons for investment following TMBThanachart’s second-quarter 2026 results. Citi maintains its target price for the bank at THB3.22.
