On Monday at 11:39 AM (Bangkok time), the share price of TMBThanachart Bank Public Company Limited (SET: TTB) advanced by 2.05% or THB 0.06 to THB 2.98, with a trading value of THB 1.01 billion.
Mr. Piti Tantakasem, Director and Chief Executive Officer of TTB, disclosed that ING Groep N.V. (ING) has recently reduced its shareholding in TTB to 11.6%. He emphasized that this development would not affect the bank’s business operations. The representative from ING, who serves on TTB’s Board of Directors, will remain in their position for the remainder of their term, maintaining their role as stipulated.
Importantly, ING does not participate in the management of the bank. TTB’s operations continue to be led by an entirely Thai management team, which the bank has diligently developed and prepared over time. The business direction and strategic plans remain unchanged, with a continued focus on sustainable growth, according to the CEO.
Mr. Piti stated that the bank was not informed in advance regarding ING’s share sale. ING’s divestment of TTB shares was subsequently met with strong interest from international institutional investors, which he views as a positive signal. This reflects continued confidence from foreign institutional investors both in the Thai capital market and in TTB’s fundamentals.
Commenting on the landscape of the banking sector in Asia, Mr. Piti observed that in the past, global banks such as Citibank, HSBC, and Standard Chartered viewed the Asian market as an important opportunity due to the relatively lower competitiveness of local banks. However, he noted that domestic banks have now strengthened and become more competitive, leading to increased market share and a more prominent role for local players. This trend is visible in various countries, including Singapore and Malaysia.
Consequently, some global banks have shifted their strategies by reducing or divesting retail banking operations, instead focusing on areas where they have specific expertise and competitive advantages.
Regarding business spin-offs, Mr. Piti remarked that they do not always create additional value. If a rapidly growing business unit is separated from the parent bank, the remaining business may experience a slowdown in growth.
As for TTB’s share buyback program, under which a balance of THB 14 billion remains, Mr. Piti said the bank will consider repurchasing shares based on market conditions and stock price levels.
Should market conditions be unfavorable for a share buyback, TTB may utilize the allocated funds to increase dividend payments to shareholders, thereby benefiting investors in a different manner. TTB continues to prioritize effective capital management to deliver appropriate returns to its shareholders.
