On Monday at 10:42 AM (Bangkok time), the share price of Kasikornbank Public Company Limited (SET: KBANK) rose by 2.01% or THB 3.00 to THB 152.00, with a trading value of THB 1.11 billion.
Krungsri Securities (KSS) expressed a positive outlook on KBANK’s announcement regarding a special dividend payment of 2.5 baht per share, yielding a dividend yield of 1.7%. The ex-dividend date (XD) is set for May 15, 2025, and the dividend payment is scheduled for June 6, 2025.
This special dividend payment raises KBANK’s total dividend for the year 2024 to 12 baht per share, resulting in a dividend payout ratio of 59%, an increase from 36% in 2023. The company aims to employ a capital management strategy to enhance the return on equity (ROE) to reach double digits by 2026.
Following these developments, KSS maintains a ‘Buy’ recommendation for KBANK with a price target for 2025 set at 178 baht per share. KBANK remains a top-pick stock in the banking sector, alongside Krung Thai Bank Public Company Limited (SET: KTB), in which the analyst also holds a ‘Buy’ recommendation with a target price of 27 baht. Key supportive factors for the ratings include:
- A projected decrease in credit costs, returning to a normal range of 140-160 basis points in 2025.
- An expected net profit growth of 9% in 2025, surpassing the average banking sector growth rate of 4% from the previous year.
- Potential increases in dividend payout ratio and ROE, in line with KBANK’s capital management strategy.
The announcement of the special dividend reflects KBANK’s capability in liquidity management and creating added value for shareholders, which positively impacts the bank’s long-term growth prospects.
