Profile
Previous Close Price
Key Statistics
| Dec THB mn | 2024 | 2025f | 2026f |
|---|---|---|---|
| Pre-prov. Profit | 39,473 | 36,881 | 37,767 |
| Net Profit | 20,951 | 21,087 | 21,712 |
| Profit Gth (%) | 12.5 | 0.6 | 3 |
| PE (X) | 8.9x | 8.8x | 8.5x |
| Div Yield (%) | 6.8 | 6.8 | 6.8 |
| P/BV (X) | 0.8x | 0.8x | 0.8x |
Recent Developments
- 21 Apr 2025TMBThanachart Bank PCL: Weathering the storm
- 22 Jan 2025A well-equipped bank
- 21 Oct 2024TMBThanachart Bank PCL: Managing tomorrow today
- 20 Sep 2024TMBThanachart Bank PCL: ROE expansion well on course
- 23 Jul 2024The bank to bank on
- 20 Jun 2024TMBThanachart Bank: 2Q24F results to soften q/q
- 22 Apr 2024TMBThanachart Bank PCL: Well-prepared for uncertainties
- 21 Mar 2024TMBThanachart Bank: Strong 1Q24F results expected
- 22 Jan 2024TMBThanachart Bank PCL: Becoming more attractive
- 20 Oct 2023TMBThanachart Bank: Driven by NIM expansion
Our Views
Earnings cushioned by utilisation of tax credit. TBANK’s liquidation process was completed in Nov 2023 and resulted in an accounting loss from investment, which can be utilised as a tax shield for TTB within five accounting periods. As of Mar 2025, the remaining tax benefit was THB9.4bn, which can be utilised until 2028. With that, we expect TTB to maintain its earnings growth flat in FY25F, despite loan and NIM contraction, while keeping a high coverage ratio.
Attractive dividend yield and share repurchase programme to support share price. Given the current economic conditions, TTB continues its selective growth strategy, focusing on existing and quality customers, building digital capabilities, and efficiency improvement, while managing its capital position (mainly through dividend payment and share repurchase) to enhance ROE. With that, we expect dividend yield to remain attractive at 6.9% for FY25F.
Maintain BUY with a higher TP of THB2.22. As we fine-tuned our FY25F estimates and adjusted the number of shares (net of shares repurchased as of 1Q15), we derive a higher TP of THB2.22 (vs. THB2.18 previously) for TTB. Our TP is based on 0.9x FY25F P/BV, i.e., 1SD above its 5-year average. With its manageable asset quality, attractive dividend yield, and high earnings visibility, we maintain our BUY call on TTB.
Risks
Change in dividend policy. A high dividend yield is one of the key investment theses for TTB. Any significant change in its dividend policy could also lead to a change in our stock recommendation.
Research Platform: Insights Direct
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