TTB readies THB21 billion for share buyback over three years

WEDNESDAY, JANUARY 29, 2025
TTB readies THB21 billion for share buyback over three years

First phase of bank’s share buyback, which aims to create added value for shareholders, scheduled to run from February 3 to August 1

TMBThanachart Bank (TTB) has announced a share buyback programme worth 21 billion baht over 3 years under its business restructuring and balance sheet adjustment plan.

TTB said on Tuesday that it had informed the Stock Exchange of Thailand that the bank's board of directors had approved a share repurchase programme with a budget of 21 billion baht for a period of 3 years, from 2025 to 2027.

The first phase of the programme, to take place between February 3 and August 1 this year, will cover a buyback of not more than 3.5 billion shares or 3.6% of all issued shares, under a budget of 7 billion baht, the bank said.

The share buyback will be done through automatic matching via the stock exchange's trading system between these dates, it added.

TTB chief executive officer Piti Tantakasem said the share buyback is one of several projects under the bank’s capital management plan, which is designed to create added value for shareholders through business restructuring and adjustment of the bank’s balance sheet to make it more appropriate.

He added that as of the end of 2024, TTB had a capital ratio of 19.3%, which is at the same level as comparable banks (domestic systemically important banks: D-SIBs), and significantly higher than the minimum requirement of 12% set by the Bank of Thailand.

“This provides an opportunity for the bank to reduce the excess without affecting the stability and future business plan, while also benefitting the shareholders,” he said.

He explained that after the share repurchase, shareholders will benefit from an increase in return on equity (ROE) and net earnings per share (EPS) following a decrease in the book value of shareholders’ equity and a decrease in the number of shares circulating in the stock market, compared to the current ROE level as of the end of 2024 at 9.0% and EPS at 0.22 baht.

TTB estimates that the capital adequacy ratio will remain above 19%, which is sufficient to facilitate loan growth according to its business plan.

The bank will later announce the periods for the second and third phases of share buyback for the remaining 14 billion baht of the budget.

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