Seven major Thai banks report record-breaking revenues

However, analysts warn that a potential interest-rate cut by the Bank of Thailand could put pressure on banking stocks' net interest margins (NIMs).

Despite the volatile Thai stock market, investing in bank stocks remains attractive thanks to their high dividend yields and stable growth. While some stocks have seen significant price increases, their valuations are still relatively reasonable.

Wijit Arayapisit, strategist at Liberator Securities, noted that banking stocks offer attractive dividend payouts and are less affected by interest-rate fluctuations compared with other sectors. However, he cautioned that a potential rate cut by the Bank of Thailand could negatively impact banks' NIMs and profitability.

The seven major Thai banks, namely SCB, KBANK (Kasikorn Bank), KTB (Krungthai Bank), BBL (Bangkok Bank), KKP (Kiatnakin Phatra Bank), TTB (TMBThanachart), and BAY (Bank of Ayudhya, orKrungsri), have all reported strong financial performance. 

According to the results of the consensus survey, the bank with the highest dividend payments from the beginning of 2024 to date is SCB, which has issued dividends twice, totalling 9.84 baht. This represents an increase of 2.15 baht, or 27.95%, compared with the previous year's total dividend of 7.69 baht. 

In 2024, KBANK has also made two dividend payments, amounting to a total of 7.50 baht – a significant increase of 3.50 baht, or 87.5%, from last year’s total of 4.00 baht. Similarly, BBL has paid dividends twice this year, totalling 7.00 baht, which is an increase of 2.00 baht, or 40%, from the previous year's dividend of 5.00 baht. 

On the other hand, TTB reported the lowest dividend payment among the seven banks, at a total of 0.12 baht. This reflects a modest increase of 0.017 baht, or 16.50%, from last year's total dividend of 0.103 baht.

While the potential interest-rate cut may pose challenges for banks' profitability, their solid financial foundations and dividend yields make them a compelling investment option for those seeking long-term returns. Diversifying your portfolio with bank stocks can provide stability and income generation.

Bank Stock Dividend
SCB
Dividend: 9.84 Baht
Financial Period: 1 Jan-31 Dec 23 (7.84 Baht)
Source of Dividend: Dividend from Net Profit and Dividend from Retained Profit (2.00 Baht)
Stock Price: 110.00 Baht
P/E: 8.79 times

KBANK
Dividend: 7.50 Baht
Source of Dividend: Dividend from retained earnings 
Share Price: 151.50 Baht
P/E: 7.64 times

BBL
Dividend: 7.00 Baht
Source of Dividend: Dividend from retained earnings 
Share Price: 154.00 Baht
P/E: 6.89 times

KKP
Dividend: 3.00 Baht
Operating Period: 1 Jan-31 Dec 23 (1.75 Baht) and 1 Jan-30 Jun 24 (1.25 Baht)
Source of Dividend: Dividend from Net Profit 
Stock Price: 52.50 Baht
P/E: 10.58 times

KTB
Dividend: 0.868 Baht
Source of Dividend: Dividend from retained earnings 
Share Price: 21.50 Baht
P/E: 7.85 times

BAY
Dividend: 0.85 Baht
Source of Dividend: Dividend from retained earnings 
Share Price: 26.25 Baht
P/E: 6.29 times

TTB
Dividend: 0.12 Baht
Operating Period: 1 Jan-31 Dec 23 (0.055 Baht) and 1 Jan-30 Jun 24 (0.065 Baht)
Source of Dividend: Dividend from Net Profit 
Stock Price: 1.83 Baht
P/E: 9.07 times