Starting from mid-April 2024, Thai commercial banking stocks are gearing up to mark XD (Ex-Dividend) symbol for the second-half of 2023 and 2024 dividend distribution. Interesting payout rates are reflected in seven bank stocks starting with the SCB X Public Company Limited (SET: SCB), which announced a second-half 2023 dividend of THB 7.84, marking XD symbol on 17 April 2024, recording a dividend yield of 6.87% from the closing price of THB 114 on 1 April.
Krung Thai Bank Public Company Limited (SET: KTB) will pay a 2023 dividend of THB 0.868, marking XD symbol on the 17 April 2024, reflecting a dividend yield of 5.13% from the closing price of THB 16.90 on 1 April.
Kasikornbank Public Company Limited (SET: KBANK) will pay a second-half 2023 dividend of THB 6, marking XD symbol on the 22 April 2024, giving a dividend yield of 4.83% from the closing price of THB 124 on 1 April.
Bangkok Bank Public Company Limited (SET: BBL) announced a second-half 2023 dividend of THB 5, marking XD symbol on 23 April 2024, resulting in a dividend yield of 3.59% from the closing price of THB 139 on 1 April.
TISCO Financial Group Public Company Limited (SET: TISCO) will pay a second-half 2023 dividend of THB 5.75, marking XD symbol on the 24 April 2024, which corresponds to a dividend yield of 5.77% from the closing price of THB 99.50 on 1 April.
TMBThanachart Bank Public Company Limited (SET: TTB) will pay a second-half 2023 dividend of THB 0.055, marking XD symbol on 17 April 2024, providing a dividend yield of 3.02% from the closing price of THB 1.82 on 1 April.
Kiatnakin Phatra Bank Public Company Limited (SET: KKP) will pay a second-half 2023 dividend of THB 1.75, marking XD symbol on 26 April 2024, giving a dividend yield of 3.31% from the closing price of THB 52.75 on 1 April.
Mr. Koraphat Vorachet, Head of Investment Strategy of Krungsri Capital Securities (KCS), maintained the investment recommendation for the banking group as ‘NEUTRAL’. He estimated that between 17-19 April 2024, the seven banks would report an aggregate net profit of THB 50.3 billion, a 1% increase compared to the same period last year. This was due to a rise in net interest margin (NIM) from an increase in yield on loans as interest rates trended upwards.
Meanwhile, profits increased by 18% on a QoQ basis, due to reduced operational expenditures (OPEX) from seasonal factors and decreased expected credit loss (ECL). As for Q4/2023, KTB set aside a large amount of money to a big corporate client, while TTB encountered uncertainties in the future.
The total loan portfolio improved by 0.6% compared to the same period last year, stabilising compared to the previous quarter and considered stable from year to date (YTD) due to banks being more stringent in lending for all parties.
Non-performing loan (NPL) ratio increased to 3.87%, up from 3.59% in Q4/2023, primarily due to an NPL from a large corporate client, expected to be Italian-Thai Development Public Company Limited (SET: ITD). However, banks maintained strong asset quality in terms of setting aside provision with a coverage ratio at 173%, close to 186% in Q4/2023.
