Kasikorn Securities (KS) said TMBThanachart Bank Public Company Limited (SET: TTB)’s strategic partnership with DBS could support TTB’s wealth-management expansion in Thailand. However, the broker kept its earnings forecasts unchanged as key details on client transfers, AUM and commercial terms have not yet been disclosed.
TTB announced the cooperation with DBS Bank Ltd. on August 31. In the initial phase, Thai baht-denominated investment portfolios of eligible DBS Vickers Securities Thailand clients will be moved to ttb wealth, subject to individual client consent. The transfer process is expected to finish by May 2027.
DBS will continue to serve private-banking clients with foreign-currency portfolios, while DBSVT’s Equity Institutional Sales business will continue operating. The two banks also plan to offer DBS’ global investment products and solutions to TTB clients in the future.
KS viewed the deal as strategically positive for TTB, saying it could help the bank grow its affluent and high-net-worth customer base. The partnership may also increase fee income and support capital-light revenue, while reducing risks compared with acquiring a client portfolio outright.
The broker said DBS’ global product platform could broaden TTB’s investment offering without requiring the bank to build all overseas investment infrastructure by itself. It also noted potential cross-selling opportunities across investment products, foreign exchange, deposits, insurance and other wealth services.
Still, KS said the deal is unlikely to affect TTB’s 2026 earnings immediately. The broker said investors still need clarity on the number of eligible clients, the expected transfer rate, DBS’ actual AUM and the revenue-sharing or commercial structure between the two banks. Client approval is another key execution risk, as not all eligible AUM may transfer to TTB.
Citing a Global Private Banker report from Sept. 5, 2024, KS said DBS had around Bt100 billion in Thai wealth-management AUM and targeted Bt300 billion by 2026. Assuming current AUM of about Bt200 billion, annual fees of 1% of AUM and a net profit margin of 20–30%, KS estimated every 10% portfolio transfer would lift TTB’s 2027 earnings by about 0.18–0.28%. A full transfer would raise TTB’s 2027 profit outlook by around 1.85–2.77%, according to KS.
TTB’s first-half 2026 fee income was led by bancassurance at 42%, followed by mutual funds and structured products at 20%, credit cards at 18%, trade finance and foreign exchange at 15%, letters of guarantee at 3% and loan-related fees at 2%. In the second quarter, net interest income made up 71.3% of revenue, with non-interest income at 28.7%.
KS maintained its “Neutral” rating on TTB and target price of Bt2.81, based on a dividend discount model. The target implies 5.70% downside from the Aug. 31 closing price of Bt2.98.
The broker forecasts TTB’s net profit at Bt22.13 billion in 2026 and Bt21.63 billion in 2027. KS said it will review its estimates after receiving more information on DBS’ AUM, transfer assumptions and the commercial terms of the partnership.
