On Monday, the share price of Kasikornbank Public Company Limited (SET: KBANK) at the time of 10:48 a.m. was at THB 243, a THB 1.00 or 0.41% increase.
The share price of Krung Thai Bank Public Company Limited (SET: KTB) was at THB 43.25, a THB 0.25 or 0.58% increase.
The share price of Kiatnakin Phatra Bank Public Company Limited (SET: KKP) was at THB 118.50, a THB 1.50 or 1.28% increase.
Meanwhile, the share price of TMBThanachart Bank Public Company Limited (SET: TTB) reached the highest level at THB 2.76 on 10:02 a.m., before dipping back to around unchanged level.
KGI Securities (Thailand) stated that the banking sector’s performance in the third quarter of 2026 indicates a recovery trend, particularly in lending operations where improved net interest margins (NIM) were sufficient to offset slowing fee income.
The analyst highlighted an improvement in asset quality, with the non-performing loan (NPL) coverage ratio rising despite lower provisioning, led by Bangkok Bank Public Company Limited (SET: BBL), TTB, KBANK, and KTB. Additionally, NPL trends remained relatively stable quarter-on-quarter and decreased 1% year-on-year. Banks signaled that provisioning expenses likely peaked in the third quarter of 2026 and have the potential to decline in the fourth quarter of 2026.
Overall loan growth expanded 0.6% QoQ and increased 3.3% year-to-date. KTB posted the most notable loan growth at 1.5% QoQ and 5% YTD, driven by government loans.
Meanwhile, BBL’s expansion was driven by large corporate loans. The new lending strategies of KBANK and SCB X Public Company Limited (SET: SCB) will focus on low-risk business segments to maintain low provisioning levels. TTB and TISCO Financial Group Public Company Limited (SET: TISCO) will focus on expanding niche retail lending to boost margins. NIM improved across nearly all banks, except KBANK and KTB, where NIM remained relatively flat due to growth in low-yield lending. On the other hand, KKP, TISCO, and TTB saw NIM expand for two consecutive quarters due to lower funding costs.
Fee income in the third quarter of 2026 fell 1% QoQ as the Bank of Thailand’s (BOT) new retail business fee standards took effect. However, fee income is expected to resume growth during the fourth-quarter high season.
KGI maintains an “Overweight” rating on the banking sector, selecting KBANK, KTB, KKP, and TTB as top picks due to their strong growth profiles, ability to withstand volatility, and attractive dividend yields.
